Self Employed and EIC

[Super Mom]

Have a client who all income is from business. They are way under the EIC limit on line 38, however when I do the worksheet in TTB tab 16, it shows earned income is above the limit and no credit is available. Line 38 is well under the EIC limit due to adjustments to income for SE Health, SE paid and IRA deductions. Is this right?

[ChEAr$]

Have a client who all income is from business. They are way under the EIC limit on line 38, however when I do the worksheet in TTB tab 16, it shows earned income is above the limit and no credit is available. Line 38 is well under the EIC limit due to adjustments to income for SE Health, SE paid and IRA deductions. Is this right?

What results come from your software program?

[Super Mom]

My software program is showing none, however for earned income it's not even giving me the option of self-employment income and I know that can't be right!

[Super Mom]

to clarify, when I override and put in the actual earned income, is still showing no credit because earned income is too high. It's the AGI that falls well below the number due to SE, SEHI and IRA deductions.
So I guess they don't qualify?????

[Super Mom]

Yes, I answered my own question, on step 5 question 4 of the EIC questions, it specifically says earned income, not line 38 which the credit is usally calculated from.

[ChEAr$]

Yes, I answered my own question, on step 5 question 4 of the EIC questions, it specifically says earned income, not line 38 which the credit is usally calculated from.

Your incident number ABC8388 has been resolved. Case closed. (grin

[BHoffman]

...and you should be glad case is closed. EIC with Sch C is a bright and shiny object.