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Partnership Income/Earned Income Credit

rpittman
Level 2

I entered K-1 income from an LLC for a client who normally qualifies for the earned income credit. The amount entered exceeded the $11000 threshold for investment income, but was not listed on the EIC worksheet and therefore allowed the credit. IRS disallowed the credit and requested an amended return, but can't get the program to handle correctly. 

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2 Comments 2
Just-Lisa-Now-
Level 15
Level 15

If IRS disallowed the credit and the outcome is now correct, what's there to amend?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
rpittman
Level 2

I thought the same thing but when client talked to them by phone, that's what they wanted. I advised the client to pay the additional tax billed on the notice, without submitting an amended return, until I could figure out how to get the program to handle correctly, if in fact an amended return was needed. Regardless of the outcome, am I missing something on how to enter the information, so the K-1 income is shown on the investment income worksheet and ultimately exceeds the $11,000 threshold?

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