Level 2

Question

Cancel EIC

Forum|Forum|8 months ago
October 12, 2025
3 replies
10 views

I need to stop EIC for Federal and Minnesota. Married client has a W-2 for lets say $ 10K . The only reason was because of Sub S owners health insurance so zero wages for social security and medicare. It is not like they earned it. It is just because how the IRS wants us to show health insurance premiums on the W-2. So I get a EIC which I do not believe they are entitled to.

Thanks

T

Terry53029

Intuit Community Champion

What EITC rule are you thinking that disqualifies them, as you don't provide enough details for me to say you are correct. And as far as state, some states have different EITC rules than federal. here is link to IRS rules for TP's without children. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables

W

WickAuthor

Level 2

To me it is not earned income because it is Sub S chapter health insurance premiums and not wages per say. Because that is how the irs wants it reported.

T

Terry53029

Intuit Community Champion

What you, and I think does not matter. Only what the law is what matters. Lookup IRC 26 section 32

T

TaxGuyBill

Level 15

@Wick wrote:

It is not like they earned it.

Did they not perform any work for the business?

Skylane

Intuit Community Champion

if you can get past the odor of lutefisk you might want to look at part IV of the information worksheet. There's a quick zoom to secret hidden worksheet to enter amounts not considered earned income

If at first you don’t succeed…..find a workaround

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WickAuthor

Level 2

Thanks I do not think its that time of the year for that aromatic eatings. I have never tried it so I will have to take your word on that subject. I looked over your suggestion and did not find anything to subtract it out and it would not let me put negative numbers in the boxes.

Thanks for having a sense of humor in these great times.

Just-Lisa-Now-

Intuit Community Champion

I think its this button you want, then on Line 2A of that worksheet you enter the amount that isnt earned.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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