It is hard to know why you are not qualifying for an Earned Income Credit without seeing your tax return. You must have earned income to qualify for the Earned Income Credit. The IRS defines earned income as:
- Taxable income you earned as an employee, such as wages, salaries, commissions, and tips,
- Profits from operating your business or farm,
- Long-term disability pay if received before the minimum retirement age,
- Union strike benefits.
Income reported on an IRS form 1099-K may or may not be earned income. IRS form 1099-K reporting self-employment income would be earned income. IRS form 1099-K reporting other income would not be earned income.
The requirements to qualify for the Earned Income Credit:
- Have earned income; and
- Have been a U.S. citizen or resident alien for the entire tax year; and
- Have a valid Social Security number (not an ITIN) for yourself, your spouse (if filing jointly), and any qualifying children on your return; and
- Not have investment income exceeding $11,600; and
- Not be filing a Form 2555 or 2555-EZ; and
- File a return with the Single, Married Filing Jointly, Head of Household, or Qualifying Widower filing status, even if you're not required to file a return.
In addition, both your earned income and Adjusted Gross Income (AGI) may not exceed:
- $18,591 if you're not claiming a qualifying child ($25,511 if filing jointly)
- $49,084 if you're claiming 1 qualifying child ($56,004 if filing jointly)
- $55,768 if you're claiming 2 qualifying children ($62,688 if filing jointly)
- $59,899 if you're claiming 3+ qualifying children ($66,819 if filing jointly)
The tests for a qualifying child are:
- Relationship: Must be your child, adopted child, foster child, brother or sister, or a descendant of one of these (grand or nephew).
- Residence: Must have the same residence for more than half the year.
- Age: Must be under age 19 or under 24 and a full-time student for at least 5 months. They can be any age if they are totally and permanently disabled.
- Support: Must not have provided more than half of their own support during the year.
- Joint Support: The child cannot file a joint return for the year.
See this TurboTax Help.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"