Perhaps you are retired, have non-taxable income, or are not showing a profit in your business.
Earned income includes all income from employment, but only if it is includable in gross income. Examples of earned income are:
- wages; salaries; tips; and other taxable employee compensation.
- net earnings from self-employment.
Examples of items that aren't earned income include
- interest and dividends,
- pensions and annuities,
- social security and railroad retirement benefits (including disability benefits),
- alimony and child support,
- welfare benefits,
- workers' compensation benefits,
- unemployment compensation (insurance),
- nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments.
For more information concerning earned income, please see IRS Pub 596 - Earned Income Credit (EIC)
