What counts as Earned Income for EIC?
I'm using the EITC Assistant on the IRS website. I'm confused and would appreciate help so I know what figures to put in to get an accurate EIC result.
My W-2 Income counts... yes it does.
My Schedule-C Income counts ... yes it does.
My IRA distributions????? Do they count?
My loss on a partnership???? Does it count?
It's on a K-1. Do I include it? If I need to include it, where do I put it? The IRS Assistant doesn't accept a negative number as the income? The amount isn't much. My W-2 and Schedule-C are more, so I still have a positive income. Should I just reduce one of the others by this amount? Should I just include the loss number in my business expenses on the IRS Assistant? Or so I not include this loss at all?
Then I know to include adjustments for 1/2 of Soc Sec I paid for my business income and for my Sched-C business expenses.
I just don't know how close the EIC AGI relates to the AGI on the 1040.
Thank you for your help.
