Hello! TurboTax tells me I am eligible for the Earned Income Tax Credit, but I don't understand why that should be correct. My taxable earned income, investment/interest income, and AGI are all below the limit for EITC, but I have NON-TAXABLE disability income that puts my "total income" higher than the AGI limit for EITC.
I realize that my non-taxable disability income is not technically included in my official AGI (my non-taxable disability income payer issued me a W-2 with Box 1 blank and Box 12a with the amount of my disability income and the "J" Code for "Nontaxable Sick Pay"), but if I am eligible to file for EITC as TurboTax indicates, doesn't that go counter to what the EITC is for, i.e. workers whose total income (technically measured by AGI) is below the EITC limit? Can anybody explain what is correct? I do not want to claim a credit that I should not be claiming, but I don't know how to get this straight in TurboTax.
Additionally, I have read elsewhere in these forums that I should NOT include in my tax return the W-2 which has a blank Box 1 in TurboTax, however when I do include the W-2 with the non-taxable income just to give TurboTax maximum information about my income, TurboTax still thinks I am entitled to the EITC.
Thank you in advance for any help/references you can provide.
