SwapnaM
Employee Tax Expert

Deductions & credits

You must have earned income of at least $2,500 to be eligible for the child tax credit.

The IRS defines earned income as:

  • Taxable income you earned as an employee, such as wages, salaries, commissions, and tips
  • Profits from operating your business or farm
  • Long-term disability pay, if received before the minimum retirement age
  • Union strike benefits

Workers' comp, unemployment, and pensions don't count as earned income.

 

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