VA BENEFITS AND EARNED INCOME CREDIT

[TAXDAY]

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

[RollTide68]

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.

[TAXDAY]

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.  

[RollTide68 · Accepted solution]

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