Got a letter from the IRS yesterday wanting my Sch 3 to somehow corroborate
a $25 EIC credit I H&R Block calculated for me.
Hardly worth the effort, but I'm now single at 73, had $309 in Sch. C income >that says I'm eligible for the $25 EIC. My Sch. 3 has nothing but zeroes on >it and I filed form 1040SR.
Thoughts?
Got a letter from the IRS yesterday wanting my Sch 3 to somehow corroborate
a $25 EIC credit I H&R Block calculated for me.
Hardly worth the effort, but I'm now single at 73, had $309 in Sch. C income >that says I'm eligible for the $25 EIC. My Sch. 3 has nothing but zeroes on >it and I filed form 1040SR.
Thoughts?
Got a letter from the IRS yesterday wanting my Sch 3 to somehow corroborate >> a $25 EIC credit I H&R Block calculated for me.
Hardly worth the effort, but I'm now single at 73, had $309 in Sch. C income >> that says I'm eligible for the $25 EIC. My Sch. 3 has nothing but zeroes on >> it and I filed form 1040SR.
Thoughts?
What line of your Form 1040-SR is the $15 credit on? If it's
EIC it should be on line 27, and it does not require
Schedule 3. If it's on 1040-SR line 20 or line 31 it's
something else, and it should be on Schedule 3.
When you say "H&R Block calculated for me" do you mean that
you used H$R Block software to prepare your tax return
yourself, or do you mean that you went to an H&R Block
office and an H&R Block employee prepared your return for
you? If an H&R Block employee prepared the return, then I
agree with Adam Kerman that H&R Block should deal with the
IRS letter on your behalf.
Bob Sandler
Wilson <nowhere@nearyou.com> wrote:
Got a letter from the IRS yesterday wanting my Sch 3 to somehow corroborate >> a $25 EIC credit I H&R Block calculated for me.
Hardly worth the effort, but I'm now single at 73, had $309 in Sch. C income >> that says I'm eligible for the $25 EIC. My Sch. 3 has nothing but zeroes on >> it and I filed form 1040SR.
Thoughts?
Each and every time a taxpayer receives a letter from IRS, he must
carefully consider whether a response is required or some other action
is required.
You paid H&R Block to prepare your tax return in such a way that you
don't hear from IRS. Have them deal with it. It's entirely possible that
IRS is correct and there was a problem with Schedule 3.
I'm a little confused. When you filed, did your return show that you
were eligible for the refundable credit or not?
EIC is one of those credits that IRS tends to scrutinize because there
is so much low-hanging fruit to deny eligibility, and the taxpayer can
be penalized in such a way that they cannot claim the credit in several future tax years.
Unfortunately, you really should have H&R Block either fix your Schedule
3 or send in correspondence that the information was correct. You must
avoid the harsh penalty.
On 8/5/2024 4:50 PM, Adam H. Kerman wrote:
Wilson <nowhere@nearyou.com> wrote:
Got a letter from the IRS yesterday wanting my Sch 3 to somehow corroborate >>>a $25 EIC credit I H&R Block calculated for me.
Hardly worth the effort, but I'm now single at 73, had $309 in Sch. C income >>>that says I'm eligible for the $25 EIC. My Sch. 3 has nothing but zeroes on >>>it and I filed form 1040SR.
Thoughts?
Each and every time a taxpayer receives a letter from IRS, he must >>carefully consider whether a response is required or some other action
is required.
You paid H&R Block to prepare your tax return in such a way that you
don't hear from IRS. Have them deal with it. It's entirely possible that >>IRS is correct and there was a problem with Schedule 3.
I'm a little confused. When you filed, did your return show that you
were eligible for the refundable credit or not?
EIC is one of those credits that IRS tends to scrutinize because there
is so much low-hanging fruit to deny eligibility, and the taxpayer can
be penalized in such a way that they cannot claim the credit in several >>future tax years.
Unfortunately, you really should have H&R Block either fix your Schedule
3 or send in correspondence that the information was correct. You must >>avoid the harsh penalty.
