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Proseries 2021 calculating refundable child tax credit incorrectly

Scollier
Level 2

Prepared client's 2021 return.  Form 8812 did not allow refundable child tax credit because Earned Income Worksheet Part IV line 23 did not include her self-employed wages (because they were exempt from SE tax). 

Client received CP12 indicating 8812 computation of credit was incorrect and client's return is being adjusted and the RCTC is being sent.

So it appears as long as she has earned income she is eligible for the credit.

Proseries please look into this. 

I can provide tax notice (with client's permission), if needed.

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4 Comments 4
taxiowa
Level 9
Level 9

For 2021 you do not have to have earned income to get the refundable child tax credit.  Heck you don't have to have any taxable income.

Scollier
Level 2

The point is the system indicated the taxpayer was not eligible for the credit and the IRS adjusted the return.

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taxiowa
Level 9
Level 9

My program works fine without earned income.  Must by another reason program disallowed it.  Usually can tell be diagnostics or improper entry of early payments.  Did you get letter 6419 to enter?

Just-Lisa-Now-
Level 15
Level 15
wasnt that the one that had a question about living in the US?
if you marked that wrong, it disallowed it

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