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Level 2
January 5, 2021
Question

Earned Income Tax Credit - 2020

  • January 5, 2021
  • 2 replies
  • 22 views

Will Proseries Professional and Proseries Basic automatically calculate the Earned Income Tax Credit and Additional Child Tax Credit for 2020 using 2019 income if using 2019 income provides a more favorable result?

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2 replies

January 5, 2021

"Automatically", probably not.

They have not updated the "EIC Worksheet" yet, but when they do, you will probably need to manually enter the prior year's income on that.  Then you will probably need to check the "yes" or "no" boxes to select if you want to elect to use last year's income or not. But that worksheet should show you the results of using that election or not, so it should be fairly easy to figure out if the election is a good idea or not.

Level 3
January 26, 2021

Using 2019 earned income for the 2020 EIC generates a message that the return is ineligible for e-filing due to unsubstantiated income. Both returns prepared with Proseries Professional. Will there be a fix for this?