My wife and I both have W-2s that are subject to Notice 2014-7. For the purposes of the calculating EITC , the TurboTax Deluxe online version provides the option of including both, either, or neither of this Income. In our situation, the optimal choice is to include only one of our incomes because if we use our combined wages we exceed the household limit. I gather this is legal because the software provides the option. My concern is that after reviewing the completed forms, I see no calculation for the IRS to refer to that explains how the value of the EITC was determined. Line one on the 1040 combines our income and it's later subtracted reducing our AGI, but nowhere are the values that were entered in the software reflected in the forms. Specifically, the single income used to calculate the EITC is not available for an agent to review. What's likely to happen is the IRS will reject the EITC based on either earned income being too high or AGI being too low. If we don't, in fact, qualify for the EITC, It's not clear to me why TurboTax presents an option to include only one of our non-taxable incomes. If we do qualify, it's not clear how the IRS is going to know this based on the way the forms are filled out. Is there anything I should add to filing to clarify this for the IRS, or is this wrong and needs to be changed before mailing it?
