ETIC Disable Dependent

[Terry D EA]

I have a new client that has a brother that is one year older than they are. The brother is permanently disabled and is being claimed as a dependent on the client's tax return. Drake is not allowing the EITC. My first thought the client is not eligible due to the fact they are younger than their dependent. Most of what I have read would seem to indicate they may qualify for the EITC. I don't do too many of these returns any more so the waters are a bit cloudy. What is also throwing me a bit is this taxpayer cannot provide me with the 2016 return because a copy wasn't provided. But...the client provided the W-2 from 2016 which is the only thing they had to prepare the 2016 return. They had zero withholdings and received a refund of 1700.00+. The preparer took around 300.00+ for a fee and bank loan. It would appear the refund would have been all EITC.  Am I missing something here?

Also, I couldn't find in Drake on the dependent scree a place to enter or check that the dependent is permanently disabled. Any help will be appreciated.

[BulldogTom]

Terry,

I have a client in the same situation, his disabled older brother lives with him and my client is the caregiver.  He is eligible for HOH status and EITC in the years that his income qualifies him for that credit.  I don't think there is anything wrong with the prior year return based on the info you provided.

I don't know how to enter the return in Drake to show a disabled dependent.

Tom
Modesto, CA

[Terry D EA]

1 minute ago, BulldogTom said:

Terry,

I have a client in the same situation, his disabled older brother lives with him and my client is the caregiver.  He is eligible for HOH status and EITC in the years that his income qualifies him for that credit.  I don't think there is anything wrong with the prior year return based on the info you provided.

I don't know how to enter the return in Drake to show a disabled dependent.

Tom
Modesto, CA

Thanks Tom, and at first glance I agree and still feel fairly comfortable they do qualify so maybe I am being too apprehensive with this and when I get to the office, I will look deeper into Drake. It seems as though the program doesn't know the dependent is disabled which is disallowing the EITC.

[Gail in Virginia]

It sounds like the only problem is finding where in Drake you enter that the brother is disabled.  I don't use Drake, so I probably can't help but is there a questionaire for due diligence that asks that?  Or a box on the 8867?

[Terry D EA]

Thanks Gail,

I did look on the due diligence forms. There is a section for a disabled child and I thought I had that all entered correctly. I will double check the entries again.

[jklcpa]

1 hour ago, Terry D said:

Also, I couldn't find in Drake on the dependent scree a place to enter or check that the dependent is permanently disabled. Any help will be appreciated.

Terry, when you open up screen 2 "Dependents" it looks a little like a spreadsheet with entry boxes going across. To enter much more detailed information about a dependent beyond that first grid page, click on "Item Detail" at the bottom of that screen. Doing so will take you to another screen of much more detailed questions and check boxes related to the dependent, EITC, and HOH qualifiers.  The "Additional Information" section located at the bottom left is where you indicate over 18 & disabled.   

[Terry D EA]

Thanks Judy, you know how many times I looked at that section and didn't see the check box????? Geez, I know its time for another eye exam but really. Again, thanks so much for your help.