Form 4029 exempt and EIC

[llshls2004]

I have a client who is form 4029 exempt with W-2 wages (federal only gross, no SS or Medicare) and the program calculated EIC and additional child tax credit.  I was able to get the additional child tax credit to stop, now how do I get the program to stop calculating EIC?

[Terry53029]

Why do you think your client does not qualify for those credits 

[taxiowa]

I don't know what program you are using.  Proseries Professional does not allow those 2 if they are 4029 exempt. Or you have made a mistake in entering.

[Terry53029]

An employee with a W2 even with 4029 is considered earned income for EIC. from pub 596:

Form 4029. Whether or not you have an approved Form
4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. However,
amounts you received as a self-employed individual don't
count as earned income. Also, in figuring earned income,
don't subtract losses on Schedule C or F from wages on
line 1 of Form 1040 and 1040-SR.

link to pub 596: https://www.irs.gov/pub/irs-pdf/p596.pdf