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TY2021: Expansion of EITC to include age 18 in certain conditions

04 Feb 22
Kim Manuel
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New for TY2021, the IRS expanded EITC to age 18 for taxpayers that meet certain qualifications as outlined on page 17 of Publication 596.  “If you are a qualified former foster youth or a qualified homeless youth, you need to be least age 18”.

The ability to calculate this new condition for EITC has been added to the application.  To trigger this condition, you will need to select the appropriate check box located on the personal information page.  Once you make the appropriate selection, the software make the appropriate calculations based on other entries in the return.  You should refer to IRS guidance on how to make the appropriate vetting process to make the determination if the selection should be checked.

 

 

Steps for identifying any returns that may have already been prepared and filed prior to the new tax law being implemented into the application.

  • Navigate to Reports
  • Select Management Reports
  • The following reports include Filing Status, Taxpayer Date of Birth, AGI and EIC
    • Site Production Detail Report – Electronic
    • Site Production Detail Report – Paper

You can utilize the built-in filters to narrow your taxpayer results to those born in 2003 and who have AGI less than the EITC threshold for taxpayers with a filing status of Single

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