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Should I accept the Earned income credit? (I'll explain why I ask)

So some years I qualify for the earned income credit. 

 

I got it for 2020, my AGI was around 14k  for that year -have a small business online on e-commerce websites- I have chronic migraines and a bunch of other fun stuff like OCD and such things so I used to make more money but not as much these days since I have a bunch of issues that cause me some daily issues.

 

Full time in the U.S., no foreign income, none of the issues.

 

Single, not head of household. 

 

I got a CP14 notice of a balance due....I pay all my estimated tax payments on time......and this stuff gives me tons of anxiety.......

 

I paper file because of the Obsessive compulsive disorder as I have to re-check everything is correct about 20x before I mail it in. (It's not ideal but runs in the family)

 

It had no explanation as to why I owed around 200 something but it matched exactly with the earned income credit.........

 

I didn't receive anything saying they disallowed the EIC, I've been at the same address for years......

 

So my question is: Should I still claim it this year? I qualify but I'm worried that maybe they sent another letter telling me why it was disqualified or I had to pay it back and I didn't get it?  But the only notice I got says just balance due underpaid tax...so I paid that......but now worried to claim it........

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1 Reply
LeonardS
Expert Alumni

Should I accept the Earned income credit? (I'll explain why I ask)

The CP 14 letter should provide you with the specific reason why you owe additional tax.  If there is no reason given or you do not understand why you owe the tax you may contact the IRS at www.taxpayeradvocate.irs.gov or call 1-877-777-4778. for assistance.

 

If you enter all your information and TurboTax determines you qualify for earned income credit you should take the credit.

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