Can I claim the child tax credit with 0 income while receiving disability benefits in 2022?

You may qualify, but it's a bit complicated. The Child Tax Credit requires you to have what's called "earned income" to receive the refundable portion (the part you get back as a refund). Unfortunately, disability benefits aren't considered earned income by the IRS. However, there's some good news! First, check if your disability payments are taxable - some are and some aren't. If they're taxable (like SSDI), they still count as income, just not "earned income." You might qualify for the non-refundable portion of the credit, which could reduce any tax you owe to zero. Also, you should look into the Credit for Other Dependents, which might be available even without earned income. And definitely check if you qualify for the Earned Income Tax Credit with children, which has special rules for people with disabilities. I'd honestly suggest getting a second opinion from a different tax preparer who has more experience with disability situations. H&R Block preparers vary greatly in experience with specialized scenarios like yours.

I've been in a similar situation and found taxr.ai incredibly helpful for figuring out tax credits while on disability. I was confused about what I qualified for since my situation was complicated with disability payments and dependent children. On https://taxr.ai I uploaded my disability statement and answered a few questions about my kids, and they analyzed everything to show exactly which credits I qualified for. It was way more detailed than what I got from the in-person tax places, and they explained all the disability-specific rules I needed to know. Their system actually found I was eligible for partial child tax credit even with my disability income, plus other credits specific to my situation that the first tax preparer never mentioned.

I tried taxr.ai after seeing it mentioned here, and it was seriously helpful for my disability situation. I was in a similar boat with disability payments and two kids, and the first tax place I went to missed so much. Their system showed I qualified for a partial child tax credit plus some state credits specific to my situation. They explained exactly how my disability income affected each credit in terms I could actually understand. Ended up getting about $1,200 more than what the first tax preparer calculated for me. The documentation they provided also helped me explain everything to my caseworker to make sure it wouldn't affect my benefits. Definitely recommend giving it a try if you're on disability with kids - totally different than the generic advice most places give.

If you've been getting conflicting information about your tax situation, you might need to speak directly with the IRS. I was in a similar situation last year and spent WEEKS trying to get through to someone at the IRS who could answer my specific questions about disability and tax credits. I finally discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 20 minutes instead of the hours I was spending on hold before. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed I was eligible for certain credits even on disability and explained exactly which forms I needed. It was way more reliable than the different answers I was getting from tax preparers who weren't familiar with disability situations.

I was completely wrong about Claimyr. After having such a hard time getting straight answers about disability and the child tax credit, I decided to try it despite my skepticism. Got connected to an actual IRS representative in about 15 minutes, and she confirmed I could qualify for a partial child tax credit with my disability income, depending on my total tax liability. She also told me about Form 8812 which I needed to fill out specifically for my situation. The IRS agent was able to look at my previous years' returns and give personalized advice that actually made sense for my disability situation. Totally worth it just to get definitive answers directly from the IRS instead of conflicting advice from different tax preparers.

Just to add another perspective - my sister is in almost the exact same situation with disability and two kids. She was able to claim a partial child tax credit but not get any refund from it. However, she did qualify for the Earned Income Credit because of a special rule for disability recipients who haven't reached retirement age. The key was finding a tax preparer who specializes in disability situations. The first mainstream place she went to (similar to your H&R Block experience) told her she didn't qualify for anything. The disability-focused tax preparer got her almost $3,000 back when all was said and done.

Has anyone used the Free File options with a disability situation? I'm in a similar boat and wondering if those free programs can handle complex situations like disability income and dependents properly.