Use earned income 2019 to calculate EITC for 2020 with $0 income in 2020

[AnhNgoc]

Hi everyone,

I have a client with $0 earned income in 2020. She just have unemployment benefit form 1099G. Can we use her earned income in 2019 to calculate and to get EITC & ACTC for her?

In her case, I search for EIC Worksheet and form 8812 and then check "YES" on "Elect to use 2019 earned income for EIC and ACTC".

If we can do that, I think Pro Series should pop up EIC worksheet and Form 8812 in "Form in use" and "Red check" on "YES" or "NO" in line "Elect to use 2019 earned income for EIC and ACTC". It's easy missing this benefit for our customer.

Best regards,

Anh Bui

[Just-Lisa-Now-]

Can we use her earned income in 2019 to calculate and to get EITC & ACTC for her?

That seems to be the way the law reads.

I think Pro Series should pop up EIC worksheet and Form 8812 in "Form in use" and "Red check" on "YES" or "NO" in line "Elect to use 2019 earned income for EIC and ACTC".

Yes, a pink 'error' would be handy.

[IRonMaN]

"It's easy missing this benefit for our customer."

But that's why clients pay you the big bucks so you won't miss anything for them.

[AnhNgoc]

Even though the client have no earned income in 2020?

Thanks.

[IRonMaN]

Yes

[Just-Lisa-Now-]

The instructions read that if 2019 earned income is more than 2020 you can use 2019....anything is more than zero, so if you had any earned income in 2019, seems like youd be able to use it.

We've been wrestling this around in other posts for a week now  LOL

Its all in how you interpret what it says.

[AnhNgoc]

But when client have $0 income, the Pro Series won't let us efile. We have to mail it to IRS ???

[Just-Lisa-Now-]

Lots of people will have unemployment but no earned income, or you can always put $1 in interest or Other Income to make a return able to be Efiled.

[BobKamman]

Yes.

https://proconnect.intuit.com/community/tax-talk/discussion/eic-for-2020-when-something-is-greater-t...

[AnhNgoc]

But we pay Intuit for that job too 🙂

[AnhNgoc]

Thank you Lisa!!!

[abctax55]

But when client have $0 income, the Pro Series won't let us efile.

I believe that is an IRS stipulation; so don't blame ProSeries or Intuit.

(edited to make clear my answer is regarding 'zero' income returns and efiling)

[Just-Lisa-Now-]

There was a popup alert telling us the we could Efile and Intuit would hold returns starting yesterday....but that doesnt appear to have come to fruition.

[athaureaux6]

How about this:   Put $1 as interest and attach a big sign in a PDF that reads: 

For electronic filing purposes ONLY. 

[IRonMaN]

How about putting $1 in as other income?  Everybody must find a dime or penny on the sidewalk every now and then.  Since you can't enter it in the system as $0.01 or $0.10, you need to round up on the return.

[hahmad]

I have a question here, I applied the option to use 2019 earned income for 2020 earned income credit and additional child credit, when check the sheet for calculation of earned income it shows that it uses 2020 income which resulted in much lower earned income credit than 2019, since total taxable income in 2020 was almost double of 2019, can we fix this to use 2019 income instead in calculation of the credit?

[BobKamman]

No.  2019 earned income must be more than 2020 earned income.  

[hahmad]

Yes earned income in 2019 is more than 2020, but the adjusted taxable income in 2020 is more than 2019 for the same client

[Just-Lisa-Now-]

If AGI is higher in 2020 then the lookback may not help