Those withdrawals are not investment income. This is what the IRS defines as investment income for the Earned Income Credit:
-
Investment income includes:
- Interest (both taxable and tax-exempt)
- Dividends
- Capital gain income
- Some rent and royalty income
- Net income from passive activities.
If you are filing Form 1040, your investment income is the total of the amounts on lines 2a (tax exempt interest), 2b (taxable interest),3b, (ordinary dividends) and Schedule 1, Line 13, (capital gain or loss).
