TIL!
Every tax form I’ve ever filled out has an instruction like:
> Enter the lesser of lines X and Y
when applying deductions and credits to prevent them from exceeding some value.
I’m surprised to learn that the EIC isn’t clamped like this.
TIL!
Every tax form I’ve ever filled out has an instruction like:
> Enter the lesser of lines X and Y
when applying deductions and credits to prevent them from exceeding some value.
I’m surprised to learn that the EIC isn’t clamped like this.
As noted elsewhere, the EITC is a so-called "refundable" credit. It wouldn't serve its intended purpose if it wasn't refundable.
It is a refundable credit