ProConnect Tax automatically determines whether the earned income credit (EIC or EITC) applies based on your input throughout the return. However, you can force the worksheets when the Earned Income Credit isn't allowed to review the calculation.
Forcing the Earned Income Credit worksheets can help you determine why the EIC isn't generating, or whether using prior-year earnings is the best option for your client.
Starting in tax year 2022:
- In order to qualify for any amount of the Earned Income Credit, if the taxpayer doesn’t have a qualifying child, they must be 25-64 years old at the end of the year.
- If Married Filing Jointly (MFJ), only one spouse needs to meet the age requirement.
- Go to the Input Return tab.
- From the left of the screen, select Credits and choose Recovery Rebate, EIC, Residential Energy, Oth Credits.
- From the top of the screen, select EIC.
- Scroll down to the bottom of that section.
- Check the box labeled Force earned income credit worksheets
Your client may qualify for the Earned Income Tax Credit if they worked last year but didn't earn a lot of money. The EIC is a refundable tax credit, meaning your client could qualify for a tax refund even if they didn't have federal income tax withheld.
If your client qualifies, the amount of credit will depend on whether they have children, the number of children they have, and the amount of their wages and income, per IRS Pub. 596.
Refer to this IRS resource for information about Earned Income Credit eligibility requirements.