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wemagine if I lose the attained earnings income income income tax credit?

In the event that you lose the Earned money Tax Credit entirely due to your investment gains, then it just implies that you may owe a more substantial goverment tax bill than you might have otherwise owed for the reason that it credit goes away completely. Below that level, so you may want to consider making another small investment such that, if you lose money on it, you would at least restore your earned income tax credit for the following year if you are close to the cutoff, a small investment loss would get you.

For instance, in the event that you qualified for the EITC in 2020 and it also appears like you'll be eligible for a it once again in 2021 except which you attained $4,000 in investment income, contemplate using a number of your investment earnings to purchase other short-term assets. Then your investment income is high enough that the loss of the tax credit isn’t a big deal if those pay off.