Screen EIC - Earned Income Credit (1040)

Overview

Earned Income Credit

Any filing status is acceptable except married filing separately. UltraTax CS doesn't calculate the earned income credit for nonresident alien or dual-status taxpayers. Form 2555 filers receiving the foreign earned income exclusion, foreign housing exclusion or foreign housing deduction aren't eligible for the earned income credit.
Qualifying dependents in the Names and other information statement will need to have a Dep code of
1
,
5
,
7
, or
10
and a Social Security number (not ITIN) in the SSN column. Dependents 19 years of age or older will need to have an entry in the
Student/Disabled
column of the same statement, and the number of months in the home will need to be greater than 6. Enter
12
as the number of months in the home for children born in
2025
. Also, if the Date of Birth column is left blank, UltraTax CS doesn't assume the dependent hasn't met the age requirement.
Qualifying children claimed every other year for dependency purposes (i.e., who utilize a Mos Home code of
77
,
88
, or
99
in the
Dependent information
statement in the
1040
screen), but who qualify for the EIC during a period of non-dependency, will need to have a Dep code of
5
to be counted for EIC purposes.
For taxpayers with no qualifying children, UltraTax CS assumes the age requirement is met if the taxpayer / spouse dates of birth are left blank. For UltraTax CS to perform a test of the age requirement (at least age 25 but less than 65), you'll need to enter a date of birth. UltraTax CS calculates the credit if either spouse meets the age requirement.
If the taxpayer and spouse are filing jointly and you enter a Social Security number for both the taxpayer and spouse, UltraTax CS assumes the Social Security numbers enable the taxpayer or spouse to work. If this isn't true, enter
X
in
Not qualifying for earned income credit
.
UltraTax CS assumes the taxpayer or spouse, if filing jointly, aren't qualifying children of another person in the current year. If this isn't true, enter
X
in
Not qualifying for earned income credit
.
UltraTax CS assumes the taxpayer's main home, and spouse if filing jointly, was in the United States for more than half the year. (Military Personnel on extended duty outside the United States are considered to be living in the United Stated during that duty period.) If this isn't true, enter
X
in
Not qualifying for earned income credit
.
UltraTax CS assumes a qualifying child lived with the taxpayer in the United States for over half the year. If this isn't true, enter dependent code
6
, Children who lived with this client but don't qualify for EIC, in the Dependents statement in the
1040
screen.
UltraTax CS assumes that qualifying children on Schedule EIC couldn't be considered the qualifying child of another person. If this isn't true, enter the child's relationship to this other person in the
EIC
screen.
UltraTax CS assumes the qualifying children have valid Social Security numbers. For purposes of the EIC, a valid SSN is a number issued by the Social Security Administration unless "Not Valid for Employment" is printed on the Social Security card and the number was issued solely to apply for or receive a federally funded benefit. If this isn't true, enter
X
in the
Not qualifying for earned income credit
.
UltraTax CS doesn’t distinguish between taxpayers who can claim the EIC for people with a qualifying child and those that can claim the EIC for people without a qualifying child. If the taxpayer, or spouse if filing jointly, can't claim the EIC for people who don’t have a qualifying child, enter
X
in
Not qualifying for earned income credit
.