IRS considers disability retirement benefits as earned income until you reach minimum retirement age. Minimum retirement age is the earliest age you could have received a pension or annuity if you did not have the disability.

After you reach minimum retirement age, IRS considers the payments as a pension and not earned income.

Benefits such as Social Security Disability Insurance, SSI, or military disability pensions are not considered earned income and cannot be used to claim Earned Income Tax Credit (EITC). You may qualify for the credit only if you, or your spouse, if filing a joint return, have other earned income.

What Disability Benefits Qualify as Earned Income for EITC?

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