I used H&R software to do my return. I went back in and specifically checked >the EIC section. There was a box that I missed and was surprised when I was >granted any EIC, but figured 'what the heck.'
My error, I guess, so I'm letting it slide.
Wilson <nowhere@nearyou.com> wrote:
On 8/5/2024 4:50 PM, Adam H. Kerman wrote:
Wilson <nowhere@nearyou.com> wrote:
Got a letter from the IRS yesterday wanting my Sch 3 to somehow corroborate
a $25 EIC credit I H&R Block calculated for me.
Hardly worth the effort, but I'm now single at 73, had $309 in Sch. C income
that says I'm eligible for the $25 EIC. My Sch. 3 has nothing but zeroes on
it and I filed form 1040SR.
Thoughts?
Each and every time a taxpayer receives a letter from IRS, he must
carefully consider whether a response is required or some other action
is required.
You paid H&R Block to prepare your tax return in such a way that you
don't hear from IRS. Have them deal with it. It's entirely possible that >>> IRS is correct and there was a problem with Schedule 3.
I'm a little confused. When you filed, did your return show that you
were eligible for the refundable credit or not?
EIC is one of those credits that IRS tends to scrutinize because there
is so much low-hanging fruit to deny eligibility, and the taxpayer can
be penalized in such a way that they cannot claim the credit in several
future tax years.
Unfortunately, you really should have H&R Block either fix your Schedule >>> 3 or send in correspondence that the information was correct. You must
avoid the harsh penalty.
I used H&R software to do my return. I went back in and specifically checked >> the EIC section. There was a box that I missed and was surprised when I was >> granted any EIC, but figured 'what the heck.'
Can you be very specific about this tic box so I can figure this out?
My error, I guess, so I'm letting it slide.
It's not just not being entitled to claim the credit for 2023. It's
being put on the "deny EIC and give tax returns extra scrutiny" list for several years.
Don't let this slide.
I cannot figure out what the Schedule 3 issue is. The only stuff vaguely related would be Line 2 (nonrefundable) Credit for Child and dependent Care, but you don't list the number of children here, or 13z, refundable
credits not reported elsewhere, but you don't claim EIC on this line.
Doesn't their software have human backup? Ask them for assistance.
On 8/7/2024 1:12 PM, Adam H. Kerman wrote:
Wilson <nowhere@nearyou.com> wrote:
On 8/5/2024 4:50 PM, Adam H. Kerman wrote:
Wilson <nowhere@nearyou.com> wrote:
Got a letter from the IRS yesterday wanting my Sch 3 to somehow >>>>>corroborate a $25 EIC credit I H&R Block calculated for me.
Hardly worth the effort, but I'm now single at 73, had $309 in Sch.
C income that says I'm eligible for the $25 EIC. My Sch. 3 has >>>>>nothing but zeroes on it and I filed form 1040SR.
Thoughts?
Each and every time a taxpayer receives a letter from IRS, he must >>>>carefully consider whether a response is required or some other action >>>>is required.
You paid H&R Block to prepare your tax return in such a way that you >>>>don't hear from IRS. Have them deal with it. It's entirely possible that >>>>IRS is correct and there was a problem with Schedule 3.
I'm a little confused. When you filed, did your return show that you >>>>were eligible for the refundable credit or not?
EIC is one of those credits that IRS tends to scrutinize because there >>>>is so much low-hanging fruit to deny eligibility, and the taxpayer can >>>>be penalized in such a way that they cannot claim the credit in several >>>>future tax years.
Unfortunately, you really should have H&R Block either fix your Schedule >>>>3 or send in correspondence that the information was correct. You must >>>>avoid the harsh penalty.
I used H&R software to do my return. I went back in and specifically checked >>>the EIC section. There was a box that I missed and was surprised when I was >>>granted any EIC, but figured 'what the heck.'
Can you be very specific about this tic box so I can figure this out?
My error, I guess, so I'm letting it slide.
It's not just not being entitled to claim the credit for 2023. It's
being put on the "deny EIC and give tax returns extra scrutiny" list for >>several years.
Don't let this slide.
