This occurs when you try to claim the Earned Income Credit (EIC) for a child on your return, but someone else has already claimed the EIC for that child on a different return.
Usually, the custodial parent gets to claim the EIC, even if the noncustodial parent is claiming the Child Tax Credit per divorce decree or other agreement.
If you feel you're the parent who is entitled to claim the EIC, go ahead and paper-file your return, as you won't be able to successfully e-file it.
Eventually, the IRS will contact both parents to determine who gets to claim the EIC, and the unentitled parent will have to repay any taxes owed, as well as penalties and interest, that resulted from the duplicate EIC claim.
How to remove your child from the EIC
To remove your child for EIC purposes, follow these steps (this won't affect your Child Tax Credit):
- Sign in to your account and select the Fix my return button.
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Note: If you're using the TurboTax mobile app, you'll first need to sign in at TurboTax.com in your mobile browser or another internet-connected device.
- At the Welcome back to TurboTax message, select My Info in the left-hand menu.
- Mobile devices: Select the menu icon in the upper-left corner, then select My Info.
- On the Personal info summary screen, select Edit next to the dependent in question.
- Proceed to the How many months did [child] live with you in 2018? screen. On this screen, select 5 months (or less), then Continue.
- Keep answering the questions until you get to the Your children and others you support screen, then select Done.
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Note: If you're told that your dependent doesn't qualify, go back and make sure you've answered the questions correctly (especially the ones about living expenses).
- Now select File in the left-hand menu (on mobile devices, select the menu icon in the upper-left corner, then select File).
- At the Welcome back screen, select Continue. (Do not select Fix my return you've already done that).
- Follow the onscreen instructions to proceed with the filing process.
