Unearned Tax Credit...?

Question

Okay, my husband, myself and my son are on welfare. He and I are on it until SSI accepts our case.

I read somewhere last year that some people can get money back for "unearned" income, what is that?

I am in the state of Ohio.

Thank you!

Let me reword this.

My husband and I are on welfare until we get our SSI.

We are getting disabilty due to an car accident which has made us both unemployable. My husband broke his back, and myself, I suffered sever wiplash to my neck and also have slipped disc which is pinching nerves in my back.

I am guessing since you are saying "go back to college" you are refering to the Yahoo name.

I am using my neices name to ask since I do not have a Yahoo account.

AND...

I used the world "welfare" to lose I guess.

We are on the State of Ohio Disabilty. What we get in cash gets paid back once we are accepted with disabilty.

We 3 are on medical, and my son gets other assistance since he is only 8 months.

Answer 1

Did you or your spouse work at any time in 2007? If so, then file a tax return because you may get some earned income credit.

Are you receiving disability payments as employees of the State of Ohio, but are not retired on disability? If you receive a W-2 with your disability payments in Box 1, then yes you can file a tax return and receive Earned Income Credit based on these payments.

If you are receiving welfare or Supplemental Security Income, then these payments are always tax-free and do not count toward any tax credit. They do not appear on your tax return.

Answer 2

You are likely thinking of the "Earned Income Credit". Earned income is the income you get from working. Folks who have lower income levels, and especially those with children, can qualify for this credit, which can give them money back from the IRS even if they didn't pay anything in. But, you do have to have income from working in order to qualify. That is the purpose of the credit, to encourage people to engage in productive work who might otherwise depend solely on public assistance sources for their income.

Answer 3

My mother is on ssi and she has asked a tax expert this question. The answer was "no". She was told she must have earned income from work to qualify.
Your state may have some program that I am not aware of. Ask your case worker.

Answer 4

No, you heard wrong. It's EARNED Income Credit, and welfare income doesn't make you eligible. Neither will SSI.

Answer 5

Please get off of welfare, and go to college! What a shame that your son will have parents that are on welfare!

I know it might be hard, but where there is a will, there is a way... My brother and his girlfriend are going to have a baby, and both of them are on SSI, and for what? I have a few handicapped and crippled friends with extreme depression, but they still manage to sell things on ebay and mke a pretty good living for only putting in a few hours of work!

I amso sorry if you are seriously in need of state funds, and if I have offended you, I apologize sincerely, but I am thinking about your son..