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.
In TaxSlayer ProWeb the Reasons for No Earned Income is displayed on the tax return summary at the top of the page. For example:
The reason "EIC Checklist was not Answered Correctly"
"EIC Checklist was not Answered Correctly" is not intended to imply that you as a preparer made a mistake, so don't attempt to "fix" this reason. This reason is not typically seen on its own but is virtually always accompanied by other reasons. If accompanied by other reasons, those other reasons explain why the taxpayer doesn't qualify for EIC.
If this is the only reason given for EIC not calculating, it is probably due to one of these disqualifying conditions:
- The taxpayer was a nonresident alien for part of the year.
- The taxpayer indicated a dependent qualifies another taxpayer for EIC, including under the tiebreaker rules.
- 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.
If none of the above apply, then this reason showing may be due to the affirmative answer to this question: "Did you review adequate information to determine that the taxpayer is eligible to claim the credit(s) and/or HOH filing status and in what amount?" If the taxpayer is disqualified from receiving EIC due to one of its many requirements, then this question presumably should be answered No since the taxpayer is not in fact eligible.
What if they qualify for EIC, but EIC equals $0?
If you don't see an amount for EIC on Form 1040 nor any reasons why the taxpayer doesn't qualify for EIC, go through the EIC Check List again, as outlined below. Doing this will refresh the calculation.
Completing the EIC Due Diligence Questions
To answer or recheck the EIC Due Diligence Questions, from the Federal Section of the tax return (Form 1040) select:
- Deductions
- Credits
- EIC Check List - Answer each question, then select the Continue button when finished.
Additional Information:
IRS: Publication 514