Why is TT using 2019 EIC for its comparison when i just received a letter from the IRS stating that i qualify?

[JulieS]

I don't think those two things are related.

The IRS is allowing taxpayers to claim Earned Income Credit based on their 2019 income instead of 2021 income, if that gets them a bigger refund. 

This is designed to make sure that people don't lose their EIC due to having lost a job or hours due to the Covid-19 pandemic.

The IRS periodically sends letters to taxpayers who are eligible for EIC reminding them of how to file for it. 

If you need assistance with the letter, please clarify your question. 

[mchugh26]

Thanks Julie. 

So that I am clear...I completed my sons tax return via Turbo Tax Desktop several weeks ago.  During the course of completing it, TT asked if I wanted to see if he qualified for the Earned Income Credit.  I said yes, it then looked at my sons 2019 Earned Income on his 2019 return, which I had completed with TT, and stated that he did not qualify as his 2019 Earned Income was less than 2021's earned income.  Yesterday, he received a letter from the IRS (Form 15112) that implies he could qualify for $1,502 of Earned Income Credit for Tax Year 2021.

Am I missing something?

[ThomasM125 · Accepted solution]

The comparison with 2019 earned income might indicate that he wasn't qualified to use the 2019 income as it may not benefit him since the income was lower than 2021. He may still qualify for the credit based on 2021's income. 

The IRS notice just informs you that he may qualify but they don't know his full situation so you need to complete the return to be sure.

What I suggest you do is go through the amend return routine in TurboTax and complete the earned income credit section, in Deductions and Credits, then You and Your family to see if he qualifies for the EIC. If so, then you can file the amended return to get an additional refund.

You can file an amended return using TurboTax for no additional fee. You will see the option on your Home Page in TurboTax, then under Your tax returns and documents, look for an option to Amend/Change your return. You should wait until you receive your refund or the IRS has processed your return, if you sent a payment, before you amend your tax return.