The Earned Income Tax Credit and What It Means to Your Loved One With Special Needs

Many people with disabilities work, even Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) recipients.  But in most cases, these workers don't earn enough money from their jobs to meet the $10,300 gross income threshold (for a single person) for filing a federal income tax return, so they don't file their taxes on April 15th.  The Earned Income Tax Credit gives people with disabilities an incentive to file a tax return even if they are not required to do so.  This credit, which applies to single people with earned income of less than $14,820 and married couples filing jointly who earned less than $20,330, could provide a refund of approximately $500.  Beneficiaries with children have higher income requirements and the maximum refund is also higher.  If you are familiar with the Social Security Administration's prohibitive income and resource limits, especially for people receiving SSI, you might be worried that this extra $500 could affect your or a love one’s access to that invaluable program.  Fortunately, the Earned Income Tax Credit is not counted as income for any federal benefit program, including SSI, Medicaid or Section 8 housing, and it will not count as a resource for one year, giving beneficiaries every incentive to apply for the credit.

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Authored by:  Stephen R. Elville, J.D., LL.M. -- Elville and Associates, P.C. -- 443-393-7696, steve@elvilleassociates.com, @elvilleassoc