3rd Party Sick Pay & Making Work Pay Credit

[gfizer]

I have a married couple who both receive a w-2 from their respective employers for 3rd party sick pay. W-2s correctly show wages in box 1 and no other entries for tax, social security or medicare withholding. Other than social security disability this is the only income they have. They each received their $250 payment. Does the 3rd party sick pay count as earned income and qualify them for the $300 balance of the making work pay credit?

[Cathy]

I have a married couple who both receive a w-2 from their respective employers for 3rd party sick pay. W-2s correctly show wages in box 1 and no other entries for tax, social security or medicare withholding. Other than social security disability this is the only income they have. They each received their $250 payment. Does the 3rd party sick pay count as earned income and qualify them for the $300 balance of the making work pay credit?

Yes, earnings in box 1 on the w-2 would qualify for the making work pay credit....however, look at SCH M...sounds like they probably didn't earn enough to get more than $500.

Cathy