I am using Turbo Tax Home and Business for 2020 and currently working under: Personal > Deductions and Credits > You and Your Family > Earned Income Credit.
The instructions for where to find my "Earned Income" from which I have researched is different from my AGI. The "help instructions" state as follows:
"Generally, earned income includes wages (including non-taxable combat pay), tips, and other payments received for services you personally performed.
This usually includes the total of the amounts reported on:
- Form 1040, line 7 (Wages, salaries and tips)
- Schedule C, 1040 line 12 (net business income)
- Schedule F, 1040 line 18 (net farm income)"
Although, when I look at my 2019 return from Turbo Tax Home and Business 2019 it only gives me:
Form 1040 lines 7a and 7b. Both of which are the same numbers and considerably smaller due to business expenses.
Schedule C 1040 (Profit and Loss from Business) line 12 only shows "Depletion" not net business income.
I do not have farm income so that does not apply.
However, Schedule C 1040 (Profit and Loss from Business) line 7 shows "Gross Income" which is significantly larger as that was before my operating costs.
Clearly I would prefer to use my Gross Income line 7 from my Schedule C 1040 In lieu of my Other income from Schedule 1, line 9 from lines 7a or 7b. As using my Gross Income Line 7 from the Schedule C 1040 nearly doubles my amount for my return.
I feel that Turbo Tax should be either more precise with their instructions or show visual Jon Doe example(s).
This is all that is holding me up from finishing my taxes any qualified help would be greatly appreciated!
