Deductions & credits

To qualify for the EIC credit?  Look at Worksheet 1 on this page.  It's very simple.  Just enter your 4,000 interest on line 1.  Then on line 5 you can't enter your loss.  It only lets you enter zero, not less.  So it is not subtracted from investment income to qualify for EIC.  Sorry.

https://www.irs.gov/publications/p596