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2010 1040 Tax Forms

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2010 1040 Tax Forms

2010 1040 tax forms Publication 15-B - Introductory Material Table of Contents Future Developments What's New Reminders Introduction Future Developments For the latest information about developments related to Publication 15-B, such as legislation enacted after it was published, go to www. 2010 1040 tax forms irs. 2010 1040 tax forms gov/pub15b. 2010 1040 tax forms What's New Cents-per-mile rule. 2010 1040 tax forms  The business mileage rate for 2014 is 56 cents per mile. 2010 1040 tax forms You may use this rate to reimburse an employee for business use of a personal vehicle, and under certain conditions, you may use the rate under the cents-per-mile rule to value the personal use of a vehicle you provide to an employee. 2010 1040 tax forms See Cents-Per-Mile Rule in section 3. 2010 1040 tax forms Qualified parking exclusion and commuter transportation benefit. 2010 1040 tax forms . 2010 1040 tax forms  For 2014, the monthly exclusion for qualified parking is $250 and the monthly exclusion for commuter highway vehicle transportation and transit passes is $130. 2010 1040 tax forms See Qualified Transportation Benefits in section 2. 2010 1040 tax forms Same-sex Marriage. 2010 1040 tax forms  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. 2010 1040 tax forms For more information, see Revenue Ruling 2013-17, 2013-38 I. 2010 1040 tax forms R. 2010 1040 tax forms B. 2010 1040 tax forms 201, available at www. 2010 1040 tax forms irs. 2010 1040 tax forms gov/irb/2013-38_IRB/ar07. 2010 1040 tax forms html. 2010 1040 tax forms Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. 2010 1040 tax forms Notice 2013-61, 2013-44 I. 2010 1040 tax forms R. 2010 1040 tax forms B. 2010 1040 tax forms 432, is available at www. 2010 1040 tax forms irs. 2010 1040 tax forms gov/irb/2013-44_IRB/ar10. 2010 1040 tax forms html. 2010 1040 tax forms Recent changes to certain rules for cafeteria plans. 2010 1040 tax forms  Notice 2013-71, 2013-47 I. 2010 1040 tax forms R. 2010 1040 tax forms B. 2010 1040 tax forms 532, available at www. 2010 1040 tax forms irs. 2010 1040 tax forms gov/irb/2013-47_IRB/ar10. 2010 1040 tax forms html, discusses recent changes to the “use-or-lose” rule for health flexible spending arrangements (FSAs) and clarifies the transitional rule for 2013-2014 non-calendar year salary reduction elections. 2010 1040 tax forms See Notice 2013-71 for details on these changes. 2010 1040 tax forms Reminders $2,500 limit on a health flexible spending arrangement (FSA). 2010 1040 tax forms  For plan years beginning after December 31, 2012, a cafeteria plan may not allow an employee to request salary reduction contributions for a health FSA in excess of $2,500. 2010 1040 tax forms For plan years beginning after December 31, 2013, the limit is unchanged at $2,500. 2010 1040 tax forms For more information, see Cafeteria Plans in section 1. 2010 1040 tax forms Additional Medicare Tax withholding. 2010 1040 tax forms  In addition to withholding Medicare tax at 1. 2010 1040 tax forms 45%, you must withhold a 0. 2010 1040 tax forms 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 2010 1040 tax forms You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. 2010 1040 tax forms Additional Medicare Tax is only imposed on the employee. 2010 1040 tax forms There is no employer share of Additional Medicare Tax. 2010 1040 tax forms All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. 2010 1040 tax forms Unless otherwise noted, references to Medicare tax include Additional Medicare Tax. 2010 1040 tax forms For more information on what wages are subject to Medicare tax, see Table 2-1, later, and the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15, (Circular E), Employer's Tax Guide. 2010 1040 tax forms For more information on Additional Medicare Tax, visit IRS. 2010 1040 tax forms gov and enter “Additional Medicare Tax” in the search box. 2010 1040 tax forms Photographs of missing children. 2010 1040 tax forms  The IRS is a proud partner with the National Center for Missing and Exploited Children. 2010 1040 tax forms Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 2010 1040 tax forms You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 2010 1040 tax forms Introduction This publication supplements Publication 15 (Circular E), Employer's Tax Guide, and Publication 15-A, Employer's Supplemental Tax Guide. 2010 1040 tax forms It contains information for employers on the employment tax treatment of fringe benefits. 2010 1040 tax forms Comments and suggestions. 2010 1040 tax forms   We welcome your comments about this publication and your suggestions for future editions. 2010 1040 tax forms   You can write to us at the following address:  Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 2010 1040 tax forms NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2010 1040 tax forms Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2010 1040 tax forms   You can also send us comments from www. 2010 1040 tax forms irs. 2010 1040 tax forms gov/formspubs. 2010 1040 tax forms Click on More Information and then click on Comment on Tax Forms and Publications. 2010 1040 tax forms   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 2010 1040 tax forms Prev  Up  Next   Home   More Online Publications
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The 2010 1040 Tax Forms

2010 1040 tax forms 36. 2010 1040 tax forms   Earned Income Credit (EIC) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Do You Qualify for the Credit?If Improper Claim Made in Prior Year Part A. 2010 1040 tax forms Rules for EveryoneRule 1. 2010 1040 tax forms Your AGI Must Be Less Than: Rule 2. 2010 1040 tax forms You Must Have a Valid Social Security Number (SSN) Rule 3. 2010 1040 tax forms Your Filing Status Cannot Be Married Filing Separately Rule 4. 2010 1040 tax forms You Must Be a U. 2010 1040 tax forms S. 2010 1040 tax forms Citizen or Resident Alien All Year Rule 5. 2010 1040 tax forms You Cannot File Form 2555 or Form 2555-EZ Rule 6. 2010 1040 tax forms Your Investment Income Must Be $3,300 or Less Rule 7. 2010 1040 tax forms You Must Have Earned Income Part B. 2010 1040 tax forms Rules If You Have a Qualifying ChildRule 8. 2010 1040 tax forms Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9. 2010 1040 tax forms Your Qualifying Child Cannot Be Used By More Than One Person To Claim the EIC Rule 10. 2010 1040 tax forms You Cannot Be a Qualifying Child of Another Taxpayer Part C. 2010 1040 tax forms Rules If You Do Not Have a Qualifying ChildRule 11. 2010 1040 tax forms You Must Be at Least Age 25 but Under Age 65 Rule 12. 2010 1040 tax forms You Cannot Be the Dependent of Another Person Rule 13. 2010 1040 tax forms You Cannot Be a Qualifying Child of Another Taxpayer Rule 14. 2010 1040 tax forms You Must Have Lived in the United States More Than Half of the Year Part D. 2010 1040 tax forms Figuring and Claiming the EICRule 15. 2010 1040 tax forms Your Earned Income Must Be Less Than: IRS Will Figure the EIC for You How To Figure the EIC Yourself ExamplesExample 1. 2010 1040 tax forms John and Janet Smith (Form 1040A) Example 2. 2010 1040 tax forms Kelly Green (Form 1040EZ) What's New Earned income amount is more. 2010 1040 tax forms  The maximum amount of income you can earn and still get the credit has increased. 2010 1040 tax forms You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). 2010 1040 tax forms Your adjusted gross income also must be less than the amount in the above list that applies to you. 2010 1040 tax forms For details, see Rules 1 and 15. 2010 1040 tax forms Investment income amount is more. 2010 1040 tax forms  The maximum amount of investment income you can have and still get the credit has increased to $3,300. 2010 1040 tax forms See Rule 6. 2010 1040 tax forms Reminders Increased EIC on certain joint returns. 2010 1040 tax forms  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. 2010 1040 tax forms As a result, the EIC table has different columns for married persons filing jointly than for everyone else. 2010 1040 tax forms When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. 2010 1040 tax forms Online help. 2010 1040 tax forms  You can use the EITC Assistant at www. 2010 1040 tax forms irs. 2010 1040 tax forms gov/eitc to find out if you are eligible for the credit. 2010 1040 tax forms The EITC Assistant is available in English and Spanish. 2010 1040 tax forms EIC questioned by IRS. 2010 1040 tax forms  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. 2010 1040 tax forms We will tell you what documents to send us. 2010 1040 tax forms These may include: birth certificates, school records, medical records, etc. 2010 1040 tax forms The process of establishing your eligibility will delay your refund. 2010 1040 tax forms Introduction The earned income credit (EIC) is a tax credit for certain people who work and have less than $51,567 of earned income. 