2. Earned income tax credit
Unlike our first entry, the earned income tax credit is actually a refundable tax credit. Both individuals and couples with low-to-moderate income can benefit from this type of tax credit. However, those with children may have priority.
According to Uncle Sam, earned income tax credit was created to help low-to-moderate working Americans make ends meet. The IRS also added that certain disability retirement benefits might also qualify as EITC (earned income tax credit).
You are entitled to claim the EITC if you have a permanently disabled child with a valid SS number. Another significant piece of information you should bear in mind is that your disability payments will be part of your pension and not earned income as soon as you reach the minimum retirement age.
