Jump to content
ATX Community

Child support backpay interest = no EIC

Recommended Posts

Not my client but my associates, his client received a letter from the IRS informing them that the state of IL paid them around $9,000 in interest for back child support, his client didn’t even know about it, just thought it was part of the child support.  Now for the bad part, taxpayer income is very low and due to the interest they lost around $6,000 of EIC and need to repay it back.  This is an unusual  case, interest income is interest income but it’s not like the taxpayer was saving the money from their earnings, would other income work?



  • Like 1
Link to post
Share on other sites

Interest or other income will cause the loss of some EIC. So it will not make any difference if reclassified. 

I can only imagine how much that person received in child support that year in order to earn 9K in interest. 

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Create New...