Can someone explain to me how unemployment benefits do not count as earned income but unemployment benefits count against the EITC earned income limitations?
Example: I made more money collecting unemployment benefits than the EITC threshold allows to receive the EITC credit but if the EITC credit is credited based on earned income and my self-employment $1000 profit then shouldn’t I qualify for the EITC? (Because my self-employment is earned income) I just would like an explanation why it’s not a two way street. Basically saying I made too much to qualify but that money doesn’t count towards it.
