EITC Computation

[FrankK]

I started entering client data for a 2021 into the early release of ProSeries Basic.  The program is computing the EITC, even though taxpayer and spouse are both over age 65. Has anyone else observed this?

[sjrcpa · Accepted solution]

Yes. The law changed.

[FrankK]

Hmmm... Searched the IRS web site, and their instructions still show that taxpayer must be > 65.  Must be COVID / Supply Chain delay in updating their instructions. 😞

[FrankK]

Missed it in the ARPA changes.  Thanks!

[Accountant-Man]

Frank, must be GREATER THAN 65?

[FrankK]

No, I missed the fact that ARPA lifted the upper age limit.

[Just-Lisa-Now-]

Time to sign up for some CEs! So worth the money for someone else to gather up all the new little changes and put them all in one place for you!

[FrankK]

Ordinarily, none of my clients would be eligible for the EITC.  It just happened because of this particular change and a lower income year for this client. (who is a good test case for the software due to the number of forms associated with the client's return).

With respect to CPE, this issue was not covered in my "individual tax update" CPE provided by my state society.  I sent a note to the CPE provider, as others might miss this change too.