Earned income tax credit – people with disabilities may qualify

Earned Income Tax Credit – People with Disabilities May Qualify

People with disabilities may qualify for earned income tax credit or EITC, and experienced social security disability lawyers can advise them in this regard.

MOS Medical Record Reviews www.mosmedicalrecordreview.com 8596 E. 101st Street, Suite H Tulsa, OK 74133

(800) 670 2809

Social security disability determination is quite stringent and involves a thorough medical chart review. Those who receive these benefits have to be constantly aware of new updates from the government that may be applicable to them. Taxpayers with disabilities and parents of children with disabilities have to be aware of the EITC or Earned Income Tax Credit, and correctly claim this if they are found eligible. The EITC is a federal income tax credit for workers who don’t earn a high income ($53,505 or less for 2016) and meet other requirements for eligibility. The advantage is that those who qualify and claim the credit could: 

Pay less federal tax

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Pay no tax at all, or

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Receive a tax refund.

According to the IRS, around 1.5 million people with disabilities miss out on this valuable credit.

The EITC could put $2 to $ 6,269 into a taxpayer’s pocket. Though many of the non-filers fall below the income limit requiring them to file, the IRS recommends filing anyway because it is the only way to receive this credit. The EITC Assistant on the IRS website can help determine eligibility, and also estimate the amount of credit.

How does a taxpayer qualify for EITC? 

He/she must be a U.S. citizen or a resident alien, and have a valid social security number.

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He/she must have earned income – income from a job or from self-employment.

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Taxpayers who retired on disability can count as earned income any taxable benefits they receive under an employer’s disability retirement plan. These benefits would be considered earned income until the disability retiree reaches minimum retirement age.

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Taxpayers can also claim a child with disability or a relative with a disability of any age to receive the credit if the person meets all other EITC requirements.

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Social security benefits or social security disability income do not count as earned income.

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People with disabilities may be concerned that a tax refund could impact their eligibility for public benefits such as SSDI benefits, Food Stamps and Medicaid. However, there is no need for such concerns because tax refunds including those from tax credits such as the EITC are not counted as income for purposes of determining eligibility.This is applicable to any federal/state/local program that is financed with federal funds.

www.mosmedicalrecordreview.com

(800) 670 2809

To receive EITC, it is best to file electronically with the help of a qualified tax professional. The filing can be done using free community tax help sitesor through the IRS Free File.

A new law requires the IRS to hold EITC refund claims and the Additional Child Tax Credit (ACTC) until mid-February and therefore many claimants may receive their refunds later this year compared to previous years. Taxpayers claiming the EITC should file as soon as they have all the required documentation so that they receive the refund in a timely manner.

www.mosmedicalrecordreview.com

(800) 670 2809