Level 3

Question

2020 EIC USING 2019 INCOME - WITH NO 2020 INCOME

Forum|Forum|5 years ago
January 25, 2021
5 replies
1 view

Wouldn't you know the first return of the season is a BIG HEAD-SCRATCHER.

Have someone who had no 2020 income and two kids and qualifies for the EIC and additional Child credit based on 2019 income. Set this up correctly on the worksheets and a $k refund is generating but Proseries is stating that I can not e-file due to all income used to qualify for EIC is coming from undocumented sources!

What do I do??

Adam Gladstone, CPA

Warminster, PA

[ph# removed]

[email address removed]

ProSeries Professional

This topic has been closed for replies.

IRonMaN

Level 15

For an earlier discussion on the topic:

Earned Income Tax Credit - Intuit Accountants Community

Slava Ukraini!

A

athaureaux6

Level 7

Hi, we had a long discussion about it but as of today I am still not sure about this. It seems that even with ) 0 income somebody qualifies for the EITC using the 2019 earned income amount. As you said, why the program marked wrong. A group of people are calling PS and IRS to clarify this. It has to be solved quickly this week or it is going to be a mess. I already had people with did not work and had earned income last year. A mess.

Just-Lisa-Now-

Intuit Community Champion

On Saturday, I saw a tax professional in a FB tax group say that his office had something from IRS stating that it was allowed, I asked him for a link to the info or whatever he had from IRS, he said he'd add it to the group discussion once he was back in the office on Monday....if he comes back, I'll add that info to this discussion.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

abctax55

Level 15

"... I can not e-file"

NO one can e-file right now. Wait for an update to see if it gets fixed. We've got three weeks for Intuit to make this work.

HumanKind... Be Both

A

athaureaux6

Level 7

Nobody is talking about efiling, it is about the EITC I guess with 0 income

abctax55

Level 15

@athaureaux6

The OP specifically stated "....I can not e-file". Reread it, please.

I understand what the issue is. It's only 1.25.21 - there are, and will continue, to be bugs in the programming.

HumanKind... Be Both

George4Tacks

Level 15

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/who-qualifies-for-the-earned-income-tax-credit-eitc

Earned Income Tax Credit (EITC) Relief

If your earned income was higher in 2019 than in 2020, you can use the 2019 amount to figure your EITC for 2020. This temporary relief is provided through the Taxpayer Certainty and Disaster Tax Relief Act of 2020.

To figure the credit, see Publication 596, Earned Income Credit.

Answers are easy. Questions are hard!

Just-Lisa-Now-

Intuit Community Champion

Sooo, do you have to have enough earned income to qualify for EIC in 2020, before you have the option to use the lower 2019 earned income amount ?

Or does having 0 earned income in 2020, still allow you to choose the 2019 higher amount of earned income for EIC (like PS is allowing?)

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

A

athaureaux6

Level 7

Hi Lisa, this is exactly what I have been asking all this time? I have talked to many people, well, not many, because to tell you the truth, many tax people, do not even know about this, they think that yes, with 0 income you would still qualify.

I just got more confused reading an article that said you will need at least 1 dollar of earned income to use the provision. Can somebody explain that to me?

S

singh

Level 6

Sorry that I am so late into looking at the question you had.

I have filed three returns where I used 2019 income for EIC and for CTC.

If there is no earned income on 2020 tax return then you cannot e-file. Using the 2019 income does not go to 1040 LINE 1 (W2) so there is no verified earned income.

Also make sure that you are claiming both, EIC and CTC. I had to go to Form 1040 and click on CTC line to be able to claim the CTC.

I had to mail the tax returns attaching 2019 tax copy and 2019 W2 to avoid any verification from IRS for 2019 income.

I hope this will help you.

R

rikelmi1

Level 2

IS IT GOING TO AFFECT THE STATE REFUND ? I REALIZED THAT STATE REFUND STAYS THE SAME .

THANKS!

C

castilloent2010

Level 2

Hi,

I am having the same issue and can't seem to find a solution to this situation. Would you please be so kind to let me know if you were able to find a solution or a workaround?

Looking forward to your response,

Claudia Castillo, EA

Cleveland, OH

Earned Income Tax Credit (EITC) Relief

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