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

[caley]

Client has a net loss of $6k on his Schedule C, but we are electing to still pay SE taxes under the "Nonfarm Optional Method"... which triggers the EITC to populate.

There is an e-file error stating that the return is ineligible to e-file due to "all earned income for the Earned Income Tax Credit (EITC) is calculating from undocumented sources" ... what?! Not sure what that even means...? Is there a way around this error so I CAN e-file? Mail is so backed up.... Thanks!

[TaxGuyBill]

I would guess that if you disable error-checking when you e-file, it will go through fine.

[BobKamman]

The 2019 earned income is too high to qualify on the lookback rule?

[caley]

I will try that, but I think it will still not allow e-file....error also says "these rules are set forth by the IRS Electronic Tax Administration"

[Lukepccpa]

Does your taxpayer not have dependents?  That seems to be what triggers the error.  A taxpayer who qualifies for the EITC with only self employment income and no kids.  I've run into it many times over the years, so it's not a software error in my opinion.  They're screening for fraudulent EITC claims by requiring manual filing versus the return zipping through the e-file system.