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Can annuity income be considered for Earned Income Credit?
If someone receives a 1099-R with a distribution code 3, can they qualify for earned income credit? The person receives his pension because he became disabled.
As long as the person claiming the disability annuity and under 69 half (min retirement age) they can report their information on line 7 of 1040 as income.
IRS Pub. 596 pages 10-11, it indicates the disability payments may be earned income. It states "If you retired on disability, taxable benefits you receive under your employer’s disability retirement plan are considered earned income until you reach minimum retirement age. Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age."
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