2010 1040 tax forms A tax credit usually means more money in your pocket. 2010 1040 tax forms It reduces the amount of tax you owe. 2010 1040 tax forms The EIC may also give you a refund. 2010 1040 tax forms How do you get the earned income credit?   To claim the EIC, you must: Qualify by meeting certain rules, and File a tax return, even if you: Do not owe any tax, Did not earn enough money to file a return, or Did not have income taxes withheld from your pay. 2010 1040 tax forms When you complete your return, you can figure your EIC by using a worksheet in the instructions for Form 1040, Form 1040A, or Form 1040EZ. 2010 1040 tax forms Or, if you prefer, you can let the IRS figure the credit for you. 2010 1040 tax forms How will this chapter help you?   This chapter will explain the following. 2010 1040 tax forms The rules you must meet to qualify for the EIC. 2010 1040 tax forms How to figure the EIC. 2010 1040 tax forms Useful Items - You may want to see: Publication 596 Earned Income Credit (EIC) Form (and Instructions) Schedule EIC Earned Income Credit (Qualifying Child Information) 8862 Information To Claim Earned Income Credit After Disallowance Do You Qualify for the Credit? To qualify to claim the EIC, you must first meet all of the rules explained in Part A, Rules for Everyone . 2010 1040 tax forms Then you must meet the rules in Part B, Rules If You Have a Qualifying Child , or Part C, Rules If You Do Not Have a Qualifying Child . 2010 1040 tax forms There is one final rule you must meet in Part D, Figuring and Claiming the EIC . 2010 1040 tax forms You qualify for the credit if you meet all the rules in each part that applies to you. 2010 1040 tax forms If you have a qualifying child, the rules in Parts A, B, and D apply to you. 2010 1040 tax forms If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. 2010 1040 tax forms Table 36-1, Earned Income Credit in a Nutshell. 2010 1040 tax forms   Use Table 36–1 as a guide to Parts A, B, C, and D. 2010 1040 tax forms The table is a summary of all the rules in each part. 2010 1040 tax forms Do you have a qualifying child?   You have a qualifying child only if you have a child who meets the four tests described in Rule 8 and illustrated in Figure 36–1. 2010 1040 tax forms If Improper Claim Made in Prior Year If your EIC for any year after 1996 was denied or reduced for any reason other than a math or clerical error, you must attach a completed Form 8862 to your next tax return to claim the EIC. 2010 1040 tax forms You must also qualify to claim the EIC by meeting all the rules described in this chapter. 2010 1040 tax forms However, if your EIC was denied or reduced as a result of a math or clerical error, do not attach Form 8862 to your next tax return. 2010 1040 tax forms For example, if your arithmetic is incorrect, the IRS can correct it. 2010 1040 tax forms If you do not provide a correct social security number, the IRS can deny the EIC. 2010 1040 tax forms These kinds of errors are called math or clerical errors. 2010 1040 tax forms If your EIC for any year after 1996 was denied and it was determined that your error was due to reckless or intentional disregard of the EIC rules, then you cannot claim the EIC for the next 2 years. 2010 1040 tax forms If your error was due to fraud, then you cannot claim the EIC for the next 10 years. 2010 1040 tax forms More information. 2010 1040 tax forms   See chapter 5 in Publication 596 for more detailed information about the disallowance period and Form 8862. 2010 1040 tax forms Part A. 2010 1040 tax forms Rules for Everyone This part of the chapter discusses Rules 1 through 7. 2010 1040 tax forms You must meet all seven rules to qualify for the earned income credit. 2010 1040 tax forms If you do not meet all seven rules, you cannot get the credit and you do not need to read the rest of the chapter. 2010 1040 tax forms If you meet all seven rules in this part, then read either Part B or Part C (whichever applies) for more rules you must meet. 2010 1040 tax forms Rule 1. 2010 1040 tax forms Your AGI Must Be Less Than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. 2010 1040 tax forms Adjusted gross income (AGI). 2010 1040 tax forms   AGI is the amount on line 38 (Form 1040), line 22 (Form 1040A), or line 4 (Form 1040EZ). 2010 1040 tax forms If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. 2010 1040 tax forms Example. 2010 1040 tax forms Your AGI is $38,550, you are single, and you have one qualifying child. 2010 1040 tax forms You cannot claim the EIC because your AGI is not less than $37,870. 2010 1040 tax forms However, if your filing status was married filing jointly, you might be able to claim the EIC because your AGI is less than $43,210. 2010 1040 tax forms Community property. 2010 1040 tax forms   If you are married, but qualify to file as head of household under special rules for married taxpayers living apart (see Rule 3 ), and live in a state that has community property laws, your AGI includes that portion of both your and your spouse's wages that you are required to include in gross income. 2010 1040 tax forms This is different from the community property rules that apply under Rule 7 . 2010 1040 tax forms Rule 2. 2010 1040 tax forms You Must Have a Valid Social Security Number (SSN) To claim the EIC, you (and your spouse, if filing a joint return) must have a valid SSN issued by the Social Security Administration (SSA). 2010 1040 tax forms Any qualifying child listed on Schedule EIC also must have a valid SSN. 2010 1040 tax forms (See Rule 8 if you have a qualifying child. 2010 1040 tax forms ) If your social security card (or your spouse's, if filing a joint return) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. 2010 1040 tax forms An example of a federally funded benefit is Medicaid. 2010 1040 tax forms If you have a card with the legend “Not valid for employment” and your immigration status has changed so that you are now a U. 2010 1040 tax forms S. 2010 1040 tax forms citizen or permanent resident, ask the SSA for a new social security card without the legend. 2010 1040 tax forms U. 2010 1040 tax forms S. 2010 1040 tax forms citizen. 2010 1040 tax forms   If you were a U. 2010 1040 tax forms S. 2010 1040 tax forms citizen when you received your SSN, you have a valid SSN. 2010 1040 tax forms Valid for work only with INS or DHS authorization. 2010 1040 tax forms   If your social security card reads “Valid for work only with INS authorization” or “Valid for work only with DHS authorization,” you have a valid SSN, but only if that authorization is still valid. 2010 1040 tax forms SSN missing or incorrect. 2010 1040 tax forms   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. 2010 1040 tax forms Other taxpayer identification number. 2010 1040 tax forms   You cannot get the EIC if, instead of an SSN, you (or your spouse, if filing a joint return) have an individual taxpayer identification number (ITIN). 2010 1040 tax forms ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. 2010 1040 tax forms No SSN. 2010 1040 tax forms   If you do not have a valid SSN, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). 2010 1040 tax forms You cannot claim the EIC. 2010 1040 tax forms Getting an SSN. 2010 1040 tax forms   If you (or your spouse, if filing a joint return) do not have an SSN, you can apply for one by filing Form SS-5, Application for a Social Security Card, with the SSA. 2010 1040 tax forms You can get Form SS-5 online at www. 2010 1040 tax forms socialsecurity. 2010 1040 tax forms gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. 2010 1040 tax forms Filing deadline approaching and still no SSN. 2010 1040 tax forms   If the filing deadline is approaching and you still do not have an SSN, you have two choices. 2010 1040 tax forms Request an automatic 6-month extension of time to file your return. 2010 1040 tax forms You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. 2010 1040 tax forms S. 2010 1040 tax forms Individual Income Tax Return. 2010 1040 tax forms For more information, see chapter 1 . 2010 1040 tax forms File the return on time without claiming the EIC. 2010 1040 tax forms After receiving the SSN, file an amended return (Form 1040X, Amended U. 2010 1040 tax forms S. 2010 1040 tax forms Individual Income Tax Return) claiming the EIC. 2010 1040 tax forms Attach a filled-in Schedule EIC if you have a qualifying child. 2010 1040 tax forms Table 36-1. 2010 1040 tax forms Earned Income Credit in a Nutshell First, you must meet all the rules in this column. 2010 1040 tax forms Second, you must meet all the rules in one of these columns, whichever applies. 2010 1040 tax forms Third, you must meet the rule in this column. 2010 1040 tax forms Part A. 2010 1040 tax forms  Rules for Everyone Part B. 2010 1040 tax forms  Rules If You Have a Qualifying Child Part C. 2010 1040 tax forms  Rules If You Do Not Have a Qualifying Child Part D. 2010 1040 tax forms  Figuring and Claiming the EIC 1. 2010 1040 tax forms Your adjusted gross income (AGI) must be less than: • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or   • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. 