I am about to file our taxes and our only income is SSDI?

Question

This is our first year filing on SSDI (our only income) and have a few questions. We have 3 small children, so are we eligible for the Child Credit? Can we get the Earned Income Credit? We have a home and paid about $5000 in interest. Any help would be appreciated!!

Yes, my husband is on SSDI. Sounds like we will not have to file at all?? Wish we could get a refund (we normally would get $4000-$5000 refund, when he was working), but since he is now disabled, I guess we won't be getting that! =( Thank you everyone for your answers!

Answer 1

It sounds like you can get the child credit and maybe the earned income credit. Since you paid mortgage interest, you will do better if you itemize deductions.

The easiest way to figure this stuff out is to use an online tax program. Enter all your information and let the program fill out all the right forms. It will automatically figure your taxes both ways and use either standard deduction or itemized deduction whichever gets you a better refund. Also, you can see how much you are getting back before you pay.

I like this one because it donates part of your fee to charity.
http://www.internet-taxprep.com/wichitasouth
or
http://www.internet-taxprep.com/hopeworldwide

Just don't use turbo tax, they can get your numbers wrong.

Answer 2

Are you talking about Social Security Disability? If it is, Earned Income Credit is that, from monies earned. I think that your filing in this case will be basically keeping in touch with the IRS and your State, because tax deductions are from total tax due. I don't believe your income is taxable. Now, If you are talking about Disability Insurance Payments, that is a different matter - about taxability.

good luck & blessing

Answer 3

No you do not qualify for EITC if you did not have any earned income. In order to qualify;

SINGLE...
with 2 or more children and earn $36,348 or less
with 1 child and earn $32,001 or less
with no children and earn $12,120 or less (and you are between 24-65 years old)
MARRIED...
with 2 or more children and earn $38,348 or less
with 1 child and earn $34,001 or less
with no children and earn $14,120 or less (and you are between 24-65 years old)

If the only income you received during the tax year was your social security benefits, your benefits are probably not taxable.

If you also received other income, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.

To make a determination if your benefits are taxable, complete the social security benefits worksheet in the Form 1040 or 1040A instruction book.

The taxable benefits, if any, must be included in the gross income of the person who has the legal right to receive them. For example, if you and your child received benefits, but the check for your child was made out in your name, you must use only your own portion of the benefits in figuring if any part is taxable to you. Half of the portion that belongs to your child must be added to your child's other income to determine if any of those benefits are taxable to your child.

If you are married and file a joint return, you and your spouse must combine your incomes, social security benefits when figuring the taxable portion of your benefits.

Answer 4

Unfortunately, SSI is not taxable income let alone earned income. If all of your income is SSI, you have no taxable income and need not file a tax return. All credits require taxable income.

For 2007, try to generate some income even if it means buying and selling stuff over the internet (eBay) or some type of work-at-home project (don't get scammed by the fake ones) or maybe making and selling crafts. The net profit from these activities (assuming there is any) is considered earned income. I don't know how that income will affect your SSI benefits, so be careful.

Answer 5

Based on the information that you provided, you would not be required to file a tax return. You would not be eligible for the EIC because you need to have Earned Income. the other credits are to help reduce your tax liability, of which you have none.

Answer 6

If your only income is SSDI, you have no taxable income and no earned income. You owe no tax and do not qualify for the EITC. You do not need to file anything at all.

Answer 7

Depends on your income. If it is only from SSDI, probably. Disability income is taxable, "Tax Man" is wrong.

Use Turbo Tax and find out.

Answer 8

When I was newly married, we worked them separately and jointly and chose the one that benefited us the most.

Answer 9

hold on the hater will be here in a few mins, every time I ask about SS Disability its Katy bar the door , good luck

Answer 10

Like to know also.