Using EITC from 2019 income Error Message

[Greta]

Error message: Cannot efile (must mail) because "all earned income for EITC is calculated from undocumented sources." Is this because I'm using 2019 income?

[Just-Lisa-Now-]

do they have zero earned income in 2020? I thought I saw someone say they got a message that they cant Efile if no earned income in 2020...I havent had any of these yet to know how its going to work

[Greta]

Yes, client has negative Sch C income in 2020. If I can't efile, then it's not worth the hassle of mailing.

[IRonMaN]

Unless postage is more than the tax difference, I'm not sure why it isn't worth mailing.  But then again, e-filing really doesn't start until 2/12 so there is still some time before you need to make any "worth the hassle" decisions.

[abctax55]

paging @athaureaux6 

S/he has had the most questions/threads on this situation.

[athaureaux6]

It is worth mailing it if is big difference, but Intuit says they are working on it, or at least an employee reported the problem to the programmers. If I get a case like yours, I am planning to put a 1 dollar as interest and attach a PDF sign that reads  "Interest for Efiling purposes ONLY". But I hope they fix it. 

[TaxGuyBill · Accepted solution]

ProSeries and TurboTax often have the identical problems (they use the same "tax engine"), and a TurboTax employee said that they ARE working on the problem.  So it will likely be fixed soon.

[TaxGuyBill]

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@athaureaux6 wrote:

If I get a case like yours, I am planning to put a 1 dollar as interest and attach a PDF sign that reads  "Interest for Efiling purposes ONLY". But I hope they fix it. 

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That is something else.  The IRS e-file system can not process a return with $0 of income, so what you mentioned is a way to avoid that.  That has always been the case.

Greta is takking about the EIC specific error code the ProSeries (and TurboTax) is giving when there is $0 of Earned Income in 2020 (you had mentioned that in one of your posts).  That seems to be just a faulty program error code that they are working on.

[BobKamman]

@TaxGuyBill "The IRS e-file system can not process a return with $0 of income"

But it should be able to deal with a return showing a Schedule C loss, right?  The problem isn't negative AGI, it's no verification of earned income.  

@Greta " If I can't efile, then it's not worth the hassle of mailing."

You have to be kidding.  Send her to me.  I'll mail the return for free if she'll split the $5,000 refund with me.  

[Greta]

Client (single, no children) has unemployment income and needs to file. But Covid reduced his Sch C to a negative net. Using last year's earned income, the EIC is $122, so you are right,  it's real money. But I've had horrible experience with mailed returns. Nothing that was mailed last year got processed. Especially mailed amended returns. My clients are pissed and keep calling me.