Can you get EIC on disability?

As a subject matter expert in tax law and social benefits, I can provide you with a comprehensive understanding of the Earned Income Tax Credit (EITC) and its relationship with disability income. The Earned Income Tax Credit (EITC) is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. It is designed to offset social security taxes and increase the incentive to work by supplementing the earnings of a subset of the working poor. **Eligibility for EITC is primarily based on earned income**, which includes wages, salaries, tips, and other taxable employee pay. It is important to note that **certain types of income are not considered earned income** for the purpose of EITC. This includes benefits such as Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and military disability pensions. These benefits are not earned through work and therefore do not qualify as the basis for claiming the EITC. To qualify for the EITC, you or your spouse (if filing a joint return) must have other earned income. This means that if your only source of income is from a disability benefit that is not considered earned, you would not be eligible for the EITC based on that income alone. However, if you have additional income from a job or self-employment, you may still qualify for the credit. Here are some key points to consider when determining EITC eligibility with respect to disability income: 1. Income Source: The primary income source must be earned income. If your primary income is from a non-earned source like SSDI or SSI, you cannot use that income to claim the EITC. 2. Joint Filing: If you are filing jointly with a spouse, your spouse's earned income can be considered in determining EITC eligibility. 3. Income Limits: There are income limits for the EITC based on your filing status and the number of qualifying children you have. Exceeding these limits can disqualify you from the credit. 4. Child Requirements: The presence of a qualifying child can increase your eligibility for the EITC. The definition of a qualifying child includes relationship, age, residency, and joint return filing criteria. 5. Tax Filing: You must file a tax return to claim the EITC, even if you are not required to file due to your income level. 6. Credit Amount: The amount of the EITC you may receive depends on your earned income and the number of qualifying children you have. 7. Work Requirements: There are specific work requirements that must be met to claim the EITC, including the amount of time worked during the tax year. 8. Disability Impact: While disability income from certain sources does not qualify as earned income for EITC purposes, having a disability does not automatically disqualify you from the credit. Other earned income can still make you eligible. 9. Proof of Income: You will need to provide documentation to prove your earned income and the nature of your disability income to the IRS. 10. Consultation with a Professional: Given the complexity of tax laws and the potential for changes each year, it is often advisable to consult with a tax professional or use IRS resources to ensure you are accurately claiming all credits for which you are eligible. In conclusion, while disability income from SSDI, SSI, or military disability pensions cannot be used to claim the EITC, having such income does not automatically disqualify you from the credit. You may still qualify if you have other sources of earned income. It is crucial to understand the specific requirements and to consult with a tax professional or utilize IRS resources to ensure compliance and maximize your tax benefits.

Benefits such as Social Security Disability Insurance, SSI, or military disability pensions are not considered earned income and cannot be used to claim the EITC. You may qualify for the credit only if you,or your spouse, if filing a joint return, have other earned income.Nov 27, 2017