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Amended Tax Form 2012

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Amended Tax Form 2012

Amended tax form 2012 Publication 929 - Main Content Table of Contents Part 1. Amended tax form 2012 Rules for All Dependents Filing RequirementsEarned Income Only Unearned Income Only Both Earned and Unearned Income Other Filing Requirements Should a Return Be Filed Even If Not Required? Responsibility for Child's ReturnThird party designee. Amended tax form 2012 Designated as representative. Amended tax form 2012 IRS notice. Amended tax form 2012 Standard DeductionStandard Deduction of Zero Dependent's Own Exemption Withholding From WagesExceptions. Amended tax form 2012 Part 2. Amended tax form 2012 Tax on Unearned Income of Certain ChildrenWhich Parent's Return To Use Parent's Election To Report Child's Interest and DividendsEffect of Making the Election Figuring Child's Income Figuring Additional Tax Tax for Certain Children Who Have Unearned IncomeProviding Parental Information (Form 8615, Lines A–C) Step 1. Amended tax form 2012 Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. Amended tax form 2012 Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. Amended tax form 2012 Figuring the Child's Tax (Form 8615, Part III) Alternative Minimum Tax Illustrated Example Part 1. Amended tax form 2012 Rules for All Dependents This part of the publication discusses the filing requirements for dependents, who is responsible for a child's return, how to figure a dependent's standard deduction and exemption (if any), and whether a dependent can claim exemption from federal income tax withholding. Amended tax form 2012 Filing Requirements Whether a dependent has to file a return generally depends on the amount of the dependent's earned and unearned income and whether the dependent is married, is age 65 or older, or is blind. Amended tax form 2012 A dependent may have to file a return even if his or her income is less than the amount that would normally require a return. Amended tax form 2012 See Other Filing Requirements, later. Amended tax form 2012 The following sections apply to dependents with: Earned income only, Unearned income only, and Both earned and unearned income. Amended tax form 2012  To find out whether a dependent must file, read the section that applies, or use Table 1. Amended tax form 2012 Earned Income Only A dependent whose gross income is only earned income must file a return if the gross income is more than the amount listed in the following table. Amended tax form 2012 Marital Status Amount Single   Under 65 and not blind $6,100 Either 65 or older or blind $7,600 65 or older and blind $9,100 Married*   Under 65 and not blind $6,100 Either 65 or older or blind $7,300 65 or older and blind $8,500 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). Amended tax form 2012 Example. Amended tax form 2012 William is 16. Amended tax form 2012 His mother claims an exemption for him on her income tax return. Amended tax form 2012 He worked part time on weekends during the school year and full time during the summer. Amended tax form 2012 He earned $7,000 in wages. Amended tax form 2012 He did not have any unearned income. Amended tax form 2012 He must file a tax return because he has earned income only and his gross income is more than $6,100. Amended tax form 2012 If he is blind, he does not have to file a return because his gross income is not more than $7,600. Amended tax form 2012 Unearned Income Only A dependent whose gross income is only unearned income must file a return if the gross income is more than the amount listed in the following table. Amended tax form 2012 Marital Status Amount Single   Under 65 and not blind $1,000 Either 65 or older or blind $2,500 65 or older and blind $4,000 Married*   Under 65 and not blind $1,000 Either 65 or older or blind $2,200 65 or older and blind $3,400 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). Amended tax form 2012 Example. Amended tax form 2012 Sarah is 18 and single. Amended tax form 2012 Her parents can claim an exemption for her on their income tax return. Amended tax form 2012 She received $1,970 of taxable interest and dividend income. Amended tax form 2012 She did not work during the year. Amended tax form 2012 She must file a tax return because she has unearned income only and her gross income is more than $1,000. Amended tax form 2012 If she is blind, she does not have to file a return because she has unearned income only and her gross income is not more than $2,500. Amended tax form 2012 Election to report child's unearned income on parent's return. Amended tax form 2012   A parent of a child under age 19 (or under age 24 if a full-time student) may be able to elect to include the child's interest and dividend income on the parent's return. Amended tax form 2012 See Parent's Election To Report Child's Interest and Dividends in Part 2. Amended tax form 2012 If the parent makes this election, the child does not have to file a return. Amended tax form 2012 Both Earned and Unearned Income A dependent who has both earned and unearned income generally must file a return if the dependent's gross income is more than line 5 of the following worksheet. Amended tax form 2012 Filing Requirement Worksheet for Most Dependents 1. Amended tax form 2012 Enter dependent's earned income plus $350     2. Amended tax form 2012 Minimum amount   $1,000 3. Amended tax form 2012 Compare lines 1 and 2. Amended tax form 2012 Enter the larger amount     4. Amended tax form 2012 Maximum amount   6,100 5. Amended tax form 2012 Compare lines 3 and 4. Amended tax form 2012 Enter the smaller amount     6. Amended tax form 2012 Enter the dependent's gross income. Amended tax form 2012 If line 6 is more than line 5, the dependent must file an income tax return. Amended tax form 2012 If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Amended tax form 2012       Table 1. Amended tax form 2012 2013 Filing Requirements for Dependents If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. Amended tax form 2012   See the definitions of “dependent,”“earned income,”“unearned income,” and “gross income” in the Glossary. Amended tax form 2012   Single dependents—Were you either age 65 or older or blind?     No. Amended tax form 2012 You must file a return if any of the following apply. Amended tax form 2012       Your unearned income was over $1,000. Amended tax form 2012 Your earned income was over $6,100. Amended tax form 2012 Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Amended tax form 2012         Yes. Amended tax form 2012 You must file a return if any of the following apply. Amended tax form 2012     Your unearned income was over $2,500 ($4,000 if 65 or older and blind), Your earned income was over $7,600 ($9,100 if 65 or older and blind), Your gross income was more than the larger of—       $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Amended tax form 2012       Married dependents—Were you either age 65 or older or blind?     No. Amended tax form 2012 You must file a return if any of the following apply. Amended tax form 2012       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Amended tax form 2012 Your unearned income was over $1,000. Amended tax form 2012 Your earned income was over $6,100. Amended tax form 2012 Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Amended tax form 2012       Yes. Amended tax form 2012 You must file a return if any of the following apply. Amended tax form 2012       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Amended tax form 2012 Your unearned income was over $2,200 ($3,400 if 65 or older and blind), Your earned income was over $7,300 ($8,500 if 65 or older and blind), Your gross income was more than the larger of—       $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Amended tax form 2012       Example 1. Amended tax form 2012 Joe is 20, single, not blind, and a full-time college student. Amended tax form 2012 He does not provide more than half of his own support, and his parents claim an exemption for him on their income tax return. Amended tax form 2012 He received $200 taxable interest income and earned $2,750 from a part-time job. Amended tax form 2012 He does not have to file a tax return because his gross income of $2,950 ($200 interest plus $2,750 in wages) is not more than $3,100, the amount on line 5 of his filled-in Filing Requirement Worksheet for Most Dependents (shown next). Amended tax form 2012 Filled-in Example 1 Filing Requirement Worksheet  for Most Dependents 1. Amended tax form 2012 Enter dependent's earned income plus $350   $ 3,100 2. Amended tax form 2012 Minimum amount   1,000 3. Amended tax form 2012 Compare lines 1 and 2. Amended tax form 2012 Enter the larger amount   3,100 4. Amended tax form 2012 Maximum amount   6,100 5. Amended tax form 2012 Compare lines 3 and 4. Amended tax form 2012 Enter the smaller amount   3,100 6. Amended tax form 2012 Enter