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Level 5
March 14, 2021
Question

Is IHSS nontaxable payments qualified for earned income tax credit?

  • March 14, 2021
  • 1 reply
  • 16 views

taxpayer received IHSS payments that have $0 on his W-2 box 1.  These IHSS payments are not taxable incomes.  when enter W-2 with $0 taxable wages, Lacerte gives critical warming.  And, no earned income tax credit generated.

In 2020, taxpayer had IHSS incomes and small interest incomes; spouse had $0.  Are they qualified for earned income credits?  If yes, how do I generate EIC for this client?

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1 reply

Level 15
March 14, 2021

I can answer the first part of that question ... yes, it is optional to use that as Earned Income.

As for how to do it in Lacerte, I don't know.  In ProSeries there is an EIC worksheet that you can use.

hgtcAuthor
Level 5
March 15, 2021

Thank you.  

Does any know how to enter this EIC in Lacerte?