The IRS just sent me a refund for EIC for 2006. Since I was not employed but receiving survivor benefits for myself and children, I did not think I could claim the EIC. I have not claimed it since 1998 and have supported four children. Can I go back and claim the EIC for 1999-2005? If so, how do I begin this process? Thanks.
2007-07-27 22:33:45 · 3 answers · asked by ta m 2 in Business & Finance ➔ Taxes ➔ United States
Usually IRS would catch a taxpayer not claiming EIC and refund the money, like they did for you in 2006. However, previous years may have fallen through the cracks. It depends on your EARNED income and if the total amount of earned income credit available fits the guidelines for that particular year. It is possible your 2006 level of income dropped from previous years.
You can go back three years to amend, namely, 2006, 2005 and 2004. Prior years are gone if you qualified. You would need to file form 1040-X with Schedule EIC to request the additional refund. Also on irs.gov forms and publications will be the site to acquire the forms and the EIC tables. Good luck to you!
PLEASE LET ME AMEND MY ANSWER. Sorry, I read more into your question on the first pass. Even though you are unemployed, if you worked anytime during '06 you may qualify for this EIC. Can't imagine the IRS making that kind of an error, but I have known them to make errors. If all your income was from social security, then you need not have to prepare a return. If its SS and pension, then a return needs to be filed. I am thinking if your income is strickly SS, a return would not be necessary and you filed for just the telephone credit. All in all, something is not right. There may be some additional items lacking in the question that could result in a change to the answer.
2007-07-27 22:50:27 · answer #1 · answered by IRENE THE BOOKIE 3 · 0⤊ 1⤋
The IRS has goofed, in your favor this time. Since the income you receive is not earned income you are not actually entitled to the EIC. Neither are you entitled to it for the prior tax years if all you received for income was survivor benefits. You were correct in not claiming it in the first place.
You should contact the IRS and resolve the matter. It's entirely possible that they will catch the error at some point in the future and then you'll have to pay the money back. And the IRS, in their way of seeing the world, will hit you with penalties and interest to boot. Although you would probably be able to have the penalty abated, the interest cannot be abated and must be paid.
2007-07-27 23:03:05 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
If all of your income was for survivor's benefits, and you didn't have any "earned income" since you were not employed, then you were correct in the first place, you were not eligible for EIC. I'd call the IRS and ask them what's going on - sounds like they made some kind of mistake, in which case they will very likely catch it and end up asking for the money back - so don't spend it, get this resolved with them.
2007-07-28 03:25:07 · answer #3 · answered by Judy 7 · 2⤊ 0⤋