Drake Tax - Screen EIC

Screen EIC is available starting in Drake Tax 2021 and contains the following fields:

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

• Include combat pay in EIC calculations - if you wish to include nontaxable combat pay in earned income to claim EIC, check this box.

• Exclude Medicare waiver payments from EIC calculations drop list - Choose whether to exclude Medicare Waiver Payments from EIC calculations.

  • T - Exclude Taxpayer's Medicare Waiver Payments only

  • S - Exclude Spouse's Medicare Waiver Payments only

  • X - Exclude both Taxpayer's and Spouse's Medicare Waiver Payments

• Investment income adjustment - Used to adjust the amount on Wk_EIC4, line 10.

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

  Drake Tax 2021 Additional Options

  • 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.

  • 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.