Which type of income is not considered when determining eligibility for the Earned Income Tax Credit?

Interest income is not considered when determining eligibility for the Earned Income Tax Credit (EITC) because the credit is specifically designed to benefit low- to moderate-income working individuals and families. The EITC predominantly focuses on earned income, which includes wages from jobs, self-employment income, and specific types of income derived from rental activities, as these directly relate to one's participation in the labor market.

Interest income, however, is classified as unearned income because it is generated through investments rather than as a direct result of work or effort. Since the EITC aims to incentivize and reward those who are actively engaged in earning wages through employment or self-employment, earnings from interest do not factor into eligibility calculations. Therefore, basic income from wages, self-employment, or certain rental activities is relevant in determining eligibility, but interest income does not contribute to the qualifications for this tax credit.