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Level 1
posted Apr 8, 2023 10:19:41 AM

1099-NEC & EIC

My income isn't showing up for my 1099-NEC, except as business income, and the program it telling me I don't qualify for the EIC, even though I do.  Is this a known issue?  

0 5 481
5 Replies
Level 7
Apr 8, 2023 3:42:37 PM

There can be several reasons you do not qualify.  Without seeing your return we cannot give a definite answer. If your expenses are equal to or greater that the income entered, you will not have a net profit on which to calculate any credit. Clarify, is  your business showing a net profit? What is your age? 

Level 1
Apr 12, 2023 3:57:14 PM

Age 82.  I did not claim any additional business expenses at all.  My confusion is also tied to the fact that my income isn't showing up in the income section as the 1099NEC.  Last year the program put my `099NEC under MISC, but it showed up in income, and under schedule C.  I jumped to the conclusion that because the income wasn't showing up in income, of course I wouldn't qualify for the ETC (must have income).  

Level 1
Apr 12, 2023 4:01:57 PM

Business showed a profit.  

Level 15
Apr 12, 2023 5:09:35 PM

There is an age limit (65) for claiming the EIC. Because of Covid, the age limit was waived for 2021. But, it's back for 2022. 

 

Reference: https://www.irs.gov/taxtopics/tc601#:~:text=be%20age%2025%20but%20under,than%20half%20of%20the%20year

Level 7
Apr 12, 2023 5:28:18 PM

You are not eligible to claim EITC without a qualifying child because you are  not under the age of 65.

 

You are eligible to claim the EITC without a qualifying child if you meet all the following rules. You (and your spouse if you file a joint tax return) must:

  • Meet the EITC basic qualifying rules
  • Have your main home in the United States for more than half the tax year
    • The United States includes the 50 states, the District of Columbia and U.S. military bases. It does not include U.S. possessions such as Guam, the Virgin Islands or Puerto Rico
  • Not be claimed as a qualifying child on anyone else's tax return
  • Be at least age 25 but under age 65 (at least one spouse must meet the age rule)