My wife and I are retired for about two years now. Last year she received a payment as the result of a class-action suit against her former employer. I've entered the 1099-MISC information into TurboTax but when I try to e-file I receive the following message:
"It looks like you have a tax situation in your federal return that makes it ineligible for e-filing, according to IRS rules. Here are the details: Your Earned Income Tax Credit (EITC) is based on non-documented earned income."
1) I cannot find anything on the IRS website regarding this rule. Is there a link where I can read about this?
2) Having entered the information from a 1099-MISC form why is TTax calling it "non-documented earned income"? By definition isn't a 1099-MISC considered a federal document?
3) Why is TTax categorizing the payment as EITC?
TIA for your assistance!
