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Level 7
February 4, 2021
Solved

Using EITC from 2019 income Error Message

  • February 4, 2021
  • 9 replies
  • 39 views

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?

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Best answer by TaxGuyBill

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.

9 replies

Just-Lisa-Now-
Intuit Community Champion
February 4, 2021
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
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
GretaAuthor
Level 7
February 4, 2021

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

GretaAuthor
Level 7
February 4, 2021

@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.  


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.

abctax55
Level 15
February 4, 2021

paging @athaureaux6 

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

HumanKind... Be Both
February 4, 2021

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.