2010 1040 tax forms 2. 2010 1040 tax forms You must have a valid social security number. 2010 1040 tax forms  3. 2010 1040 tax forms Your filing status cannot be “Married filing separately. 2010 1040 tax forms ” 4. 2010 1040 tax forms You must be a U. 2010 1040 tax forms S. 2010 1040 tax forms citizen or resident alien all year. 2010 1040 tax forms  5. 2010 1040 tax forms You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). 2010 1040 tax forms  6. 2010 1040 tax forms Your investment income must be $3,300 or less. 2010 1040 tax forms  7. 2010 1040 tax forms You must have earned income. 2010 1040 tax forms 8. 2010 1040 tax forms Your child must meet the relationship, age, residency, and joint return tests. 2010 1040 tax forms  9. 2010 1040 tax forms Your qualifying child cannot be used by more than one person to claim the EIC. 2010 1040 tax forms  10. 2010 1040 tax forms You cannot be a qualifying child of another person. 2010 1040 tax forms 11. 2010 1040 tax forms You must be at least age 25 but under age 65. 2010 1040 tax forms  12. 2010 1040 tax forms You cannot be the dependent of another person. 2010 1040 tax forms  13. 2010 1040 tax forms You cannot be a qualifying child of another person. 2010 1040 tax forms  14. 2010 1040 tax forms You must have lived in the United States more than half of the year. 2010 1040 tax forms 15. 2010 1040 tax forms Your earned income must be less than: • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or   • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. 2010 1040 tax forms Rule 3. 2010 1040 tax forms Your Filing Status Cannot Be Married Filing Separately If you are married, you usually must file a joint return to claim the EIC. 2010 1040 tax forms Your filing status cannot be “Married filing separately. 2010 1040 tax forms ” Spouse did not live with you. 2010 1040 tax forms   If you are married and your spouse did not live in your home at any time during the last 6 months of the year, you may be able to file as head of household, instead of married filing separately. 2010 1040 tax forms In that case, you may be able to claim the EIC. 2010 1040 tax forms For detailed information about filing as head of household, see chapter 2 . 2010 1040 tax forms Rule 4. 2010 1040 tax forms You Must Be a U. 2010 1040 tax forms S. 2010 1040 tax forms Citizen or Resident Alien All Year If you (or your spouse, if married) were a nonresident alien for any part of the year, you cannot claim the earned income credit unless your filing status is married filing jointly. 2010 1040 tax forms You can use that filing status only if one spouse is a U. 2010 1040 tax forms S. 2010 1040 tax forms citizen or resident alien and you choose to treat the nonresident spouse as a U. 2010 1040 tax forms S. 2010 1040 tax forms resident. 2010 1040 tax forms If you make this choice, you and your spouse are taxed on your worldwide income. 2010 1040 tax forms If you (or your spouse, if married) were a nonresident alien for any part of the year and your filing status is not married filing jointly, enter “No” on the dotted line next to line 64a (Form 1040) or in the space to the left of line 38a (Form 1040A). 2010 1040 tax forms If you need more information on making this choice, get Publication 519, U. 2010 1040 tax forms S. 2010 1040 tax forms Tax Guide for Aliens. 2010 1040 tax forms Rule 5. 2010 1040 tax forms You Cannot File Form 2555 or Form 2555-EZ You cannot claim the earned income credit if you file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. 2010 1040 tax forms You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. 2010 1040 tax forms U. 2010 1040 tax forms S. 2010 1040 tax forms possessions are not foreign countries. 2010 1040 tax forms See Publication 54, Tax Guide for U. 2010 1040 tax forms S. 2010 1040 tax forms Citizens and Resident Aliens Abroad, for more detailed information. 2010 1040 tax forms Rule 6. 2010 1040 tax forms Your Investment Income Must Be $3,300 or Less You cannot claim the earned income credit unless your investment income is $3,300 or less. 2010 1040 tax forms If your investment income is more than $3,300, you cannot claim the credit. 2010 1040 tax forms For most people, investment income is the total of the following amounts. 2010 1040 tax forms Taxable interest (line 8a of Form 1040 or 1040A). 2010 1040 tax forms Tax-exempt interest (line 8b of Form 1040 or 1040A). 2010 1040 tax forms Dividend income (line 9a of Form 1040 or 1040A). 2010 1040 tax forms Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). 2010 1040 tax forms If you file Form 1040EZ, your investment income is the total of the amount of line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. 2010 1040 tax forms However, see Rule 6 in chapter 1 of Publication 596 if: You are filing Schedule E (Form 1040), Form 4797, or Form 8814, or You are reporting income from the rental of personal property on Form 1040, line 21. 2010 1040 tax forms Rule 7. 2010 1040 tax forms You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. 2010 1040 tax forms If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. 2010 1040 tax forms If you are an employee, earned income includes all the taxable income you get from your employer. 2010 1040 tax forms If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the instructions for Form 1040. 2010 1040 tax forms Earned Income Earned income includes all of the following types of income. 2010 1040 tax forms Wages, salaries, tips, and other taxable employee pay. 2010 1040 tax forms Employee pay is earned income only if it is taxable. 2010 1040 tax forms Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. 2010 1040 tax forms But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained below. 2010 1040 tax forms Net earnings from self-employment. 2010 1040 tax forms Gross income received as a statutory employee. 2010 1040 tax forms Wages, salaries, and tips. 2010 1040 tax forms   Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. 2010 1040 tax forms You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). 2010 1040 tax forms Nontaxable combat pay election. 2010 1040 tax forms   You can elect to include your nontaxable combat pay in earned income for the earned income credit. 2010 1040 tax forms Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. 2010 1040 tax forms Figure the credit with and without your nontaxable combat pay before making the election. 2010 1040 tax forms   If you make the election, you must include in earned income all nontaxable combat pay you received. 2010 1040 tax forms If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. 2010 1040 tax forms In other words, if one of you makes the election, the other one can also make it but does not have to. 2010 1040 tax forms   The amount of your nontaxable combat pay should be shown in box 12 of your Form W-2 with code “Q. 2010 1040 tax forms ” Self-employed persons and statutory employees. 2010 1040 tax forms   If you are self-employed or received income as a statutory employee, you must use the Form 1040 instructions to see if you qualify to get the EIC. 2010 1040 tax forms Approved Form 4361 or Form 4029 This section is for persons who have an approved: Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, or Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits. 2010 1040 tax forms Each approved form exempts certain income from social security taxes. 2010 1040 tax forms Each form is discussed here in terms of what is or is not earned income for the EIC. 2010 1040 tax forms Form 4361. 2010 1040 tax forms   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. 2010 1040 tax forms This includes wages, salaries, tips, and other taxable employee compensation. 2010 1040 tax forms A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. 2010 1040 tax forms Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. 2010 1040 tax forms Examples include fees for performing marriages and honoraria for delivering speeches. 2010 1040 tax forms Form 4029. 2010 1040 tax forms   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. 2010 1040 tax forms However, amounts you received as a self-employed individual do not count as earned income. 2010 1040 tax forms Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. 2010 1040 tax forms Disability Benefits 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. 2010 1040 tax forms Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. 2010 1040 tax forms You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. 2010 1040 tax forms Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. 2010 1040 tax forms Report taxable pension payments on Form 1040, lines 16a and 16b (or Form 1040A, lines 12a and 12b). 2010 1040 tax forms Disability insurance payments. 2010 1040 tax forms   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. 2010 1040 tax forms It does not matter whether you have reached minimum retirement age. 2010 1040 tax forms If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. 