topic Turbo Tax EITC calculated wrong in Get your taxes done using TurboTax

Turbo Tax EITC calculated wrong

chris B22 — Tue, 02 Mar 2021 03:52:43 GMT

I finished my taxes and submitted them. After looking over my finished document I noticed the EITC looked a little low considering my situation. sub 22,000 AGI with 2 kids and married. I inputted the exact information on my taxes that i used with turbo tax and the IRS estimated I should receive 5,920, but turbo tax only calculated 3,584.

Re: Turbo Tax EITC calculated wrong

CatinaT1 — Tue, 02 Mar 2021 13:28:39 GMT

From reading your other posts, it seems the error may be in how you entered your child born in 2020. When entering a child born during the tax year, you must select they lived with you the entire year. If you did not do this, it could eliminate them from the credit.

You'll need to amend your return and mark the child as living with you the entire year.

To avoid unnecessary delays, do not amend until your original return has been fully processed.
You can e-file your 2020 amended federal tax return, but most states require amendments to be printed and filed by mail.
Allow 16 weeks for processing.

See this TurboTax FAQ for help with amending.

You can check the status of your amended return here, but allow 3 weeks after filing for it to show up.

Re: Turbo Tax EITC calculated wrong

chris B22 — Fri, 05 Mar 2021 00:32:12 GMT

thank you for your reply. When amending my tax return once I have received it. Where exactly in Turbo Tax should I go to make sure the EIC counts both of my children even though they were listed as dependents in the Child Tax Credit CTC and on the main page of my 1040 listing my dependents, but not in the EIC.

Re: Turbo Tax EITC calculated wrong

JamesG1 — Sun, 07 Mar 2021 21:08:51 GMT

When you amend your tax return, the qualifying child for Earned Income Credit will be listed under box 1 of Schedule EIC Earned Income Credit. The form will print out if you change the Earned Income Credit amount.

A dependent must be a qualifying child to qualify for the Earned Income Credit. The tests for a qualifying child are:

Relationship: Must be your child, adopted child, foster child, brother or sister, or a descendant of one of these (grand or nephew).
Residence: Must have the same residence for more than half the year.
Age: Must be under age 19 or under 24 and a full-time student for at least 5 months. They can be any age if they are totally and permanently disabled.
Support: Must not have provided more than half of their own support during the year.
Joint Support: The child cannot file a joint return for the year.

One more thing — if you are not claiming a qualifying child:

You (or your jointly filing spouse) must have been born on or after January 1, 1956; and
You (or your jointly filing spouse) must have been born on or before December 31, 1995; and
You (and your jointly filing spouse) cannot be claimed as a qualifying child or dependent on anyone else's return.

See this TurboTax Help.