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EIC when only wages is $93 term life ins

bheizer
Level 4

Has anyone come across a client receiving earned income credit when their only wages are from term life insurance?  Have a client that retired but receives a W-2 from VA Retrrement System with the term life ins reported in box 1 of W-2.  

Anyway to get around this since he doesn't really qualify for EIC?  

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2 Comments 2
Just-Lisa-Now-
Level 15
Level 15
A W2 with an amount in Box 1 is considered wages.

How much EIC is it generating?

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

I have a client who received one of those for years.  It also showed uncollected SS tax on the "wages," which had to be shown on a different form and carried over to a separate schedule, or maybe it went on a different schedule that carried over to separate form.  This year, there was no W-2, and I asked why.  Turns out the insurance amount had been reduced below $50K, probably because she turned 65.  

For an $11 credit, I would ignore and override.  

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