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Returning Member
posted May 13, 2021 11:20:47 AM

Can a self employed, single person with a loss on schedule C, is there a minimum amount that I qualify for on EIC?

No other income and read I can get EIC with zero income. Is there a chart or tax table to give me an amount to input on my 1040 other then $1?

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3 Replies
Expert Alumni
May 13, 2021 11:35:31 AM

Generally speaking, you may be eligible for the EITC if you meet the income limits included below and all of the following apply:

  • You are a U.S. citizen
  • You are over the age of 25 or have qualifying children
  • You do not file “married filing separately”
  • You have earned income from employment. Unemployment income doesn’t count.
  • You can qualify if you have income from a home business or provide services

While you can have interest, dividends and other investment earnings, your investment income must be less than $3,650 in 2020. But most importantly, you have to file your federal taxes in order to claim this valuable credit.

Starting in tax year 2021 (the taxes you file in 2022), under the American Rescue Plan, the Federal Earned Income Tax Credit (EITC) has been expanded for workers without kids and nearly triples the maximum credit. Eligibility is also extended for a wider range of tax filers, including those who are over 65 or between the ages of 19–25.

 

Please follow this link for information regarding EIC-

What is an Earned Income Tax Credit & Do You Qualify for It ...

Returning Member
May 13, 2021 11:48:58 AM

I do qualify for all of the above but my dilemma is I do not know how much I qualify for because I had a loss. I answered the IRS questions via phone calls about qualifying 3 times but no one can give me the dollar amount that I qualify for. I have read in several places how a person with zero income can get EIC, but nothing about my loss after expenses/deductions. There seems to be a fictitious chart/tax table that everyone keeps referring me to. The table I saw indicated only $1.

Level 15
May 13, 2021 9:52:26 PM

Your 2020 income does not qualify for EIC because you don't have any "earned income".

 

However, a special Covid law for this year allows you to use your 2019 "earned income" for purposes of calculating EIC.  If you can figure out how to get the program to use your 2019 "earned income", then it may calculate EIC (however, depending on your other circumstances some other reason could possibly disqualify EIC).