spencecpa1
Level 2
‎03-24-2020
01:59 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report Inappropriate Content
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?
4 Replies 4
RollTide68
Level 8
‎03-24-2020
03:15 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report Inappropriate Content
I could not find anything to the contrary.
The alimony is not claimed as income or is it investment income
BobKamman
Level 11
‎03-24-2020
04:56 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report Inappropriate Content
Are you sure it's not a 2018 agreement? The year of the divorce may not matter.
spencecpa1
Level 2
‎03-24-2020
05:39 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report Inappropriate Content
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
Level 11
‎03-24-2020
07:10 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Email to a Friend
- Report Inappropriate Content
Did you verify there was no signed agreement in 2018?