EITC and MFS

[garman22]

Hello All,

   In 2021 taxpayers who file MFS and meet the requirements qualify for EITC. This amount SHOULD flow through to Illinois Il-E/EIC form and it does not. We cannot find anything in the statute that states otherwise so we believe this to be a flaw for Illinois EITC. 

I would encourage others in Illinois to check this AND those other states that allow EITC and flow through from Federal. 

Please check in here.......

@IntuitGabi @IntuitBettyJo 

[M Braun]

I believe you might have posted here after we discussed this on Facebook but I am having the same issue.  The Illinois EIC statutes simply refer back to the Federal EIC so I believe MFS taxpayers in Illinois should qualify for the IL-EIC as well.

[garman22]

Hi @M Braun 

Yes, that was you and I chatting back and forth on FB. 

I want to see if the moderators will pop in here and report this. 

[Dusty2]

Did they live apart the last 6 months of the year? why are they not eligible for HOH?

Dusty

[M Braun]

They lived apart all year.  No kids, so no Head of Household.  With the expanded federal EIC ($1,502) the Illinois EIC can be significant even for childless taxpayers.  IL EIC at 18% of Federal could be up to $270.

[TaxGuyBill]

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@M Braun wrote:

 No kids,

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No kids?

Maybe I'm forgetting something, but why do you think MFS qualified for EIC (even Federal EIC)?

[garman22]

@TaxGuyBill for 2021, filing MFS qualifies for EITC. 

Certain rules apply for MFS and kids.

[TaxGuyBill]

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@garman22 wrote:

@TaxGuyBill for 2021, filing MFS qualifies for EITC. 

Certain rules apply for MFS and kids.

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Yes, WITH kids.  The other person said NO kids.  Totally different.

[garman22]

With the expanded EITC rules for MFS, I would imagine no kids would qualify.  But as of now, I cant see where this person would qualify at MFS w/ no kids. I'll have to research this more. But the EITC still does not carry to Illinois for its EITC. 

@M Braun can you possibly shed some light? 

[TaxGuyBill]

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@garman22 wrote:

With the expanded EITC rules for MFS, I would imagine no kids would qualify. 

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No, a person need a Qualifying Child in order to claim EIC while filing MFS.

https://www.irs.gov/publications/p596#en_US_2021_publink1000297448

https://www.law.cornell.edu/uscode/text/26/32#d

[garman22]

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@TaxGuyBill wrote:

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@garman22 wrote:

With the expanded EITC rules for MFS, I would imagine no kids would qualify. 

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No, a person need a Qualifying Child in order to claim EIC while filing MFS.

https://www.irs.gov/publications/p596#en_US_2021_publink1000297448

https://www.law.cornell.edu/uscode/text/26/32#d

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I saw the IRS one but did not see Cornell. 

Thanks

[M Braun]

Returns are already getting mixed up in my head and I apologize.  The return I am questioning actually does have a dependent child.  Taxpayer does not qualify for Head of Household because mom didn't pay at least 1/2 the costs of the home.  I believe the new rules allow a Federal EIC and since the IL statutes say that the IL EIC is 18% of the Federal EIC that this taxpayer should get the IL-EIC as well.

[M Braun]

I apologize.  I had returns mixed up.  My original client did have a dependent child.  So they do qualify for federal EIC under the new EIC rules.  Thanks to the person who commented.  I was not clear that in order to get a federal EIC as MFS you had to have a qualifying child.

[Dusty2]

@M Braun 

Why are they not eligible for HOH?

Dusty

[IntuitGabi]

We've got our eyes on this. No updates at the moment, thank you! 

[garman22]

Thanks @IntuitGabi !

Keep us up to date even if the fix is 3 weeks out. Knowing is the battle. Im guessing that this will be a small % of the population with this issue (except for @M Braun ), but a fix is a fix. 

[IntuitGabi]

The update for this is available in production. Thanks, all.