Hi Turbo Tax Folks,
I used the Turbo Tax 2019 business and real estate version to file my 2019 tax return. All looked good and the system took me through all of my tax return. I filed online in early February.
I was looking for my tax refund from the Earned Income Credit. Instead, the IRS sent me a tax bill letter saying that- "We didn't allow the amount claimed as Earned Income Credit on your tax return because your investment income was more than the amount for this credit."
My investment income was $17. The threshold amount for investment income is $3,600. So I was clearly under this $3,600 limit.
So I called the IRS tax rep today. After a long hold wait time, I spoke to a competent and caring tax rep. She looked at my return and told me that the reason for my tax bill instead of a tax refund was that according to line 7a (Other income from Schedule 1, line 9) was too high.
My income from Other income from Schedule 1, line 9 was 95% on my income. But 80% of that was from my Schedule C business.
The bottom line is that I had a total of $17 investment income for 2019. And thus, I was clearly due the Earned Income Credit tax refund.
Has anyone else suffered this problem and how did you correct it so that you could receive your Earned Income Credit refund?
Thanks, William
