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New Member
posted May 31, 2019 10:05:00 PM

I should qualify for the EIC credit, because of deducting my housing allowance from my wages

My husband is clergy. I should qualify for the EIC credit but turbo tax won't let me. It's saying we make too much, but it should be subtracting my wages from my housing allowance to get my actual income. Anybody know how to get the EIC?

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2 Replies
Alumni
May 31, 2019 10:05:02 PM

If your AGI is too high or you have too much investment income, it may disqualify you from EIC as well.

Level 15
May 31, 2019 10:05:03 PM

Clergy housing allowance is considered earned income and affects your eligibility for the credit.  Even though it is not taxable income for income tax purposes, it is income subject to self employment tax and thus counts as earned income when determining EIC.

See here for more https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/special-eitc-rules