EIC (Earned Income Credit) Notes

(e-mail from Mirta; Feb 15, 2018)

Information has already been sent out regarding the provision to use 2016's earned income if HIGHER to compute EIC for 2017 if it is a better result for the taxpayer. (This is because we live in an area which was impacted by Hurricanes Harvey, Irma andMaria.) I had one at my site this week which resulted in almost doubling their refund. This option will benefit those with dependents much more than those without dependents.

Some comments:

a)  You need to see last year's return to obtain the 2016 income.

b)  Use common sense. If 2017's earned income is already so high that there is no EIC or the EIC is already on the down-slope, using a higher income will not help.

c)  The NTTC has provided detailed instructions on OSHC on how to enter the data into TaxSlayer. When you enter the data try both options: "Use Best Calculation" and "Use Prior Year". There are rumors that TSO may not always calculate the best answer. If the two agree, then I would sat TSO is doing OK.