2010 1040 tax forms ” Income That Is Not Earned Income Examples of items that are not earned income include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. 2010 1040 tax forms Do not include any of these items in your earned income. 2010 1040 tax forms Earnings while an inmate. 2010 1040 tax forms   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. 2010 1040 tax forms This includes amounts for work performed while in a work release program or while in a halfway house. 2010 1040 tax forms Workfare payments. 2010 1040 tax forms   Nontaxable workfare payments are not earned income for the EIC. 2010 1040 tax forms These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if private sector employment is not available, or (2) community service program activities. 2010 1040 tax forms Community property. 2010 1040 tax forms   If you are married, but qualify to file as head of household under special rules for married taxpayers living apart (see Rule 3 ), and live in a state that has community property laws, your earned income for the EIC does not include any amount earned by your spouse that is treated as belonging to you under those laws. 2010 1040 tax forms That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. 2010 1040 tax forms Your earned income includes the entire amount you earned, even if part of it is treated as belonging to your spouse under your state's community property laws. 2010 1040 tax forms Nevada, Washington, and California domestic partners. 2010 1040 tax forms   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. 2010 1040 tax forms Your earned income for the EIC does not include any amount earned by your partner. 2010 1040 tax forms Your earned income includes the entire amount you earned. 2010 1040 tax forms For details, see Publication 555. 2010 1040 tax forms Conservation Reserve Program (CRP) payments. 2010 1040 tax forms   If you were receiving social security retirement benefits or social security disability benefits at the time you received any CRP payments, your CRP payments are not earned income for the EIC. 2010 1040 tax forms Nontaxable military pay. 2010 1040 tax forms   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. 2010 1040 tax forms Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). 2010 1040 tax forms See Publication 3, Armed Forces' Tax Guide, for more information. 2010 1040 tax forms    Combat pay. 2010 1040 tax forms You can elect to include your nontaxable combat pay in earned income for the EIC. 2010 1040 tax forms See Nontaxable combat pay election, earlier. 2010 1040 tax forms Part B. 2010 1040 tax forms Rules If You Have a Qualifying Child If you have met all of the rules in Part A , read Part B to see if you have a qualifying child. 2010 1040 tax forms Part B discusses Rules 8 through 10. 2010 1040 tax forms You must meet all three of these rules, in addition to the rules in Parts A and D , to qualify for the earned income credit with a qualifying child. 2010 1040 tax forms You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. 2010 1040 tax forms (You cannot file Form 1040EZ. 2010 1040 tax forms ) You also must complete Schedule EIC and attach it to your return. 2010 1040 tax forms If you meet all the rules in Part A and this part, read Part D to find out what to do next. 2010 1040 tax forms If you do not meet Rule 8, you do not have a qualifying child. 2010 1040 tax forms Read Part C to find out if you can get the earned income credit without a qualifying child. 2010 1040 tax forms Rule 8. 2010 1040 tax forms Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. 2010 1040 tax forms The four tests are: Relationship, Age, Residency, and Joint return. 2010 1040 tax forms The four tests are illustrated in Figure 36–1. 2010 1040 tax forms The paragraphs that follow contain more information about each test. 2010 1040 tax forms Relationship Test To be your qualifying child, a child must be your: Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild), or Brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew). 2010 1040 tax forms The following definitions clarify the relationship test. 2010 1040 tax forms Adopted child. 2010 1040 tax forms   An adopted child is always treated as your own child. 2010 1040 tax forms The term “adopted child” includes a child who was lawfully placed with you for legal adoption. 2010 1040 tax forms Foster child. 2010 1040 tax forms   For the EIC, a person is your foster child if the child is placed with you by an authorized placement agency or by judgement, decree, or other order of any court of competent jurisdiction. 2010 1040 tax forms An authorized placement agency includes a state or local government agency. 2010 1040 tax forms It also includes a tax-exempt organization licensed by a state. 2010 1040 tax forms In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. 2010 1040 tax forms Example. 2010 1040 tax forms Debbie, who is 12 years old, was placed in your care 2 years ago by an authorized agency responsible for placing children in foster homes. 2010 1040 tax forms Debbie is your foster child. 2010 1040 tax forms Age Test Your child must be: Under age 19 at the end of 2013 and younger than you (or your spouse, if filing jointly), Under age 24 at the end of 2013, a student, and younger than you (or your spouse, if filing jointly), or Permanently and totally disabled at any time during 2013, regardless of age. 2010 1040 tax forms    The following examples and definitions clarify the age test. 2010 1040 tax forms Example 1—child not under age 19. 2010 1040 tax forms Your son turned 19 on December 10. 2010 1040 tax forms Unless he was permanently and totally disabled or a student, he is not a qualifying child because, at the end of the year, he was not under age 19. 2010 1040 tax forms Example 2—child not younger than you or your spouse. 2010 1040 tax forms Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. 2010 1040 tax forms He is not disabled. 2010 1040 tax forms Both you and your spouse are 21 years old and you file a joint return. 2010 1040 tax forms Your brother is not your qualifying child because he is not younger than you or your spouse. 2010 1040 tax forms Example 3—child younger than your spouse but not younger than you. 2010 1040 tax forms The facts are the same as in Example 2 except that your spouse is 25 years old. 2010 1040 tax forms Because your brother is younger than your spouse, he is your qualifying child even though he is not younger than you. 2010 1040 tax forms Student defined. 2010 1040 tax forms   To qualify as a student, your child must be, during some part of each of any 5 calendar months during the calendar year: A full-time student at a school that has a regular teaching staff, course of study, and regular student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or a state, county, or local government. 2010 1040 tax forms The 5 calendar months need not be consecutive. 2010 1040 tax forms   A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. 2010 1040 tax forms School defined. 2010 1040 tax forms   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. 2010 1040 tax forms However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. 2010 1040 tax forms Vocational high school students. 2010 1040 tax forms   Students who work in co-op jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. 2010 1040 tax forms Permanently and totally disabled. 2010 1040 tax forms   Your child is permanently and totally disabled if both of the following apply. 2010 1040 tax forms He or she cannot engage in any substantial gainful activity because of a physical or mental condition. 2010 1040 tax forms A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. 2010 1040 tax forms Residency Test Your child must have lived with you in the United States for more than half of 2013. 2010 1040 tax forms The following definitions clarify the residency test. 2010 1040 tax forms United States. 2010 1040 tax forms   This means the 50 states and the District of Columbia. 2010 1040 tax forms It does not include Puerto Rico or U. 2010 1040 tax forms S. 2010 1040 tax forms possessions such as Guam. 2010 1040 tax forms Homeless shelter. 2010 1040 tax forms   Your home can be any location where you regularly live. 2010 1040 tax forms You do not need a traditional home. 2010 1040 tax forms For example, if your child lived with you for more than half the year in one or more homeless shelters, your child meets the residency test. 2010 1040 tax forms Military personnel stationed outside the United States. 2010 1040 tax forms    U. 2010 1040 tax forms S. 2010 1040 tax forms military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC. 2010 1040 tax forms Figure 36-1. 2010 1040 tax forms Tests for Qualifying Child Please click here for the text description of the image. 2010 1040 tax forms Qualifying child Extended active duty. 2010 1040 tax forms   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. 2010 1040 tax forms Once you begin serving your extended active duty, you are still considered to have been on extended active duty even if you do not serve more than 90 days. 2010 1040 tax forms Birth or death of a child. 