earned income tax credit?

do I have to count my unemployment wages when figuring my EIC credit on taxes

4 Answers

  • Gem
    Lv 7
    1 decade ago
    Favorite Answer

    Yes, a portion of unemployment is included in your Gross Adjusted Wages. Go to irs.gov and look it up

  • 1 decade ago

    Initialy, No. While only earned income is the basis for figuring the EIC credit, your AGI (which includes unemployment) can change the total amount of EIC credit. Depending on financial circumstances.

    If your only income was from unemployment, then you cannot claim the EIC credit.

    If you did have earned income plus unemployment, you should use the EIC worksheets within the 1040 or 1040a booklet.

    1040a- Pg. 40-http://www.irs.gov/pub/irs-pdf/i1040a.pdf

    1040- Pg. 46-http://www.irs.gov/pub/irs-pdf/i1040.pdf

  • 1 decade ago

    Unemployment is UNEARNED income, and therefore does not qualify for earned income credit.

    Examples of items that are not earned income include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Do not include any of these items in your earned income.

  • 1 decade ago

    Yes. Also, any unemployment benefits you received are subject to tax as well.

Still have questions? Get your answers by asking now.