Level 3

Question

Older Student and EIC-doesn't want to take it.

Forum|Forum|3 years ago
April 9, 2023
7 replies
23 views

Taxpayer is 28 years old and returned to school full time in Spring, Summer and Fall of 2022. Proseries is showing he qualifies for the EITC. He has distributions from an old 529 of $10,000 (used for qual education expenses), wages of $6,027 and dividends of $3,890. Grandfather gave him $11,000 in January. He doesn't want to take the EIC and it's only for $142 on the return. Is there anything here that disqualifies it? Sounds funny, but does one have to take the EIC?

ProSeries Professional

This topic has been closed for replies.

sjrcpa

Level 15

I think you can override it to zero. IRS may compute it and send a refund anyway, though.

The more I know the more I don’t know.

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taxes96786

Level 8

why not? It is actually a refund of taxes paid in the past. It may have nothing to do with his being a student. If single, no dependents and between 25 and 65 years he may qualify based on earned income.

abctax55

Level 15

deleted

HumanKind... Be Both

Just-Lisa-Now-

Intuit Community Champion

He qualifies, so Im not sure whyd youd want to disallow it, but there is a box on the fed info worksheet you can check about EIC that will disallow it Part IV, just answer one of those questions wrong and it will disallow it.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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TaxGuyBill

Level 15

Personally, I would recommend that the taxpayer take EIC on their tax return, and if they don't want to keep that 'extra' money, they can donate it back to the government (or to a charitable organization of their choice).

https://www.fiscal.treasury.gov/public/gifts-to-government.html

https://treasurydirect.gov/government/public-debt-reports/gifts/

BobKamman

Level 15

Change his age to 24. And tell him to update Grandpa on the maximum gift allowance -- it went up to $16,000.

BobKamman

Level 15

It's like depreciation. Allowed or allowable. Shall means shall:

I.R.C. § 32(a)(1) In General —

In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the credit percentage of so much of the taxpayer's earned income for the taxable year as does not exceed the earned income amount.

B

BilgeratAuthor

Level 3

I tend to agree with this. I am very uncomfortable answering any of the questions in such a way that would cause him lose the credit. The taxpayer just thinks the credit is for more deserving people and I don't disagree with him. It's a rock and hard place area. He qualifies, so we have to do all the swearing and due diligence to make absolutely positively sure he can have something he doesn't want. Thanks everyone. Feel free to comment if anyone has any other ideas or suggestions.

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taxes96786

Level 8

Bilgerat you do an accurate return and let the taxpayer deal with it.

dkh

Level 15

I'd complete the return with the EIC because I wouldn't want to deal with any future IRS notices.

Like TaxGuyBill said - advise them to donate the $142 if they're not comfortable receiving it.

Payoff some student's school lunch debt. Take the grandfather out for a nice meal.

It would be nice if IRS had a check box to opt out of EIC.

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