Why is EIC so low for single daughter w disabled child, when income is 2220 & CG income 855?

[MichaelL1 · Accepted solution]

Eanred Income Tax credit is designed to encourage people with small incomes to work.

So in your case if the wages were $10,000 then the Earned Income Credit would be much higher.

Due to low amount of income it is small amount.

[Hal_Al]

The money you hear about people getting for just filing a tax return claiming kids requires them to  have some earned income (wages or self employment). Without earned income, they are not eligible for the "refundable" Earned Income Credit or Additional Child Tax Credit.  Both credits are calculated on the amount of earned income you have. No earned income means no "refund". A small amount of earned income means a small refund. The child tax credit does not "kick in" unless you have at least $2500 of earned income.).  There is no additional credit for your child being disabled**.

A child can be the “qualifying child” dependent of any close relative in the household. If she lives with someone else, e.g. her parents, it may be better if they claim her child (and her).

**A child's disability doesn't affect tax filing until he turns 19 (24 if a full time student). Then his disability allows him to continue to be considered a "Qualifying Child" for tax purposes regardless of age. There are no credits or deductions, other than that some items, e.g. special schooling, can be considered medical expenses.