You could be eligible for the Child Tax Credit and the Earned Income Tax Credit even if you don’t usually file a federal tax return.
The fact that you receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) does not affect your eligibility. Likewise, receiving these credits does not affect your eligibility for SSDI or SSI.
These credits count against any taxes you owe or increase your tax refund. You do have to file a tax return to receive them. These credits may be paid out as tax refunds.
That means many SSDI and SSI recipients can get additional money simply by filing a federal tax return with the appropriate forms.
The Child Tax Credit (CTC): up to $2,000 per child under 17
The CTC is a partially refundable tax credit of $2,000.00 for each qualifying child you had during 2022. To qualify, the child must have a valid, standard Social Security number. According to the IRS, a qualifying child also:
- Was under age 17 at the end of 2022
- Is your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
- Was your dependent (you provided more than half of their support and can claim them on your federal tax return)
- Lived with you for more than half the year
- Did not file a joint tax return with their spouse (can be waived in certain circumstances)
- Has been a U.S. citizen, U.S. national or a lawful permanent resident in the U.S.
Earned Income Tax Credit (EITC): a tax break for those who earned some income
If you worked part of the year before becoming disabled, or if you were able to earn a little money through work in 2022, you may qualify for the EITC.
According to the IRS, to qualify, you:
- Must have worked and earned less than $59,187
- Must have less than $10,300 in investment income
- Must have a valid Social Security number that is valid for employment
- Must be a U.S. citizen or lawful permanent resident for the full year of 2022
There are special rules if you have earned foreign income, members of the military, members of the clergy and people who separated from their spouses.
Your SSDI or SSI income does not count toward the $59,187 limit.
You may also be able to claim the EITC for your child who has a permanent, total disability and who has a valid, standard Social Security number.
This is a blog post and not legal advice. If you think you might qualify for these tax credits, contact a tax preparer or the IRS.