EIC

[ewm88]

In Turbotax deluxe my federal return credited me $0 for EIC, but my state return (Maryland) credited me 50% ($530) of my supposed $1060 federal EIC which shows zero.  Am I really eligible for the Maryland EIC credit? If I am, why does the federal return show $0 EIC...and if not, why is it transferring an incorrect value between my federal and state return?

[ThomasM125]

You need to make sure you are not seeing an earned income tax credit (EIC) on your federal return. You may be looking at a summary report that is not correct. You should look on line 27(a) on your form 1040 to verify that there is no EIC on your federal return.

You can view your form 1040 while working in the online version of TurboTax by following these steps:

While working on your return in the Federal section of TurboTax:

   1.  Choose the Tax Tools icon on your left menu bar

   2.  Tools

   3.  View Tax Summary

   4.  Choose the Preview my 1040 on your left menu bar

[ewm88]

Thank you.  I selected "Forms" versus "Easy Step" in the left hand corner and line 27a of the 1040 showed $0 for my federal return...yet my Maryland return is still crediting me 50% ($530) of my supposed federal EIC.

[MaryK4]

The Earned Income Tax Credit (EITC) is a benefit for working people with low to moderate income. If you qualify for the federal earned income tax credit and claim it on your federal return, you may be entitled to a Maryland earned income tax credit on the state return equal to 50% of the federal tax credit. 

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@ewm88

[ewm88]

I am using a Turbotax Deluxe CD on an iMac and not using Turbotax online.  As I said, the federal return forms EIC worksheet shows $0 EIC as box 7 is checked (without qualifying child, and taxpayer is under minimum age) and therefore the EIC is not allowed.  However the Maryland return says there was a federal EIC of $1060 and is allowing 50% ($530) for a Maryland EIC credit.

[RaifH]

TurboTax is calculating both credits correctly. Maryland does not have the age requirements that the Federal Earned Income Credit does. I pulled this quote from the Maryland comptroller's office:

Employees who would otherwise qualify for the federal credit but for federal requirements excluded from Maryland law may claim the state earned income credit by calculating the federal earned income credit disregarding those requirements. There is no minimum age requirement for taxpayers without a qualifying child, nor must taxpayers have a social security number to qualify for the Maryland credit. Additionally, certain employees may also qualify for a refundable Maryland credit or a local EITC.

Federally, you would either have to be over the age of 18 or over 24 if a full-time student.

[tmg19]

Mine did the same thing, but I did not realize it until after I filed.  I remember seeing it on Federal and then it disappeared for some reason. I am eligible for EITC got it on Maryland state but Federal says $0.  Why?  The EITC assistant on IRS.gov website says I am eligible for $479.

[RaifH]

The federal earned income credit has two additional qualifications that Maryland does not. You do not have to have a social security number to qualify for Maryland's earned income credit, but you do federally. Additionally, if you are filing without children, the federal earned income credit has an age requirement:

• You must be at least 18 if you are a qualified former foster youth or a qualified homeless youth, regardless of whether or not you are a specified student
• You must be at least age 19 if you aren't a specified student, qualified former foster youth, or qualified homeless youth
• You must be at least age 24 if you are a specified student unless you are a qualified former foster youth or qualified homeless youth

There is no age qualification for the Maryland earned income credit. As long as you meet the other qualifications, you would not be restricted from taking it due to your age. 

It may have appeared on your federal return and then disappeared if you are a full-time student aged 19-24. It would originally appear, but then when you answered you are a full-time student it would take it away. 

[tmg19]

I turned 19 in January 2022, and I am not a full-time student.

[DoninGA]

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@tmg19 wrote:

I turned 19 in January 2022, and I am not a full-time student.

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You have to be age 19 or older in 2021 to be eligible for EIC.

[tmg19]

Thank you.  I received it on State of Maryland return is that different eligibility than Federal EITC?

[DoninGA]

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@tmg19 wrote:

Thank you.  I received it on State of Maryland return is that different eligibility than Federal EITC?

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The state of Maryland may have different requirements for receiving State EIC then the federal requirements for receiving Federal EIC.