Software create Error

[beckynguyentx]

I'm not sure anyone has the same error as we. Client has rental income more than $10,300 in 2022, however they still received EIC. When I read the EIC worksheet the rental income report is $6,800 which is incorrect. 

It's freak me out because I'm not sure any other errors they have in the system. And I called to Proseries to report it. Not sure the customer Rep take s my complaint seriously. She seems not to care. 

[Just-Lisa-Now-]

The net profit in 2022 was how much?  Look at the bottom of the Sch E.

[beckynguyentx]

Lisa,

I net rental  income (gross minus expenses) that is more than $10,300. And client received IRS letter for the error. He has to pay back EIC. 

[IRonMaN]

What other types of income were reported on the return?

[Just-Lisa-Now-]

Line 26 on the Form Sch E shows how much?  

Looking at the EIC worksheet, under Line 6, in that Investment Income Smart Worksheet box, what other figures do you see?  Is the Sch E amount the only one that's listed or do they have some other kind of investment loss that lowers that investment income total?

[beckynguyentx]

Schedule E with net income of $11,800, schedule C with positive net income and W2 income. That's all they have. Pretty simple 1040. When I prepared it, I did not think much about rental income more than EIC income limitation. 

[beckynguyentx]

I already went over EIC worksheet, the number does not match with net rental income. There is no other investment income, no negative number to subtract it. It's not a complicated income tax return, very simple straight forward. 

[IRonMaN]

Sounds like the software had a bit of a meldown on that return.  I would look through the rest of your EIC clients that might have income other than earned income to see if you have any other issues hanging out there.

[abctax55]

Is the rental marked as non-passive?

[beckynguyentx]

It's passive income. I already check that too. Just want let everyone know about the software error, and see anyone has the same situation with us. 

[Just-Lisa-Now-]

So its exactly $5000 off on the EIC worksheet.....your Sch E shows 11,800 but the EIC worksheet shows 6,800 on Line E1?   

Very weird, can't say Ive seen anyone else mention this problem.

If you right click on the EIC worksheet Line E1, choose Cross Reference, does it show you where that figure came from?

[rcooley25]

What software are you using?

[beckynguyentx]

Proseries Professional.