IRS Free File

[melissaforpeace315]

Hi everyone!  I just used TurboTax to file my taxes even though there wasn't a free e-file option this year (I have investment accounts) but I wanted to ask this on behalf of my sister:

Is there a IRS free e-file program that any of you recommend for my sister?  She doesn't have investment accounts and just has a single income, but she also would like to see if she qualifies for the EITC.  If any of you have used a good program that you could recommend for my sister, could you please let me know?  I've checked the IRS site myself, but I'm not too sure which ones are ones that offer to help my sister figure out if she qualifies for the EITC (and helps her through the process too).

I really appreciate any help you can provide!

Melissa

[DawnC]

The IRS has an interactive assistant that she can use to see if she qualifies for the Earned Income Tax Credit (EITC).    EITC Assistant

She can also start a TurboTax return using the Free Edition - the Earned Income Credit is included with that version.   And TurboTax will tell her if she qualifies for the EITC.   She will answer the same questions that the IRS assistant asks, but TurboTax does all the calculations and enters the credit for her if she qualifies.   

To claim the EITC, both her earned income and Adjusted Gross Income (AGI) may not exceed:

• $21,430 if you're not claiming a qualifying child ($27,380 if filing jointly);
• $42,158 if you're claiming 1 qualifying child ($48,108 if filing jointly);
• $47,915 if you're claiming 2 qualifying children ($53,865 if filing jointly);
• $51,464 if you're claiming 3+ qualifying children ($57,414 if filing jointly).

ALSO—if she is not claiming a qualifying child:

She (and her jointly filing spouse) can't be claimed as a qualifying child or dependent on anyone else's return, and

• She must be at least 18 if you are a qualified former foster youth or a qualified homeless youth, regardless of whether or not you are a specified student
• She must be at least age 19 if you aren't a specified student, qualified former foster youth, or qualified homeless youth
• She must be at least age 24 if you are a specified student, unless you are a qualified former foster youth, or qualified homeless youth

[melissaforpeace315]

@DawnC Ah, thank you so much!  So I was reviewing the IRS site (https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/who-qualifies-for-the-ea...) 

And ....how come it states: 

Basic Qualifying Rules

To qualify for the EITC, you must:

• Have worked and  earned income under $57,414
• Have investment income below $10,000 in the tax year 2021
• Have a valid Social Security number by the due date of your 2021 return (including extensions)
• Be a U.S. citizen or a resident alien all year
• Not file Form 2555 (related to foreign earned income)

So is the first bullet point above....not the same thing as the earned income that you were mentioning?  how come on the IRS site it states "$57,414"?  

So basically on my sister's W-2, her Box 1 cannot exceed the $21,430?  Or $57,414?

I really appreciate your help!!

[DaveF1006]

It depends if your sister has dependents or not.  If she is filing single with no dependents, then her adjusted gross income (AGI) cannot exceed $21,430. If she has qualifying children however, the AGI limitations are as follows depending on how many qualifying children she has.

• 42,158 if you're claiming 1 qualifying child ($48,108 if filing jointly);
• $47,915 if you're claiming 2 qualifying children ($53,865 if filing jointly);
• $51,464 if you're claiming 3+ qualifying children ($57,414 if filing jointly).

[melissaforpeace315]

@DaveF1006 Thank you so much!  Do you happen to know of any good IRS free-file options that is able to help her determine if she is eligible for EITC, and also help with filing EITC for her if she does indeed qualify?

Do all IRS free-file options provide this service?

I really appreciate  your help!

[DaveF1006]

@melissaforpeace315  Hi Melissa. I would suggest going to irs.gov and look under tools and applications Here there is a link for the IRS Free File. This is a good place to start.