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earned income credit

Forum|Forum|4 years ago
April 5, 2022
6 replies
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I filed my federal return using Turbo Tax which determined I am not eligible for the earned income credit. Now I just received a letter from the IRS telling me I am eligible. The letter includes Form 15112 EIC Worksheet and based on the questions on the worksheet it looks like I should be eligible. Turbo tax asked questions about my 2019 earned income to help determine eligibility, but this worksheet does not ask any questions about 2019 income.

Best answer by JohnW152

If it appears that you’re eligible for EIC for tax year 2021, according to the Earned Income Credit Worksheet (CP 27), You should fill it out and mail it as requested in the IRS’ letter.

Since the form only addresses eligibility for the credit, as opposed to the computation of the credit, you should also attach a letter asking the IRS to use the earned income from whichever year – 2019 or 2021 – will result in a higher EIC amount for you.

You can also compute the EIC amount yourself to include an amount in your letter, using the instructions at Lines 27a, 27b, and 27c—Earned Income Credit (EIC) in the 2021 Instruction 1040, but it’s a pretty complicated calculation.

Or, you could also go into the TurboTax program and start an amended return using both 2019 and 2021 earned income to see if you could come up with the EIC amount yourself, but you don’t want to actually file an amended return, since the letter doesn’t ask you to do that.

Please see the IRS’ Understanding Your CP27 Notice for more information.

J

JohnW152Answer

Level 15

If it appears that you’re eligible for EIC for tax year 2021, according to the Earned Income Credit Worksheet (CP 27), You should fill it out and mail it as requested in the IRS’ letter.

Since the form only addresses eligibility for the credit, as opposed to the computation of the credit, you should also attach a letter asking the IRS to use the earned income from whichever year – 2019 or 2021 – will result in a higher EIC amount for you.

You can also compute the EIC amount yourself to include an amount in your letter, using the instructions at Lines 27a, 27b, and 27c—Earned Income Credit (EIC) in the 2021 Instruction 1040, but it’s a pretty complicated calculation.

Or, you could also go into the TurboTax program and start an amended return using both 2019 and 2021 earned income to see if you could come up with the EIC amount yourself, but you don’t want to actually file an amended return, since the letter doesn’t ask you to do that.

Please see the IRS’ Understanding Your CP27 Notice for more information.

E

EIC1

Level 2

I also just received the CP 27 and it turns out I am eligible for a $1,502 credit! I went back into Turbotax to see where I might have made a mistake. As you saw, it only asks a question about 2019 income and then says I am not eligible. This is a huge mistake on something that should be easy for Turbotax to get right based on the personal income I entered along with my income. Please fix. I would not have known about this without a letter from the IRS telling me how to file for the credit.

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abartho

Level 2

Same situation - Turbotax says not eligible yet this appears to be incorrect. I've signed/returned the CP27 notice and look forward to the EIC refund.

Critter-3

Level 15

NOTE the IRS only says you "MAY" be eligible for the EIC so the TT program may be correct but it is based on your entries so if you did not enter the correct 2019 earned income amount the IRS is giving you a chance to correct this data entry error if you did make one. Read the notice carefully and respond as directed ...

https://www.irs.gov/individuals/understanding-your-cp27-notice

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bkrummel

Level 2

Same here, Turbotax did not recognize the credit and received the letter from the IRS. Reviewing the form, eligible for the credit. Very frustrated with TurboTax as it overlooked the opportunity of the tax credit which is a substantial amount of money.

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NCperson

Level 15

@bkrummel - curious, I know the IRS is sending letters says you MAY be eligible for the credit. Would you mind posting your AGI (Line 11) and the number of children you have...... those two numbers determine whether you are eligble for EITC and would confirm if TT really calculated this incorrecfly as it was all automated, or the IRS is just sending out letters to create false hope.

and did the letter mention 2020 or 2021 tax return?

thank you,

Critter-3

Level 15

For the 2020 return, if the taxpayer had unemployment that later became fully or partially non taxable which means they are now eligible for a credit they were not eligible for on the original return and/or they fail to enter the correct 2019 AGI to get the credit thus the IRS sends the form 15111 to alert the taxpayer they "may" be eligible for a credit they did not already apply for. This is in the taxpayer's favor as it saves them from amending a return they may not know it needs to be amended.