the dependent's gross income. Amended tax form 2012 If line 6 is more than line 5, the dependent must file an income tax return. Amended tax form 2012 If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Amended tax form 2012   $ 2,950   Example 2. Amended tax form 2012 The facts are the same as in Example 1 except that Joe had $600 taxable interest income. Amended tax form 2012 He must file a tax return because his gross income of $3,350 ($600 interest plus $2,750 wages) is more than $3,100, the amount on line 5 of his filled-in worksheet (shown next). Amended tax form 2012 Filled-in Example 2 Filing Requirement Worksheet for Most Dependents 1. Amended tax form 2012 Enter dependent's earned income plus $350   $ 3,100 2. Amended tax form 2012 Minimum amount   1,000 3. Amended tax form 2012 Compare lines 1 and 2. Amended tax form 2012 Enter the larger amount   3,100 4. Amended tax form 2012 Maximum amount   6,100 5. Amended tax form 2012 Compare lines 3 and 4. Amended tax form 2012 Enter the smaller amount   3,100 6. Amended tax form 2012 Enter the dependent's gross income. Amended tax form 2012 If line 6 is more than line 5, the dependent must file an income tax return. Amended tax form 2012 If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Amended tax form 2012   $ 3,350   Age 65 or older or blind. Amended tax form 2012 A dependent who is age 65 or older or blind must file a return if his or her gross income is more than line 7 of the following worksheet. Amended tax form 2012 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Amended tax form 2012 Enter dependent's earned income plus $350     2. Amended tax form 2012 Minimum amount   $1,000 3. Amended tax form 2012 Compare lines 1 and 2. Amended tax form 2012 Enter the larger amount     4. Amended tax form 2012 Maximum amount   6,100 5. Amended tax form 2012 Compare lines 3 and 4. Amended tax form 2012 Enter the smaller amount     6. Amended tax form 2012 Enter the amount from the following table that applies to the dependent       Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. Amended tax form 2012 Add lines 5 and 6. Amended tax form 2012 Enter the total     8. Amended tax form 2012 Enter the dependent's gross income. Amended tax form 2012 If line 8 is more than line 7, the dependent must file an income tax return. Amended tax form 2012 If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more     Example 3. Amended tax form 2012 The facts are the same as in Example 2 except that Joe is also blind. Amended tax form 2012 He does not have to file a return because his gross income of $3,350 is not more than $4,600, the amount on line 7 of his filled-in Filing Requirement Worksheet for Dependents Who Are Age 65 or Older or Blind (shown next). Amended tax form 2012   Filled-in Example 3 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Amended tax form 2012 Enter dependent's earned income plus $350   $3,100 2. Amended tax form 2012 Minimum amount   1,000 3. Amended tax form 2012 Compare lines 1 and 2. Amended tax form 2012 Enter the larger amount   3,100 4. Amended tax form 2012 Maximum amount   6,100 5. Amended tax form 2012 Compare lines 3 and 4. Amended tax form 2012 Enter the smaller amount   3,100 6. Amended tax form 2012 Enter the amount from the following table that applies to the dependent   1,500   Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. Amended tax form 2012 Add lines 5 and 6. Amended tax form 2012 Enter the total   4,600 8. Amended tax form 2012 Enter the dependent's gross income. Amended tax form 2012 If line 8 is more than line 7, the dependent must file an income tax return. Amended tax form 2012 If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more   $3,350 Other Filing Requirements Some dependents may have to file a tax return even if their income is less than the amount that would normally require them to file a return. Amended tax form 2012 A dependent must file a tax return if he or she owes any other taxes, such as: Social security and Medicare taxes on tips not reported to his or her employer or on wages received from an employer who did not withhold these taxes, Uncollected social security and Medicare or railroad retirement taxes on tips reported to his or her employer or on group-term life insurance, Alternative minimum tax, Additional tax on a health savings account from Form 8889, Part III, Recapture taxes, such as the tax from recapture of an education credit, or Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Amended tax form 2012 But if the dependent is filing a return only because of this tax, the dependent can file Form 5329 by itself. Amended tax form 2012 A dependent must also file a tax return if he or she: Had wages of $108. Amended tax form 2012 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes, or Had net earnings from self-employment of at least $400. Amended tax form 2012 Spouse itemizes. Amended tax form 2012   A dependent must file a return if the dependent's spouse itemizes deductions on a separate return and the dependent has $5 or more of gross income (earned and/or unearned). Amended tax form 2012 Should a Return Be Filed Even If Not Required? Even if a dependent does not meet any of the filing requirements discussed earlier, he or she should file a tax return if either of the following applies. Amended tax form 2012 Income tax was withheld from his or her income. Amended tax form 2012 He or she qualifies for the earned income credit, additional child tax credit, health coverage tax credit, or refundable American opportunity education credit. Amended tax form 2012 See the tax return instructions to find out who qualifies for these credits. Amended tax form 2012  By filing a return, the dependent can get a refund. Amended tax form 2012 Responsibility for Child's Return Generally, a child is responsible for filing his or her own tax return and for paying any tax, penalties, or interest on that return. Amended tax form 2012 If a child cannot file his or her own return for any reason, such as age, the child's parent, guardian, or other legally responsible person must file it for the child. Amended tax form 2012 Signing the child's return. Amended tax form 2012   If the child cannot sign his or her return, a parent or guardian must sign the child's name followed by the words “By (signature), parent (or guardian) for minor child. Amended tax form 2012 ” Authority of parent or guardian. Amended tax form 2012   A parent or guardian who signs a return on a child's behalf can deal with the IRS on all matters connected with the return. Amended tax form 2012   In general, a parent or guardian who does not sign the child's return can only provide information concerning the child's return and pay the child's tax. Amended tax form 2012 That parent or guardian is not entitled to receive information from the IRS or legally bind the child to a tax liability arising from the return. Amended tax form 2012 Third party designee. Amended tax form 2012   A child's parent or guardian who does not sign the child's return may be authorized, as a third party designee, to discuss the processing of the return with the IRS as well as provide information concerning the return. Amended tax form 2012 The child or the person signing the return on the child's behalf must check the “Yes” box in the “Third Party Designee” area of the return and name the parent or guardian as the designee. Amended tax form 2012   If designated, a parent or guardian can respond to certain IRS notices and receive information about the processing of the return and the status of a refund or payment. Amended tax form 2012 This designation does not authorize the parent or guardian to receive any refund check, bind the child to any tax liability, or otherwise represent the child before the IRS. Amended tax form 2012 See the return instructions for more information. Amended tax form 2012 Designated as representative. Amended tax form 2012   A parent or guardian who does not sign the child's return may be designated as the child's representative by the child or the person signing the return on the child's behalf. Amended tax form 2012 Form 2848, Power of Attorney and Declaration of Representative, is used to designate a child's representative. Amended tax form 2012 See Publication 947, Practice Before the IRS and Power of Attorney, for more information. Amended tax form 2012   If designated, a parent or guardian can receive information about the child's return but cannot legally bind the child to a tax liability unless authorized to do so by the law of the state in which the child lives. Amended tax form 2012 IRS notice. Amended tax form 2012   If you or the child receives a notice from the IRS concerning the child's return or tax liability, you should immediately inform the IRS that the notice concerns a child. Amended tax form 2012 The notice will show who to contact. Amended tax form 2012 The IRS will try to resolve the matter with the parent(s) or guardian(s) of the child