Here's the bottom line. The EITC does not figure into this in any way, form or fashion. If a person has income that exceeds certain thresholds, they are required to file a tax return.
- If one has more than $1,050 of unearned income (interest, devidends, etc.) they are required to file a return.
- If one has more than $400 of self-employment income they are required to file a tax return.
- If one has more than $12,300 of income from any and all sources combined, they are required to file a tax return.
In your case, there is more than $400 of self-employment income. THerefore, they are required to file a tax return to report that self-employment income on SCH C as a part of their personal 1040 tax return. While they will not pay "regular" income tax on any amount under $12,300, they will pay the self-employment tax on any amount of self-employment income that exceeds $400.
