Your earned income for 2018 is $3000. From: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income > **There are two ways to get earned income:** > > You work for someone who pays you > > or > > You own or run a business or farm Cashing out of a 401k would be in the same category as getting pension money so not earned income. > **Examples of income that are not earned income:** > > * Pay received for work while an inmate in a penal institution > * Interest and dividends > * Pensions or annuities > * Social security > * Unemployment benefits > * Alimony > * Child support.