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Level 3
March 7, 2024
Question

Earned Income and Child Tax Credit Calculations in Proseries

  • March 7, 2024
  • 3 replies
  • 23 views

I have made several attempts to get help from Proseries Help regarding how the Earned Income Credit and Child Tax Credits are calculated.  Wondering if there is someone here that can help guide me.on how Proseries calculates this.  I will communicate details if there is an expert that can help.  Thank you.  

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3 replies

Just-Lisa-Now-
Intuit Community Champion
March 7, 2024

Whats the problem you're having?  Maybe you can explain your situation and someone can walk through it with you.

EITC and CTC calculate automatically if the clients situation qualifies for it, you dont need to "do" anything extra to make it happen.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 15
March 7, 2024

If you to "Find Form" and type "EIC", you can open the "EIC Worksheet" that has the calculations.

Form 8812 shows the calculations for the Child Tax Credit.

If you have further questions, you'll need to post as many details as possible.

Level 3
March 7, 2024

This is a repeat client for several years.  The earned income credit calculated as $1766 and child tax credit calculated as $213 as compared to last year $6000 earned income credit and $3000 child tax credit.  Income is less in 2023 then 2022 so that is why I am questioning this.  The earned income is from self employment only in 2023 as compared to having both W2/self employment income.  There does not seem to be an issue with the amount of income for the calculation. One child was taking college classes in 2022 and 20223 age 19 turned 20 in 2023 and another is a senior in high school but turned 18 in 2023. The student taking college classes did not get financial aid in 2023 because they filed the application late. I learned that she is considered disabled for work but selecting that indicator did not change the result of the credits. So it looks like there are only two eligible dependents for the earned income credit and child tax credit compared to 3 in 2022.  In my logic the refunds should be 1/3 less.  So that is the only thing different this year.  Without understanding the calculation and knowing if the the level of the credits changed 2022 to 2023 the result seems wrong. There is another child involved that is shared custody and they have a verbal agreement to alternate years to be claimed. The father pays child support.  I added this child to the return and no change to the credits.

Level 15
March 7, 2024

@jesmithjr86 wrote:

Income is less in 2023 then 2022

So it looks like there are only two eligible dependents for the earned income credit and child tax credit compared to 3 in 2022. 


 

Those are the two major factors. 

I didn't quite follow the kids.  Why are there only two children rather than three?  Is the third the one that the father is claiming?  Did the child live with your client and was the child a qualifying EIC child?

To see how income and the number of children affect EIC, look at the tables that start on page 27 of Publication 596.

https://www.irs.gov/pub/irs-pdf/p596.pdf#page=27

Skylane
Intuit Community Champion
March 7, 2024

Your narrative is a bit confusing.... rather than comparing 22 and 23 try just listing basic facts for this year

TP  -  status  age  ;  w2 income   - Sch C net income     custodial parent for child no 1,2..... 

Child no 1     age   college?   etc...

Child 2

 

Like @TaxGuyBill  says...pub 596 is your friend...  PS does an excellent job of calculating the credits if you get your facts straight and entered correctly. . 

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