I received a 1099-R form for an inherited deferred Comp plan.
I was told this amount goes into my 1040-SR on line 5a and 5b, since the amount was taxable (the tax was taken out when they paid me).
However, when I entered the deferred comp on 5b, this causes my AGI (line 11) to go from 5000 to 27000. So now my AGI (line 11) is a lot higher and I'm longer low income. Plus, I don't qualify for the EIC (line 27). I would have to make about 21000 or under for my filing status to qualify.
It's frustrating that my inherited deferred comp is not Earned Income and yet it effects my earned income.
It bother's me a little bit that I don't get my EIC, but what bothers me the most is that my AGI is so high.
Is there a work around so that my AGI is not so high?
