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Veteran's Disability Pay - Earned Income Credit?

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    #1

    Veteran's Disability Pay - Earned Income Credit?

    Client has a son who is 20 and a student for over 1/2 the time. He attended colleger 5 months in 2010. It appears like they would be eligible for the EIC based on their income but this does not include the disability pay he receives. Does VA benefits (not taxable) have to be included in the EIC calculation?
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    #2
    I think not

    I eyeballed the page in I think tab ten of the 1040 book and the worksheet in tab sixteen and concluded that VA disability is apparently not related to EIC.

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      #3
      Right; no way since it's not taxable.
      ChEAr$,
      Harlan Lunsford, EA n LA

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        #4
        Point of order, Harlan

        Are there not some forms of nontaxable earned income that can hurt but never help EIC?

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          #5
          Right you are, combat pay for instance, can increase EIC. VA benefits do not fall into this category however.

          Comment

            #6
            What Snow said, Ed.
            ChEAr$,
            Harlan Lunsford, EA n LA

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