Client has a net loss of $6k on his Schedule C, but we are electing to still pay SE taxes under the "Nonfarm Optional Method"... which triggers the EITC to populate.
There is an e-file error stating that the return is ineligible to e-file due to "all earned income for the Earned Income Tax Credit (EITC) is calculating from undocumented sources" ... what?! Not sure what that even means...? Is there a way around this error so I CAN e-file? Mail is so backed up.... Thanks!
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Does your taxpayer not have dependents? That seems to be what triggers the error. A taxpayer who qualifies for the EITC with only self employment income and no kids. I've run into it many times over the years, so it's not a software error in my opinion. They're screening for fraudulent EITC claims by requiring manual filing versus the return zipping through the e-file system.