Older Student and EIC-doesn't want to take it.

[Bilgerat]

Taxpayer is 28 years old and returned to school full time in Spring, Summer and Fall of 2022.  Proseries is showing he qualifies for the EITC.  He has distributions from an old 529 of $10,000 (used for qual education expenses), wages of $6,027 and dividends of $3,890.  Grandfather gave him $11,000 in January.  He doesn't want to take the EIC and it's only for $142 on the return.  Is there anything here that disqualifies it?  Sounds funny, but does one have to take the EIC?

[sjrcpa]

I think you can override it to zero. IRS may compute it and send a refund anyway, though.

[taxes96786]

why not? It is actually a refund of taxes paid in the past. It may have nothing to do with his being a student. If single, no dependents and between 25 and 65 years he may qualify based on earned income.

[Just-Lisa-Now-]

He qualifies, so Im not sure whyd youd want to disallow it, but  there is a box on the fed info worksheet you can check about EIC that will disallow it  Part IV, just answer one of those questions wrong and it will disallow it.

[TaxGuyBill]

Personally, I would recommend that the taxpayer take EIC on their tax return, and if they don't want to keep that 'extra' money, they can donate it back to the government (or to a charitable organization of their choice).

https://www.fiscal.treasury.gov/public/gifts-to-government.html

https://treasurydirect.gov/government/public-debt-reports/gifts/

[BobKamman]

Change his age to 24.  And tell him to update Grandpa on the maximum gift allowance -- it went up to $16,000.  

[BobKamman]

It's like depreciation.  Allowed or allowable.  Shall means shall:

I.R.C. § 32(a)(1) In General — 

In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the credit percentage of so much of the taxpayer's earned income for the taxable year as does not exceed the earned income amount.

[Bilgerat]

I tend to agree with this.  I am very uncomfortable answering any of the questions in such a way that would cause him lose the credit.  The taxpayer just thinks the credit is for more deserving people and I don't disagree with him.  It's a rock and hard place area.  He qualifies, so we have to do all the swearing and due diligence to make absolutely positively sure he can have something he doesn't want.  Thanks everyone.  Feel free to comment if anyone has any other ideas or suggestions.

[abctax55]

deleted

[taxes96786]

Bilgerat  you do an accurate return and let the taxpayer deal with it.

[dkh]

I'd complete the return with the EIC because I wouldn't want to deal with any future IRS notices.  

Like TaxGuyBill said - advise them to donate the $142 if they're not comfortable receiving it. 

Payoff some student's school lunch debt.  Take the grandfather out for a nice meal. 

It would be nice if IRS had a check box to opt out of EIC.