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Earned income calc when there's unemployment exclusion on the return

CardsCat
Level 2

I'm wondering if anyone knows if there will be a provision in calculating the earned income credit for those with an unemployment exclusion on same return, like there's been for calculating the taxable portion of the social security. Currently, it is not taking into consideration that part of the unemployment which is excluded. Thank you.

Cathy

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5 Comments 5
Just-Lisa-Now-
Level 15
Level 15

SS uses the entire amount of UI for its MAGI computation.   What youre seeing is correct.

Its not earned income.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
BobKamman
Level 15

The question is about EIC.  Others report that it does take into account the AGI with the exclusion -- which is what it should do.  

CardsCat
Level 2

Are you saying the $10,200 excluded for tax purposes is added back to calculate AGI? I think it should but Mine is not. If it did, this particular client would not be eligible, which I think is correct. It takes the smaller amount. If you could just clarify, I'd be very appreciative. Thanks.

Cathy

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BobKamman
Level 15

Use the smaller amount.  But IRS is hiring, if you can't lose the "Protect The Revenue" attitude.  

CardsCat
Level 2

Really not protecting IRS but me from doing free amendeds come Summer!

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