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EIC

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Level 2

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?

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4 Replies 4
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Level 8

I could not find anything to the contrary.

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

Level 11

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

 

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Level 2

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.

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Level 11

Did you verify there was no signed agreement in 2018?  

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