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Forum
-> Household Management
-> Finances
amother
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Tue, Jul 08 2014, 7:35 am
For the third year, there are issues with my tax return. My husband gets parsonage and pays self-employment tax on it, so even though it's not earned income, it counts towards the EIC, as per the IRS guidelines. But I think the computers look at the earned income and it triggers an error. Does anyone here have any helpful ideas for me to avoid this hassle next year?
thanks
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amother
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Tue, Jul 08 2014, 7:50 am
I might have to do that
the question is why is this happening.
I asked an expert from Turbo Tax and he said not to e-file, to mail in my return with an explanatory note. I was just wondering if my situation is that uncommon, if I was doing something wrong somewhere, or f this hassle happens to other people who have parsonage and qualify for the EIC.
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savta718
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Tue, Jul 08 2014, 7:56 am
Is the yeshiva your husband is working for using a payroll service? If yes, then they should be able to answer your questions.
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amother
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Tue, Jul 08 2014, 5:09 pm
Is there no one else on here who gets parsonage?
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boysrus
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Tue, Jul 08 2014, 5:19 pm
yes, we get parsonage, but our tax returns are done by an accountant and he deals with any Earned income credit problems, so I cant advise you, except to say, use an accountant, preverably a frum one who is experienced at dealing with people who get parsonage.
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amother
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Tue, Jul 08 2014, 6:57 pm
amother wrote: | For the third year, there are issues with my tax return. My husband gets parsonage and pays self-employment tax on it, so even though it's not earned income, it counts towards the EIC, as per the IRS guidelines. But I think the computers look at the earned income and it triggers an error. Does anyone here have any helpful ideas for me to avoid this hassle next year?
thanks |
Sorry to be anon. I think you need to try a more powerful software. The parsonage from schedule SE should carry forward to the EIC worksheet that calculates earned income and then it carries forward to make the proper calculations. Try taxslayer commercial software online over regular box software.
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amother
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Tue, Jul 08 2014, 7:00 pm
OP here - sorry if I was unclear. I use Turbo Tax and the calculations carried over correctly. The issue is with the IRS sending me notices that my EIC is incorrect, and then reversing that and telling me I was correct to begin with, after a whole hassle. That's what has me wondering if I am doing something wrong, or if it is normal for the IRS not to know how to handle the parsonage/EIC combination.
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