I cannot figure out what the Schedule 3 issue is. The only stuff vaguely >>related would be Line 2 (nonrefundable) Credit for Child and dependent Care, >>but you don't list the number of children here, or 13z, refundable
credits not reported elsewhere, but you don't claim EIC on this line.
Doesn't their software have human backup? Ask them for assistance.
Went back into my return. Saved it to another name so that I could retain
the original.
On the 1040 SR, the $25.00 appears on ln. 27 and then ln. 32, 34 & 35a. It >appears no where else on the submitted return and the only forms filed with >the 1040SR were Sch. B, C & D and form 8949.
Going back to review the data entered, I started with the Federal mod, then >Credits and then EIC.
First page - Check any that apply - only checked 'I have a Soc. Sec. number'
Second page - Tell us where your main home was - 'Yes it was in the US over
6 months.'
Third page - Are you a Dependent of another - THIS FIELD WAS BLANK on the >originally filed return, so neither field was checked and the software
missed it.
Soon as I checked 'NO,' the EIC credit disappeared.
Hope that helps. Ultimately, my error, but H&R Block didn't catch it.
On 8/8/2024 6:31 PM, Adam H. Kerman wrote:
Wilson <nowhere@nearyou.com> wrote:
On 8/7/2024 1:12 PM, Adam H. Kerman wrote:
Wilson <nowhere@nearyou.com> wrote:
On 8/5/2024 4:50 PM, Adam H. Kerman wrote:
Wilson <nowhere@nearyou.com> wrote:
Got a letter from the IRS yesterday wanting my Sch 3 to somehow >>>>>>>corroborate a $25 EIC credit I H&R Block calculated for me.
Hardly worth the effort, but I'm now single at 73, had $309 in Sch. >>>>>>>C income that says I'm eligible for the $25 EIC. My Sch. 3 has >>>>>>>nothing but zeroes on it and I filed form 1040SR.
Thoughts?
Each and every time a taxpayer receives a letter from IRS, he must >>>>>>carefully consider whether a response is required or some other action >>>>>>is required.
You paid H&R Block to prepare your tax return in such a way that you >>>>>>don't hear from IRS. Have them deal with it. It's entirely possible that >>>>>>IRS is correct and there was a problem with Schedule 3.
I'm a little confused. When you filed, did your return show that you >>>>>>were eligible for the refundable credit or not?
EIC is one of those credits that IRS tends to scrutinize because there >>>>>>is so much low-hanging fruit to deny eligibility, and the taxpayer can >>>>>>be penalized in such a way that they cannot claim the credit in several >>>>>>future tax years.
Unfortunately, you really should have H&R Block either fix your Schedule >>>>>>3 or send in correspondence that the information was correct. You must >>>>>>avoid the harsh penalty.
I used H&R software to do my return. I went back in and specifically >>>>>checked the EIC section. There was a box that I missed and was >>>>>surprised when I was granted any EIC, but figured 'what the heck.'
Can you be very specific about this tic box so I can figure this out?
My error, I guess, so I'm letting it slide.
It's not just not being entitled to claim the credit for 2023. It's >>>>being put on the "deny EIC and give tax returns extra scrutiny" list for >>>>several years.
Don't let this slide.
I cannot figure out what the Schedule 3 issue is. The only stuff >>>>vaguely related would be Line 2 (nonrefundable) Credit for Child and >>>>dependent Care, but you don't list the number of children here, or
13z, refundable credits not reported elsewhere, but you don't claim
EIC on this line.
Doesn't their software have human backup? Ask them for assistance.
Went back into my return. Saved it to another name so that I could retain >>>the original.
On the 1040 SR, the $25.00 appears on ln. 27 and then ln. 32, 34 & 35a. It >>>appears no where else on the submitted return and the only forms filed with >>>the 1040SR were Sch. B, C & D and form 8949.
Going back to review the data entered, I started with the Federal mod, then >>>Credits and then EIC.
First page - Check any that apply - only checked 'I have a Soc. Sec. number'
Second page - Tell us where your main home was - 'Yes it was in the US over >>>6 months.'
