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- Can it make sense for a 2021 MFJ return, with no children, to have a $3,409 Earned Income Credit?
Can it make sense for a 2021 MFJ return, with no children, to have a $3,409 Earned Income Credit?
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quintin_s_smith
Level 1
12-22-2021
07:53 AM
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I'm using the tax planning tool to estimate capital gains that could be harvested at a 0% rate.
Given the relaxed rules around EIC for 2021 my clients would qualify - retired, 66 and 70 years old, no qualifying children, less than $10,000 investment income, about $10,000 of earned income.
$3,409 EIC looks funny to me - for 2021, the max EIC with no children is $1,502 so whether the $1,502 is per return or per person (1,502 x 2 = 3,004) how could the answer be $3,409?
I would like to confidently advise my client to harvest some capital gains at the 0% rate (less than $10,000 per EIC limits) but I am concerned the software may not be calculating things correctly. What do you think?
Given the relaxed rules around EIC for 2021 my clients would qualify - retired, 66 and 70 years old, no qualifying children, less than $10,000 investment income, about $10,000 of earned income.
$3,409 EIC looks funny to me - for 2021, the max EIC with no children is $1,502 so whether the $1,502 is per return or per person (1,502 x 2 = 3,004) how could the answer be $3,409?
I would like to confidently advise my client to harvest some capital gains at the 0% rate (less than $10,000 per EIC limits) but I am concerned the software may not be calculating things correctly. What do you think?
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1 Comment 1
IRonMaN
Level 15
12-22-2021
09:02 AM
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When I'm not confident in the numbers the software is providing I take a step back and calculate those numbers myself. Clients are paying us for our tax expertise so sometimes we need to put that expertise to use.
Slava Ukraini!
