I was in state disability for 6 months this year due to an on the job accident. Can the disability payments I recieved be included in my yearly income even though it is tax free. This would help boost my EIC return.
2007-01-23 13:44:46 · 5 answers · asked by Todd T 1 in Business & Finance ➔ Taxes ➔ United States
I was on the state disability insurance that is funded by deductions from my paychecks and employer contributions. No other income while receiving it.
2007-01-24 12:41:26 · update #1
For the most part, disability payments are tax free and not considered toward the EIC. Your best bet is to get PUB 17 from the IRS. If you can't find the answer there, call the toll free number for the IRS. They will be able to help you.
2007-01-23 13:50:42 · answer #1 · answered by cinsingl83 3 · 0⤊ 0⤋
Do you know for a fact that the payments have been deemed tax-free? Have you received a Form 1099? Most forms are sent out in February because the law requires that Form(s) 1099 must be sent out by 2/28/2007. So find out and then follow through on your inquiry for EIC.
2007-01-31 18:12:50 · answer #2 · answered by Notorious 4 · 0⤊ 0⤋
Depends on the type of disability payments.. was it a federal disability, employer provided disability or a disability insurance you paid for?
It's possible.. need more information to determine.
kelly
2007-01-23 22:44:10 · answer #3 · answered by Mrs Tax Lady 1 · 0⤊ 0⤋
If you are under the minimum retirement age (59.5 years old) and the payments are taxable you may use disability pay as earned income. If it is non-taxable you are what's technically known as "SOL."
2007-01-28 17:46:18 · answer #4 · answered by Scott K 7 · 0⤊ 0⤋
No
2007-01-23 22:11:00 · answer #5 · answered by Wayne Z 7 · 0⤊ 0⤋