Solved: Input royalty income from Trust K-1 to Lacerte not to calculate EIC Credit

Jacob · ‎12-07-2019

My client with 2 children has royalty($3,500) and rental income($3,000) from Trust K-1 and Wage ($15,000) I think she is not qualified for EIC because of investment income limit($3,500) for EIC. But Lacerte makes EIC for her. I checked the EIC work sheet doesn't count royalty income as investment income.

In K-1, Royalty income is in line 5 as other portfolio and nonbusiness income

As a result, please let me know how to input royalty income from K-1 to lacerte program as royalty income correctly. She is not qualified for EIC.......

Thank you for your help in advance

PhoebeRoberts · ‎12-07-2019

I agree that the expected input produces this unexpected result.

The royalty isn't showing up on the EIC worksheet, because the literal wording of the worksheet doesn't provide for it to show up there. (Pension and IRA distributions are another one where running it through a trust or estate gives you a different result than if you held it directly. Sometimes it's a worse answer, sometimes not.)

If you really dislike this answer:

1 To Print No on Form 1040, 2 to Suppress [O] Earned Income Credit Screen 38; Code 58

The program prints "No" on the earned income credit line of Form 1040 according to the IRS instructions. Enter 1 to force "No" to print regardless of the instructions, or enter 2 to suppress "No" from printing.

View solution in original post

PhoebeRoberts · ‎12-07-2019

I agree that the expected input produces this unexpected result.

The royalty isn't showing up on the EIC worksheet, because the literal wording of the worksheet doesn't provide for it to show up there. (Pension and IRA distributions are another one where running it through a trust or estate gives you a different result than if you held it directly. Sometimes it's a worse answer, sometimes not.)

If you really dislike this answer:

1 To Print No on Form 1040, 2 to Suppress [O] Earned Income Credit Screen 38; Code 58

The program prints "No" on the earned income credit line of Form 1040 according to the IRS instructions. Enter 1 to force "No" to print regardless of the instructions, or enter 2 to suppress "No" from printing.

Jacob · ‎12-07-2019

Thank you for your answer sincerely.

Input royalty income from Trust K-1 to Lacerte not to calculate EIC Credit

©1997-2024 Intuit, Inc. All rights reserved.

Intuit, QuickBooks, QB, TurboTax, and Mint are registered trademarks of Intuit, Inc. Terms and conditions, features, support, pricing and service options subject to change without notice.

By accessing and using this page you agree to the Terms and Conditions.