If someone is getting social security and has a dependant, I know they have to claim it as taxable income, just wondering if thats the only household income if they can also claim an earned income credit? Please list sources if you know them. Thanks so much!
2007-10-05 15:27:12 · 5 answers · asked by Sweetness 6 in Business & Finance ➔ Taxes ➔ United States
No, social security is not considered earned income so does not qualify for the EIC. See Chapter 36 of Publication 17, the chapter on the EIC - you can download the publication at irs.gov - look under the paragraph " Rule 7. you must have earned income".
2007-10-05 17:26:29 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
NO.
In order to get the Earned Income Credit you have to have "earned" income. Social Security is definitely not earned. If the SS is the only income for the family and depending on how much it is and how many are in the household there my not be any tax liability. You may still have to file but would owe nothing.
2007-10-05 16:36:42 · answer #2 · answered by BigDog507 5 · 2⤊ 0⤋
Social security may not be considered earned income, but I worked a lot of years to "earn" it.
2015-03-31 10:58:33 · answer #3 · answered by zil 1 · 0⤊ 0⤋
To qualify for earned income credit, you have to have some earned income. Social Security is unearned income.
2007-10-05 15:38:49 · answer #4 · answered by Anonymous · 3⤊ 0⤋
clearly NO
2007-10-05 15:34:58 · answer #5 · answered by silentpath2003 2 · 3⤊ 1⤋