consistent with their authority. Amended tax form 2012 Child's earnings. Amended tax form 2012   For federal income tax purposes, amounts a child earns by performing services are included in the gross income of the child and not the gross income of the parent. Amended tax form 2012 This is true even if, under state law, the parent has the right to the earnings and may actually have received them. Amended tax form 2012 If the child does not pay the tax due on this income, the parent may be liable for the tax. Amended tax form 2012 Child's expenses. Amended tax form 2012   Deductions for payments that are made out of a child's earnings are the child's, even if the payments are made by the parent. Amended tax form 2012 Example. Amended tax form 2012 You made payments on your child's behalf that are deductible as a business expense and a charitable contribution. Amended tax form 2012 You made the payments out of your child's earnings. Amended tax form 2012 These items can be deducted only on the child's return. Amended tax form 2012 Standard Deduction The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the larger of: $1,000, or The individual's earned income plus $350, but not more than the regular standard deduction (generally $6,100). Amended tax form 2012 However, the standard deduction may be higher for a dependent who: Is 65 or older, or Is blind. Amended tax form 2012 Certain dependents cannot claim any standard deduction. Amended tax form 2012 See Standard Deduction of Zero , later. Amended tax form 2012 Worksheet 1. Amended tax form 2012   Use Worksheet 1 to figure the dependent's standard deduction. Amended tax form 2012 Worksheet 1. Amended tax form 2012 Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. Amended tax form 2012 If you were 65 or older and/or blind, check the correct number of boxes below. Amended tax form 2012 Put the total number of boxes checked in box c and go to line 1. Amended tax form 2012 a. Amended tax form 2012 You 65 or older   Blind   b. Amended tax form 2012 Your spouse, if claiming  spouse's exemption 65 or older   Blind   c. Amended tax form 2012 Total boxes checked         1. Amended tax form 2012 Enter your earned income (defined below) plus $350. Amended tax form 2012 If none, enter -0-. Amended tax form 2012 1. Amended tax form 2012     2. Amended tax form 2012 Minimum amount. Amended tax form 2012   2. Amended tax form 2012 $1,000   3. Amended tax form 2012 Compare lines 1 and 2. Amended tax form 2012 Enter the larger of the two amounts here. Amended tax form 2012 3. Amended tax form 2012     4. Amended tax form 2012 Enter on line 4 the amount shown below for your filing status. Amended tax form 2012       Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 4. Amended tax form 2012     5. Amended tax form 2012 Standard deduction. Amended tax form 2012         a. Amended tax form 2012 Compare lines 3 and 4. Amended tax form 2012 Enter the smaller amount here. Amended tax form 2012 If under 65 and not blind, stop here. Amended tax form 2012 This is your standard deduction. Amended tax form 2012 Otherwise, go on to line 5b. Amended tax form 2012 5a. Amended tax form 2012     b. Amended tax form 2012 If 65 or older or blind, multiply $1,500 ($1,200 if married) by the number in box c above. Amended tax form 2012 Enter the result here. Amended tax form 2012 5b. Amended tax form 2012     c. Amended tax form 2012 Add lines 5a and 5b. Amended tax form 2012 This is your standard deduction for 2013. Amended tax form 2012 5c. Amended tax form 2012     Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Amended tax form 2012 It also includes any amount received as a scholarship that you must include in income. Amended tax form 2012   Example 1. Amended tax form 2012 Michael is single, age 15, and not blind. Amended tax form 2012 His parents can claim him as a dependent on their tax return. Amended tax form 2012 He has taxable interest income of $800 and wages of $150. Amended tax form 2012 He enters $500 (his earned income plus $350) on line 1 of Worksheet 1. Amended tax form 2012 On line 3, he enters $1,000, the larger of $500 or $1,000. Amended tax form 2012 Michael enters $6,100 on line 4. Amended tax form 2012 On line 5a, he enters $1,000, the smaller of $1,000 or $6,100. Amended tax form 2012 His standard deduction is $1,000. Amended tax form 2012 Example 2. Amended tax form 2012 Judy, a full-time student, is single, age 22, and not blind. Amended tax form 2012 Her parents can claim her as a dependent on their tax return. Amended tax form 2012 She has dividend income of $275 and wages of $2,500. Amended tax form 2012 She enters $2,850 (her earned income plus $350) on line 1 of Worksheet 1. Amended tax form 2012 On line 3, she enters $2,850, the larger of $2,850 or $1,000. Amended tax form 2012 She enters $6,100 on line 4. Amended tax form 2012 On line 5a, she enters $2,850 (the smaller of $2,850 or $6,100) as her standard deduction. Amended tax form 2012 Example 3. Amended tax form 2012 Amy, who is single, is claimed as a dependent on her parents' tax return. Amended tax form 2012 She is 18 years old and blind. Amended tax form 2012 She has taxable interest income of $1,000 and wages of $2,000. Amended tax form 2012 She enters $2,350 (her earned income plus $350) on line 1 of Worksheet 1. Amended tax form 2012 She enters $2,350 (the larger of $2,350 or $1,000) on line 3, $6,100 on line 4, and $2,350 (the smaller of $2,350 or $6,100) on line 5a. Amended tax form 2012 Because Amy is blind, she checks the box for blindness and enters “1” in box c at the top of Worksheet 1. Amended tax form 2012 She enters $1,500 (the number in box c times $1,500) on line 5b. Amended tax form 2012 Her standard deduction on line 5c is $3,850 ($2,350 + $1,500). Amended tax form 2012 Standard Deduction of Zero The standard deduction for the following dependents is zero. Amended tax form 2012 A married dependent filing a separate return whose spouse itemizes deductions. Amended tax form 2012 A dependent who files a return for a period of less than 12 months due to a change in his or her annual accounting period. Amended tax form 2012 A nonresident or dual-status alien dependent, unless the dependent is married to a U. Amended tax form 2012 S. Amended tax form 2012 citizen or resident alien at the end of the year and chooses to be treated as a U. Amended tax form 2012 S. Amended tax form 2012 resident for the year. Amended tax form 2012 See Publication 519, U. Amended tax form 2012 S. Amended tax form 2012 Tax Guide for Aliens, for information on making this choice. Amended tax form 2012 Example. Amended tax form 2012 Jennifer, who is a dependent of her parents, is entitled to file a joint return with her husband. Amended tax form 2012 However, her husband elects to file a separate return and itemize his deductions. Amended tax form 2012 Because he itemizes, Jennifer's standard deduction on her return is zero. Amended tax form 2012 She can, however, itemize any of her allowable deductions. Amended tax form 2012 Dependent's Own Exemption A person who can be claimed as a dependent on another taxpayer's return cannot claim his or her own exemption. Amended tax form 2012 This is true even if the other taxpayer does not actually claim the exemption. Amended tax form 2012 Example. Amended tax form 2012 James and Barbara can claim their child, Ben, as a dependent on their return. Amended tax form 2012 Ben is a college student who works during the summer and must file a tax return. Amended tax form 2012 Ben cannot claim his own exemption on his return. Amended tax form 2012 This is true even if James and Barbara do not claim him as a dependent on their return. Amended tax form 2012 Withholding From Wages Employers generally withhold federal income tax, social security tax, and Medicare tax from an employee's wages. Amended tax form 2012 If the employee claims exemption from withholding on Form W-4, the employer will not withhold federal income tax. Amended tax form 2012 The exemption from withholding does not apply to social security and Medicare taxes. Amended tax form 2012 Conditions for exemption from withholding. Amended tax form 2012   An employee can claim exemption from withholding for 2014 only if he or she meets both of the following conditions. Amended tax form 2012 For 2013, the employee had a right to a refund of all federal income tax withheld because he or she had no tax liability. Amended tax form 2012 For 2014, the employee expects a refund of all federal income tax withheld because he or she expects to have no tax liability. Amended tax form 2012 Dependents. Amended tax form 2012   An employee who is a dependent ordinarily cannot claim exemption from withholding if both of the following are true. Amended tax form 2012 The employee's gross income will be more than $1,000, the minimum standard deduction for 2014. Amended tax form 2012 The employee's unearned income will be more than $350. Amended tax form 2012 Exceptions. Amended