EIC earned income credit - issue in TurboTax 2019

[amhed]

My gross income is $35,197. I do not have any investment income. However, TurboTax 2019 Permier is not allowing me for EIC. Here is what is saying:

"We checked for the earned income credit (EIC) and it turns out you don't qualify because you and Tania have too much investment income.

- To qualify, your investment income would need to be $3,600 or less.

- The income limit of $52,493 is based on the number of children who count toward this credit (<my kids name>)"

We are joint filing. My wife and I have W2 income $24,873, Schedule K-1 income 10,324. Total income. Total income $35,197. It's really strange. 

Appreciate your response and help.

Thanks

[amhed]

I found a bug/issue in TurboTax Premier 2019 desktop version.

ISSUE:

The issue is in "EIC worksheet". Item H Total investment income, add lines A through G.....8,501.

Is line H, total investment income over $3,600?

    No. You may take the credit.

X Yes. Stop, You cannot take the credit.

ISSUE is the "Yes" got Checked. But it should NOT.

The "No" should get Checked.

This is a big issue. Turbo Tax must fix this issue immediately.

Thanks

[ThomasM125]

The K-1 income is considered investment income, that is why TurboTax is saying your investment income is over $3,600.

[amhed · Accepted solution]

Hello,

I had almost same amount of income from Schedule K-1 in previous year. I received EIC previous year. If no policy got changed, I must received EIC for Y2019. Please see IRS instruction on EIC, page 38 "Earned Income Credit (EIC)" https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

There must ISSUE with TurboTax. It must be fixed.

Thanks

Ahmed