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shf1957
Level 6
February 15, 2025
Question

Disability and the Earned Income tax credit isn't giving credit?

  • February 15, 2025
  • 2 replies
  • 15 views

I've been doing this person's taxes for quite a few years. He has 2 children and is disabled with a code 3 on his NYS Retirement 1099R.  Every year since it's a code 3 and he is only 52 the program adjusts it and makes it accountable as earned income and not retirement.  So the earned income credit does apply and always have.  This time it won't .. even though the minimum retirement age is 55 yrs old and he hasn't reached that yet.  I am wondering if there is an error in the program.  I investigated it on the IRS site and doesn't look like any thing has changed from the past years to this year.   

I do remember years ago there was a problem with the college credit.. then corrected late March.  Wondering if this is  problem with the program as that was. . Any help or ideas would fully be appreciated.

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2 replies

BobKamman
Level 15
February 15, 2025

How old are the kids?  

taxiowa
Level 8
February 15, 2025

80% of the way down on the 1099R worksheet/entry sheet is a box E.  It is labeled like disability payments.  Check box and move on to the rest of your weekend.  Enjoy!

shf1957
shf1957Author
Level 6
February 15, 2025

THANK YOU!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Your the best!!!!

 

taxiowa
Level 8
February 15, 2025

Nah.  But I do sleep with the best.  Wife of 40 years!