tax form 2012   An employee may be able to claim exemption from withholding even if the employee is a dependent, if the employee: Is age 65 or older, Is blind, or Will claim on his or her 2014 tax return: Adjustments to income, Tax credits, or Itemized deductions. Amended tax form 2012 The above exceptions do not apply to supplemental wages greater than $1,000,000. Amended tax form 2012 For more information, see Exemption From Withholding in chapter 1 of Publication 505. Amended tax form 2012 Example. Amended tax form 2012 Guy is 17 and a student. Amended tax form 2012 During the summer he works part time at a grocery store. Amended tax form 2012 He expects to earn about $1,200 this year. Amended tax form 2012 He also worked at the store last summer and received a refund of all his withheld income tax because he did not have a tax liability. Amended tax form 2012 The only other income he expects during the year is $375 interest on a savings account. Amended tax form 2012 He expects that his parents will be able to claim him as a dependent on their tax return. Amended tax form 2012 He is not blind and will not claim adjustments to income, itemized deductions, a higher standard deduction, or tax credits on his return. Amended tax form 2012 Guy cannot claim exemption from withholding when he fills out Form W-4 because his parents will be able to claim him as a dependent, his gross income will be more than $1,000 (the minimum standard deduction amount) and his unearned income will be more than $350. Amended tax form 2012 Claiming exemption from withholding. Amended tax form 2012    To claim exemption from withholding, an employee must enter “Exempt” in the space provided on Form W-4, line 7. Amended tax form 2012 The employee must complete the rest of the form, as explained in the form instructions, and give it to his or her employer. Amended tax form 2012 Renewing an exemption from withholding. Amended tax form 2012   An exemption from withholding is good for only one year. Amended tax form 2012 An employee must file a new Form W-4 by February 15 each year to continue the exemption. Amended tax form 2012 Part 2. Amended tax form 2012 Tax on Unearned Income of Certain Children The two rules that follow may affect the tax on the unearned income of certain children. Amended tax form 2012 If the child's interest and dividend income (including capital gain distributions) total less than $10,000, the child's parent may be able to choose to include that income on the parent's return rather than file a return for the child. Amended tax form 2012 (See Parent's Election To Report Child's Interest and Dividends , later. Amended tax form 2012 ) If the child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Amended tax form 2012 (See Tax for Certain Children Who Have Unearned Income , later. Amended tax form 2012 ) For these rules, the term “child” includes a legally adopted child and a stepchild. Amended tax form 2012 These rules apply whether or not the child is a dependent. Amended tax form 2012 These rules do not apply if neither of the child's parents were living at the end of the year. Amended tax form 2012 Which Parent's Return To Use If a child's parents are married to each other and file a joint return, use the joint return to figure the tax on the child's unearned income. Amended tax form 2012 The tax rate and other return information from that return are used to figure the child's tax as explained later under Tax for Certain Children Who Have Unearned Income . Amended tax form 2012 Parents Who Do Not File a Joint Return For parents who do not file a joint return, the following discussions explain which parent's tax return must be used to figure the tax. Amended tax form 2012 Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . Amended tax form 2012 Parents are married. Amended tax form 2012   If the child's parents file separate returns, use the return of the parent with the greater taxable income. Amended tax form 2012 Parents not living together. Amended tax form 2012   If the child's parents are married to each other but not living together, and the parent with whom the child lives (the custodial parent) is considered unmarried, use the return of the custodial parent. Amended tax form 2012 If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. Amended tax form 2012   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in Publication 501. Amended tax form 2012 Parents are divorced. Amended tax form 2012   If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent. Amended tax form 2012 Custodial parent remarried. Amended tax form 2012   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Amended tax form 2012 Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. Amended tax form 2012 Do not use the return of the noncustodial parent. Amended tax form 2012   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. Amended tax form 2012 If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. Amended tax form 2012 Parents never married. Amended tax form 2012   If a child's parents have never been married to each other, but lived together all year, use the return of the parent with the greater taxable income. Amended tax form 2012 If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. Amended tax form 2012 Widowed parent remarried. Amended tax form 2012   If a widow or widower remarries, the new spouse is treated as the child's other parent. Amended tax form 2012 The rules explained earlier under Custodial parent remarried apply. Amended tax form 2012 Parent's Election To Report Child's Interest and Dividends You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. Amended tax form 2012 If you do, your child will not have to file a return. Amended tax form 2012 You can make this election only if all the following conditions are met. Amended tax form 2012 Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. Amended tax form 2012 Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Amended tax form 2012 The child's gross income was less than $10,000. Amended tax form 2012 The child is required to file a return unless you make this election. Amended tax form 2012 The child does not file a joint return for the year. Amended tax form 2012 No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and social security number. Amended tax form 2012 No federal income tax was withheld from your child's income under the backup withholding rules. Amended tax form 2012 You are the parent whose return must be used when applying the special tax rules for children. Amended tax form 2012 (See Which Parent's Return To Use , earlier. Amended tax form 2012 ) These conditions are also shown in Figure 1. Amended tax form 2012 Certain January 1 birthdays. Amended tax form 2012   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. Amended tax form 2012 You cannot make this election for such a child unless the child was a full-time student. Amended tax form 2012   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Amended tax form 2012 You cannot make this election for such a child. Amended tax form 2012 How to make the election. Amended tax form 2012    Make the election by attaching Form 8814 to your Form 1040 or Form 1040NR. Amended tax form 2012 (If you make this election, you cannot file Form 1040A or Form 1040EZ. Amended tax form 2012 ) Attach a separate Form 8814 for each child for whom you make the election. Amended tax form 2012 You can make the election for one or more children and not for others. Amended tax form 2012 Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. Amended tax form 2012 Rate may be higher. Amended tax form 2012   If your child received qualified dividends or capital gain distributions, you may pay up to $100 more tax if you make this election instead of filing a separate tax return for the child. Amended tax form 2012 This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. Amended tax form 2012 However, if you file a separate return for the child, the tax rate may be as low as 0% (zero percent) because of the preferential tax rates for qualified dividends and capital gain distributions. Amended tax form 2012 Deductions you cannot take. Amended tax form 2012   By making the Form 8814 election, you cannot take any of the following deductions that the child would be entitled to on his or her return. Amended tax form 2012 The additional standard deduction if the child is blind. Amended tax form 2012 The deduction for a penalty on an early withdrawal of your child's savings. Amended tax form 2012 Itemized deductions (such as your child's investment expenses or charitable contributions). Amended tax form 2012 Figure 1. Amended tax form 2012 Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. Amended tax form 2012 Figure 1. Amended tax form 2012 Can You Include Your Child's Income On Your Tax Return? Deductible investment interest. Amended tax form 2012   If you use Form 8814, your child's unearned income is considered your unearned income. Amended