eic credit

[Bucky]

Taxpayer is retired. Has 2 grandkids living with him. Get pension income and SS. Also gets 2 W-2's from Ford (old employer) One is for group term life and other is for legal services. Without manually disallowing program gives $90 EIC credit. My thought this is really not earned income But they do allow disability (if under retirement age) as earned income so a little confused. Any takers.

Bucky

[BP.]

Interesting. Referencing pub 17, p. 240, under "Earned Income," it states, "Employee pay (would you say yours is?) is considered earned income if it is taxable." I don't see your types of income in the "Income That Is Not Earned Income" section on p. 241. Maybe the key for you is whether the income winds up as taxable? Sorry, I hate to wing it when I don't have a definitive answer. Then again, the preceding paragraph says, "You must work." Does that shoot the whole thing down?

[Larmil]

Taxpayer is retired. Has 2 grandkids living with him. Get pension income and SS. Also gets 2 W-2's from Ford (old employer) One is for group term life and other is for legal services. Without manually disallowing program gives $90 EIC credit. My thought this is really not earned income But they do allow disability (if under retirement age) as earned income so a little confused. Any takers.

Bucky

Just guessing. If the W-2s have uncollected social security and medicare tax it is earned income. I would go for it.