Earlier today TaxSlayer Pro released a Federal Individual Update that will allow qualified individuals in designated federal disaster areas impacted by Hurricanes Harvey, Irma and Maria to determine their earned income credit and/or child tax credit based on their 2016 earned income. This provision only applies when the taxpayer’s earned income in 2016 was greater than their 2017 earned income.
Primarily this provision impacts taxpayers that reside in Florida, Georgia and Texas, but may impact certain residents of Louisiana, South Carolina and Puerto Rico. Qualified individuals are taxpayers whose principal place of abode was in a disaster zone on the date the Hurricane Harvey, Irma or Maria occurred, or the individual lived in the disaster area (but outside the disaster zone) and was displaced from their principal place of abode because of the hurricane. On a joint return only, either the taxpayer or spouse can be deemed to be the qualified individual.
For more information on entering this alternative calculation in TaxSlayer Pro check out the Knowledgebase article on Special Rule for Determining 2017 Earned Income for the Earned Income Tax Credit and Child Tax Credit.