tax form 2012 To figure the limit on your deductible investment interest, add the child's unearned income to yours. Amended tax form 2012 However, if your child received qualified dividends, capital gain distributions, or Alaska Permanent Fund dividends, see chapter 3 of Publication 550 for information about how to figure the limit. Amended tax form 2012 Alternative minimum tax. Amended tax form 2012    If your child received tax-exempt interest (or exempt-interest dividends paid by a regulated investment company) from certain private activity bonds, you must determine if that interest is a tax preference item for alternative minimum tax (AMT) purposes. Amended tax form 2012 If it is, you must include it with your own tax preference items when figuring your AMT. Amended tax form 2012 See Form 6251, Alternative Minimum Tax—Individuals, and its instructions for details. Amended tax form 2012 Reduced deductions or credits. Amended tax form 2012   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return, including the following. Amended tax form 2012 Deduction for contributions to a traditional individual retirement arrangement (IRA). Amended tax form 2012 Deduction for student loan interest. Amended tax form 2012 Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. Amended tax form 2012 Credit for child and dependent care expenses. Amended tax form 2012 Child tax credit. Amended tax form 2012 Education tax credits. Amended tax form 2012 Earned income credit. Amended tax form 2012 Penalty for underpayment of estimated tax. Amended tax form 2012   If you make this election for 2013 and did not have enough tax withheld or pay enough estimated tax to cover the tax you owe, you may be subject to a penalty. Amended tax form 2012 If you plan to make this election for 2014, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. Amended tax form 2012 Get Publication 505 for more information. Amended tax form 2012 Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. Amended tax form 2012 Only the amount over $2,000 is added to your income. Amended tax form 2012 The amount over $2,000 is shown on Form 8814, line 6. Amended tax form 2012 Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. Amended tax form 2012 Include the amount from Form 8814, line 12, on Form 1040 or Form 1040NR, line 21. Amended tax form 2012 If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040 or Form 1040NR, line 21. Amended tax form 2012 On the dotted line next to line 21, enter “Form 8814” and the total of the Form 8814, line 12 amounts. Amended tax form 2012 Note. Amended tax form 2012 The tax on the first $2,000 is figured on Form 8814, Part II. Amended tax form 2012 See Figuring Additional Tax , later. Amended tax form 2012 Qualified dividends. Amended tax form 2012   Enter on Form 8814, line 2a, any ordinary dividends your child received. Amended tax form 2012 This amount may include qualified dividends. Amended tax form 2012 Qualified dividends are those dividends reported on Form 1040, line 9b, or Form 1040NR, line 10b, and are eligible for lower tax rates that apply to a net capital gain. Amended tax form 2012 For detailed information about qualified dividends, see Publication 550. Amended tax form 2012   If your child received qualified dividends, the amount of these dividends that is added to your income must be reported on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Amended tax form 2012 You do not include these dividends on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Amended tax form 2012   Enter the child's qualified dividends on Form 8814, line 2b. Amended tax form 2012 But do not include this amount on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Amended tax form 2012 Instead, include the amount from Form 8814, line 9, on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Amended tax form 2012 (The amount on Form 8814, line 9, may be less than the amount on Form 8814, line 2b, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. Amended tax form 2012 ) Capital gain distributions. Amended tax form 2012   Enter on Form 8814, line 3, any capital gain distributions your child received. Amended tax form 2012 The amount of these distributions that is added to your income must be reported on Schedule D (Form 1040), line 13, or, if you are not required to file Schedule D, on Form 1040, line 13, or Form 1040NR, line 14. Amended tax form 2012 You do not include it on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Amended tax form 2012   Include the amount from Form 8814, line 10, on Schedule D, line 13; Form 1040, line 13; or Form 1040NR, line 14, whichever applies. Amended tax form 2012 (The amount on Form 8814, line 10, may be less than the amount on Form 8814, line 3, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. Amended tax form 2012 ) Collectibles (28% rate) gain. Amended tax form 2012    If any of the child's capital gain distributions are reported on Form 1099-DIV as collectibles (28% rate) gain, you must determine how much to also include on line 4 of the 28% Rate Gain Worksheet, in the instructions for Schedule D, line 18. Amended tax form 2012 Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Amended tax form 2012 The numerator is the part of the child's total capital gain distribution that is collectibles (28% rate) gain. Amended tax form 2012 The denominator is the child's total capital gain distribution. Amended tax form 2012 Enter the result on line 4 of the 28% Rate Gain Worksheet. Amended tax form 2012 Unrecaptured section 1250 gain. Amended tax form 2012   If any of the child's capital gain distributions are reported on Form 1099-DIV as unrecaptured section 1250 gain, you must determine how much to include on line 11 of the Unrecaptured Section 1250 Gain Worksheet in the instructions for Schedule D, line 19. Amended tax form 2012 Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Amended tax form 2012 The numerator is the part of the child's total capital gain distribution that is unrecaptured section 1250 gain. Amended tax form 2012 The denominator is the child's total capital gain distribution. Amended tax form 2012 Enter the result on the Unrecaptured Section 1250 Gain Worksheet, line 11. Amended tax form 2012 Section 1202 gain. Amended tax form 2012   If any of the child's capital gain distributions are reported as section 1202 gain (gain on qualified small business stock) on Form 1099-DIV, part or all of that gain may be eligible for the section 1202 exclusion. Amended tax form 2012 (For information about the exclusion, see chapter 4 of Publication 550. Amended tax form 2012 ) To figure that part, multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Amended tax form 2012 The numerator is the part of the child's total capital gain distribution that is section 1202 gain. Amended tax form 2012 The denominator is the child's total capital gain distribution. Amended tax form 2012 Your section 1202 exclusion is generally 50% of the result, but may be subject to a limit. Amended tax form 2012 In some cases, the exclusion is more than 50%. Amended tax form 2012 See the instructions for Schedule D for details and information on how to report the exclusion amount. Amended tax form 2012 Example. Amended tax form 2012 Fred is 6 years old. Amended tax form 2012 In 2013, he received dividend income of $2,100, which included $1,575 of ordinary dividends and a $525 capital gain distribution from a mutual fund. Amended tax form 2012 (None of the distributions were reported on Form 1099-DIV as unrecaptured section 1250 gain, section 1202 gain, or collectibles (28% rate) gain. Amended tax form 2012 ) All of the ordinary dividends are qualified dividends. Amended tax form 2012 He has no other income and is not subject to backup withholding. Amended tax form 2012 No estimated tax payments were made under his name and social security number. Amended tax form 2012 Fred's parents elect to include Fred's income on their tax return instead of filing a return for him. Amended tax form 2012 They figure the amount to report on Form 1040, lines 9a and 9b, the amount to report on their Schedule D, line 13, and the amount to report on Form 1040, line 21, as follows. Amended tax form 2012 They leave lines 1a and 1b of Form 8814 blank because Fred does not have any interest income. Amended tax form 2012 They enter his ordinary dividends of $1,575 on lines 2a and 2b because all of Fred's ordinary dividends are qualified dividends. Amended tax form 2012 They enter the amount of Fred's capital gain distributions, $525, on line 3. Amended tax form 2012 Next, they add the amounts on lines 1a, 2a, and 3 and enter the result, $2,100, on line 4. Amended tax form 2012 They subtract the base amount on line 5, $2,000, from the amount on line 4, $2,100, and enter the result, $100, on line 6. Amended tax form 2012 This is the total amount from Form 8814 to be reported on their return. Amended tax form 2012 Next, they figure how much of this amount is