Using 2019 earned income for EIC and Child credits.... please read

[Pacun]

Since you have to use 2019 on both EIC and child credits if higher, be careful because you have to manually select both. 

on Sch EIC Step 5, 2 you have to check the box. Then go to Sch 8812, 6a and manually enter the 2019 amount. 

If someone is doing the way I am doing it, let us know. If doing it different, please share.

[katri]

AGI is not the same as Earned Income

Look at EITC for examples of Earned Income 

[Pacun]

6 hours ago, katri said:

AGI is not the same as Earned Income

Look at EITC for examples of Earned Income 

On another post, I suggested that if you didn't prepare 2019 tax return and the TP has different kinds of income, the best is to prepare the 2019 tax return correctly on ATX (from the copy they provided) and then roll over the return to 2020. That way the software will grab only the earned income from previous year.

[Pacun]

moving it up just to help another post.

 

[Jrkmbowman]

Has anyone gotten the ERROR: IRS Business Rule F1040-016-06 when doing this?  I have a client that did not have any earned income last year just social security.  

[Abby Normal]

By 'last year' you mean 2020?

[Jrkmbowman]

Yes, but had w-2 wages for 2019.  So using the 2019 PY earned income amount 

[Abby Normal]

That should work, unless the programming didn't allow for a zero current year earned income. Maybe put a $1 for wages on the worksheet for that line?

[Jrkmbowman]

I have a call in to ATX but worse case scenario I will be putting in the dollar so it can e-file.

Thanks!