Can I decline to take the Earned Income Credit?

[davsea17]

Taking that gives me anxiety (fun anxiety disorders).

So I'm wondering when I fill out turbo tax small business......how to decline it? 

And if I decline it will this cause any big issues down the line?

I know I might get a letter that says "you are eligibile" but do I have to respond to that letter or ignore it? 

Thanks!

[Vanessa A · Accepted solution]

If you do not visit that section in TurboTax, you will not get the credit.  If you do happen to go through it and get the credit, you can click Tax Tools>>Tools>>Delete a Form>>Delete next to Schedule EIC to remove it from your return. 

No, you do not have to respond to the letter telling you that you are eligible for the credit. 

[Vanessa A]

If you do not visit that section in TurboTax, you will not get the credit.  If you do happen to go through it and get the credit, you can click Tax Tools>>Tools>>Delete a Form>>Delete next to Schedule EIC to remove it from your return. 

No, you do not have to respond to the letter telling you that you are eligible for the credit. 

[davsea17]

Thank you! Do you think not taking it increases risk of audit and all that? That stuff really gives me anxiety. 

I'm eligible all the time for home office, EIC and all those things but I try not to take them just because I always worry. And my anxiety disorders would not have a great time if I was having to deal with all that and try to go through years of documents etc.....

So it's easier to just really take as few benefits as I can, as less anxiety overall......thanks!  I wish I didn't have these issues, but yeah.....that's what I have to deal with. Thanks again for the answers!

[DianeW777]

Audits come for various reasons, however, this in itself would not prompt an audit.  Most are a random selection unless there is something that stands out. Math errors or failure to report income as examples and most are through letters and mail.

[alembo]

So, my Turbo Tax program automatically applied the EIC, even though I have never before been eligible. Just FYI. I'll try your instructions to delete.

[alembo]

This year, when Turbo Tax ran the analysis, my audit risk is still low, but is higher than other years, even though everything else is the same on my return. I'm going to try removing it (it is a VERY minimal amount) to see if the analysis changes.

[KrisD15]

You can attempt to "not claim" the credit, but the credit was expensed and the IRS is alerted when someone that COULD claim it doesn't. 

Not claiming it could cause more attention than claiming the credit, but it's your decision. 

[alembo]

I don't have those selections on my screen. I did find Schedule 8812, and Schedule EIC, do I delete both? Will Turbo Tax then refigure and remove all the other places the amount of the credit appears? 

[alembo]

I don't have the selection Tax Tools or Delete a Form on my screen. I have to open the forms and Delete Form is at the bottom.  I did find Form 8812, and Schedule EIC, do I delete both? Will Turbo Tax then refigure and remove all the other places the amount of the credit appears? 

[KrisD15]

Yes, if you have desktop, you would switch to Forms. 

Schedule 8812 is for the Child Tax Credit, not Earned Income Credit. 

[alembo]

Thanks, KrisD15! Best Answer, although I could not find the appropriate button. I've spent way too much time on this today when everything is ready to go. Fingers crossed! 

[davsea17]

Hi, they expanded it this year, so lots more people are eligible ...larger income levels and even ages are allowed to take it this year so maybe that's why you are getting it? you should look at the current terms of it, it changed lately