Disqualifying income is any income that prevents a taxpayer from receiving an earned income credit when filing taxes. Rent income, interest, income not received due to self-employment, and net capital gain are all considered disqualifying income.
Earned income credit is a tax credit available to low- or mid-income taxpayers. Rent income is money earned when a property owner allows a tenant to live or work in the property in exchange for a monthly fee. Interest is money paid back on a loan in excess of the original loan amount. It is typically a percentage of the original loan amount.
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