topic How do you qualify for eic and child tax credits if you're self-employed? in Self employed

How do you qualify for eic and child tax credits if you're self-employed?

rachelbesonen — Mon, 23 Feb 2026 10:21:21 GMT

Re: How do you qualify for eic and child tax credits if you're self-employed?

VolvoGirl — Tue, 24 Jan 2023 16:58:05 GMT

You need a Net Profit on Schedule C to count as earned income.

EIC Qualifications
https://ttlc.intuit.com/community/credits-and-deductions/help/what-are-the-qualifications-for-the-earned-income-credit-eic-or-eitc/00/25603

And see What is earned income
https://ttlc.intuit.com/questions/2899928-what-is-earned-income

Re: How do you qualify for eic and child tax credits if you're self-employed?

xmasbaby0 — Tue, 24 Jan 2023 16:59:27 GMT

Those child-related credits are based on the amount of income you earned from working.

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number. Careful— do not say that your child’s SSN is not valid for employment. If your child was born in 2022 make sure you said he lived with you the whole year. There is an oddly worded question that asks if the child paid over half their own support. Say NO to that question.

Have you entered income from working in 2022? If not, you will not receive an income tax refund based on having dependent children.

The rules for getting the child tax credit on a 2021 tax return and now on a 2022 return are very different. For 2021 you could get $3600 for a child under 6 or $3000 for a child between 6 and 17 even if you had no income/did not work. That is NOT the way it will work for your 2022 tax return. The “old” rules are back. The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1500. In order to get that credit, you have to have income from working. The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1500 per child. If your child is older than 16 at the end of 2022, you do not get the CTC. But you may still get the non-refundable $500 credit for other dependents instead.

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-for-other-dependents

And for the Earned Income Credit—-the rules are back to the “old” rules—

Those under 25 and over 65 without children are not eligible as they were uniquely in 2021. And you cannot use your income from any earlier tax year to get the EIC for a 2022 return. There is no “lookback” for 2022. EIC for 2022 will be based on the income you earned by working in 2022.

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-eic-or-eitc

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

Look at your 2022 Form 1040 to see the child-related credits you received

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

Re: How do you qualify for eic and child tax credits if you're self-employed?

BrittanyS — Tue, 24 Jan 2023 17:42:16 GMT

You can still claim the Earned Income Credit (EIC) and Child Tax Credit (CTC) if you are self-employed. To qualify for the EIC you must meet the following requirements:

Have worked and have earned income under $59,187
Have investment income below $10,300
Have a valid Social Security Number
Be a US citizen or resident alien all year
have a qualifying child

TurboTax can help you determine if you qualify for the EITC and the CTC. To check if you qualify you can follow these steps in TurboTax Online:

Click Deductions & Credits on the left-hand side of the screen
Click See all tax breaks
Click Show more under you and your family
Click Start Under Earned Income Credit (EIC)
Complete interview questions
Click Start on Child and Other Dependent Tax Credits
Complete interview questions

For more information on Who qualifies for the EIC and CTC see these links:

Earned Income Tax Credit

Who Qualifies for the EIC?

Child Tax Credit

@rachelbesonen