topic It’s saying I have no earned income ...why? in Get your taxes done using TurboTax

It’s saying I have no earned income ...why?

ashialong — Tue, 04 Feb 2020 15:57:26 GMT

Re: It’s saying I have no earned income ...why?

Irene2805 — Tue, 04 Feb 2020 16:26:03 GMT

Perhaps you are retired, have non-taxable income, or are not showing a profit in your business.

Earned income includes all income from employment, but only if it is includable in gross income. Examples of earned income are:

wages; salaries; tips; and other taxable employee compensation.
net earnings from self-employment.

Examples of items that aren't earned income include

interest and dividends,
pensions and annuities,
social security and railroad retirement benefits (including disability benefits),
alimony and child support,
welfare benefits,
workers' compensation benefits,
unemployment compensation (insurance),
nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments.

For more information concerning earned income, please see IRS Pub 596 - Earned Income Credit (EIC)

Re: It’s saying I have no earned income ...why?

Bjoin52 — Fri, 19 Jun 2020 02:04:52 GMT

According to the I.R.S. my pension from the Railroad Retirement Board is earned income. They pulled an audit on me and they want me to pay $1,090.00 plus $135.08 in Tax Deficiency and Penalties for 2017 when I was disability. Can anyone please tell me why I must pay this fee? I didn't make that kind of money when I was on disability to begin with. Please let me know what I can do to avoid this fee if possible.

Re: It’s saying I have no earned income ...why?

BillM223 — Fri, 19 Jun 2020 19:00:39 GMT

@Bjoin52

Such disability payments are considered earned income if they are paid out to you before the year of normal retirement for the plan. Once you reach the normal retirement age for that plan, then the disability payments are considered normal retirement benefits and are not earned income.

You said, "They pulled an audit on me and they want me to pay $1,090.00 plus $135.08 in Tax Deficiency and Penalties for 2017 when I was disability."

What exactly was the penalty for?