EIC on legal svc w-2

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  • JenMO
    Senior Member
    • Apr 2007
    • 974
    #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 $6 on the W-2?
    Tags: None
    • ChEAr$
      Senior Member
      • Dec 2005
      • 3872
      #2
      filing

      Originally posted by JenMO
      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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