Glossary
Earned income
Money from working — wages, tips, and self-employment. Required for the EITC.
Earned income means wages, salaries, tips, and net earnings from self-employment. It excludes Social Security, unemployment benefits, pensions, alimony, child support, and investment income.
The EITC phases in as a percentage of earned income only, and you must have at least $1 of earned income to claim any credit. SNAP also treats earned income favorably with a 20% deduction.