EITC mistakenly denied

[bradtb34]

My Earned Income Tax Credit was denied for 2020. I talked with someone on the IRS help line after this happened, and it seemed that the person who adjusted my claim and removed the EITC thought I didn't have any income. I wrote a letter in April 2021 explaining my income situation (I was a graduate student, and the reporting requirements are a little weird -- but I definitely did have earned income) and requesting that the credit be reinstated. 

I have since then received a few letters basically saying they need more time to consider my request. The last one (six months ago, from May 25, 2022) said two (maybe conflicting?) things: (1) that "we have adjusted your account as requested" and (2) "Your information has been sent to our Examination Department for further review." 

I've been trying to call the help number (1-800-829-0922) and find out what the actual situation is, but I can never get anyone -- they always "can't take my call due to large call volume." What can I do to find out if they're still reviewing my  request / objection to removing the EITC? Can I file an official "appeal" at this point? Anything else I should do?

[NCperson]

@bradtb34 - try calling at 6:50 p.m. in your local time zone.  I've seen others post that they have an easier time getting through just before the call center closes for the day. 

And I wouldn't call on a Monday....call centers are notorious for being backlogged on Mondays due to a) questions piling up from over the weekand and b) absentism tends to be higher on Mondays than any other day of the week.  This goes for ANY call center - not just the IRS.  I NEVER call an 800 number on a Monday for this reason - not worth the hold times.

[NCperson]

@bradtb34 - and by the way, for 2020 (and 2021) ....

if your 2019 earned income was higher than 2020's earn income AND it yields a higher EITC credit, then you can use the 2019 earned income number to calculate the 2020 credit. 

and just out of curiosity, what makes your 2020 earned income so challenging to figure out? 

[bradtb34]

@NCperson I know how much the credit should have been, from the Turbotax-prepared return (about $4k).

I've tried calling at all times, and after I've gotten through the automatic menu, it always tells me the call volume is too high and to try another time. A year ago I would get put on hold for an hour plus but eventually get someone. I've actually wondered if the line I get sent to through the menu just isn't staffed anymore... but that's pure speculation. In any case, I'm wondering if I should file an official appeal -- unless my letter objecting to the change counts as an appeal already, but I'm not sure about that.

It's complicated because of the way that a stipend for a doctoral student is reported. The university has several options for reporting (to the student, and to the IRS). My university opted to use an 1099-MISC. But The IRS directions for me to report this income was (at least in 2020) for me to put that kind of income on line 1, with the designation "SCH" (for "scholarship," I presume). From what I could tell on the conversation I had with the IRS help line when the credit was first denied, the misunderstanding had to do with the 1099-MISC reporting. I've since changed how I report this (and finished the program). But I'd like to get that EITC credit I had coming... Stipend income does count as "earned income"... And, I also had some straight W-4 income, on top of that. But they just totally removed the EITC, for reasons beyond me.