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How can I remove the earned income credit

liebscher4cpa
Level 1

All,

My client doesn't qualify for the earned income credit because he moved back home in March 2020 and his parents are supporting him.  He only  made $9000 in 2020.

Am I wrong?

If I am right, how in the world do you disable the Earned Income credit in ProSeries?
Thanks for your help!

 

Anita Liebscher

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16 Comments 16
jeffmcpa2010
Level 11

have you tried checking the box on the information worksheet that he is a dependent of someone else.?

Ernie
Level 9

He can't be a dependent of someone else.

What makes you think he is not eligible?

liebscher4cpa
Level 1

Because he lived with his parents for 9 months and didn't contribute to his living expenses?  Wouldn't that disqualify him?

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Ernie
Level 9

When you read the rules for Earned Income Credit what are they?

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/who-qualifies-for-the-ea...

Dusty Ernie

BobKamman
Level 15

As one of the three blind men trying to describe an elephant, may I ask how hold he is and whether he was a full-time student for at least part of five months?  (Yes, final day of class on May 1 still counts.)

liebscher4cpa
Level 1

No, he was not a student.  He is a college graduate, age 27 as of 12/31/2020 who lost his job.

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BobKamman
Level 15

And now you want to take away his EIC.  Poor guy.  Have you no mercy? 😢

jeffmcpa2010
Level 11

Does he pass the income test to be a dependent?

If not than he is not a dependent. 

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BobKamman
Level 15

Post says income $9,000

jeffmcpa2010
Level 11

Saw that Bob, was trying to point the OP in the right direction. I know how it is when you get fixated on something and miss the big headlight running through the tunnel at you.

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liebscher4cpa
Level 1

Made over 9k, so not a dependent. Right?

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liebscher4cpa
Level 1

I just don't want to do his return incorrectly. Do you all think he should get the EIC?  What am I missing?

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jeffmcpa2010
Level 11

Yup.

I think you just got yourself in a never ending brain loop. Happens sometimes when something looks strange.

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liebscher4cpa
Level 1

So, does that mean he IS eligible for the EIC?  I'm still confused...which is my normal state for this tax season.

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TAXOH
Level 11

Yes he is eligible.

TaxGuyBill
Level 15

@liebscher4cpa wrote:

My client doesn't qualify for the earned income credit because...


Which of the rules do you think he does not meet?

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

 

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