Question

I've been on unemployment for going on 6 months is that gonna affect my extra earned com-credit

Forum|Forum|6 years ago
September 18, 2019
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TurboTax Free Edition Online

Employee

Unemployment income is not Earned Income so is not included.

Go to this IRS website for EIC qualifications - https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/do-i-qualify-for-earned-income-tax-credit-eitc

Critter

Employee

It will affect the calculation of the EIC as it is considered taxable income even though it is not earned income since the EIC is calculated on the earned income amount & the AGI.

M

Mokz12

So the answer is yes then? Unemployment does go toward your AGI and therefore we will not get the EITC?

So confusing that everywhere on the IRS page it says "Unemployment does not count toward your Earned Income yet Turbo Tax puts it with your AGI and we don't qualify. How can it not count toward Earned Income but yet disqualify us for Earned Income Tax Credit?