Pacun

Anyone except the mother can get EIC. Let's say that the father earned $5K and he was supported by the in-laws and his support is $20K. The fact that he is not blood related make him NOT a qualifying child to his in-laws based on his earnings. He is not even a dependent for his in-laws, so he is free to claim EIC. Let's assume that he decides not to claim the child, as long as his in-laws made more than him, they can claim EIC. You can be 10 years old and still get EIC credit if you claim your 8 years old sibling or you could be 105 years old and get EIC as long as you claim a dependent that qualifies you. Age doesn't matter at all for EIC credit but you have to be older than your dependent. Mother could be a qualifying child for her parents and that will prevent her from claiming EIC. You didn't mention her age or income but you should have enough information now.

She will get stimulus and nothing else, correct?

was any of the daughters a full time student for 5 months in 2020? You don't have to support anyone to use them for EIC, but the dependent doesn't have to provide more than 50% of their own support. So father can file as single and claim the 20 year old provided she was a full time student and father can get EIC, even if the 19 years old supported her partially.

It is not paypal... it is payApal. I got it too but I read it carefully.

US citizen lives in Spain has a US citizen child living with her. She lived the whole 2020 in Spain and made $18K. No HH and no child tax credit for her, correct? She get stimulus and nothing else, correct?

Thank you for sharing the good news. The first client that comes with a bag of receipts from masks, etc will be fired.

For the unemployment, it is not doing a good job. Rita, I think you have to devide all income by 12 and use that amount (on month) as income received while a Virginia resident. Then pay attention to any subtraction for unemployment. That amount should be 100% of that 1/12 and no more than that.

I think that congress required that EIPs were to be issued only to social security numbers, no ITINs, hence the need for one of the parents to have a SS number.

I am getting the same results. I think I have filed a couple of AOC for someone under 24 and I have not answered those questions. I have efiled and IRS has issue the refund. I wonder if they will get a letter later on. I am sure I did one a couple of years ago and I haven't heard anything.

So that means for someone who collected unemployment and collected social security benefits? So to calculate the taxable portion of SS, you have to add back the $10,200 of unemployment?

I agree

You don't need to do anything. I think the IRS check amounts before it checks from who. If the amounts reported match with what the IRS has on record, no letter is received.

Go to Bank Account tab below 1040 and check yes, yes, no. Then select Fed and your state but I believe you have done so already.

I don't create a pdf. I get the signed 8879 and I check the refund on paper vs the one on the upper right corner of my monitor.

ILLMAS, that's correct... no stimulus for this HOH. If you answer the questions correctly for line 30, it should not populate any dollars amount for the two stimulus.

2848 is better for us, preparers.

Your client will get $4,200 on the third stimulus after you file 2020 or after the IRS gets the info from 2019.

I am going to say the same thing as Lion EA. My brother is the none custodial parent. He files single every single year and every other year he has a dependent. The mother, every year she is HOH and claims EIC credit every year. On her return, every other year she lists ONE dependent and gets EIC. Every other year she DOES NOT list any dependents and gets EIC because she has a salary of $25K. (I have to mention that $25K because someone might interpret that she gets EIC credit for her and not for the child).

Yes, you are correct. There MUST be one of the taxpayers with social security number for the return to be unsealed and once unsealed, the dependents come to play.

I have 2 that owe a few bucks but the non-refundable child tax credit takes care of that. I am going to file as if nothing happened. I have been suggesting that the IRS only programs line 28 (I believe) to 0. So that line should read: Maximum repayment = 0 and be done with it.

VA needs to stop using line 7 as the amount to exclude. It needs to use the line with the end result after the amount has been lowered to 0 or the amount has been substracted $10,200 or 20,400.

VA and MD are not taxing at all unemployment received in 2020. DC has not said anything yet but I believe they will go with the Fed and not tax up to $10,200 per filer. How about your state?

Yes the owner of each company or the "tax matter" partner needs to sign the form authorizing you to efile. The only one that you don't need signature is for your own company. Being an employee doesn't affect the need for signature and it is OK to be an employee and efile the return with the proper authorization.

Here I go again with scenarios: Scenario 1: I efiled in Feb, 2021 a return of a single mother with one child age 5. I entered W2 income =15K Unemployment = $20K. No IEC form was filed because she earned too much. it is April and the IRS sent this person an extra check for $1,020 because unemployment is not taxable. It is time for me to amend and claim EIC. I guess I will have to be careful to enter those $1,020 on the 1040X as received. Scenario 2: Similar case, except this taxpayer: I entered W2 income =15K Unemployment = $16K EIC was claimed on this return and all forms were filed out. I wonder if the IRS will send the $1,020 check to this person and the additional EIC without any intervention from my part. Scenario 3: Same situation as above with this income: I entered W2 income =3K Unemployment = $10K EIC was claimed on this return and all forms were filed out. In this case, the parent got $1,400 refundable additional child tax credit. Will the IRS send a bill to this person?

So, EIC will be affected. I will be doing a few amendments.