qualified dividends and how much is capital gain distributions. Amended tax form 2012 They divide the amount on line 2b, $1,575, by the amount on line 4, $2,100. Amended tax form 2012 They enter the result, . Amended tax form 2012 75, on line 7. Amended tax form 2012 They divide the amount on line 3, $525, by the amount on line 4, $2,100. Amended tax form 2012 They enter the result, . Amended tax form 2012 25, on line 8. Amended tax form 2012 They multiply the amount on line 6, $100, by the decimal on line 7, . Amended tax form 2012 75, and enter the result, $75, on line 9. Amended tax form 2012 They multiply the amount on line 6, $100, by the decimal on line 8, . Amended tax form 2012 25, and enter the result, $25, on line 10. Amended tax form 2012 They include the amount from line 9, $75, on lines 9a and 9b of their Form 1040 and enter “Form 8814 – $75” on the dotted lines next to lines 9a and 9b. Amended tax form 2012 They include the amount from line 10, $25, on line 13 of their Schedule D (Form 1040) and enter “Form 8814 – $25” on the dotted line next to Schedule D, line 13. Amended tax form 2012 They enter $100 ($75 + $25) on line 11 and -0- ($100 – $100) on line 12. Amended tax form 2012 Because the amount on line 12 is -0-, they do not include any amount from Form 8814 on their Form 1040, line 21. Amended tax form 2012 Figuring Additional Tax Use Form 8814, Part II, to figure the tax on the $2,000 of your child's interest and dividends that you do not include in your income. Amended tax form 2012 This tax is added to the tax figured on your income. Amended tax form 2012 This additional tax is the smaller of: 10% x (your child's gross income − $1,000), or $100. Amended tax form 2012 Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44, or Form 1040NR, line 42. Amended tax form 2012 Check box a on Form 1040, line 44, or Form 1040NR, line 42. Amended tax form 2012 Tax for Certain Children Who Have Unearned Income If a child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Amended tax form 2012 If the parent does not or cannot choose to include the child's income on the parent's return, use Form 8615 to figure the child's tax. Amended tax form 2012 Attach the completed form to the child's Form 1040, Form 1040A, or Form 1040NR. Amended tax form 2012 When Form 8615 must be filed. Amended tax form 2012   Form 8615 must be filed for a child if all of the following statements are true. Amended tax form 2012 The child's unearned income was more than $2,000. Amended tax form 2012 The child is required to file a return for 2013. Amended tax form 2012 The child either: Was under age 18 at the end of the year, Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or Was over age 18 and under age 24 at the end of the year, was a full-time student, and did not have earned income that was more than half of his or her support. Amended tax form 2012 At least one of the child's parents was alive at the end of 2013. Amended tax form 2012 The child does not file a joint return for 2013. Amended tax form 2012 These conditions are also shown in Figure 2. Amended tax form 2012 Certain January 1 birthdays. Amended tax form 2012   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. Amended tax form 2012 IF a child was born on. Amended tax form 2012 . Amended tax form 2012 . Amended tax form 2012 THEN, at the end of 2013, the child is considered to be. Amended tax form 2012 . Amended tax form 2012 . Amended tax form 2012 January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. Amended tax form 2012 The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. Amended tax form 2012  **This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. Amended tax form 2012  ***Do not use Form 8615 for this child. Amended tax form 2012 Figure 2. Amended tax form 2012 Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. Amended tax form 2012 Figure 2. Amended tax form 2012 Do You Have To Use Form 8615 To Figure Your Child's Tax? Providing Parental Information (Form 8615, Lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. Amended tax form 2012 (If the parents filed a joint return, enter the name and social security number listed first on the joint return. Amended tax form 2012 ) On line C, check the box for the parent's filing status. Amended tax form 2012 See Which Parent's Return To Use, earlier, for information on which parent's return information must be used on Form 8615. Amended tax form 2012 Parent with different tax year. Amended tax form 2012   If the parent and the child do not have the same tax year, complete Form 8615 using the information on the parent's return for the tax year that ends in the child's tax year. Amended tax form 2012 Example. Amended tax form 2012 Kimberly must use her mother's tax and taxable income to complete her Form 8615 for calendar year 2013 (January 1 – December 31). Amended tax form 2012 Kimberly's mother files her tax return on a fiscal year basis (July 1 – June 30). Amended tax form 2012 Kimberly must use the information on her mother's return for the tax year ending June 30, 2013, to complete her 2013 Form 8615. Amended tax form 2012 Parent's return information not known timely. Amended tax form 2012   If the information needed from the parent's return is not known by the time the child's return is due (usually April 15), you can file the return using estimates. Amended tax form 2012   You can use any reasonable estimate. Amended tax form 2012 This includes using information from last year's return. Amended tax form 2012 If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. Amended tax form 2012   When you get the correct information, file an amended return on Form 1040X, Amended U. Amended tax form 2012 S. Amended tax form 2012 Individual Income Tax Return. Amended tax form 2012 Extension of time to file. Amended tax form 2012   Instead of using estimates, you can get an automatic 6-month extension of time to file if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Amended tax form 2012 S. Amended tax form 2012 Individual Income Tax Return. Amended tax form 2012 See the instructions for Form 4868 for details. Amended tax form 2012    An extension of time to file is not an extension of time to pay. Amended tax form 2012 You must make an accurate estimate of the tax for 2013. Amended tax form 2012 If you do not pay the full amount due by the regular due date, the child will owe interest and may also be charged penalties. Amended tax form 2012 See Form 4868 and its instructions. Amended tax form 2012 Parent's return information not available. Amended tax form 2012   If a child cannot get the required information about his or her parent's tax return, the child (or the child's legal representative) can request the necessary information from the Internal Revenue Service (IRS). Amended tax form 2012 How to request. Amended tax form 2012   After the end of the tax year, send a signed, written request for the information to the Internal Revenue Service Center where the parent's return will be filed. Amended tax form 2012 (The IRS cannot process a request received before the end of the tax year. Amended tax form 2012 )    You should also consider getting an extension of time to file the child's return, because there may be a delay in getting the requested information. Amended tax form 2012   The request must contain all of the following. Amended tax form 2012 A statement that you are making the request to comply with section 1(g) of the Internal Revenue Code and that you have tried to get the information from the parent. Amended tax form 2012 Proof of the child's age (for example, a copy of the child's birth certificate). Amended tax form 2012 Evidence the child has more than $2,000 of unearned income (for example, a copy of the child's prior year tax return or copies of Forms 1099 for the current year). Amended tax form 2012 The name, address, social security number (if known), and filing status (if known) of the parent whose information is to be shown on Form 8615. Amended tax form 2012    A child's legal representative making the request should include a copy of his or her Power of Attorney, such as Form 2848, or proof of legal guardianship. Amended tax form 2012 Step 1. Amended tax form 2012 Figuring the Child's Net Unearned Income (Form 8615, Part I) The first step in figuring a child's tax using Form 8615 is to figure the child's net unearned income. Amended tax form 2012 To do that, use Form 8615, Part I. Amended tax form 2012 Line 1 (Unearned Income) If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. Amended tax form 2012 Adjusted gross income is shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Amended tax form 2012 Form 1040EZ and Form 1040NR-EZ cannot be used if Form 8615 must be filed. Amended tax form 2012 If the child had earned income, figure the amount to enter on Form 8615, line 1, by using the worksheet in the instructions for the form. Amended tax form 2012 However, use the following worksheet if: the child