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readmylegs
Returning Member

why does tt include 1099-r for former military spouse for calculating eic? when irs says it's not included

I was on the IRS website and for EIC it says it does not include retirement income but when I do it on TT it included it and says I wasn't eligible for eic

 

Example of income that is NOT EARNED INCOME

inmate income, alimony, child support,  interest dividends, non tax employee benefits , retirement income, tanf, UE benefits

 

 

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3 Replies

why does tt include 1099-r for former military spouse for calculating eic? when irs says it's not included

The retirement money you are receiving is not earned income, but ALL of your income counts toward the AGI that is considered when calculating whether you are eligible for EIC.  That retirement money increased your AGI.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

why does tt include 1099-r for former military spouse for calculating eic? when irs says it's not included

Use this interactive IRS tool to estimate EIC:

 

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Hal_Al
Level 15

why does tt include 1099-r for former military spouse for calculating eic? when irs says it's not included

The earned income credit is first calculated (actually looked up in a table) on your earned income then it is calculated on your total income (AGI). You get the lesser of the two calculated EIC numbers. See the 2018 EIC table at:

https://www.irs.gov/pub/irs-pdf/p596.pdf

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