EIC and Social Security

[Bucky]

I have a couple that have a totally disabled child (40 something) that lives with them. They are both 65 and get SS. Also had earned income of 12000. Looks like they qualify for EIC. I don't see anything that say SS benefits even figure in the calculation. Seems strange to me they qualify with $31000 SS but only $600 taxable. Never ran into this before. What say you?

[erchess]

Agree with you

I agree with you that unless the total of all other reportable income (taxable or not) adds up to 25K (35K MFJ) then Social Security is not relevant to EIC. Another way to say that would be that nontaxable Social Security is not relevant to EIC.

I don't know whether taxable Social Security affects EIC. Of course if a person or couple has taxable Social Security they are in the upper reaches of income that allows EIC.

[thomtax]

Keep in mind. EIC stands for "Earned" Income Credit. Collecting interest or drawing unemployment does not help (or hurt) EIC because they are "unearned" in the sense of EIC. Also, remember, you must be under 65 to get EIC. This can be either spouse to qualify. That is of course when no children are involved.

[DaveO]

I have a couple that have a totally disabled child (40 something) that lives with them. They are both 65 and get SS. Also had earned income of 12000. Looks like they qualify for EIC. I don't see anything that say SS benefits even figure in the calculation. Seems strange to me they qualify with $31000 SS but only $600 taxable. Never ran into this before. What say you?

Sure, why not? I have a couple who adopted their grand daughter works for them. He works a bit and she gets self employment income for trust administration.

[BP.]

Collecting interest or drawing unemployment does not help (or hurt) EIC because they are "unearned" in the sense of EIC.

These income items do impact EIC. See TTB pp. 13-7 & 8. There are AGI limits & investment income limits on EIC qualification.

[Burke]

I have a couple that have a totally disabled child (40 something) that lives with them. They are both 65 and get SS.

If they are 65, no EIC.

[Larmil]

If they are 65, no EIC.

According to whom?

[BP.]

If they are 65, no EIC.

With an EIC-qualifying child, no age limit for EIC recipient.

[Burke]

Okay. I retract. Too fast on the draw in this case. Rule #11, under Chapter 3, Pub 596: You Must Be at Least Age 25 but Under Age 65. Applies in cases where there is no qualifying child. Just had one yesterday, and did not qualify.

[thomtax]

These income items do impact EIC. See TTB pp. 13-7 & 8. There are AGI limits & investment income limits on EIC qualification.

BP - You are correct in that they have limits. However, I thought the question being asked was for use in qualifying to receive EIC, not what impacts or can be used to prevent you from getting EIC, as you have quoted.

Don't find your references to TTB. When I look at pp. 13-7 & 8 in TTB Deluxe, I find references to Pension Plan Advantages/Disadvantages.

LT

[BP.]

BP - You are correct in that they have limits. However, I thought the question being asked was for use in qualifying to receive EIC, not what impacts or can be used to prevent you from getting EIC, as you have quoted.

Don't find your references to TTB. When I look at pp. 13-7 & 8 in TTB Deluxe, I find references to Pension Plan Advantages/Disadvantages.

LT

So sorry about the typo & messed up TTB ref --- try TTB 11-7 & 8. You're right - Tab 13 is retirement. Was just responding more to statement that collecting interest doesn't hurt EIC, rather than responding to OP about SS income.
Cheers!
Barb