Lisa, 

Follow the W2. 

Only 683 of the 20K earnings is taxable.  If it causes loss of $99 EITC benefit, then that's what it does...... 

The box 1 earned income is not excludable from Line 1a (used to be line 7) or EITC. (but the 20K-683 = $19,317 is... that's how they built this Medicaid program...