earned income tax credit?
do I have to count my unemployment wages when figuring my EIC credit on taxes
- GemLv 71 decade agoFavorite Answer
Yes, a portion of unemployment is included in your Gross Adjusted Wages. Go to irs.gov and look it up
- CelesteLv 61 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.
- jseah114Lv 61 decade ago
Yes. Also, any unemployment benefits you received are subject to tax as well.