Third page - Are you a Dependent of another - THIS FIELD WAS BLANK on the >>>originally filed return, so neither field was checked and the software >>>missed it.
Soon as I checked 'NO,' the EIC credit disappeared.
Hope that helps. Ultimately, my error, but H&R Block didn't catch it.
No, that you made this error was not your error. It's flawed software design.
You saw the question, realized it didn't apply to you (I'll assume it's >>been decades since you were last a dependent), and ignored it. Anyone >>unfamiliar with H&R Block software would have done the same. If the >>taxpayer filled out the form manually, the default assumption is that the >>taxpayer IS NOT a dependent unless he states that he is. The software >>changed that assumption so that the taxpayer IS a dependent unless he >>states otherwise.
H&R Block should have provided a worksheet to assist with the
calculation of whether the taxpayer can be claimed as a dependent, not >>leaving it to the taxpayer to know about this and finding the worksheet
in the 1040 instructions. Note that the taxpayer who can be claimed as a >>dependent must tic "yes" regardless of whether the other taxpayer does >>indeed make such a claim.
Being a dependent changes your standard deduction. The worksheet in the >>instructions is on page 34. There's also a very lengthy worksheet to >>calculate the EIC which some people with low income without dependents >>themselves are eligible for.
Typically if you've got adequate income from pensions and retirement funds, >>you won't be eligible for EIC. I don't understand why being a dependent >>would have changed the calculation enough that you became eligible.
I have advice for you on next steps.
1) The problem that tripped you up must trip up quite a few taxpayers.
This software does not meet your needs. Don't use it to prepare 2024 tax >>returns.
2) Complain severely to H&R Block. If they receive no complaints, they >>won't fix it. Either ask for a full refund or ask for their help in
dealing with the IRS corresponse. Really, they should help you.
3) "List of taxpayers falsely claiming EIC" is not a list you want to be
on given that eligibility for EIC receives special scrutiny. I advise
you to file an amended return. It's extra work for you but it
establishes that you are making your best effort to comply.
4) In the field on the amended return that talks about information that
was on the previous return, you enter IRS's figures as they changed
them, not the information from the original return. This has tripped me
up in the past. It saves more IRS correspondence. In other words, IRS >>chnged Line 27 from $25 to 0, so use "0" as information from the
original return. Unless you find rounding errors or other missing >>information, the two columns will end up being the same.
4) Do not let H&R Block charge you to file the amended return.
H&R Block really should bend over backwards to help you. This couldn't
have possibly affected you alone.
Thanks, Adam. That makes sense, the default should be that 'I'm not a >dependent' and 'probably not eligible for EIC' in any situation having no >dependents at 73.
I'll write something to H&R. The letter from the IRS expressly doesn't want >me to file an amended return and only want my Sch. 3. I'm not worried about >audits, since I pay no Fed. taxes nor plan to unless a windfall comes my way.
Wilson <nowhere@nearyou.com> wrote:
On 8/7/2024 1:12 PM, Adam H. Kerman wrote:
Wilson <nowhere@nearyou.com> wrote:
On 8/5/2024 4:50 PM, Adam H. Kerman wrote:
Wilson <nowhere@nearyou.com> wrote:
Got a letter from the IRS yesterday wanting my Sch 3 to somehow
corroborate a $25 EIC credit I H&R Block calculated for me.
Hardly worth the effort, but I'm now single at 73, had $309 in Sch. >>>>>> C income that says I'm eligible for the $25 EIC. My Sch. 3 has
nothing but zeroes on it and I filed form 1040SR.
Thoughts?
Each and every time a taxpayer receives a letter from IRS, he must
carefully consider whether a response is required or some other action >>>>> is required.
You paid H&R Block to prepare your tax return in such a way that you >>>>> don't hear from IRS. Have them deal with it. It's entirely possible that >>>>> IRS is correct and there was a problem with Schedule 3.
I'm a little confused. When you filed, did your return show that you >>>>> were eligible for the refundable credit or not?
