EIC qualify if they received $78000 in stock sales but had a cost basis of 83000, so a loss?

[utah-arizona-taxlady]

Good Morning all!  Ok, I have a 22 year old, single, no children.  He only made about $15K at a W-2 job but he cashed in stocks for a total of $78K.  His cost basis, short term, was $83K.  Does he still qualify for the EIC?  That just seems wrong to me.  I think I'm just jealous because there were no CTC or EIC when I was young (with kids).  We each had to work 2 jobs to get money and pay bills.  OK...rant over. 😐

[jeffmcpa2010]

You think a capital loss should disqualify him from EIC?

[IRonMaN]

I believe she thinks it’s wrong because of the extra pile of money he has sitting in investments.

[utah-arizona-taxlady]

Yes, what IroNman said.  So he does qualify for the EIC even though he received the pile of money from the stock sales?  I figured so.  Thank you all of you. 

[IRonMaN · Accepted solution]

Yes he does qualify.  Sometimes life just isn't fair 😉

[utah-arizona-taxlady]

Boy you're not kidding on that one!  Thanks

[qbteachmt]

"even though he received the pile of money from the stock sales?"

But he started with a bigger pile, so it's the same as if he lit some of it on fire.