People With Disabilities and the Earned Income Tax Credit

This past Monday, the IRS issued a notice to inform taxpayers with disabilities and parents of children with disabilities to be aware of the Earned Income Tax Credit (EITC).  

The EITC is a federal income tax credit that is available to workers whose income is $53,505 or less (2016) and meet other eligibility requirements.   The amount of the tax credit can range from $2 to $6,269.  The IRS estimates that as many as 1.5 million people with disabilities do not take advantage of this tax credit because they often do not file an income tax return.

Many believe that this federal income tax credit could jeopardize their eligibility for public benefits. However, as the IRS points out in the notice, this tax credit is not counted as income for the purposes of determining eligibility for federal benefits programs, such as SSI, and any state or local program financed with federal funds, such Medicaid.  

To read the IRS’s notice on the EITC for individuals with disabilities, please read the following link:

https://www.irs.gov/uac/newsroom/special-rules-help-many-people-with-disabilities-qualify-for-the-eitc-up-to-1-5-million-fail-to-claim-valuable-benefit 

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