I received a IRS Notice CP09 telling me I may be eligible for EIC. When I filed with Turbo Tax I filled out the info, but it told me that I didn't qualify? Any info?

[catriv72]

It's telling me to fill out a Form 15111 but I cannot find that anywhere. Do I have to file an amended return?

[Cynthiad66]

Please check the information the IRS has sent to you.  That notice says complete the form and return it in the envelope provided.  They are not asking you to amend the return but to submit the information needed on that form.  Check the front and back of the pages.  That is not a form that TuboTax has access to.

Here are five facts about the EITC all taxpayers should know.

1. Eligibility is limited to low-to-moderate income earners

The general eligibility rules for the EITC are fairly straightforward:

• Taxpayers must file as individuals or married filing jointly.
• If married, you, your spouse and your qualifying children must have valid Social Security numbers.
• You must also be 25 or older but younger than 65.

Although the EITC typically is considered a credit for low-income filers, there are many variations of income, filing status and number of qualifying dependents that affect eligibility. For example:

• In 2020, a married couple with three children and adjusted gross income of $56,844 or less could receive up to $6,660.
• An individual who earns $15,820 and has no children may receive up to $538.

It's recommended that all filers explore their eligibility for receiving the EITC each year.  For the 2020 tax year, the maximum credit is $6,660.  According to the Internal Revenue Service, the average amount credited in 2018 was $2,488.

2. Self-employed still counts

Many filers, especially self-employed individuals, fail to take advantage of credits because they think they are ineligible.

The IRS considers all income that is earned eligible for the credit. That includes:

• Wages
• Salaries
• Tips
• Union strike benefits
• Long-term disability benefits received prior to minimum retirement age
• Net earnings from self-employment
• Gross income received as a statutory employee (an independent contractor under common law rules)

Types of income that do not qualify as earned income for the credit include:

• Child support
• Retirement income
• Social Security benefits
• Unemployment benefits
• Alimony
• Pay received for work while in prison

3. Investment income can disqualify you

In 2020, income derived from investments disqualifies you if it is greater than $3,650 in one year, including income from stock dividends, rental properties or inheritance.

4. Eligibility fluctuates

Taxpayers should pay attention to their EITC eligibility every filing year as tax laws and personal tax situations can change. Changes that could affect your eligibility for the EITC can include

• a new job,
• unemployment,
• loss of an annual bonus,
• a change in marital status, or
• a change in a spouse's employment situation.

5. Tax software can help

Electronic tax programs offer an advantage over traditional pen and paper tax preparation because, as long as you enter your information accurately, they ensure that you receive the tax benefits you deserve.

Because the EITC is one of the most lucrative credits available to struggling Americans, filers should consider using a qualified tax software system like TurboTax to maximize the earned income credit.

FACTS ABOUT THE EARNED INCOME CREDIT

[catriv72]

I have read the letter, it’s telling me to fill out Form 15111 and return it. But there is no form attached and I can’t find it on the IRS website nor anywhere on the internet...

[JotikaT2 · Accepted solution]

According to the IRS website, your noticed should have included an Earned Income Credit Worksheet on page 3 of your notice.

If you did not receive that, you will need to call the number on the notice to determine what information they need from you.

CP09 Notice for Earned Income Credit

[ADM1]

I called irs and they told me the form is not published yet and told me I didn't need to do anything.   They would figure it and send me a check which I should receive in 6-8 weeks.   So not sure what's up at this point

[BillM223]

It sounds like a process is changing and not everything is caught up.

So go with the IRS phone person and leave it for 6-8 weeks, and if you don't hear anything after 8 weeks, call them again at the number here under Frequently Asked Questions.

[Shane077]

I received the same notice about 2 weeks ago and it was the same; form 15111 was not  with the notice.  I didn't do anything.  I just received the notice again and this one does have form 15111 included with it.

[LenaH]

TurboTax will automatically calculate the Earned Income Credit to your return and guide your through the correct screens, if you qualify for the credit. There may have been a reason you did not qualify for the Earned Income Credit or something entered into TurboTax which prevented those screens from populating. Please review the requirements below (especially the bolded section about qualifying children). Based on your income level, your children must be considered qualifying children in order to be eligible for the credit. 

