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Can state tax refund for 2020 tax year received after filing self-prepared itemized tax returns in 2023 count as Earned Income for determining EITC and ACTC eligibility?
In 2023, I self-prepared and filed my 2020 tax year return, where I itemized deductions and deducted state and local taxes and then received a state tax refund. For 2023 tax year return, which I am working on right now, can I include the state tax refund, as Earned Income (EI), in order to meet the minimum EI eligibility requirements for Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC), considering that the income meets the definition of Earned Income here https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned..., where I worked for myself by self-preparing the tax return to earn that income as a refund from the state? If so, TurboTax Home and Business 2023 does not let me count that as Earned Income and because of that I'm missing out on EITC and ACTC, as I don't have any other earned income for 2023. Can Turbo Tax software please be updated to include State and Local Tax Refunds to be counted as part of Earned Income for this scenario?
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May 3, 2024
2:24 AM