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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2314
Experience:  IRS licensed Enrolled Agent and tax instructor
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IS CODE 3 BOX 7 ON 1099-R QUALIFY

Customer Question

IS CODE 3 BOX 7 ON 1099-R QUALIFY FOR EIC
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

No, it will not. To qualify for EIC you need earned income: working for somebody or running your own business or farm. Certain disability income you received before you reached full retirement age also qualify, but this type of income is usually reported on W2, not 1099R.

Expert:  emc011075 replied 1 year ago.

1099R is used to report distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts. It is considered passive, not earned income.

Amount in box 3 doesn't determine type of the income, only its tax treatment (taxable, nontaxable, subject to penalty....)

Expert:  emc011075 replied 1 year ago.

I am sorry if this is not the answer you were hoping for.

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.