Submitted By: David
Answered: October 16, 2012 8:30 am

Can a single parent with one child claim the earned income credit if he didn’t work all year but collected unemployment benefits?

No. In order to claim the earned income credit, a taxpayer must have earnings from working for someone else or from your own business. Unemployment benefits are not treated as earnings for this purpose.

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Tax Glossary

Investment interest

Interest on debt used to carry investments, but not including interest expense from a passive activity. Deductions are limited to net investment income.

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