Why does it say I cant e-file because my EITC is based on non-documented earned income? Can it be fixed or is it due to the new eitc rules? using 2019 income for 2020.

Some TurboTax Online customers are getting the error below when attempting to filing for Earned Income Credit (EITC) using 2019 income amount.

We Won't Be Able to Efile Your Return:

Your Earned Income Tax Credit (EITC) is based on non-documented earned income.

If you are experiencing this issue, please sign up here for email updates as we are working on the issue.

I am having the same issue. I have submitted my info twice now with no response. What is going on and wat do i do?

If you are experiencing the same issue, please see the comment posted above by @ErnieS0. There is a link there where you can sign up to receive an email update on when the issue would be resolved.

I am also having this issue? Will It get fixed or are we going to have to mail in our returns? I already signed up at the link about 4 days ago and have gotten no response 

IRS has not even opened up to look at tax returns yet.

Has this been fixed because HR Block has the same issue but they claim ignorance so I got a refund so I can use TurboTax instead because I’m having the same issue. I have no problem waiting  as long as it’s something acknowledging and being worked on. I just don’t want to mail my return.

This is a known issue that has been resolved in TurboTax.

How recently did you try to e-file? The resolution was quite recent.

See this TurboTax Help page.

Ok ... just a thought.   I have had no issue in my private practice (as a tax professional)  with using the 2019 EIC even if they were not clients in 2019 and I had to enter the info myself instead of having it transfer into the 2020 program.

So those who have seen this message is that what happened?   Did you enter in the 2019 earned income amount yourself instead of it being transferred automatically from the prior year return?    If so that would make perfect sense in a DIY program ... basically the IRS is not believing your entries in this matter so they are wanting the return to be mailed in so your figures can be verified.  Just an educated  guess ... could be wrong.

No, the software was doing it for me.

I am using the desktop version and getting the same error message for e_filing

Have you updated your Turbo Tax software recently? I would advise running an update and attempting to re-file. 

I have a similar problem but I am not using my 2019 or 2020 income. I am using my 2021 income but have the same results that I cannot efile.

[name removed]

Can you clarify the full message you are getting @martyLatman?    This thread is from last year and I have not seen this error this year, so I need some more details, please.  

Turbo Tax Issues When trying to claim EITC

1. I run my tests to see that I am qualified for the EITC credit for 2021. I qualify for the credit due to my self-employment earnings on my K-1 from my business for 2021. I am not using income from 2019 or 2020 to calculate the EITC.
2. I run the Review and receive the following:
1. Let’s Check These Entries

1.      We found 0 area on your Federal return where we’ll need to review your entries.
2.      We’ll handle them one at a time.

1. I run Check Entries
2. I receive the message “We Won’t Be Able to E-file Your Return
1. It looks like you have a tax situation in your federal return that makes it ineligible for e-filing according to IRS rules.
2. Here are the details:
3. Your Earned Income Tax Credit (EITC) is based on non-documented earned income.
4. Don’t worry, even though you are unable to e-file your return, we’ll still help you file your return by mail.
3. I run Smart test and get this message: “Congratulations! We reviewed your federal return and found no errors”
4. When I try to file our returns I get this message:
1. Marty & (my wife name), You cannot E-file These Returns
2. Federal Return Issue: This return has certain forms that can’t be e-filed, usually because of tax regulations. So you’ll need to print and file by mail. For more details, select the Review tab, continue and select File by Mail.

Marty

To clarify, is your K1 income from a S-Corp or partnership?

@martyLatman

I have a Partnership LLC and not a Subchapter S Corp.

Did you enter your K-1 with income in box 1 and when asked answer that you are actively and materially participating in the operation of the business?  This should be all you need to do for LLC income to be used for the EITC.

Clarification....

Is your error coming from TurboTax before you submit or is it being rejected by the IRS?

Do you have other types of income?

How to figure it out?

Are you using your 2019 income for the Earned Income Tax Credit? 

If yes, did you file a 2019 tax return?