VA BENEFITS AND EARNED INCOME CREDIT

Forum|Forum|6 years ago
February 29, 2020
3 replies
30 views

Would a spouse's VA disability benefits affect EIC on return?

ProSeries Basic

This topic has been closed for replies.

Best answer by RollTide68

MAGI for EIC includes tax exempt interest and foreign income per the instructions. I don't think it includes any other income.

RollTide68

Level 7

VA Disability Benefits
Disability benefits received from the VA should not be included in your gross income. Some of the payments which are considered disability benefits include:

Disability compensation and pension payments for disabilities paid either to Veterans or their families,
Grants for homes designed for wheelchair living,
Grants for motor vehicles for Veterans who lost their sight or the use of their limbs, or
Benefits under a dependent-care assistance program.

Short answer NO.

L

ldayAuthor

Level 2

Thanks for your response and ROLL TIDE!

I realize it is not income and would not be taxable, but would it factor into the EIC calculation? It's almost $39k a year. In Michigan, this could preclude one from getting a property tax credit which is driving this thought process.

RollTide68Answer

Level 7

MAGI for EIC includes tax exempt interest and foreign income per the instructions. I don't think it includes any other income.

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