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Hello All,
In 2021 taxpayers who file MFS and meet the requirements qualify for EITC. This amount SHOULD flow through to Illinois Il-E/EIC form and it does not. We cannot find anything in the statute that states otherwise so we believe this to be a flaw for Illinois EITC.
I would encourage others in Illinois to check this AND those other states that allow EITC and flow through from Federal.
Please check in here.......
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I believe you might have posted here after we discussed this on Facebook but I am having the same issue. The Illinois EIC statutes simply refer back to the Federal EIC so I believe MFS taxpayers in Illinois should qualify for the IL-EIC as well.
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Hi @M Braun
Yes, that was you and I chatting back and forth on FB.
I want to see if the moderators will pop in here and report this.
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Did they live apart the last 6 months of the year? why are they not eligible for HOH?
Dusty
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They lived apart all year. No kids, so no Head of Household. With the expanded federal EIC ($1,502) the Illinois EIC can be significant even for childless taxpayers. IL EIC at 18% of Federal could be up to $270.
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@M Braun wrote:
No kids,
No kids?
Maybe I'm forgetting something, but why do you think MFS qualified for EIC (even Federal EIC)?
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@garman22 wrote:
@TaxGuyBill for 2021, filing MFS qualifies for EITC.
Certain rules apply for MFS and kids.
Yes, WITH kids. The other person said NO kids. Totally different.
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With the expanded EITC rules for MFS, I would imagine no kids would qualify. But as of now, I cant see where this person would qualify at MFS w/ no kids. I'll have to research this more. But the EITC still does not carry to Illinois for its EITC.
@M Braun can you possibly shed some light?
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@garman22 wrote:
With the expanded EITC rules for MFS, I would imagine no kids would qualify.
No, a person need a Qualifying Child in order to claim EIC while filing MFS.
https://www.irs.gov/publications/p596#en_US_2021_publink1000297448
https://www.law.cornell.edu/uscode/text/26/32#d
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@TaxGuyBill wrote:
@garman22 wrote:
With the expanded EITC rules for MFS, I would imagine no kids would qualify.
No, a person need a Qualifying Child in order to claim EIC while filing MFS.
https://www.irs.gov/publications/p596#en_US_2021_publink1000297448
https://www.law.cornell.edu/uscode/text/26/32#d
I saw the IRS one but did not see Cornell.
Thanks
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Returns are already getting mixed up in my head and I apologize. The return I am questioning actually does have a dependent child. Taxpayer does not qualify for Head of Household because mom didn't pay at least 1/2 the costs of the home. I believe the new rules allow a Federal EIC and since the IL statutes say that the IL EIC is 18% of the Federal EIC that this taxpayer should get the IL-EIC as well.
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I apologize. I had returns mixed up. My original client did have a dependent child. So they do qualify for federal EIC under the new EIC rules. Thanks to the person who commented. I was not clear that in order to get a federal EIC as MFS you had to have a qualifying child.
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We've got our eyes on this. No updates at the moment, thank you!
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Thanks @IntuitGabi !
Keep us up to date even if the fix is 3 weeks out. Knowing is the battle. Im guessing that this will be a small % of the population with this issue (except for @M Braun ), but a fix is a fix.
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The update for this is available in production. Thanks, all.