2010 1040 tax forms   A child who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the child's home for more than half the time he or she was alive in 2013. 2010 1040 tax forms Temporary absences. 2010 1040 tax forms   Count time that you or your child is away from home on a temporary absence due to a special circumstance as time the child lived with you. 2010 1040 tax forms Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. 2010 1040 tax forms Kidnapped child. 2010 1040 tax forms    A kidnapped child is treated as living with you for more than half of the year if the child lived with you for more than half the part of the year before the date of the kidnapping. 2010 1040 tax forms The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or your child's family. 2010 1040 tax forms This treatment applies for all years until the child is returned. 2010 1040 tax forms However, the last year this treatment can apply is the earlier of: The year there is a determination that the child is dead, or The year the child would have reached age 18. 2010 1040 tax forms   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. 2010 1040 tax forms Joint Return Test To meet this test, the child cannot file a joint return for the year. 2010 1040 tax forms Exception. 2010 1040 tax forms   An exception to the joint return test applies if your child and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid. 2010 1040 tax forms Example 1—child files joint return. 2010 1040 tax forms You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 2010 1040 tax forms He earned $25,000 for the year. 2010 1040 tax forms The couple files a joint return. 2010 1040 tax forms Because your daughter and her husband filed a joint return, she is not your qualifying child. 2010 1040 tax forms Example 2—child files joint return only to claim a refund of withheld tax. 2010 1040 tax forms Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 2010 1040 tax forms They do not have a child. 2010 1040 tax forms Neither is required to file a tax return. 2010 1040 tax forms Taxes were taken out of their pay, so they filed a joint return only to get a refund of the withheld taxes. 2010 1040 tax forms The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. 2010 1040 tax forms Example 3—child files joint return to claim American opportunity credit. 2010 1040 tax forms The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 2010 1040 tax forms He and his wife are not required to file a tax return, but they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 2010 1040 tax forms Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. 2010 1040 tax forms The exception to the joint return test does not apply, so your son is not your qualifying child. 2010 1040 tax forms Married child. 2010 1040 tax forms   Even if your child does not file a joint return, if your child was married at the end of the year, he or she cannot be your qualifying child unless: You can claim an exemption for the child, or The reason you cannot claim an exemption for the child is that you let the child's other parent claim the exemption under the Special rule for divorced or separated parents (or parents who live apart) , described later. 2010 1040 tax forms Social security number. 2010 1040 tax forms   The qualifying child must have a valid social security number (SSN) unless the child was born and died in 2013 and you attach to your return a copy of the child's birth certificate, death certificate, or hospital records showing a live birth. 2010 1040 tax forms You cannot claim the EIC on the basis of a qualifying child if: The qualifying child's SSN is missing from your tax return or is incorrect, The qualifying child's social security card says “Not valid for employment” and was issued for use in getting a federally funded benefit, or Instead of an SSN, the qualifying child has: An individual taxpayer identification number (ITIN), which is issued to a noncitizen who cannot get an SSN, or An adoption taxpayer identification number (ATIN), which is issued to adopting parents who cannot get an SSN for the child being adopted until the adoption is final. 2010 1040 tax forms   If you have more than one qualifying child and only one has a valid SSN, you can use only that child to claim the EIC. 2010 1040 tax forms For more information about SSNs, see Rule 2 . 2010 1040 tax forms Rule 9. 2010 1040 tax forms Your Qualifying Child Cannot Be Used By More Than One Person To Claim the EIC Sometimes a child meets the tests to be a qualifying child of more than one person. 2010 1040 tax forms However, only one of these persons can actually treat the child as a qualifying child. 2010 1040 tax forms Only that person can use the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). 2010 1040 tax forms The exemption for the child. 2010 1040 tax forms The child tax credit. 2010 1040 tax forms Head of household filing status. 2010 1040 tax forms The credit for child and dependent care expenses. 2010 1040 tax forms The exclusion for dependent care benefits. 2010 1040 tax forms The EIC. 2010 1040 tax forms The other person cannot take any of these benefits based on this qualifying child. 2010 1040 tax forms In other words, you and the other person cannot agree to divide these tax benefits between you. 2010 1040 tax forms The other person cannot take any of these tax benefits unless he or she has a different qualifying child. 2010 1040 tax forms The tiebreaker rules explained next explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. 2010 1040 tax forms However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. 2010 1040 tax forms Tiebreaker rules. 2010 1040 tax forms   To determine which person can treat the child as a qualifying child to claim the six tax benefits just listed, the following tiebreaker rules apply. 2010 1040 tax forms If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. 2010 1040 tax forms If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents. 2010 1040 tax forms If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. 2010 1040 tax forms If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the year. 2010 1040 tax forms If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the year. 2010 1040 tax forms If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. 2010 1040 tax forms If the child's parents file a joint return with each other, this rule can be applied by treating the parents' total AGI as divided evenly between them. 2010 1040 tax forms See Example 8 . 2010 1040 tax forms   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. 2010 1040 tax forms See Examples 1 through 13 . 2010 1040 tax forms   If you cannot claim the EIC because your qualifying child is treated under the tiebreaker rules as the qualifying child of another person for 2013, you may be able to take the EIC using a different qualifying child, but you cannot take the EIC using the rules in Part C for people who do not have a qualifying child. 2010 1040 tax forms If the other person cannot claim the EIC. 2010 1040 tax forms   If you and someone else have the same qualifying child but the other person cannot claim the EIC because he or she is not eligible or his or her earned income or AGI is too high, you may be able to treat the child as a qualifying child. 2010 1040 tax forms See Examples 6 and 7 . 2010 1040 tax forms But you cannot treat the child as a qualifying child to claim the EIC if the other person uses the child to claim any of the other six tax benefits listed earlier. 2010 1040 tax forms Examples. 2010 1040 tax forms The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. 2010 1040 tax forms Example 1. 2010 1040 tax forms You and your 2-year-old son Jimmy lived with your mother all year. 2010 1040 tax forms You are 25 years old, unmarried, and your AGI is $9,000. 2010 1040 tax forms Your only income was $9,000 from a part-time job. 2010 1040 tax forms Your mother's only income was $20,000 from her job, and her AGI is $20,000. 2010 1040 tax forms Jimmy's father did not live with you or Jimmy. 2010 1040 tax forms The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. 2010 1040 tax forms Jimmy is a qualifying child of both you and your mother because he meets the relationship, age, residency, and joint return tests for both you and your mother. 2010 1040 tax forms However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier for which that person qualifies). 2010 1040 tax forms He is not a qualifying child of anyone else, including his father. 2010 1040 tax forms If you do not claim Jimmy as a qualifying child for the EIC or any of the other tax benefits listed earlier, your mother can treat him as a qualifying child to claim the EIC (and any of the other tax benefits listed earlier for which she qualifies). 2010 1040 tax forms Example 2. 2010 1040 tax forms The facts are the same as in Example 1 except your AGI is $25,000. 2010 1040 tax forms Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. 2010 1040 tax forms Only you can claim him. 2010 1040 tax forms Example 3. 2010 1040 tax forms The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. 