Used 2020 Turbotax for Desktop and the software calculated a $323 Deductible part of self-employment tax on form Schedule-1 line 14 which was also on Form 1040 line 10a. Have a Charitable contributions of $300 on line 10b. So, my total adjustment income is $623. Have a self employment income of $6,500 minus total expenses of $1,920 which equal to $4,566. Add bank interest of $19. So, total income is $4,585. My Adjusted gross income is $3,962 ($4,585 - $623). have a Standard deductions (in 2020) of $12,400. My self-empployment tax from Schedule-2 line 4 is $645 which is also on form 1040 line 23 & 24. Earned income credit (EIC) line 27 of form 1040 is $323. My total payments form 1040 line 33 is $323 which is the EIC amount. Amount I owe on my 2020 Federal Tax Return is $645 - $323 equals $322 amount you owe on form 1040 line 37. Paid the $322 when I filed my 2020 Federal Tax Return. Just got a letter from the IRS telling me to pay $389.48 (with interest added). The IRS denied my Earned Income Credit of $323, that was calculated by TurboTax. I still don't know why the IRS denied it. Been checking online and can't seem to find if there were changes to the EIC in 2020. Please Help! THANKS!
posted
last updated
October 18, 2024
11:36 PM
