How is the cutoff for investment income calculated for the EITC? I have a rental home which I lose money on every month and I am curious if this income is calculated before or after deductions. For example, I bring in $850/month but my mortgage payment and HOA fees and other fees are about $900. I also have investment income which is not near the cutoff, but if it were, would the money I'm losing on the rental house be subtracted from what is considered investment income for the cutoff? Let's say I had $3500 in investment income but I lost $600 for the year on my rental home. Would I be out of luck for the EITC or would that $600 be subtracted and I be considered under the cutoff for maximum investment income?
Read more: Earned Income Tax Credit and investment income?