2010 1040 tax forms In this case, you as the child's parent will be the only one allowed to claim Jimmy as a qualifying child for the EIC and the other tax benefits listed earlier for which you qualify. 2010 1040 tax forms The IRS will disallow your mother's claim to the EIC and any of the other tax benefits listed earlier unless she has another qualifying child. 2010 1040 tax forms Example 4. 2010 1040 tax forms The facts are the same as in Example 1 except that you also have two other young children who are qualifying children of both you and your mother. 2010 1040 tax forms Only one of you can claim each child. 2010 1040 tax forms However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. 2010 1040 tax forms For example, if you claim one child, your mother can claim the other two. 2010 1040 tax forms Example 5. 2010 1040 tax forms The facts are the same as in Example 1 except that you are only 18 years old. 2010 1040 tax forms This means you are a qualifying child of your mother. 2010 1040 tax forms Because of Rule 10 , discussed next, you cannot claim the EIC and cannot claim Jimmy as a qualifying child. 2010 1040 tax forms Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. 2010 1040 tax forms If your mother meets all the other requirements for claiming the EIC and you do not claim Jimmy as a qualifying child for any of the other tax benefits listed earlier, your mother can claim both you and Jimmy as qualifying children for the EIC. 2010 1040 tax forms Example 6. 2010 1040 tax forms The facts are the same as in Example 1 except that your mother earned $50,000 from her job. 2010 1040 tax forms Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. 2010 1040 tax forms Example 7. 2010 1040 tax forms The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. 2010 1040 tax forms Your earned income is too high for you to claim the EIC. 2010 1040 tax forms But your mother cannot claim the EIC either, because her AGI is not higher than yours. 2010 1040 tax forms Example 8. 2010 1040 tax forms The facts are the same as in Example 1 except that you and Jimmy's father are married to each other, live with Jimmy and your mother, and have an AGI of $30,000 on a joint return. 2010 1040 tax forms If you and your husband do not claim Jimmy as a qualifying child for the EIC or any of the other tax benefits listed earlier, your mother can claim him instead. 2010 1040 tax forms Even though the AGI on your joint return, $30,000, is more than your mother's AGI of $20,000, for this purpose half of the joint AGI can be treated as yours and half as your husband's. 2010 1040 tax forms In other words, each parent's AGI can be treated as $15,000. 2010 1040 tax forms Example 9. 2010 1040 tax forms You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. 2010 1040 tax forms In August and September, Joey lived with you. 2010 1040 tax forms For the rest of the year, Joey lived with your husband, who is Joey's father. 2010 1040 tax forms Joey is a qualifying child of both you and your husband because he lived with each of you for more than half the year and because he met the relationship, age, and joint return tests for both of you. 2010 1040 tax forms At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the special rule for divorced or separated parents (or parents who live apart) does not apply. 2010 1040 tax forms You and your husband will file separate returns. 2010 1040 tax forms Your husband agrees to let you treat Joey as a qualifying child. 2010 1040 tax forms This means, if your husband does not claim Joey as a qualifying child for any of the tax benefits listed earlier, you can claim him as a qualifying child for any tax benefit listed earlier for which you qualify. 2010 1040 tax forms However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. 2010 1040 tax forms See Rule 3 . 2010 1040 tax forms Example 10. 2010 1040 tax forms The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. 2010 1040 tax forms In this case, only your husband will be allowed to treat Joey as a qualifying child. 2010 1040 tax forms This is because, during 2013, the boy lived with him longer than with you. 2010 1040 tax forms You cannot claim the EIC (either with or without a qualifying child). 2010 1040 tax forms However, your husband's filing status is married filing separately, so he cannot claim the EIC or the credit for child and dependent care expenses. 2010 1040 tax forms See Rule 3 . 2010 1040 tax forms Example 11. 2010 1040 tax forms You, your 5-year-old son and your son's father lived together all year. 2010 1040 tax forms You and your son's father are not married. 2010 1040 tax forms Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, and joint return tests for both you and his father. 2010 1040 tax forms Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. 2010 1040 tax forms Neither of you had any other income. 2010 1040 tax forms Your son's father agrees to let you treat the child as a qualifying child. 2010 1040 tax forms This means, if your son's father does not claim your son as a qualifying child for the EIC or any of the other tax benefits listed earlier, you can claim him as a qualifying child for the EIC and any of the other tax benefits listed earlier for which you qualify. 2010 1040 tax forms Example 12. 2010 1040 tax forms The facts are the same as in Example 11 except that you and your son's father both claim your son as a qualifying child. 2010 1040 tax forms In this case, only your son's father will be allowed to treat your son as a qualifying child. 2010 1040 tax forms This is because his AGI, $14,000, is more than your AGI, $12,000. 2010 1040 tax forms You cannot claim the EIC (either with or without a qualifying child). 2010 1040 tax forms Example 13. 2010 1040 tax forms You and your 7-year-old niece, your sister's child, lived with your mother all year. 2010 1040 tax forms You are 25 years old, and your AGI is $9,300. 2010 1040 tax forms Your only income was from a part-time job. 2010 1040 tax forms Your mother's AGI is $15,000. 2010 1040 tax forms Her only income was from her job. 2010 1040 tax forms Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. 2010 1040 tax forms Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, and joint return tests for both you and your mother. 2010 1040 tax forms However, only your mother can treat her as a qualifying child. 2010 1040 tax forms This is because your mother's AGI, $15,000, is more than your AGI, $9,300. 2010 1040 tax forms Special rule for divorced or separated parents (or parents who live apart). 2010 1040 tax forms   A child will be treated as the qualifying child of his or her noncustodial parent (for purposes of claiming an exemption and the child tax credit, but not for the EIC) if all of the following statements are true. 2010 1040 tax forms The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of 2013, whether or not they are or were married. 2010 1040 tax forms The child received over half of his or her support for the year from the parents. 2010 1040 tax forms The child is in the custody of one or both parents for more than half of 2013. 2010 1040 tax forms Either of the following statements is true. 2010 1040 tax forms The custodial parent signs Form 8332 or a substantially similar statement that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches the form or statement to his or her return. 2010 1040 tax forms If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. 2010 1040 tax forms A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 provides that the noncustodial parent can claim the child as a dependent, and the noncustodial parent provides at least $600 for support of the child during 2013. 2010 1040 tax forms  For details, see chapter 3. 2010 1040 tax forms Also see Applying Rule 9 to divorced or separated parents (or parents who live apart) , next. 2010 1040 tax forms Applying Rule 9 to divorced or separated parents (or parents who live apart). 2010 1040 tax forms   If a child is treated as the qualifying child of the noncustodial parent under the special rule just described for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. 2010 1040 tax forms However, the custodial parent, if eligible, or another eligible taxpayer can claim the child as a qualifying child for the EIC and other tax benefits listed earlier in this chapter. 2010 1040 tax forms If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules determine which person can treat the child as a qualifying child. 2010 1040 tax forms Example 1. 2010 1040 tax forms You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. 2010 1040 tax forms Your AGI is $10,000. 2010 1040 tax forms Your mother’s AGI is $25,000. 2010 1040 tax forms Your son's father did not live with you or your son. 2010 1040 tax forms Under the special rule for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for the child. 2010 1040 tax forms However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the EIC. 2010 1040 tax forms You and your mother did not have any child care expenses or dependent care benefits. 