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Level 2
July 3, 2023
Question

Does farm land rental disqualify for earned income credit?

  • July 3, 2023
  • 1 reply
  • 7 views

I have a client that rents out farm land with net rental over $12,000.  Does this exclude him from earned income credit on his earned income?

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1 reply

Level 15
July 4, 2023

I believe it does because "rents" is part of the definition of "investment income" for the Earned Income Credit.

Out of curiosity, is your software allowing it?  I know there was a previous error in one of Intuit's software (I think it was ProSeries) that was allowing the Earned Income Credit for non-passive rental income.

sbringAuthor
Level 2
March 23, 2025

Using Proseries Professional