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Earned Income Credit

Forum|Forum|4 years ago
April 7, 2022
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Turbo Tax said I was not eligible for Earned Income Credit. But I just got a letter from the IRS saying it looks like I am. According to the form from the IRS, it seems I am so now I am confused. Is it possible Turbo Tax made a mistake? Or maybe I did? I'm not sure how to know for certain if I'm eligible.

Best answer by DMarkM1

Thank you for that, but honestly I am still confused. These are the two issues I am confused over... 1-Not be claimed as a qualifying child on anyone else's tax return 2-Be at least age 18 at the end of the tax year (usually Dec. 31) The minimum age to claim the EIC is generally age 19; however, if you are a qualified former foster youth or a qualified homeless youth, you need to be at least age 18. If you are a specified student (other than a qualified former foster youth or a qualified homeless youth), you need to be at least age 24. Since my parents claimed me only for the purpose of being considered for EIC (not as a dependent), but was denied EIC, does that mean technically I was NOT claimed as a qualifying child on someone else's tax return? Also, if I am a student, do I need to be at least 24 to claim EIC? What exactly does "specified student" mean? Why would the IRS send the letter if I don't fill that requirement? I'm sorry for all my confusion, but I really appreciate the help.

You state your parents did not get the Earned Income Tax Credit (EITC) with you as a qualifying child so that test is passed.

Next, you can qualify for the EITC if you are age 19 or older unless you are a specified student. A specified student is:

A person who is enrolled in a program that leads to a degree, certificate, or other recognized educational credential and carried at least one-half the normal workload for your course of study during at least 5 calendar months of the year or an academic period if longer.

If you are a specified student you must be at age 24.

The IRS doesn't know if you are a specified student; only your age and income and therefore you could be eligible based on the information they have.

M

mglauner

Was the IRS letter regarding Earned Income Credit for your 2020 return? Or for a 2021 return that you already filed?

Usually the letter will have a form to return to the IRS and they will calculate and send you the EIC that you didn't claim.

If you haven't filed your 2021 return yet, under Deductions & Credits, scroll down the list of topics to 'Earned Income Credit' and Start/Update by going through the interview.

Here's Qualifications for Earned Income Credit.

@LCM63

L

LCM63Author

Thank you so much for that info. The letter is for my 2021 taxes that I have already filed. I read through everything again, and I think I am clear on the turbo tax requirements. I think this might be why turbo tax denied the EIC...

You must be at least age 24 if you are a specified student, unless you are a qualified former foster youth, or qualified homeless youth

The letter I got confuses me though. I understand all the requirements until it asks if I am an EIC qualifying child of another person. I know I don't qualify as an EIC for my parents, and I also know they did not claim me on their taxes last year except to be considered for EIC.

Is it possible to be a qualifying child of another person even if they did not claim me on their taxes?