To qualify for the Earned Income Credit (EIC), everyone you claim on your taxes must have a valid Social Security number (SSN) . In addition, there are income limits and other requirements that must be met. Investment income can disqualify you from the EIC if it is greater than $11,000 for the year. Disqualifying income includes interest, investment income, dividends, royalties, pensions, retirement fund distributions, and net rental income. Income earned for work performed while incarcerated is also disqualifying income when calculating the EIC. To summarize, the following can disqualify you from the EIC:
- Investment income greater than $11,000 for the year
- Disqualifying income, including interest, investment income, dividends, royalties, pensions, retirement fund distributions, and net rental income
- Income earned for work performed while incarcerated