If I have self-employment income, can I claim the EIC?
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 Resources
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 an itemized deduction? Learn more from the tax experts at H&R Block.
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.
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.
