Accountants Community Home Page

Third Party sick pay EIC-

Client began receiving 3rd Party sick pay, apparently error as has not received last several years. Paid by third party agent, under long term disability

Unknown if minimum retirement age (58) or not

Has received SS disability since have done the return (decade)

Apparently payments are legit, agents just caught error

This does qualify for EIC does it not ?

Closest I found

 > Today I received a reply from the IRS that should answer my
> question.
>
> Quote
>
> [from]
>
> Third party sick pay paid by agents of the employer are treated as
> supplemental wage income (see Treasury Regulation 31.3402(g)).
> Supplemental wage payments are considered to be earned income for
> purposes of the Earned Income Tax Credit (see Internal Revenue
> Code Section 32(c)(2)(A)(i)).
>
> Sincerely,
> R. Taylor
> Tax Law Specialist
> ID#84-01165

 

    Cancel
    Contribute an answer

    People come to Accountants Community for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

    1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
    2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
    3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
    4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
    5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.
    Cancel

    Similar questions other people found helpful: