Can You Get Earned Income Credit While On Social Security

Earning credits is based on the length of time you work as well as the amount of money you earn.

Can you get earned income credit while on social security. You can start social security benefits when you turn 62 but your earned income can result in a reduction in the amount of your benefit when you take benefits before full retirement age. However if your income is low enough not to get the maximum four social security credits per year then it can take longer for you to accumulate the 40 credits you ll need. Social security disability insurance is an earned benefit for which you become eligible if you work long enough to earn sufficient work credits prior to the time your disability stops you from. Can american expats earn us social security credits while working abroad.

Eligible persons who owe no taxes or whose tax liability is smaller than their tax credit receive. If you don t have united states citizenship you must either have a green card that allows you to reside in the country or satisfy the irs substantial presence test. Have a social security number that is valid for employment that is issued on or before the due date of your tax return including extensions. In the year that you begin to receive social security benefits you may also have income from a job or from self employment prior to receiving benefits.

If you file as single on your income taxes and have earned income of between 25 000 to 34 000 then as much as 50 of your social security benefits can now be taxable terrill says. To qualify for the earned income tax credit or eitc you and your spouse if married and filing a joint return must meet all the following rules. All us taxpayers living overseas have to file a federal income tax return each year if they earn over 10 000 or just 400 of self employment income regardless of where they live or where their income is generated. Full retirement age for people retiring in 2012 and 2013 is 66.

You can also check the specific amount of your income that was subject to social security tax by looking at your social security statement. You can figure out the total amount you ve earned by looking at your w 2s or 1099s. Calculate your yearly earnings. The earned income tax credit eitc is a special federal income tax credit for low income workers the credit reduces the amount of tax they owe if any and is intended to offset some of the increases in living expenses and social security taxes.