Earned Income Tax Credit for Children With Disabilities

With tax season speedily approaching, many Michigan families whose children have disabilities are eager to receive as many tax deductions as possible. They may not realize, however, how much is available to them. One of these options is earned income tax credit.

Although EITC can be beneficial for families with low incomes, many are unaware of it. The Internal Revenue Service says that this tax credit can sometimes be a refund from the government, and may also allow you to pay less on your taxes. When filing for EITC, families usually need to include their wages and any disability benefits they or their children receive.

Although some families might think they are guaranteed EITC because their child is disabled, there are a few qualifications which generally need to be met. Children need to be related to their parents through birth or marriage; disabled foster children and adopted children are also eligible for this tax credit. Additionally, there are age requirements. Children usually need to be under the age of either 24 or 19, and sometimes must also be in school part of the year. The extent of their disability is also taken into account; if a child is completely disabled, age may not be a factor.

The amount of EITC a family receives usually depends on their income and the number of disabled children they have. The Journal of Accountancy says that families usually must have an annual gross income of $51,000 or less, and having more than one disabled child can bring a higher tax refund. Refunds are typically between $3,000 and $6,000. When calculating their EITC, families may want assistance to ensure that they are accurately representing their particular situation.