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shayento

Level 2

Did you got your EIC? I filled the form after getting cp27 notice. I sent mail May 25 but didn’t get back my Earned Income Credit.

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mccloska

Level 2

yup i sent mine early april and i am STILL waiting on anything. Ive actually just figured I wont ever get the money i am owed. and its a substantial amount.. im not using TT anymore after this year

DoninGA

Level 15

@mccloska wrote:

yup i sent mine early april and i am STILL waiting on anything. Ive actually just figured I wont ever get the money i am owed. and its a substantial amount.. im not using TT anymore after this year

Did you e-file your tax return and was it accepted?
Only the IRS and your State control when and if a Federal or State tax refund is Approved and Issued.

You complete your tax return by finishing all 3 Steps in the File section. In Step 3, to e-file your tax return, you must click on the large Orange button labeled "Transmit my returns now".

After completing the File section and e-filing your tax return you will receive two emails from TurboTax. The first email when your tax return was transmitted and the second email when the tax return has either been accepted or rejected.

Note - Once a tax return has been Accepted by the IRS or a State, TurboTax receives no further information concerning the tax return or the status of any tax refund. Only the taxpayer listed on the tax return can obtain the status of a tax refund or a tax return.

To check the status of an e-filed return, open up your desktop product or log into your TurboTax Online Account. You can find your status within the TurboTax product.
If accepted by the IRS use the federal tax refund website to check the refund status - https://www.irs.gov/refunds
If accepted by the state use this TurboTax support FAQ to check the state tax refund status - https://ttlc.intuit.com/questions/1899433-how-do-i-track-my-state-refund

After the tax return has been Accepted by the IRS (meaning only that they received the return) it will be in the Processing mode until the tax refund has been Approved and then an Issue Date will be available on the IRS website.

What is the status of your tax return? Was it e-filed and Accepted by the IRS? If so, what is the status of the federal tax refund?

Millions of taxpayers are still waiting for their tax refunds regardless of what type of service they used to file their tax returns.

Go to this IRS website for information on the status of filed tax returns - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

As of September 23, 2022, we had 6.2 million unprocessed individual returns received this year. These include tax year 2021 returns and late filed prior year returns. Of these, 1.6 million returns require error correction or other special handling, and 4.6 million are paper returns waiting to be reviewed and processed. This work does not typically require us to correspond with taxpayers, but it does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund.

How long you may have to wait: We continue to process tax returns that need to be manually reviewed due to errors. For returns received in the current year, we process individual tax returns for which refunds are due first. Tax returns reflecting tax owed are processed last, but if a payment is mailed with the tax return, the payment is separated upon receipt and deposited to ensure the taxpayer account is credited for the payment.

As the return is processed, whether it was filed electronically or on paper, it may be delayed because it has a mistake, is missing information, or there is suspected identity theft or fraud. If we can fix it without contacting you, we will. If we need more information or need you to verify you sent the tax return, we will send you a letter. The resolution of these issues could take more than 120 days depending on how quickly and accurately you respond, and how quickly we can complete the processing of your return. Taxpayers are encouraged to check Tax Season Refund Frequently Asked Questions.

What you should do: In most instances, no further action is needed. Whether you filed electronically or by paper, we will contact you by mail if we need more information or if we made a change to your return. If you filed electronically and received an acknowledgement, you do not need to take any further action other than promptly responding to any requests for information. If you are due a refund, filed on paper more than six months ago, and Where’s My Refund? does not indicate we received your return, you should resubmit your tax return, electronically if possible.

Make sure it includes an original signature, and include all documents submitted with the original return. Otherwise, please do not file your tax return again. Check Where’s My Refund?, or view your account for possible updates.

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Summerbaby

Level 2

I received a CP 09 and filled out paperwork on March 11,2022. Waited the allotted time then waited another 45 days. Called and spoke with irs they then told me that since it had been so long to file an amended tax return so I did that and have waited 22 more weeks. I called again the other day and was told to give them 30 more days and if I hadn't heard anything to give them a call back. She also did say that they cant give me any idea on how long it may take. So limbo I set. And I'm not sure why TurboTax didn't include it in my original tax filing. I made sure to put in all information closely. Not sure if I should use the service again because this is a substantial amount of money for us who live paycheck to paycheck. Hopefully we will all receive news ir payment soon.