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EIC credit for self employed person

mcateryan
Level 1

Hello, community.

I haven't been able to confirm the following on Publication 596, which describes the Earned Income Credit.

What number do I enter for an SE (self-employed) individual that qualifies for the Earned Income Credit?

They are not a member of clergy and did not receive any unemployment income, etc. Just self-employment income.

Which line from Schedule C is entered in? Line 31, Net Profit/Loss from SE activities. Is this the figure?

OR 

Is the earned income credit figured from Schedule 1, Lines 3 and 14? LIne 3 is the same figure from Schedule C, Line 31 LESS Schedule 1, Line 14, which is the deductible portion of the SE tax?

Therefore, do I use net profit loss from Schedule C or subtract the SE tax to configure the EIC credit?

Thank you!

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2 Comments 2
TaxGuyBill
Level 15

How are you preparing the tax return?  If you are using computer software, the program should be doing that automatically.

In answer to your question, look at the Instructions for Form 1040 to see how the numbers work for EIC.

mcateryan
Level 1

In this case, it was a combo of using the software and comparing that to instructions/paper.

The EIC used the SE employment income (whichever was lower from) 2019 or 2021.

Thank you

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