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EIC on legal svc w-2

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    #1

    EIC on legal svc w-2

    Client receives one of those w-2's for legal services where he has to pay the FICA taxes on because he worked there but is now retired. We are only filing to get withholding back, but software wants to give EIC of $10 because of the w-2. Is this right or should I override?
    If he didn't have withholding , would we have to file to pay the $6 on the W-2?
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    #2
    filing

    Originally posted by JenMO View Post
    Client receives one of those w-2's for legal services where he has to pay the FICA taxes on because he worked there but is now retired. We are only filing to get withholding back, but software wants to give EIC of $10 because of the w-2. Is this right or should I override?
    If he didn't have withholding , would we have to file to pay the $6 on the W-2?
    yes; no
    theoretically yes, but I doubt IRS would ever bother client for such a small amount.
    It probably would never be a blip on their radar.
    ChEAr$,
    Harlan Lunsford, EA n LA

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