Is the rental non-passive? The most common scenario is a short-term rental where you Materially Participate.
There is a discrepancy with non-passive real estate income.
The worksheets in the IRS Publications indicate non-passive real estate income does NOT disqualify the Earned Income Credit. That is why TurboTax allows it.
However, the actual law itself doesn't seem to say that. It indicates non-passive real estate income CAN disqualify the Earned Income Credit (at least in certain cases). The IRS has sent out notices denying the credit due to this.
