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Earned income includes all the taxable income and wages you get from working.
There are two ways to get earned income:
Taxable earned income also includes:
So, his net earnings from self-employment does count.
Earned Income and adjusted gross income (AGI) must each be less than:
Tax Year 2010 maximum credit:
Be sure it's not an income limitation that is causing the program to reflex there not being an EIC on the tax return.
*reflex = reflect (sorry)
The lack of a W-2 or 1099 form won't have anything to do with the EIC calculation, what will matter is his net income from the business. If he has a loss, then he didn't earn anything. But his wife has W-2 income, which would eliminate that issue, so that is why I'm thinking maybe it's an income level issue?
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