I've just received a letter from the state of Wisconsin DOR stating that my EIC claim is under review. Does this mean that more than likely my federal return will be reviewed as well?’=============>I don’t think so.WI DOR DOR conducts a pre-refund review of EITC for several reasons: To educate EITC filers about the eligibility criteria for EITC. To attain DOR's goal of issuing EITC refunds as quickly and efficiently as possible while maintaining or improving voluntary compliance for the benefit of all taxpayers. To correct invalid or incorrect claims filed, ensuring that the correct amount of EITC is issued to all claimants. (For the 2006 tax year, there were approximately 228,000 EITC claims filed. Credits of more than $3 million were claimed incorrectly.)WI DOR selects only those returns on which errors may be likely. The following errors occur most often: Improper qualifying children claimed - Children should only be claimed as qualifying children for EITC purposes if they meet qualifying criteria regarding relationship, age, and residency. Wisconsin EITC claimed by nonresidents or part-year residents of Wisconsin - Only full-year residents of Wisconsin are eligible to receive the Wisconsin EITC. Filing as single or head of household when married - If the taxpayer is married and does not qualify to file as head of household, they must file as married filing jointly or married filing separately. This results in a different adjusted gross income limit, above which the EITC is not available. Improper earned income claimed - To be eligible to claim the EITC, you must have earned income. Only income properly categorized as earned income should be used in the EITC computation.
“Also, I was previously married and we had two children together. In the divorce decree it states that we will each claim one child on our tax return. We have joint custody but she would be considered the custodial parent because they are not with me more than 6 months out of the year. I am all up to date on my child support and currently pay $823/month. Is there any reason I should be worried that my return will be denied?”=========>In my opinion, the best way is to contact the WI DOR for more accurate info in detail. |