Does income from a prize (filed on a 1099) affect the dollar amount for earned income tax credit?
Does income from a prize (filed on a 1099) affect the dollar amount for earned income tax credit?
My question is whether income from a prize (MSRP value filed for taxes on a Form 1099) is in a different category than my earned income as it may affect my earned income tax credit.
Answers:
Chosen Answer
ninasgramma: Prize money is not earned income. It cannot increase your Earned Income Credit, but it can decrease it. The EIC is figured with and without the prize money, and you get the smaller amount. If your prize money puts you over the limit for EIC, you will get no EIC.
2008-01-10 08:28:09
ninasgramma: Prize money is not earned income. It cannot increase your Earned Income Credit, but it can decrease it. The EIC is figured with and without the prize money, and you get the smaller amount. If your prize money puts you over the limit for EIC, you will get no EIC.
2008-01-10 08:28:09
Marie21: its totally different
2008-01-10 08:32:51
2008-01-10 08:32:51