Question

II have a question related to disability earned income tax credit — If I’m on disability, do I qualify for the EIC?

Answer

Regarding the Earned Income Credit (disability earned income tax credit), Social Security benefits aren’t considered earned income for the Earned Income Credit (EIC). However, other disability payments might qualify depending on both of these:

  • The type of disability payments you’re receiving
  • If you’ve reached your employer-plan’s minimum retirement age

If you retired on disability, taxable benefits from your employer’s disability retirement plan are earned income. This applies until you reach minimum retirement age. So, you can count that income for EIC purposes.

Your plan defines the minimum retirement age. Starting the day after you reach minimum retirement age, those disability retirement payments are taxed as pension payments. So, they’ll no longer be earned income for EIC purposes. At that point, you must have some other source of earned income to be eligible for EIC.

You might receive payments from a disability insurance policy that you paid premiums for. If so, those payments aren’t earned income for EIC purposes. This applies whether or not you’ve reached the minimum retirement age.

Related Topics

Related Resources

I’m the executor of my mother’s estate and have a question about estate tax rules. She died in 2015, but

What are the estate tax rules? Learn more from the tax experts at H&R Block.

Can You Deduct A Working Vacation From Your Taxes?

Going on a vacation this summer? You may be able to deduct a working vacation on your taxes, as long as the trip is

I have a question about claiming dental expenses on my tax return. Can I claim out-of-pocket dental expenses on my taxe

Learn more about claiming dental expenses on your federal tax return with advice from the tax experts at H&R Block.

If someone else claims my spouse as a dependent, can I use married filing jointly?

Learn more about being married and filing taxes jointly with your spouse with help from the tax experts at H&R Block.