Question about the Earned Income Tax Credit

To break this information down as succinctly as possible:

  • I am self-employed, filing Form 1040 with Schedule C-EZ

  • I have no income listed on line 7 of Form 1040 (Wages, Salaries, Tips, etc), or anywhere else but line 12 (Business Income or Loss)

  • Doing the EITC worksheet led me to the dismaying conclusion that I would not qualify for EITC because I could only count income from Line 7, and Schedule C income only if I am either a clergy member or church employee, a “statutory employee” (I’m not), or not required to file Schedule SE (I am).

  • What the hell?! I qualified last year!

  • I called the IRS toll free number, and after about thirty minutes of waiting, answering scripted questions, more waiting, and some hemming and hawing, I was told that I could go ahead and count my Schedule C income listed on Form 1040 Line 12 when calculating my EITC.

  • I am posting here just to get a second opinion, which would make me a lot more comfortable, and I figure that somebody else must have had this problem.

  • Yes, I always wait until the last minute to do my taxes. In fact I wait until the last minute to do everything. On my deathbed I plan to finally forsake my agnosticism and convert to a religion, I just haven’t figured out which one yet…