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

State income tax return deadlines and other state tax impacts for 2020

Find out how state income taxes are affected by the coronavirus (COVID-19) pandemic with the latest updates from the tax experts at H&R Block.

Will Depreciation Affect A Tax Deduction?

Will depreciation affect an itemized deduction? Learn more from the tax experts at H&R Block.

What to Consider When Choosing a Tax Professional

Getting the largest refund isn't the only thing to consider when choosing a tax professional. Find out which questions to ask with the experts at H&R Block.

Can I cancel my dependent care FSA due to coronavirus?

Learn more about how Coronavirus is affecting your dependent care FSA, or flexible spending account, with help from the tax experts at H&R Block.