Social Security and EIC

[AnnieR]

I just want to check on this, seems wrong but then you never know. Client (63 yr) has 10900 in earned income (taxable) and 13440 in SS which is not taxable. The software is giving EIC of $234. It just doesn't seem right to me that an unmarried single person with an income of basically $24,000 is eligible for EIC. With all the "investigating" of the IRS, I want to be sure.

Thanks for the help.

AnnieR

[TAG]

AnnieR, About 10 years ago I had a similar case. I researched and researched it because it made no sense to me. She does legally get the EIC-is this a great welfare taxation system or not?

TAG

[schirallicpa]

Agreed!

[jainen]

>>It just doesn't seem right to me that an unmarried single person with an income of basically $24,000 is eligible for EIC<<

I have no problem with low income taxpayers excluding Social Security benefits from AGI in accordance with the tax code. Every SS recipient gets at least a partial break, with whatever consequences may be for an individual's deductions and credits. Basic tax planning principles apply.

Actually, tax code treats Social Security payments less generously than many other public benefits like welfare, Veterans Administration pensions, state disability or worker's compensation.