To qualify for and claim the Earned Income Credit you must:

• Have earned income; and
• Have been a U.S. citizen or resident alien for the entire tax year; and
• Have a valid Social Security number (not an ITIN) for yourself, your spouse (if filing jointly), and any qualifying children on your return; and
• Not have investment income exceeding $3,650; and
• Not be filing a Form 2555 or 2555-EZ; and
• File a return with the Single, Married Filing Jointly, Head of Household, or Qualifying Widower filing status, even if you're not required to file a return.

In addition, both your earned income and Adjusted Gross Income (AGI) may not exceed:

• $15,820 if you're not claiming a qualifying child ($21,710 if filing jointly);
• $41,756 if you're claiming 1 qualifying child ($47,646 if filing jointly);
• $47,440 if you're claiming 2 qualifying children ($53,330 if filing jointly);
• $50,954 if you're claiming 3+ qualifying children ($56,844 if filing jointly).

To count as a qualifying child for EIC, your child must have a valid Social Security number (not an ITIN).

She or he must also:

• Be your child (including legally adopted), stepchild, eligible foster child, sibling, half-sibling, step-sibling, or a descendant of any of them (for example, your grandchild or niece); and
• Be permanently and totally disabled or under the age of 19 as of December 31, 2020 (under 24 if a full-time student) and younger than you (or your spouse, if filing jointly); and
• Have lived with you (or your spouse, if filing jointly) for more than half the year in the United States (unless you were in the military); and
• Not file jointly with their spouse unless they weren't required to file but did so anyway to claim a tax refund.

If you qualified for the Earned Income Credit, based on the guidelines above, then you can follow the instructions on amending your 2020 return on the page How do I amend my 2020 return?.

​​​​​​​Once you elect to amend your return, you can search for the Earned Income Credit Section by following the steps below:

1. Open your return.
2. Search for EIC with the magnifying glass tool at the top of the page.
3. Follow the on-screen instructions. 

​​​​​​​If you amend your return to include the Earned Income Credit, there is no reason to send back IRS Form 15111. Form 15111 is a worksheet to help you determine whether you qualify for the EIC based on the dependents listed on your return. If you qualify, all the necessary information will be in your amended return. 

@Shane077

@catriv72

[Ericalynn_48]

Has anyone received their refund after submitting the CP09 notice back to the IRS?

[Critter-3]

OK ...  I may have an idea as to why this happened ... if you had unemployment on your return AND you did not exclude it  THEN when the IRS corrected the return to give you the unemployment exclusion your income is now low enough to get the credit that was NOT included on the original return.   

SO  to get the credit the IRS requires you to now fill in the EIC form so it can be added to your return when they FINALLY process it.   

This is NOT anyone's error if you filed before the exclusion was signed into law .... the IRS is making this stuff up as they go which is why the form 15111 was not known about until they put it into service recently(note the date on the form March of 2021). 

Everyone should be happy the IRS is catching this and not forcing folks to amend their returns since many folks would never know they were able to amend for the credit ... they are being proactive for a change.  

PS ... if you take a look at the 15111 and the EIC forms they provide the same info and the ability to sign the form so you can file it by itself as an addendum to the return ... no amendment needed.  

https://www.irs.gov/pub/irs-pdf/f1040sei.pdf

https://www.irs.gov/pub/irs-pdf/f15111.pdf

https://www.irs.gov/individuals/understanding-your-cp09-notice

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc

[ADM1]

Not yet

[ADM1]

I didn't collect unemployment though

[Critter-3]

@ADM1 

Well if they sent you a notice (for whatever reason ) you must respond to it timely in order for your return to continue to be  processed.   If there is a number to call you may try that if you don't understand what they are asking about. 

[ADM1]

I know what they are talking about.  And I sent letter back right after they sent it to me.  I know I'm eligible and I've received it for the past 6 years.   My question wasn't why I received the letter it was why It wasn't added on my taxes like in the past.   And I also asked if anyone has received there money yet.   

[NIQ_BRANDY]

I called the IRS after my 8th week occurred since sending my worksheet and I was told it can take 16 weeks from the day it was sent out to the IRS for them to put the worksheet in their systems and issue the checks. But I still haven’t received anything.