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maryk
New Member

I received income this year from a class action lawsuit. It is showing $4533.40 as interest income...how do I report this. It's says I don't qualify for the EIC because of the broker investment...I don't have a brokerage account.

 
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Accepted Solutions
Marketstar
Level 7

I received income this year from a class action lawsuit. It is showing $4533.40 as interest income...how do I report this. It's says I don't qualify for the EIC because of the broker investment...I don't have a brokerage account.

To enter your interest income:

  • Type in 1099 int  in the search box, top right of your screen, then click the magnifying glass

  • Click the jump to 1099 int link in the search results.

  • Follow the onscreen instructions to enter

On the Let's get your 1099-INT or brokerage statement details page, enter your interest income in box #1

If you have more than $3,400 in investment income, you will not qualify for the Earned Income Credit.

See Earned Income Credit Qualifications

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4 Replies
nchacon21
New Member

I received income this year from a class action lawsuit. It is showing $4533.40 as interest income...how do I report this. It's says I don't qualify for the EIC because of the broker investment...I don't have a brokerage account.

Same situation, did you get a solution or forced to claim as investment income?
Marketstar
Level 7

I received income this year from a class action lawsuit. It is showing $4533.40 as interest income...how do I report this. It's says I don't qualify for the EIC because of the broker investment...I don't have a brokerage account.

To enter your interest income:

  • Type in 1099 int  in the search box, top right of your screen, then click the magnifying glass

  • Click the jump to 1099 int link in the search results.

  • Follow the onscreen instructions to enter

On the Let's get your 1099-INT or brokerage statement details page, enter your interest income in box #1

If you have more than $3,400 in investment income, you will not qualify for the Earned Income Credit.

See Earned Income Credit Qualifications

View solution in original post

maryk
New Member

I received income this year from a class action lawsuit. It is showing $4533.40 as interest income...how do I report this. It's says I don't qualify for the EIC because of the broker investment...I don't have a brokerage account.

I know the above and have done that.  My point is that the interest was not from an investment account.  I don't know how the interest was calculated in the class action suit, but it seems like there should be another place to claim interest that wasn't from a personal investment.
Marketstar
Level 7

I received income this year from a class action lawsuit. It is showing $4533.40 as interest income...how do I report this. It's says I don't qualify for the EIC because of the broker investment...I don't have a brokerage account.

For EIC purposes, The IRS considers interest income to be "investment income" no matter where it comes from. In a day of .01% interest rates, over $4,500 in interest income strikes me as rather unusual and irregular.
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