EITC Interaction with Other Programs

Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI)

You must have some form of earned income to qualify for an Earned Income Tax Credit (EITC). Neither SSI nor SSDI benefits count as earned income for the EITC. You can, however, be on SSI or SSDI benefits and claim an EITC, as long as you have some form of earned income.

If you're on SSI, federal tax refunds will not count as income or assets for 12 months. If you save the money longer than that, Social Security will count that money toward SSI's asset limit, unless you save the money in an Individual Development Account (IDA) or a Plan to Achieve Self-Support (PASS).

Individual Development Accounts (IDAs)

Money from an EITC can be put into an IDA. This lets you get matching funds from the IDA program sponsor.

Plans to Achieve Self-Support (PASS)

Money from an EITC can be set aside in a PASS. This will help you reach your employment goals more quickly by boosting the amount of money you have available in your PASS account.

Long-Term Disability (LTD) Insurance

Employer-paid Long-Term Disability (LTD) Insurance benefits that you got before retirement count as earned income under the EITC and can therefore be used to qualify for the program. Disability income insurance benefits which you pay the premiums for or that you get after retirement are not considered earned income and can’t be used to qualify for an EITC.