has excluded any foreign earned income, deducted a loss from self-employment, or has a net operating loss from another year. Amended tax form 2012 Alternate Worksheet for Form 8615, Line 1 A. Amended tax form 2012 Enter the amount from the child's Form 1040, line 22, or Form 1040NR, line 23   B. Amended tax form 2012 Enter the total of any net loss  from self-employment, any net operating loss deduction, any foreign earned income exclusion, and any foreign housing exclusion from the child's Form 1040 or Form 1040NR. Amended tax form 2012 Enter this total as a positive number (greater than zero)   C. Amended tax form 2012 Add line A and line B and  enter the total   D. Amended tax form 2012 Enter the child's earned income plus any amount from the child's Form 1040, line 30, or the child's Form 1040NR, line 30     Generally, the child's earned income is the total of the amounts reported on Form 1040, lines 7, 12, and 18 (if line 12 or 18 is a loss, use zero) or Form 1040NR, lines 8, 13, and 19 (if line 13 or 19 is a loss, use zero)   E. Amended tax form 2012 Subtract line D from line C. Amended tax form 2012 Enter the result here and on Form 8615, line 1   Unearned income defined. Amended tax form 2012   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed. Amended tax form 2012 It includes taxable interest, dividends, capital gains (including capital gain distributions), the taxable part of social security and pension payments, certain distributions from trusts, and unemployment compensation. Amended tax form 2012 Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages). Amended tax form 2012 Nontaxable income. Amended tax form 2012   For this purpose, unearned income includes only amounts the child must include in gross income. Amended tax form 2012 Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. Amended tax form 2012 Capital loss. Amended tax form 2012   A child's capital losses are taken into account in figuring the child's unearned income. Amended tax form 2012 Capital losses are first applied against capital gains. Amended tax form 2012 If the capital losses are more than the capital gains, the difference (up to $3,000) is subtracted from the child's interest, dividends, and other unearned income. Amended tax form 2012 Any difference over $3,000 is carried to the next year. Amended tax form 2012 Income from property received as a gift. Amended tax form 2012   A child's unearned income includes all income produced by property belonging to the child. Amended tax form 2012 This is true even if the property was transferred to the child, regardless of when the property was transferred or purchased or who transferred it. Amended tax form 2012   A child's unearned income includes income produced by property given as a gift to the child. Amended tax form 2012 This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. Amended tax form 2012 Example. Amended tax form 2012 Amanda Black, age 13, received the following income. Amended tax form 2012 Dividends—$800 Wages—$2,100 Taxable interest—$1,200 Tax-exempt interest—$100 Capital gains—$300 Capital losses—($200) The dividends were qualified dividends on stock given to her by her grandparents. Amended tax form 2012 Amanda's unearned income is $2,100. Amended tax form 2012 This is the total of the dividends ($800), taxable interest ($1,200), and capital gains reduced by capital losses ($300 − $200 = $100). Amended tax form 2012 Her wages are earned (not unearned) income because they are received for work actually performed. Amended tax form 2012 Her tax-exempt interest is not included because it is nontaxable. Amended tax form 2012 Trust income. Amended tax form 2012   If a child is the beneficiary of a trust, distributions of taxable interest, dividends, capital gains, and other unearned income from the trust are unearned income to the child. Amended tax form 2012   However, taxable distributions from a qualified disability trust are considered earned income for the purposes of completing Form 8615. Amended tax form 2012 See the Form 8615 instructions for details. Amended tax form 2012 Adjustment to income. Amended tax form 2012   In figuring the amount to enter on line 1, the child's unearned income is reduced by any penalty on the early withdrawal of savings. Amended tax form 2012 Line 2 (Deductions) If the child does not itemize deductions on Schedule A (Form 1040 or Form 1040NR), enter $2,000 on line 2. Amended tax form 2012 If the child itemizes deductions, enter on line 2 the larger of: $1,000 plus the portion of the child's itemized deductions on Schedule A (Form 1040), line 29 (or Schedule A (Form 1040NR), line 15), that are directly connected with the production of the unearned income entered on line 1, or $2,000. Amended tax form 2012 Directly connected. Amended tax form 2012   Itemized deductions are directly connected with the production of unearned income if they are for expenses paid to produce or collect taxable income or to manage, conserve, or maintain property held for producing income. Amended tax form 2012 These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. Amended tax form 2012    These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). Amended tax form 2012 Only the amount greater than 2% of the child's adjusted gross income can be deducted. Amended tax form 2012 See Publication 529, Miscellaneous Deductions, for more information. Amended tax form 2012 Example 1. Amended tax form 2012 Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with his unearned income. Amended tax form 2012 His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. Amended tax form 2012 Roger enters $2,000 on line 2 because that is more than the total of $1,000 plus his directly-connected itemized deductions of $300. Amended tax form 2012 Example 2. Amended tax form 2012 Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. Amended tax form 2012 She has no other income. Amended tax form 2012 She has itemized deductions of $1,050 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with the production of her unearned income. Amended tax form 2012 Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). Amended tax form 2012 The amount on line 2 is $2,050. Amended tax form 2012 This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. Amended tax form 2012 Line 3 Subtract line 2 from line 1 and enter the result on this line. Amended tax form 2012 If zero or less, do not complete the rest of the form. Amended tax form 2012 However, you must still attach Form 8615 to the child's tax return. Amended tax form 2012 Figure the tax on the child's taxable income in the normal manner. Amended tax form 2012 Line 4 (Child's Taxable Income) Enter on line 4 the child's taxable income from Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. Amended tax form 2012 Child files Form 2555 or 2555-EZ. Amended tax form 2012   If the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) is used to figure the child's tax. Amended tax form 2012 Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the child's taxable income on Form 8615, line 4. Amended tax form 2012 Line 5 (Net Unearned Income) A child's net unearned income cannot be more than his or her taxable income. Amended tax form 2012 Enter on Form 8615, line 5, the smaller of line 3 or line 4. Amended tax form 2012 This is the child's net unearned income. Amended tax form 2012 If zero or less, do not complete the rest of the form. Amended tax form 2012 However, you must still attach Form 8615 to the child's tax return. Amended tax form 2012 Figure the tax on the child's taxable income in the normal manner. Amended tax form 2012 Step 2. Amended tax form 2012 Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's tax rate. Amended tax form 2012 The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it. Amended tax form 2012 When figuring the tentative tax at the parent's tax rate on Form 8615, do not refigure any of the exclusions, deductions, or credits on the parent's return because of the child's net unearned income. Amended tax form 2012 For example, do not refigure the medical expense deduction. Amended tax form 2012 Figure the tentative tax on Form 8615, lines 6 through 13. Amended tax form 2012 Line 6 (Parent's Taxable Income) Enter on line 6 the amount from the parent's Form 1040, line 43; Form 1040A, line 27; Form 1040EZ, line 6; Form 1040NR, line 41; or Form 1040NR-EZ, line 14. Amended tax form 2012 If the parent's taxable income is zero or less, enter zero on line 6. Amended tax form 2012 Parent files Form 2555 or 2555-EZ. Amended tax form 2012   If the parent files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet in the Form 1040 instructions is used to figure the parent's tax. Amended tax form 2012 Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the parent's taxable income, on line 6 of Form 8615. Amended tax form 2012 Line 7 (Net Unearned Income of Other Children) If the tax return information of the parent is also used on any other