Client had rent income of $5400 and ordinarily would be eligible (has earned income) for the EIC. Does the rent income (investment income) disqualifiy him for the EIC seeing it is $5400?
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EIC is based on earned income (W2 or SE) rental income is not considered earned income. -
It sure does
Yes, it disqualifies him if you mean net rental income.Originally posted by zeros View PostIf you loan someone $20 and never see them again, it was probably worth it.Comment
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Last tax season one lady was so upset that without her rental income she would have qualified for EIC based on just the W2 income. She wanted to amend her tax return to remove Sch E and I refused to go along. I am not expecting to see her this year so I assume she must have self amended her 2014 return or went to another preparer.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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I hate EIC
I will lose one a year from now for the same reason, I think. She mentioned this year at pickup that she is flipping a house. She's not doing any work. It's a one-timer. And I may be a goner. But I was not about to tell her after she's already bought the house that she'll lose EIC if she makes over $3,400 (yes it will be a little more than 3,400). I know what would happen: an hour of explanation and "Why, oh, God, why?" Then me: "Because the law," and somehow she'd lose money on the flip.Originally posted by ATSMAN View PostIf you loan someone $20 and never see them again, it was probably worth it.Comment
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I know it sucks losing a paying client but we have to do what is right. That way we can sleep better!Originally posted by RitaB View PostTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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