EITC from "Undocumented Sources" - Unable to E-File

[maximgt]

I am getting an error message saying that the client's federal return is not eligible for electronic filing because the "EITC is calculating from undocumented sources -- and that the rules are set by the IRS." Filing paper returns by mail, during these times, will mean lengthy time for the IRS to receive and process the return. Further, no information is provided by the software indicating which documents, if any, should be furnished when mailing federal return. Any thoughts? Thank you.  

[TaxGuyBill]

That seems to be a program error that Intuit is investigating.  So it will likely be corrected in the near-ish future.

But I personally haven't hear if they actually WILL be fixing it, or if they are still just looking into the issue.

[Just-Lisa-Now-]

Are you using the 2019 EITC lookback and have no earned income in 2020?  I believe this is just a programming glitch that should eventually be fixed.

@IntuitAustin can you confirm this?

@TaxGuyBill was it you that mentioned the same thing is happening in TurboTax and theres a plan for it to be fixed?

[Just-Lisa-Now-]

we both replied at the same time! 😄

[TaxGuyBill]

I beat you by a few seconds.   😂

I read that TurboTax was "investigating" it, which is the terminology that they use when there is a program error that needs to be fixed.  And I have 'heard' (but not confirmed) that other software has not had this problem, which would mean it is an Intuit programming error.

[maximgt]

Yes, using the 2019 EITC lookback and have no earned income in 2020. I hope this gets fixed soon. I suspect many taxpayers may use the 2019 lookback feature.

[maximgt]

Does anyone know if Intuit addressed the software glitch for both Turbo Tax and ProSeries platforms?

[TaxGuyBill]

The TurboTax site says they are working on it:

https://ttlc.intuit.com/community/tax-topics/help/e-file-error-your-earned-income-tax-credit-eitc-is...

[KMM]

I too am receiving a error message saying that the earned income comes from undocumented sources.  In my case I have an amount entered for Medicaid Waiver Payments on line 6 of the EIC Worksheet.  I had this in 2020 and had no issues filing electronically.  How to contact anyone at Intuit for this?

If I enter Earned income from 2019 return as a larger amount then the current year earned income and check yes to use 2019, then I don't get the error message that I do as I mention in the first paragraph.  But my question here is can I use the amended Earned income amount from 2019 when I am in the process of amending 2019? I know what the new earned income amount is. I have a feeling this refund will take forever for them to get and amending 2019 might also be confusing and could prolong the refund.

[jgwhite2509]

Any update on this?  I'm in 2022 Proseries and am having this same error message.  First time I have seen it..

[Just-Lisa-Now-]

whats the situation you have?  what kind of income?

[jgwhite2509]

Income is from 1065 K1 (S/E earnings..) and there are some UPE against the K1.

[TaxGuyBill]

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@jgwhite2509 wrote:

Income is from 1065 K1 (S/E earnings..) and there are some UPE against the K1.

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Profit in Box 1 and 14A of the K-1? 

Does the UPE completely zero-out the profit on the K-1?

Does Schedule SE show SE tax? 

[jgwhite2509]

Yes, profit in box 1 and 14a.  No the UPE doesn't zero out profit.

They do have another K1 with rental losses so schedule E has a net loss.

Yes Schedule SE for taxpayer shows SE tax. but schedule SE for the spouse does not.

[BobKamman]

"Filing paper returns by mail, during these times, will mean lengthy time for the IRS to receive and process the return."

This was true when posted in 2021.  Taxpayers who filed paper returns in early February 2023 received refunds in early March 2023.