For purposes of the Schedule H, only wages, salaries, tips, other employee compensation, and net earnings from self-employment count as Earned Income. Hobby income and unemployment does not count towards Earned Income.
Do you have a Schedule C or does your 1099-NEC flow to Other Income? Please note that your 1099-NEC must flow to a Schedule C (self-employment income) and you must have net earnings from self-employment.
Example: You have $5,000 of wages and ($8,000) of net earnings from self-employment. Your total earned income would be less than zero. Therefore, unless you were over the age of 61, as of December 31, 2021, or disabled, you would not qualify to claim the homestead credit.
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