EIC is one of those credits that IRS tends to scrutinize because there >>>>> is so much low-hanging fruit to deny eligibility, and the taxpayer can >>>>> be penalized in such a way that they cannot claim the credit in several >>>>> future tax years.
Unfortunately, you really should have H&R Block either fix your Schedule >>>>> 3 or send in correspondence that the information was correct. You must >>>>> avoid the harsh penalty.
I used H&R software to do my return. I went back in and specifically checked
the EIC section. There was a box that I missed and was surprised when I was
granted any EIC, but figured 'what the heck.'
Can you be very specific about this tic box so I can figure this out?
My error, I guess, so I'm letting it slide.
It's not just not being entitled to claim the credit for 2023. It's
being put on the "deny EIC and give tax returns extra scrutiny" list for >>> several years.
Don't let this slide.
I cannot figure out what the Schedule 3 issue is. The only stuff vaguely >>> related would be Line 2 (nonrefundable) Credit for Child and dependent Care,
but you don't list the number of children here, or 13z, refundable
credits not reported elsewhere, but you don't claim EIC on this line.
Doesn't their software have human backup? Ask them for assistance.
Went back into my return. Saved it to another name so that I could retain
the original.
On the 1040 SR, the $25.00 appears on ln. 27 and then ln. 32, 34 & 35a. It >> appears no where else on the submitted return and the only forms filed with >> the 1040SR were Sch. B, C & D and form 8949.
Going back to review the data entered, I started with the Federal mod, then >> Credits and then EIC.
First page - Check any that apply - only checked 'I have a Soc. Sec. number'
Second page - Tell us where your main home was - 'Yes it was in the US over >> 6 months.'
Third page - Are you a Dependent of another - THIS FIELD WAS BLANK on the
originally filed return, so neither field was checked and the software
missed it.
Soon as I checked 'NO,' the EIC credit disappeared.
Hope that helps. Ultimately, my error, but H&R Block didn't catch it.
No, that you made this error was not your error. It's flawed software design.
You saw the question, realized it didn't apply to you (I'll assume it's
been decades since you were last a dependent), and ignored it. Anyone unfamiliar with H&R Block software would have done the same. If the
taxpayer filled out the form manually, the default assumption is that the taxpayer IS NOT a dependent unless he states that he is. The software
changed that assumption so that the taxpayer IS a dependent unless he
states otherwise.
H&R Block should have provided a worksheet to assist with the
calculation of whether the taxpayer can be claimed as a dependent, not leaving it to the taxpayer to know about this and finding the worksheet
in the 1040 instructions. Note that the taxpayer who can be claimed as a dependent must tic "yes" regardless of whether the other taxpayer does
indeed make such a claim.
Being a dependent changes your standard deduction. The worksheet in the instructions is on page 34. There's also a very lengthy worksheet to calculate the EIC which some people with low income without dependents themselves are eligible for.
Typically if you've got adequate income from pensions and retirement funds, you won't be eligible for EIC. I don't understand why being a dependent
would have changed the calculation enough that you became eligible.
I have advice for you on next steps.
1) The problem that tripped you up must trip up quite a few taxpayers.
This software does not meet your needs. Don't use it to prepare 2024 tax returns.
2) Complain severely to H&R Block. If they receive no complaints, they
won't fix it. Either ask for a full refund or ask for their help in
dealing with the IRS corresponse. Really, they should help you.
3) "List of taxpayers falsely claiming EIC" is not a list you want to be
on given that eligibility for EIC receives special scrutiny. I advise
you to file an amended return. It's extra work for you but it
establishes that you are making your best effort to comply.
4) In the field on the amended return that talks about information that
was on the previous return, you enter IRS's figures as they changed
them, not the information from the original return. This has tripped me
up in the past. It saves more IRS correspondence. In other words, IRS
chnged Line 27 from $25 to 0, so use "0" as information from the
original return. Unless you find rounding errors or other missing information, the two columns will end up being the same.
4) Do not let H&R Block charge you to file the amended return.
H&R Block really should bend over backwards to help you. This couldn't
have possibly affected you alone.
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