Special Rule Help Taxpayers with Quality for Earned Income Tax Credit

Taxpayers with disabilities and parents of children with disabilities be aware of the Earned Income Tax Credit (EITC).

Many miss out on this valuable credit because they do not file a tax return. Earned Income Tax Credit could put a refund into eligible taxpayer’s pocket. Many do not claim the credit because income threshold requiring them to file is not met. Even so, the only way to receive this credit is to file a tax return and claim the EITC.

To qualify for EITC, the taxpayer must have earned income. This means income either from a job or from self-employment. But taxpayers who retired on disability can also count as earned income any taxable benefits they receive.

Taxpayers may claim a child with a disability or a relative with a disability of any age to get the credit if they person meets all other EITC requirements. Such as:

  • Public benefits
  • Social security disability
  • Medicaid
  • Snap

The law is clear that tax refunds are not counted as income for purposes of determining eligibility for benefits.