ProWeb: Why No EIC Calculated

Raven Pro runs a series of EIC eligibility tests in each tax return based on the information in the return. If the taxpayer is not eligible to claim the EIC, the program produces a statement that explains why they don’t qualify.

In Raven ProWeb the Reasons for No Earned Income is displayed on the tax return summary at the top of the page. 

EIC Checklist was not Answered Correctly

“EIC Checklist was not Answered Correctly” does not imply that you as a preparer made a mistake. Because this reason is not typically seen on its own, but is virtually always accompanied by other reasons, the other reasons explain why the taxpayer doesn’t qualify for EIC.

First of all, this reason may show due to any of these conditions that disqualify the taxpayer from receiving EIC:

  • The taxpayer was a nonresident alien for part of the year.
  • The taxpayer indicated a dependent qualifies another taxpayer for EIC.
  • The taxpayer’s main home was outside the U.S. and they are not in the military on active duty.
  • The taxpayer or spouse is eligible to be claimed on someone else’s return.

If none of the above apply, then this reason is showing may be due to the affirmative answer to this question: “Did you review adequate information to determine that the taxpayer is eligible to claim the credit(s) and/or HOH filing status and in what amount?” If the taxpayer is disqualified from receiving EIC due to one of its many requirements, then this question presumably should be answered No since the taxpayer is not in fact eligible.

Completing the EIC Due Diligence Questions

If you’d like to re-answer the EIC Due Diligence Questions, from the Main Menu of the tax return (Form 1040) select:

  • Federal Section
  • Deductions
  • Credits
  • EIC Checklist

The EIC Due Diligence Checklist menu uses the following indicators for each menu line:

  • Certified – Based on all the answers to the questions, the taxpayer qualifies for EIC.
  • Does Not Meet – EIC has been calculated, but your answer to one or more due diligence questions indicates that you haven’t met a due diligence standard.
  • Answered – All due diligence questions pertaining to the credit have been answered.
  • Entered – Indicates the required documents have been entered or attached.
  • N/A – This series of questions doesn’t apply to this taxpayer.