Get Schedule C to calculate as Earned Income

[ShoeBox Taxes]

I've done this a million times, and now for some reason it's not calculating correctly.

2018 return. Client has a Schedule C. MFJ 2 kids. AGI is about $35k. It's claiming he doesn't qualify because he doesn't have any "earned income." The Schedule C should be calculating as "earned income." How do I tell the software this?

I've checked that it IS a "qualified trade or business" and that does not seem to help.

FWIW, the TP is a minister who is exempt from SE tax, but that shouldn't make his income unqualified for EIC purposes, should it?

[PATAX · Accepted solution]

I believe the ministers wages that are not subject to self-employment tax is indeed the reason why you are not getting the e i c tax credit... I don't think you can count this income towards this credit but I may be wrong...

[ShoeBox Taxes]

It appears you're correct. If I change it to regular self-employment income, he gets the EIC credit, but he also owes SE tax, and the EIC isn't large enough to pay for the SE tax. So there it is and there you have it.

Thanks!

[PATAX]

You're welcome