Proseries 2021 calculating refundable child tax credit incorrectly

Forum|Forum|3 years ago
December 7, 2022
4 replies
28 views

Prepared client's 2021 return. Form 8812 did not allow refundable child tax credit because Earned Income Worksheet Part IV line 23 did not include her self-employed wages (because they were exempt from SE tax).

Client received CP12 indicating 8812 computation of credit was incorrect and client's return is being adjusted and the RCTC is being sent.

So it appears as long as she has earned income she is eligible for the credit.

Proseries please look into this.

I can provide tax notice (with client's permission), if needed.

Individual

This topic has been closed for replies.

taxiowa

Level 8

For 2021 you do not have to have earned income to get the refundable child tax credit. Heck you don't have to have any taxable income.

S

ScollierAuthor

Level 3

The point is the system indicated the taxpayer was not eligible for the credit and the IRS adjusted the return.

taxiowa

Level 8

My program works fine without earned income. Must by another reason program disallowed it. Usually can tell be diagnostics or improper entry of early payments. Did you get letter 6419 to enter?

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