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17428: Screen EIC (Drake21)


1040 Individual

What is the new screen EIC used for in the Drake Tax 2021 software?

 

A new screen EIC is available in Drake Tax 2021.  Some data entry fields previously located on screen 8812 have been moved to screen EIC because they no longer pertain to Schedule 8812.

  • PYEI - Prior-year earned income from tax year 2019 (not 2020) can be used to calculate EIC for tax year 2021.  If the 2019 earned income entered on screen EIC is greater than the 2021 earned income, the program compares calculations using 2019 and 2021 earned income and uses the more beneficial of the two to grant the taxpayer the higher EIC. 

  • Medicare Waiver Payments - If you wish to exclude Notice 2014-7 income from earned income and have it omitted for Earned Income Credit purposes, check the box Exclude Medicare waiver payments from EIC calculations.

 

  • Combat Pay - If you wish to include nontaxable combat pay in earned income to claim EIC, check the box Include combat pay in EIC calculations.

Other fields that were previously located on screen 8867 have also been moved to screen EIC.

  • Form 8862 link - If the taxpayer was previously disallowed a credit, they may be required to complete Form 8862.

  • EIC Blocker - If you have determined that the taxpayer does not qualify for EIC, or has chosen not to claim the credit, check the box EIC Blocker - Taxpayer does not qualify for EIC to stop this calculation.

Along with fields that were previously located on other screens, screen EIC contains some new data entry fields for tax year 2021.

  • Married Filing Separately - If the taxpayer is claiming filing status MFS, but qualifies to claim EIC, check the appropriate box. 

  • 18-year-old taxpayer - If the taxpayer is under the age of 19 and meets the specified requirements, check this box to calculate EIC.

  • Student under age 24 - If the taxpayer is under the age of 24, is a student, and meets the specified requirements, check this box to calculate EIC.


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