Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 7, 2024 8:24:59 AM

What is considered EITC on earned income?

what is earned income?

0 2 227
2 Replies
Level 15
Feb 7, 2024 8:28:44 AM

Income from work.  Like wages on a W2 or a Net Profit on Schedule C for self employment.  

Some EIC articles

IRS- Earned Income Tax Credit info

https://www.irs.gov/Credits-&-Deductions/Individuals/Earned-Income-Tax-Credit

 

Turbo Tax EIC INFO

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/earned-income-credit-eic-affect-refund/L4SKPikAa_US_en_US

Level 15
Feb 7, 2024 8:29:45 AM

Types of Earned Income

  • Wages, salary or tips where federal income taxes are withheld on Form W-2, box 1
  • Income from a job where your employer didn’t withhold tax (such as gig economy work) including:
    • Driving a car for booked rides or deliveries
    • Running errands or doing tasks
    • Selling goods online
    • Providing creative or professional services
    • Providing other temporary, on-demand or freelance work
  • Money made from self-employment, including if you:
  • Benefits from a union strike
  • Certain disability benefits you got before you were the minimum retirement age
  • Nontaxable Combat Pay (Form W-2, box 12 with code Q)

Earned income does not include:

  • Pay you got for work when you were an inmate in a penal institution
  • Interest and dividends
  • Pensions or annuities
  • Social Security
  • Unemployment benefits
  • Alimony
  • Child support