EIC

[ChiHoang]

My client couple: one is permanent resident who lives in the US less than 6 months a year, one is a US citizen who lives more than 6 months in the US, they have a dependent child living in the US. They have earnings in the US, do they qualify for EIC?

Thanks 

[Just-Lisa-Now-]

Who Qualifies for the Earned Income Tax Credit (EITC) | Internal Revenue Service

[ChiHoang]

So what I read from the link: if both spouses are US citizen or resident alien for the whole year, they don't have to live in the US more than 6 months to qualify for ETIC. Is it right ?

Thanks

[TaxGuyBill]

Nothing in your comments disqualifies EIC.

However, we don't have all of the facts so we don't know if they have other circumstances that would disqualify EIC.

I suspect you are asking about the requirement to live in the US for at least 6 months, but that is only for those who claim EIC without a child (see Rule #14 in Publication 596), so that doesn't apply to your client.

https://www.irs.gov/publications/p596

[ChiHoang]

Thank you so much for your answer.

In ProSeries Basic, Part IV - EIC Information sub-part "Required to calculate EIC", if I answer NO to the question regarding home in the US for more than half of 2024 for married filing jointly (with dependents), it will not calculate EIC. Is it confusing to you ?

[TaxGuyBill]

Do you have the dependents coded as qualifying for EIC? If you have check "yes" to the 6-month box, are the dependents showing up on Schedule EIC?

[ChiHoang]

Dependent is a full-time student so I check "code S" (for EIC), if I check "YES" for the 6-month box, dependent shows up on schedule EIC.  But one of the parent with whole year permanent resident card did not live more than 6 months in 2024 in the US. Should I check "NO" for the 6-month box ? If I do, dependent will not show up on schedule EIC.

[TaxGuyBill]

It seems to be a program error.  Now that I think about, I vaguely remember this error from a previous year.

If the taxpayer's income is low enough to qualify for EIC without any children, ProSeries is wrongly automatically required those boxes and it wrongly denies the credit.

Because they have children, I would just go ahead and check the box that they were in the US for over half of 2024.  That answer won't show up on the tax return, but it will trigger ProSeries to calculate it correctly.

[ChiHoang]

That what I thought. Thank you very much for confirming my thinking.