- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
client 69 years old, single
W2 $12,648
Social Security income $16,122. no other income or investment
Is she entitled to claim EIC.? The program does not calculate it. I am a little confused with the AGE requirements being changed due to COVID 2020 & 2021.
It is because she is over 65 that she is not entitled? I have been searching but all I see is the beginning age, but not 65 or over.
Please help.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
2021 no age limit
EDIT: no longer age 65 limit
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Have you gone through the error check?
Make sure you didn't accidentally check some wrong boxes about the taxpayer, such as being a dependent, living outside of the US, or being a qualifying person of another person for EIC.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Look here:
That's how to check what should be computing.
Don't yell at us; we're volunteers
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you. I had indeed checked no to the questions if client had lived in the US for more than 6 months.
Problem solved. Thank you.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
IRS Assistant asks you to show full Social Security Income but instructions say AGI from line 11. With full Social Security client is not eligible but none of her Social Security is taxable. Which is it?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"With full Social Security client is not eligible but none of her Social Security is taxable."
You might be mixing provisions.
"Which is it?"
Did you follow that link to the IRS? They know everything.
"Earned income does not include:
- Pay you got for work when you were an inmate in a penal institution
- Interest and dividends
- Pensions or annuities
- Social Security
- Unemployment benefits
- Alimony
- Child support"
Don't yell at us; we're volunteers
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Not saying Social Security is earned income, but does it figure into the maximum income (defined as in instructions as Line 11 AGI). ProSeries Basic is allowing the EIC not including the Social Security in Maximum income calculation.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
@evan1 wrote:
IRS Assistant asks you to show full Social Security Income
It asks you to ENTER the full Social Security. That does NOT mean it is using the full amount for purposes of calculating EIC. The non-taxable portion is NOT part of AGI and therefore does NOT affect the EIC calculation.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
If there is no earned income, how could she get the earned income credit?
The more I know the more I don’t know.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"ProSeries Basic is allowing the EIC not including the Social Security in Maximum income calculation."
Did you go to the link provided earlier and follow how the IRS provides for this?
"If there is no earned income, how could she get the earned income credit?"
Perhaps electing to use 2019?
If you doubt the program, you research it to understand it. Perhaps, as with this topic originally, you marked something incorrectly or correctly, and that is making the difference.
Don't yell at us; we're volunteers
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thanks for your reply.
I am not questioning or doubting the program.
Sometimes I do not see something that is right in front of my eyes. So I ask my community Accountants and it helps to know the community is helpful in the answers.
I appreciate your taking the time to reply.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"I am not questioning or doubting the program"
It's not a critique; many things are going wrong this year. The point is to understand the underlying provisions as they apply to the return you are working on, because it might be an overlooked selection or option, or not, that creates a result you were not expecting.
Don't yell at us; we're volunteers
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes, thank you for taking the time to help. Your feedback is greatly appreciated.