[Amanda58]

I am a single woman receiving Disability due to a medical condition. I also work 10 hours a week in a salon for 200.00 a month, plus tips, which is paid to me in a check each week( minus the tips). In the past I have always claimed my 10 year old grandson, and got the EIC, plus this year I am going to school online. How will this change my tax situation?

[AtlantaTaxExpert]

The disability may or may not be taxable; it depends on the source of the disability payment.

Presumably, the work in the salon is legally allowed under your disabled status.

The $200 per week is about $10,400 annually, which will allow you to claim the EIC if your grandson lives with you. You may also qualify for the American Opportunity Credit portion of the education credits for the on-line course (the school offering the course must be certified by the U.S. Department of Education).

You will pay NO federal income tax and probably no state income tax due to your low income. The two credits mentioned above are refundable, which means you will get a refund probably in the $2,500 range even if no money was withheld from your salary.

If you need professional help filing, email me at [email protected]. You will find my fees to be very reasonable.