TaxSlayer Pro runs a series of EIC eligibility tests in each tax return based on the information in the return. If the taxpayer is not eligible to claim the EIC, the program produces a statement that explains why they don't qualify. To see the statement, from the Main Menu of the tax return (Form 1040) select:
- View Results
- Why No EIC Calculated
Look for X next to one or more reasons.
For any reason other than "EIC Checklist was not Answered Correctly" you will not be able to access the Schedule EIC menu because the client has been deemed ineligible based on the data in the return.
EIC Checklist was not Answered Correctly
An X indicated for "EIC Checklist was not Answered Correctly" does not imply that you as a preparer made a mistake. It indicates that one of these four answers to a question disqualifies the taxpayer from receiving EIC:
- The taxpayer was a nonresident alien for part of the year.
- The taxpayer indicated a dependent qualifies another taxpayer for EIC.
- The taxpayer's main home was outside the U.S. and they are not in the military on active duty.
- The taxpayer or spouse is eligible to be claimed on someone else's return.
Completing the EIC Due Diligence Questions
If you'd like to re-answer the EIC Due Diligence Questions, from the Main Menu of the tax return (Form 1040) select:
- Payments, Estimates, EIC
- Earned Income Credit
- Complete Schedule EIC
- EIC Due Diligence Checklist
The EIC Due Diligence Checklist menu uses the following indicators for each menu line:
- Qualifies - Based on all the answers to the questions, the taxpayer qualifies for EIC.
- Does Not Meet - EIC has been calculated, but your answer to one or more due diligence questions indicates that you haven't met a due diligence standard.
- Does Not Qualify - The taxpayer doesn't qualify for EIC. See the "EIC Checklist was not Answered Correctly" discussion above.
- N/A - This series of questions doesn't apply to this taxpayer.
Additional Information:
Earned Income Tax Credit for Clergy Members With a Housing Allowance
IRS: Publication 596 - Earned Income Credit (EIC)
IRS: Earned Income Tax Credit (EITC) - links to lots of info
