Taxable Earned Income
(enter on EIC Worksheet, line 1)

• Wages, salaries, and tips
• Union strike benefits
• Long-term disability benefits received prior to minimum retirement age.
• Net earnings from self-employment (enter on line 5 of the Form 1040 EIC Worksheet)

Nontaxable Earned Income
(enter on EIC Worksheet, line 4)*

• Voluntary salary deferrals (for example: 401(k) plans or the Federal Thrift Savings Plan)
• Pay earned in a combat zone (box 13, Code Q, of your W-2)
• Basic quarter and subsistence allowances and in-kind quarters and subsistence from the U.S. military (box 13, Code Q, of your W-2)
• The value of meals or lodging provided by an employer for the convenience of the employer.
• Housing allowance or rental value of a parsonage for the clergy (see "Ministers and members of religious orders" in IRS Publication 17)
• Excludable dependent care benefits (line 19 of either Form 2441 or Schedule 2)
• Voluntary salary reductions such as under a cafeteria plan

Earned Income DOES NOT Include the Following:

• Interest and dividends
• Social security and railroad retirement benefits
• Welfare benefits
• Pensions or annuities
• Veterans' benefits (including VA rehabilitation payments)
• Workers' compensation benefits
• Alimony
• Child support
• Unemployment compensation (insurance)
• Taxable scholarship or fellowship grants that were not reported on Form W-2
• Variable housing allowance for the military
• Earnings for work performed while an inmate at a penal institution.

Tax laws are subject to change at any time.

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