2010 1040 tax forms If you do not claim your son as a qualifying child, your mother can claim him as a qualifying child for the EIC and head of household filing status, if she qualifies for these tax benefits. 2010 1040 tax forms Example 2. 2010 1040 tax forms The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. 2010 1040 tax forms Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. 2010 1040 tax forms Example 3. 2010 1040 tax forms The facts are the same as in Example 1 except that you and your mother both claim your son as a qualifying child for the EIC. 2010 1040 tax forms Your mother also claims him as a qualifying child for head of household filing status. 2010 1040 tax forms You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. 2010 1040 tax forms The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. 2010 1040 tax forms Rule 10. 2010 1040 tax forms You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. 2010 1040 tax forms ) if all of the following statements are true. 2010 1040 tax forms You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. 2010 1040 tax forms Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). 2010 1040 tax forms You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student, and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. 2010 1040 tax forms You lived with that person in the United States for more than half of the year. 2010 1040 tax forms You are not filing a joint return for the year (or are filing a joint return only to claim a refund of withheld income tax or estimated tax paid). 2010 1040 tax forms For more details about the tests to be a qualifying child, see Rule 8 . 2010 1040 tax forms If you are a qualifying child of another taxpayer, you cannot claim the EIC. 2010 1040 tax forms This is true even if the person for whom you are a qualifying child does not claim the EIC or meet all of the rules to claim the EIC. 2010 1040 tax forms Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). 2010 1040 tax forms Example. 2010 1040 tax forms You and your daughter lived with your mother all year. 2010 1040 tax forms You are 22 years old, unmarried, and attended a trade school full time. 2010 1040 tax forms You had a part-time job and earned $5,700. 2010 1040 tax forms You had no other income. 2010 1040 tax forms Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. 2010 1040 tax forms She can claim the EIC if she meets all the other requirements. 2010 1040 tax forms Because you are your mother's qualifying child, you cannot claim the EIC. 2010 1040 tax forms This is so even if your mother cannot or does not claim the EIC. 2010 1040 tax forms Child of person not required to file a return. 2010 1040 tax forms   You are not the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you meet the relationship, age, residency, and joint return tests is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. 2010 1040 tax forms Example. 2010 1040 tax forms The facts are the same as in the last example except your mother had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. 2010 1040 tax forms As a result, you are not your mother's qualifying child. 2010 1040 tax forms You can claim the EIC if you meet all the other requirements to do so. 2010 1040 tax forms   See Rule 10 in Publication 596 for additional examples. 2010 1040 tax forms Part C. 2010 1040 tax forms Rules If You Do Not Have a Qualifying Child Read this part if you: Do not have a qualifying child, and Have met all the rules in Part A . 2010 1040 tax forms  Part C discusses Rules 11 through 14. 2010 1040 tax forms You must meet all four of these rules, in addition to the rules in Parts A and D , to qualify for the earned income credit without a qualifying child. 2010 1040 tax forms If you have a qualifying child, the rules in this part do not apply to you. 2010 1040 tax forms You can claim the credit only if you meet all the rules in Parts A, B, and D. 2010 1040 tax forms See Rule 8 to find out if you have a qualifying child. 2010 1040 tax forms Rule 11. 2010 1040 tax forms You Must Be at Least Age 25 but Under Age 65 You must be at least age 25 but under age 65 at the end of 2013. 2010 1040 tax forms If you are married filing a joint return, either you or your spouse must be at least age 25 but under age 65 at the end of 2013. 2010 1040 tax forms It does not matter which spouse meets the age test, as long as one of the spouses does. 2010 1040 tax forms You meet the age test if you were born after December 31, 1948, and before January 2, 1989. 2010 1040 tax forms If you are married filing a joint return, you meet the age test if either you or your spouse was born after December 31, 1948, and before January 2, 1989. 2010 1040 tax forms If neither you nor your spouse meets the age test, you cannot claim the EIC. 2010 1040 tax forms Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). 2010 1040 tax forms Death of spouse. 2010 1040 tax forms   If you are filing a joint return with your spouse who died in 2013, you meet the age test if your spouse was at least age 25 but under age 65 at the time of death. 2010 1040 tax forms Example 1. 2010 1040 tax forms You are age 28 and unmarried. 2010 1040 tax forms You meet the age test. 2010 1040 tax forms Example 2—spouse meets age test. 2010 1040 tax forms You are married and filing a joint return. 2010 1040 tax forms You are age 23 and your spouse is age 27. 2010 1040 tax forms You meet the age test because your spouse is at least age 25 but under age 65. 2010 1040 tax forms Example 3—spouse dies in 2013. 2010 1040 tax forms You are married and filing a joint return with your spouse who died in August 2013. 2010 1040 tax forms You are age 67. 2010 1040 tax forms Your spouse would have become age 65 in November 2013. 2010 1040 tax forms Because your spouse was under age 65 when she died, you meet the age test. 2010 1040 tax forms Rule 12. 2010 1040 tax forms You Cannot Be the Dependent of Another Person If you are not filing a joint return, you meet this rule if: You checked box 6a on Form 1040 or 1040A, or You did not check the “You” box on line 5 of Form 1040EZ, and you entered $10,000 on that line. 2010 1040 tax forms If you are filing a joint return, you meet this rule if: You checked both box 6a and box 6b on Form 1040 or 1040A, or You and your spouse did not check either the “You” box or the “Spouse” box on line 5 of Form 1040EZ, and you entered $20,000 on that line. 2010 1040 tax forms If you are not sure whether someone else can claim you (or your spouse, if filing a joint return) as a dependent, read the rules for claiming a dependent in chapter 3. 2010 1040 tax forms If someone else can claim you (or your spouse, if filing a joint return) as a dependent on his or her return, but does not, you still cannot claim the credit. 2010 1040 tax forms Example 1. 2010 1040 tax forms In 2013, you were age 25, single, and living at home with your parents. 2010 1040 tax forms You worked and were not a student. 2010 1040 tax forms You earned $7,500. 2010 1040 tax forms Your parents cannot claim you as a dependent. 2010 1040 tax forms When you file your return, you claim an exemption for yourself by not checking the “You” box on line 5 of your Form 1040EZ and by entering $10,000 on that line. 2010 1040 tax forms You meet this rule. 2010 1040 tax forms You can claim the EIC if you meet all the other requirements. 2010 1040 tax forms Example 2. 2010 1040 tax forms The facts are the same as in Example 1 , except that you earned $2,000. 2010 1040 tax forms Your parents can claim you as a dependent but decide not to. 2010 1040 tax forms You do not meet this rule. 2010 1040 tax forms You cannot claim the credit because your parents could have claimed you as a dependent. 2010 1040 tax forms Joint returns. 2010 1040 tax forms   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. 2010 1040 tax forms   However, another person may be able to claim you as a dependent if you and your spouse file a joint return only to get a refund of income tax withheld or estimated tax paid. 2010 1040 tax forms But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. 2010 1040 tax forms Example 1. 2010 1040 tax forms You are 26 years old. 2010 1040 tax forms You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. 2010 1040 tax forms Neither you nor your wife is required to file a tax return. 2010 1040 tax forms You do not have a child. 2010 1040 tax forms Taxes were taken out of your pay, so you file a joint return only to get a refund of the withheld taxes. 2010 1040 tax forms Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. 2010 1040 tax forms They can claim exemptions for you and your wife if all the other tests to do so are met. 2010 1040 tax forms Example 2. 2010 1040 tax forms The facts are the same as in Example 1 except no taxes were taken out of your pay. 2010 1040 tax forms Also, you and your wife are not required to file a tax return, but you file a joint return to claim an EIC of $63 and get a refund of that amount. 