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Are you asking about disability benefits?
Disability Income
https://ttlc.intuit.com/questions/1901145-is-disability-income-taxable
What form will you receive for the disability? If they put it on a W-2, it may count as earned income toward earned income credit and/or the child tax credit.
In general, if you pay premiums for disability insurance, out-of-pocket (after tax) then an insurance payout when you become disabled is not taxable income. However, if you pay the premiums with pretax deductions, or if the premiums are paid tax-free by your employer, then the disability income is considered taxable income, and you will receive a W-2 for it at the end of the year.
Then, if you are receiving employer paid disability on a W-2, I believe it is considered earned income and subject to Social Security and Medicare tax in the first year (assuming you are less than retirement age) but not in the following years (but I would have to double check this).
@DJ09 on the child tax credit question.... technically, you are elgible to claim it. But the result will be zero.
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