EIC

[spencecpa1]

2019 divorcee with 2 kids received $100,000 alimony in addition to $25,000 W-2 income. Since the alimony is not taxable does she qualify for EIC?

[RollTide68]

I could not find anything to the contrary.

The alimony is not claimed as income or is it investment income

[BobKamman]

Are you sure it's not a 2018 agreement?  The year of the divorce may not matter.

[spencecpa1]

I verified that the divorce took place in 2019. I played around and tried it as 2018 which made it taxable & thus eliminated the EIC but when I put it back in as 2019 ProSeries allowed the EIC. What a windfall for the client.

[BobKamman]

Did you verify there was no signed agreement in 2018?