Question

If I have self-employment income, can I claim the EIC?

Answer

Your self-employment income, minus expenses, counts as earned income for the Earned Income Credit (EIC).

You must claim all deductions allowed and resulting from your business. This determines your net self-employment income.

You must claim all deductions — including depreciation. If you don’t, you might owe a penalty for any misrepresentation you made to obtain other tax benefits. These other benefits include the EIC and Social Security benefits.

Related Topics

Related Resources

Filing for a Deceased Taxpayer

If you need help handling an estate, we're here to help. Learn how to file taxes for a deceased loved one with H&R Block.

What’s Your Filing Status?

Choosing the wrong filing status is a common mistake. Do you know what your tax filing status is? Read on to learn about filing statuses with H&R Block.

Don’t Overlook the 5 Most Common Tax Deductions

From retirement account contributions to self-employment expenses, learn more about the five most common tax deductions with the experts at H&R Block.

New Baby, New House or New Spouse? How Major Life Changes Affect Your Taxes

Getting married? Having a baby? Buying a house? Go through your life events checklist and see how each can affect your tax return with the experts at H&R Block.