Does 1099 misc based earned income qualify for earned income child credit?
When I did my son's return for 2010 he had a 1099 MISC from Harvard as a research participant. I did not say he owned his business. This was incorrect and IRS audit returned it as such. IRS wants a lot of money back. So I did an amendment and added Schedule C. Turbo is qualifying his 2 kids for full earned income credit. Now he has a much bigger refund that IRS owes him. Why would IRS not have corrected it this way?