It depends on the type of disability payments and whether or not it is considered Earned Income Taxable Credit (EITC) or not. Benefits such as Social Security Disability Insurance, SSI, or military disability pensions are not considered earned income and cannot be used to claim Earned Income Tax Credit (EITC).

Disability retirement benefits, on the other had, do qualify as earned income, up until you reach minimum retirement age. Minimum retirement age is the earliest age you could have received a pension or annuity if you did not have the disability. After you reach minimum retirement age, the IRS considers the payments your pension and not earned income.

The great part about TurboTax is that you can begin your return for free and let the program determine whether you qualify for the EITC based on your entries. 

For more information about the EITC and disability payments, Click Here. To view your personal disability, select the Personal tab in your account and you will be able to input information here.

Below are the steps to enter your disability into your TurboTax account:

1)    Sign into TurboTax Online

2)    Start your return if you have not yet or continue your return by click Taxes > Tax Timeline > Continue your return.

3)    Click search in the upper right hand corner of the screen.

4)    Type “disability” and click enter.

5)    In the search results click on “Jump to disability”

6)    This brings you to the page disability credit page.

7)    Continue through the interview to see if you qualify for the credit.