EIC affected by SS received?

Mar 11, 2008 3 Replies

Is your eligibility for EIC affected by SS received? Taxpayer has



8000 in wages and 16000 in SS (nothing else). Qualifies for EIC without children. It doesn't appear the receipt of SS affects the EIC. Correct? Thanks!

"SMF" wrote

Correct, SS does not count as income that is "earned," so it does not affect the EIC. See page 46 of the Form 1040 Instructions. Generally only the amounts on Form 1040, lines

7 and 12 count towards computation of the EIC.

But first visit page 44 (two pages back), where Step 1 indicates that line 38 (AGI) determines overall eligibility. The more taxable SS included in AGI, the more it can affect the EIC.

Also consider Pub 596, but I am particularly partial to Pub 17 Chapter 36.

-Mark Bole

You are right (and certainly correct to point out) that, to be eligible, one has to get by the AGI test and other tests. On the third hand, SS income is not always taxable and so is not always going to count towards AGI. In the OP's case, SS income indeed is not taxable (per page 25 of the Form 1040 instructions), and so the OP's client passes the AGI test (< $12,590 for MFS blah blah).

It sounds like the OP is using tax software, and so this would explain why the client's SS income does not affect the client's EIC eligibility.

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