ProSeries EIC entry for "PYEI"

[wadams37]

ProSeries EIC entry for "PYEI" for Line 27 of 1040, per Pub 596 says to enter the 2019 taxable income on the dotted line next to Line 27 of 1040. The system is not allowing this entry. Where in the software can we make this entry since it is giving the tax payer more EIC for 2020. I know this is new this year, so is the program not updated yet with this change? or is there another area in the tax return to make this entry?

Please advise, thanks.

W. A.

[TaxGuyBill]

Intuit typically only does their programming based on finalized Publications, and Publication 596 was just finalized 2 days ago.

The 'standard' turn around time for Intuit to reprogram something is 3 weeks, but perhaps this will be quicker.

[athaureaux6]

Hi, you can not input anything in Line 27, the software will do it for you, go to the worksheet, look for A and B of the provision and make sure you elected the provision, and that you have an amount and the software will automatically typed it for you on the dotted line. Hope this helps. 

[Just-Lisa-Now-]

Im guessing that the software will input that PTEI label once its been updated for it, you wouldnt have to type that yourself.

[athaureaux6]

It is already updated. Just complete parts A and B and the software will write on the dotted line. 

[garman22 · Accepted solution]

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@athaureaux6 wrote:

It is already updated. Just complete parts A and B and the software will write on the dotted line. 

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You've already tried it and it auto populates based on answering those questions?

[adam_cpa]

I have tried it.  I checked the "a" box to use 2019.  The "b" box has the correct amount in it.  They made too much in 2020 to get EITC.  Yet the system is not giving them the EITC based on 2019 and not populating the info on the dotted line.  You were able to get the system to calculate it?  Or, did you just see the option and haven't tried it yet?

[garman22]

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@adam_cpa wrote:

I have tried it.  I checked the "a" box to use 2019.  The "b" box has the correct amount in it.  They made too much in 2020 to get EITC.  Yet the system is not giving them the EITC based on 2019 and not populating the info on the dotted line.  You were able to get the system to calculate it?  Or, did you just see the option and haven't tried it yet?

I'd like to know same. Does the fact they dont qualify for 2020 EITC negate using 2019's income? 

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[athaureaux6]

If they made more in 2020 there is now way they can use the provision. The system and the law will not allow. Remember, the provision it is designed for the people who lost earned income in 2020 and because that income might be too low the earned income credit is reduced. If they made more in 2020 than in 2019 it means the pandemic did not affect them, that is why they can not used the provision. Hope this helps. Line C in the EITC worksheet says exactly that. 

[adam_cpa]

makes sense.  just haven't had a chance to review those changes too closely yet.  trying to deal with PPP, ERTC, stimulus reconciliations, and so on.  so many changes so quickly.

[garman22]

@athaureaux6 So......have you actually tried it and does the PWEI transfer to 1040 appropriate EIC line?

[athaureaux6]

Yes I did, the software will transfer it to the dotted lines. 

[garman22]

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@athaureaux6 wrote:

Yes I did, the software will transfer it to the dotted lines. 

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Thank you!!!

[rjholton]

Are you looking at the 1040 Worksheet or the actual 1040?  ProSeries is entering PYEI on the dotted line next to line 27 on the 1040 Worksheet, but it is not transferring it to the 1040 for me.  Is anyone else noticing this?  I would think only the 1040, not the worksheet, is transmitted to the IRS when e-filing, so I'm concerned the IRS may not realize the client is electing to use their 2019 earned income and may adjust the return accordingly if PYEI doesn't show up on the actual 1040.  

[garman22]

@athaureaux6 Can you screenshot and post how it shows up for you?                                              

[BobKamman]

@TaxGuyBill "Intuit typically only does their programming based on finalized Publications, and Publication 596 was just finalized 2 days ago."

I think they use the Instructions before they look at publications.  The 1040 instructions, which I believe were released January 6, include this:

If you make the election to use your 2019 earned income to
figure your EIC, enter “PYEI” and the amount of your earned
income on the dotted line next to line 27.

[rjholton]

Tried doing a screen shot and it didn't work, but in a strange twist, "PYEI" shows up in the correct places on the 1040 when I print the return.  However, it still isn't showing up on the 1040 when I look at on the computer screen.  I think I'm going to wait and see if there are additional ProSeries updates in the next week before finalizing the return.  E-file doesn't open for another two weeks anyway.

[garman22]

@rjholton I was actually wanting @athaureaux6 to attempt a screenshot. 

Im glad it shows up on the return. I would've thought as you did if I did not see it on screen. 

Thank you for the update!!