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Investment income for purposes of earned income credit are:
income, not loss, amounts from Form 1040 lines 2a, 2b, 3b and 7
That would be:
tax exempt interest,
taxable interest,
ordinary dividends
and capital gains
Form 8814 line 1b
Royalties and rental income
passive activity net income
There is also a worksheet in IRS publication 596, Worksheet 1
Fast and Helpful - perfect. I did have "investment Income" over the amount to qualify, but barely.
It's odd that I hit a number and it goes from a large EIC Credit to $0.
Yes, unfortunately, the investment interest is not gradually instituted. Once you hit the threshold, you lose all of the EIC. Make sure you don't have any investment losses that you have not reported. If you are close to the EIC cut-off amount and your credit is large, it would behoove to ensure you have entered all of your losses. Double-check all of your entries.
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