Help on EIC

[Burke]

Thanks for all the input. I will try to do better. Software is ATX. $36,840 is net self-employment income. Only other income on return is $172 interest. Therefore gross income is $37,012. Adj to income are: $752 SEHI (also accounted for on Sche SE so that SE is figured on reduced amt of $36,088) and 1/2 of SE tax deduction of $2,550. Total adjs = $3,302. So AGI is $33,710.

Since the software was not calculating Worksheet B-EIC, I had to input everything manually. I forgot to subtract the 1/2 SE of $2,550 in Part 1 but found that last night. So now, it makes the EIC even more = $2,337! Tried deleting form and reinput. Still says "no." Have diligently checked all questions and entries on EIC and 8867. Can find anything out of order. Children are QC's, natural-born children of US citizens/parents. One was born in 2010. In 2009 it calculated it just fine (less income, only one child).

There is no child care 2441, there is some CTC and add'l CTC on 8812 but I don't think this particularly affects the EIC calc. Next step - delete entire return and reinput. TP still owes money so there is no refund involved here. But I want to make sure it is correct, so my due diligence is including (but not limited to) your great advice.

[Burke]

UPDATE: Got it! Followed John's advice and did error check in ATX. Had a number of things which did not make any sense. So I deleted the SSN's on the parents because it was not checking that box on EIC after I deleted and reinput form, deleted it again, reinput for a 2nd time and answered all the questions again -- and voila! It came up $2,337. Now if I was a DIY'er and didn't know what the answer should be, what would have happened? I guess IRS would have caught it when they processed. Oh, well. Sorry to put everyone to so much work. I was not expecting such a huge response.

[appelman]

I believe it was Sherlock Holmes...

...who said something to the effect that after the impossible has been eliminated, whatever remains, however improbable, must be the truth!

[Burke]

I like that one! Being as anal as I am, I was determined to get an explanation if it took until the end of the year.

[JohnH]

I use ATX as well. My suggestion was based on my having made mistakes of various types, pressing "Control-E", and seeing all sorts of wierd things listed. Most of the time one of those items pointed me directly or indirectly to the root of the problem.

[FEDUKE404]

Dealing with that smart software

UPDATE: Got it! Followed John's advice and did error check in ATX. Had a number of things which did not make any sense. So I deleted the SSN's on the parents because it was not checking that box on EIC after I deleted and reinput form, deleted it again, reinput for a 2nd time and answered all the questions again -- and voila! It came up $2,337. Now if I was a DIY'er and didn't know what the answer should be, what would have happened? I guess IRS would have caught it when they processed. Oh, well. Sorry to put everyone to so much work. I was not expecting such a huge response.

I'm glad you got it figured out. There should be no reason to enter anything "manually" so the Q&A route may have solved the problem.

I do know that with most tax software, for any dependent, there is a worksheet for the "usual" questions such as name/DOB/relationship etc. But there may well be additional input areas there (or even on another worksheet) that address things specific to other topics....such as EITC, education issues, and more.

I've encountered similar problems when I KNOW client is eligible for such and such (EITC or education credits or even Form 8880 considerations) but the software shows me a goose egg. Since I did returns way before computers thought for me, I am basically a "forms" type person but I have learned that sometimes I need to bite the bullet and go the route of the Q&A instead. In most cases, once I "check the correct box" the expected credits or whatever magically appear!

And, of course, when you get the "wrong" number there are many places to go looking. Most of those situations are related to how many things now interact/limit on a tax return.

FE