Common questions about the Earned Income Credit in Lacerte

In this article, you can find solutions to frequently asked questions about generating the Earned Income Credit (EIC) in the Individual module of Lacerte. Refer to IRS Pub. 596 for more information about the Earned Income Credit.

Earned Income Credit Allowed When Taxpayer is Claimed as a Dependent

If taxpayer has a qualifying child for EIC:

The taxpayer can claim the EIC even if the taxpayer is claimed as a dependent on another's return. See 1040 instructions for taxpayers with and without qualifying children.

If the taxpayer is a qualifying child for EIC of another person:

They cannot take the EIC. If this is the case:

1. Go to Screen 38.2, EIC, Residential Energy, Other Credits.
2. In the Section list, select on Earned Income Credit.
3. Check the box that states Taxpayer is qualifying child of another. (Code 69)

• Generating the Earned Income Credit in Lacerte
• Understanding informational diagnostic ref. 18348 - Earned Income Credit (EIC) due diligence