Earned Income Credit

[LCM63]

Turbo Tax said I was not eligible for Earned Income Credit. But I just got a letter from the IRS saying it looks like I am.  According to the form from the IRS, it seems I am so now I am confused. Is it possible Turbo Tax made a mistake? Or maybe I did? I'm not sure how to know for certain if I'm eligible. 

[MarilynG]

Was the IRS letter regarding Earned Income Credit for your 2020 return?  Or for a 2021 return that you already filed?

Usually the letter will have a form to return to the IRS and they will calculate and send you the EIC that you didn't claim.

If you haven't filed your 2021 return yet, under Deductions & Credits, scroll down the list of topics to 'Earned Income Credit' and Start/Update by going through the interview. 

Here's Qualifications for Earned Income Credit. 

@LCM63

[LCM63]

Thank you so much for that info. The letter is for my 2021 taxes that I have already filed. I read through everything again, and I think I am clear on the turbo tax requirements. I think this might be why turbo tax denied the EIC...

• 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

The letter I got confuses me though.  I understand all the requirements until it asks if I am an EIC qualifying child of another person. I know I don't qualify as an EIC for my parents, and I also know they did not claim me on their taxes last year except to be considered for EIC. 

Is it possible to be a qualifying child of another person even if they did not claim me on their taxes?                   

[AmyC]

No.  You would not be getting EIC due to somebody else. The EIC laws changed this year. 

Reference: 

EITC Awareness Day: Important changes. 

EITC, Earned Income Tax Credit, Questions and Answers 

[LCM63]

Thank you for that, but honestly I am still confused. These are the two issues I am confused over... 1-Not be claimed as a qualifying child on anyone else's tax return 2-Be at least age 18 at the end of the tax year (usually Dec. 31) The minimum age to claim the EIC is generally age 19; however, if you are a qualified former foster youth or a qualified homeless youth, you need to be at least age 18. If you are a specified student (other than a qualified former foster youth or a qualified homeless youth), you need to be at least age 24. Since my parents claimed me only for the purpose of being considered for EIC (not as a dependent), but was denied EIC, does that mean technically I was NOT claimed as a qualifying child on someone else's tax return? Also, if I am a student, do I need to be at least 24 to claim EIC? What exactly does "specified student" mean? Why would the IRS send the letter if I don't fill that requirement? I'm sorry for all my confusion, but I really appreciate the help.

[DMarkM1 · Accepted solution]

You state your parents did not get the Earned Income Tax Credit (EITC) with you as a qualifying child so that test is passed. 

 Next, you can qualify for the EITC if you are age 19 or older unless you are a specified student.  A specified student is: 

A person who is enrolled in a program that leads to a degree, certificate, or other recognized educational credential and carried at least one-half the normal workload for your course of study during at least 5 calendar months of the year or an academic period if longer.

If you are a specified student you must be at age 24.  

The IRS doesn't know if you are a specified student; only your age and income and therefore you could be eligible based on the information they have.