2010 1040 tax forms Because claiming the EIC is your reason for filing the return, you are not filing it only to get a refund of income tax withheld or estimated tax paid. 2010 1040 tax forms Your parents cannot claim an exemption for either you or your wife. 2010 1040 tax forms Rule 13. 2010 1040 tax forms You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. 2010 1040 tax forms ) if all of the following statements are true. 2010 1040 tax forms You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. 2010 1040 tax forms Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). 2010 1040 tax forms You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student (as defined in Rule 8 ), and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. 2010 1040 tax forms You lived with that person in the United States for more than half of the year. 2010 1040 tax forms You are not filing a joint return for the year (or are filing a joint return only to claim a refund of withheld income tax or estimated tax paid). 2010 1040 tax forms For more details about the tests to be a qualifying child, see Rule 8 . 2010 1040 tax forms If you are a qualifying child of another taxpayer, you cannot claim the EIC. 2010 1040 tax forms This is true even if the person for whom you are a qualifying child does not claim the EIC or meet all of the rules to claim the EIC. 2010 1040 tax forms Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). 2010 1040 tax forms Example. 2010 1040 tax forms You lived with your mother all year. 2010 1040 tax forms You are age 26, unmarried, and permanently and totally disabled. 2010 1040 tax forms Your only income was from a community center where you went three days a week to answer telephones. 2010 1040 tax forms You earned $5,000 for the year and provided more than half of your own support. 2010 1040 tax forms Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. 2010 1040 tax forms She can claim the EIC if she meets all the other requirements. 2010 1040 tax forms Because you are a qualifying child of your mother, you cannot claim the EIC. 2010 1040 tax forms This is so even if your mother cannot or does not claim the EIC. 2010 1040 tax forms Joint returns. 2010 1040 tax forms   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. 2010 1040 tax forms   However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return for the year only to get a refund of income tax withheld or estimated tax paid. 2010 1040 tax forms But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. 2010 1040 tax forms Child of person not required to file a return. 2010 1040 tax forms   You are not the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you meet the relationship, age, residency, and joint return tests is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. 2010 1040 tax forms Example. 2010 1040 tax forms You lived all year with your father. 2010 1040 tax forms You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. 2010 1040 tax forms You have no other income, no children, and provided more than half of your own support. 2010 1040 tax forms Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. 2010 1040 tax forms As a result, you are not your father's qualifying child. 2010 1040 tax forms You can claim the EIC if you meet all the other requirements to do so. 2010 1040 tax forms   See Rule 13 in Publication 596 for additional examples. 2010 1040 tax forms Rule 14. 2010 1040 tax forms You Must Have Lived in the United States More Than Half of the Year Your home (and your spouse's, if filing a joint return) must have been in the United States for more than half the year. 2010 1040 tax forms If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). 2010 1040 tax forms United States. 2010 1040 tax forms   This means the 50 states and the District of Columbia. 2010 1040 tax forms It does not include Puerto Rico or U. 2010 1040 tax forms S. 2010 1040 tax forms possessions such as Guam. 2010 1040 tax forms Homeless shelter. 2010 1040 tax forms   Your home can be any location where you regularly live. 2010 1040 tax forms You do not need a traditional home. 2010 1040 tax forms If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. 2010 1040 tax forms Military personnel stationed outside the United States. 2010 1040 tax forms   U. 2010 1040 tax forms S. 2010 1040 tax forms military personnel stationed outside the United States on extended active duty (defined in Rule 8 ) are considered to live in the United States during that duty period for purposes of the EIC. 2010 1040 tax forms Part D. 2010 1040 tax forms Figuring and Claiming the EIC Read this part if you have met all the rules in Parts A and B, or all the rules in Parts A and C. 2010 1040 tax forms Part D discusses Rule 15 . 2010 1040 tax forms You must meet this rule, in addition to the rules in Parts A and B , or Parts A and C , to qualify for the earned income credit. 2010 1040 tax forms This part of the chapter also explains how to figure the amount of your credit. 2010 1040 tax forms You have two choices. 2010 1040 tax forms Have the IRS figure the EIC for you. 2010 1040 tax forms If you want to do this, see IRS Will Figure the EIC for You . 2010 1040 tax forms Figure the EIC yourself. 2010 1040 tax forms If you want to do this, see How To Figure the EIC Yourself . 2010 1040 tax forms Rule 15. 2010 1040 tax forms Your Earned Income Must Be Less Than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. 2010 1040 tax forms Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. 2010 1040 tax forms Employee pay is earned income only if it is taxable. 2010 1040 tax forms Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. 2010 1040 tax forms But there is an exception for nontaxable combat pay, which you can choose to include in earned income. 2010 1040 tax forms Earned income is explained in detail in Rule 7 . 2010 1040 tax forms Figuring earned income. 2010 1040 tax forms   If you are self-employed, a statutory employee, or a member of the clergy or a church employee who files Schedule SE (Form 1040), you will figure your earned income when you fill out Part 4 of EIC Worksheet B in the Form 1040 instructions. 2010 1040 tax forms   Otherwise, figure your earned income by using the worksheet in Step 5 of the Form 1040 instructions for lines 64a and 64b or the Form 1040A instructions for lines 38a and 38b, or the worksheet in Step 2 of the Form 1040EZ instructions for lines 8a and 8b. 2010 1040 tax forms   When using one of those worksheets to figure your earned income, you will start with the amount on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). 2010 1040 tax forms You will then reduce that amount by any amount included on that line and described in the following list: Scholarship or fellowship grants not reported on a Form W-2, Inmate's income, and Pension or annuity from deferred compensation plans. 2010 1040 tax forms Scholarship or fellowship grants not reported on a Form W-2. 2010 1040 tax forms   A scholarship or fellowship grant that was not reported to you on a Form W-2 is not considered earned income for the earned income credit. 2010 1040 tax forms Inmate's income. 2010 1040 tax forms   Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. 2010 1040 tax forms This includes amounts received for work performed while in a work release program or while in a halfway house. 2010 1040 tax forms If you received any amount for work done while an inmate in a penal institution and that amount is included in the total on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ), put “PRI” and the amount on the dotted line next to line 7 (Form 1040), in the space to the left of the entry space for line 7 (Form 1040A), or in the space to the left of line 1 (Form 1040EZ). 2010 1040 tax forms Pension or annuity from deferred compensation plans. 2010 1040 tax forms   A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan is not considered earned income for the earned income credit. 2010 1040 tax forms If you received such an amount and it was included in the total on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ), put “DFC” and the amount on the dotted line next to line 7 (Form 1040), in the space to the left of the entry space for line 7 (Form 1040A), or in the space to the left of line 1 (Form 1040EZ). 2010 1040 tax forms This amount may be reported in box 11 of your Form W-2. 2010 1040 tax forms If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity. 2010 1040 tax forms Clergy. 2010 1040 tax forms   If you are a member of the clergy who files Schedule SE and the amount on line 2 of that schedule includes an amount that was also reported on line 7 (Form 1040), subtract that amount from the amount on line 7 (Form 1040) and enter the result in the first space of the worksheet in Step 5 of the Form 1040 instructions for lines 64a and 64b. 2010 1040 tax forms Put “Clergy” on the dotted line next to line 64a (Form 1040). 2010 1040 tax forms Church employees. 2010 1040 tax forms    A church employee means an employee (other than a minister or member of a religious order) of a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. 2010 1040 tax forms If you received wages as a