Asset-Building Incentives

Earlier in this article we explained how Plans to Achieve Self-Support (PASS) are a special savings program for people on Supplemental Security Income (SSI) and how an ABLE account lets you save up to $100,000 in resources and not have them counted by SSI. However, there is another great savings program that is for anybody with a low income, even if you don’t get SSI benefits.

Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is designed to help people who are working and have low incomes by lowering the amount of federal income tax they owe. Even if you don’t earn enough money to owe federal income taxes, you may be eligible for an EITC.

To get the EITC, you must claim it when you file your annual federal tax return. For tax year 2026 (filing by April 2027), the EITC ranges from $2 to $8,231, depending on your adjusted gross income and the number of qualifying children in your family.

To qualify, you must have income from employment, self-employment, or employer-paid disability benefits that you got before retirement. There is no limit to the number of times you can claim an EITC; you can claim the tax credit every year that you are eligible.

If you have a work goal or are currently working, a Work Incentive Consultant can answer your questions.