Apply for the Earned Income Credit, What problems might I face?
As with any financial credits relating to income tax returns, there are potential issues a taxpayer may find when applying for an Earned Income Credit. These may be reasons why you would not qualify, what to do when you weren’t allowed to apply last year but are now eligible and how the Earned Income Credit ties into your tax filing requirements.
Some taxpayers are unable to file for the Earned Income Credit if they have been found to exhibit disregard for the specific Earned Income Credit rules and regulations. The IRS may prohibit your use of the Earned Income Credit for 2 years in this case, or, if convicted of fraud, you may be unable to receive this credit for 10 years.
Anyone who received the Advance Earned Income Credit before it was repealed in 2010 has to file their income tax returns. As this credit is no longer valid, this only applies to those that have not filed some of their past returns.
If this applies to you, you can find the Advanced Earned Income Credit amounts in box 9 from any of the W-2’s from those years and it must be reported on the appropriate 1040 forms.