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Level 1

Can I get Earned Income Credit with Business Losses?

If the business loss is 100,000 from my  llc and separate w-2 is 15,000 Day Job. will the net loss make me unable to get the EIC?  have 1 children 

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Level 1

Can I get Earned Income Credit with Business Losses?

No. Your business loss with your W2 income gives you a negative Adjusted Gross Income.  This will not allow you to get the  Earned Income Credit. 

If you overide a worksheet, there may be some complications. In fact, overriding may invalidate our 100% Accurate Calculations Guarantee. Additionally, returns that contain overrides cannot be e-filed.

One way to find out is to use the IRS Earned Income Tax Credit (EITC) Assistant. It will ask all of the appropriate questions.

[Edited 03.05.19| 5:15pm PST]
5 Replies
Level 1

Can I get Earned Income Credit with Business Losses?

No. Your business loss with your W2 income gives you a negative Adjusted Gross Income.  This will not allow you to get the  Earned Income Credit. 

If you overide a worksheet, there may be some complications. In fact, overriding may invalidate our 100% Accurate Calculations Guarantee. Additionally, returns that contain overrides cannot be e-filed.

One way to find out is to use the IRS Earned Income Tax Credit (EITC) Assistant. It will ask all of the appropriate questions.

[Edited 03.05.19| 5:15pm PST]
Level 1

Can I get Earned Income Credit with Business Losses?

I checked all my inputs and everything is accurate. And EIC workshet showed disqualified from EIC.   I don't know what should I do at this point?
Level 1

Can I get Earned Income Credit with Business Losses?

I am sorry, I am going to have to edit this answer. I am incorrect. The IRS considers your loss with your W2 income to give an AGI of -$85,00. You are not qualified.
Level 1

Can I get Earned Income Credit with Business Losses?

[Edited 03.05.19| 5:15pm PST]
Level 1

Can I get Earned Income Credit with Business Losses?

Thank you for your help. I have looked into the IRS link you gave to me. You are right. Since it is negative AGI, it is not allowed to get EIC.  Thank you again.