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Does investment income for the earned income credit include interest from banks?

Does the investment income for the earned income credit include interest from banks?

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Does investment income for the earned income credit include interest from banks?

Yes, bank interest income is included.

 

Investment income for the EITC includes:

  • Interest (both taxable and tax-exempt)
  • Dividends
  • Capital gain income (not losses)
  • Some rent and royalties or
  • Net income from passive activities

Does investment income for the earned income credit include interest from banks?

Yes. You can have up to $11,000 in investment income to qualify for EIC. 

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