A taxpayer will be ineligible for the earned income credit if he or she has disqualified investment income of more than $3,400 in 2016.Disqualified income includes all the following except

Question

Quizplus · Accepted Answer

Disqualified investment income includes net rental income, net capital gains, and tax-exempt interest. Self-employment income is not considered investment income and therefore is not included in the $3,400 limit for the earned income credit.

A Taxpayer Will Be Ineligible for the Earned Income Credit