Is Schedule C considered earned income?

If you work for yourself, and by yourself, in a small business, you must file a business tax return, usually on Schedule C. The net income you report from this business (gross income minus deductible business expenses) is considered your earned income from the business that year.

What does head of household mean for taxes?

To claim head-of-household status, you must be legally single, pay more than half of household expenses and have either a qualified dependent living with you for at least half the year or a parent for whom you pay more than half their living arrangements.

Is self-employed income considered earned income?

Yes. A self-employed individual is required to report all income and deduct all expenses. Net earnings from self-employment are included in earned income for EITC purposes. It is defined by cross-reference to the definition of net-earnings from self-employment under I.R.C.

Do self-employed qualify for earned income credit?

If I have self-employment income, can I claim the EIC? Your self-employment income, minus expenses, counts as earned income for the Earned Income Credit (EIC). You must claim all deductions allowed and resulting from your business.

What’s the difference between filing single or head of household?

Filing single and filing as head of household come with different standard deductions, qualifications and tax brackets. You qualify as single if you’re unmarried, while you qualify as head of household if you have a qualifying child or relative living with you and you pay more than half the costs of your home.

What is the standard deduction for seniors over 65?

Increased Standard Deduction For the 2019 tax year, seniors over 65 may increase their standard deduction by $1,300. If both you and your spouse are over 65 and file jointly, you can increase the amount by $2,600.