Earned Income Tax Credit For Disabled

If you're disabled, you may be able to find a benefit at tax time with the Earned Income Tax Credit (EITC).

Disabled taxpayers may worry that taking the EITC and receiving a refund may disqualify them for public benefits such as food stamps, Medicaid, and Social Security Disability benefits. However, tax refunds from credits like the EITC are not used as income when calculating eligibility for public benefits.

The main requirement to qualify is that the taxpayer must have earned income, whether from a job or a form of self-employment. If you have retired on disability, you are able to include any taxable benefits you get from your employer's disability retirement plan into your earned income. This continues until you reach minimum retirement age - until then all benefits are considered earned income.

Social Security benefits or SSDI do not count as earned income.

Also, a parent may claim a disabled child, or another relative with full disability (regardless of their age) to qualify for the EITC, as long as that person meets all other requirements for the credit.