Do You Qualify for This Tax Credit?

It's tax season! If you earned income in 2024, it's important to file your taxes. This blog post discusses a tax credit that may apply to you and free services available through the Internal Revenue Service (IRS).

Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is a benefit for working people with low to moderate income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any taxes or are not required to file. The EITC reduces the amount of taxes you owe and may qualify you for a refund.

Do I qualify for the EITC?

To qualify for the EITC you must meet some basic requirements such as:

• Have worked and earned income under a certain amount that is dependent on marital status and number of dependents. Please refer to the IRS’s guidance
• Have investment income below $11,600 in tax year 2024
• Have a valid Social Security number by the due date of your return

You can determine your eligibility and file and claim your EITC for free:

• Use the IRS’s EITC Assistant to help determine if you're eligible.
• According to the IRS website, if you made $84,000 or less in 2024, you can use software products through IRS's Free File and electronically file your return to claim your EITC. Visit IRS.gov to access the software.

Will a tax refund affect my SSDI or SSI?

You may be concerned that a tax refund will affect your eligibility for public benefits, including Social Security disability benefits, Medicare or Medicaid, and food stamps (SNAP). The law, according to Social Security, is clear that, in most cases, tax refunds, including refunds from tax credits such as the EITC, are not counted as income for purposes of determining eligibility for benefits or payments. This applies to any federal program and any state or local program financed with federal funds.

For SSI recipients, income tax refunds are not counted as income and all federal tax refunds received on, or after January 2010, are not counted toward your SSI resource limit for 12 months (current allowable resource amount, according to Social Security, is $2,000 for an individual and $3,000 for a couple). For more information, contact Social Security toll-free at 1-800-772-1213 (1-800-325-0778 TTY).

Who can help?

The IRS works with national partners, community-based coalitions and thousands of local partners and governments. These partnerships, also known as the Volunteer Income Tax Assistance (VITA) program, provide free EITC tax return preparation and tax help  and tax education.

• VITA offers free basic tax-return preparation to people who:
• Generally, make $67,000 or less
• Have a disability
• Are limited-English-speaking taxpayers
• IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals. To find your local VITA site, call 1-800-906-9887, or use the VITA Locator Tool.

How Can Ticket to Work Help

Social Security's Ticket to Work (Ticket) Program supports career development for people ages 18 through 64 who receive Social Security disability benefits (SSDI/SSI) and want to work. Through this free and voluntary program, eligible participants can work with service providers to receive the services and supports they need to find and maintain employment as they move toward financial independence through work

The Ticket Program can support you with different forms of employment, including part time, seasonal and full time. Through the Ticket Program, a service provider such as an Employment Network (EN) can help you understand available Social Security choosework.ssa.gov.