child's Form 8615, enter on line 7 the total of the amounts from line 5 of all the other children's Forms 8615. Amended tax form 2012 Do not include the amount from line 5 of the Form 8615 being completed. Amended tax form 2012 (The term “other child” means any other child whose Form 8615 uses the tax information of the parent identified on Lines A and B of Form 8615. Amended tax form 2012 ) Example. Amended tax form 2012 Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. Amended tax form 2012 The children's net unearned income amounts on line 5 of their Forms 8615 are: Sharon—$800 Jerry—$600 Mike—$1,000 Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 8615. Amended tax form 2012 Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). Amended tax form 2012 Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). Amended tax form 2012 Other children's information not available. Amended tax form 2012   If the net unearned income of the other children is not available when the return is due, either file the return using estimates or get an extension of time to file. Amended tax form 2012 Estimates and extensions are discussed earlier under Providing Parental Information (Form 8615, Lines A–C) . Amended tax form 2012 Line 8 (Parent's Taxable Income Plus Children's Net Unearned Income) Enter on this line the total of lines 5, 6, and 7. Amended tax form 2012 You must determine the amount of net capital gain and qualified dividends included on this line before completing Form 8615, line 9. Amended tax form 2012 Net capital gain. Amended tax form 2012   Net capital gain is the smaller of the gain, if any, on Schedule D (Form 1040), line 15, or the gain, if any, on Schedule D, line 16. Amended tax form 2012 If Schedule D is not required, it is the amount on Form 1040, line 13; Form 1040A, line 10; or Form 1040NR, line 14. Amended tax form 2012 Qualified dividends. Amended tax form 2012   Qualified dividends are those dividends reported on line 9b of Form 1040 or Form 1040A, or line 10b of Form 1040NR. Amended tax form 2012 Net capital gain and qualified dividends on line 8. Amended tax form 2012   If neither the child, nor the parent, nor any other child has net capital gain, the net capital gain on line 8 is zero. Amended tax form 2012   If neither the child, nor the parent, nor any other child has qualified dividends, the amount of qualified dividends on line 8 is zero. Amended tax form 2012   If the child, parent, or any other child has net capital gain, figure the amount of net capital gain included on line 8 by adding together the net capital gain amounts included on lines 5, 6, and 7 of Form 8615. Amended tax form 2012   If the child, parent, or any other child has qualified dividends, figure the amount of qualified dividends included on line 8 by adding together the qualified dividend amounts included on lines 5, 6, and 7. Amended tax form 2012   Use the instructions for Form 8615, line 8, including the appropriate Line 5 Worksheet, to find these amounts. Amended tax form 2012 See the instructions for Form 8615 for more details. Amended tax form 2012 Note. Amended tax form 2012 The amount of any net capital gain or qualified dividends is not separately reported on line 8. Amended tax form 2012 It is  needed, however, when figuring the tax on line 9. Amended tax form 2012 Line 9 (Tax on Parent's Taxable Income Plus Children's Net Unearned Income) Figure the tax on the amount on line 8 using the Tax Table, the Tax Computation Worksheet, the Qualified Dividends and Capital Gain Tax Worksheet (in the Form 1040, 1040A, or 1040NR instructions), the Schedule D Tax Worksheet (in the Schedule D instructions), or Schedule J (Form 1040), as follows. Amended tax form 2012 If line 8 does not include any net capital gain or qualified dividends, use the Tax Table or Tax Computation Worksheet to figure this tax. Amended tax form 2012 But if Schedule J, Income Averaging for Farmers and Fishermen, is used to figure the tax on the parent's return, use it to figure this tax. Amended tax form 2012 If line 8 includes any net capital gain or qualified dividends, use the Qualified Dividends and Capital Gain Tax Worksheet to figure this tax. Amended tax form 2012 For details, see the instructions for Form 8615, line 9. Amended tax form 2012 However, if the child, parent, or any other child has 28% rate gain or unrecaptured section 1250 gain, use the Schedule D Tax Worksheet. Amended tax form 2012 But if Schedule J is used to figure the tax on the parent's return, use it to figure this tax. Amended tax form 2012 Child files Form 2555 or 2555-EZ. Amended tax form 2012   If line 8 includes any net capital gain or qualified dividends and the child, or any other child filing Form 8615, also files Form 2555 or 2555-EZ, use Using the Schedule D Tax Worksheet for line 9 tax, next, to figure the line 9 tax. Amended tax form 2012 Using the Schedule D Tax Worksheet for line 9 tax. Amended tax form 2012    Use the Schedule D Tax Worksheet (in the Schedule D instructions) to figure the line 9 tax on Form 8615 if the child, parent, or any other child has unrecaptured section 1250 gain or 28% rate gain. Amended tax form 2012 If you must use the Schedule D Tax Worksheet, first complete any Schedule D and any actual Schedule D Tax Worksheet required for the child, parent, or any other child. Amended tax form 2012 Then figure the line 9 tax using another Schedule D Tax Worksheet. Amended tax form 2012 (Do not attach this Schedule D Tax Worksheet to the child's return. Amended tax form 2012 )   Complete this Schedule D Tax Worksheet as follows. Amended tax form 2012 On line 1, enter the amount from Form 8615, line 8. Amended tax form 2012 On line 2, enter the qualified dividends included on Form 8615, line 8. Amended tax form 2012 (See the earlier discussion for line 8. Amended tax form 2012 ) On line 3, enter the total of the amounts, if any, on line 4g of all Forms 4952 filed by the child, parent, or any other child. Amended tax form 2012 On line 4, enter the total of the amounts, if any, on line 4e of all Forms 4952 filed by the child, parent, or any other child. Amended tax form 2012 If applicable, include instead the smaller amount entered on the dotted line next to line 4e. Amended tax form 2012 On lines 5 and 6, follow the worksheet instructions. Amended tax form 2012 On line 7, enter the net capital gain included on Form 8615, line 8. Amended tax form 2012 (See the earlier discussion for line 8. Amended tax form 2012 ) On lines 8 through 10, follow the worksheet instructions. Amended tax form 2012 On line 11, enter zero if neither the child, nor the parent, nor any other child has unrecaptured section 1250 gain (Schedule D, line 19) or 28% rate gain (Schedule D, line 18). Amended tax form 2012 Otherwise, enter the amount of unrecaptured section 1250 gain and 28% rate gain included in the net capital gain on line 8 of Form 8615. Amended tax form 2012 Figure these amounts as explained later under Figuring unrecaptured section 1250 gain (line 11) and Figuring 28% rate gain (line 11). Amended tax form 2012 If the Foreign Earned Income Tax Worksheet was used to figure the parent's tax or the tax of any child, go to step 10 below. Amended tax form 2012 Otherwise, skip steps 10, 11, and 12 below, and go to step 13. Amended tax form 2012 Determine whether there is a line 8 capital gain excess as follows. Amended tax form 2012 Add the amounts on line 2 of all Foreign Earned Income Tax Worksheets completed by the parent or any child for whom Form 8615 is filed. Amended tax form 2012 (But for each child do not add more than the excess, if any, of the amount on line 5 of the child's Form 8615 over the child's taxable income on Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. Amended tax form 2012 ) Subtract (a) from the amount on line 1 of this Schedule D Tax Worksheet. Amended tax form 2012 Subtract (b) from the amount on line 10 of this Schedule D Tax Worksheet. Amended tax form 2012 If the result is more than zero, that amount is the line 8 capital gain excess. Amended tax form 2012 If the result is zero or less, there is no line 8 capital gain excess. Amended tax form 2012 If there is no line 8 capital gain excess, skip step 12 below and go to step 13. Amended tax form 2012 If there is a line 8 capital gain excess, complete a second Schedule D Tax Worksheet as instructed above and in step 13, but in its entirety and with the following additional modifications. Amended tax form 2012 (These modifications are to be made only for purposes of filling out this additional Schedule D Tax Worksheet. Amended tax form 2012 ) Reduce the amount you would otherwise enter on line 9 (but not below zero) by the line 8 capital gain excess. Amended tax form 2012 Reduce the amount you would otherwise enter on line 6 (but not below zero) by any of the line 8 capital gain excess not used in (a) above. Amended tax form 2012 If the child, parent, or any other child has 28% rate gain, reduce the amount you would otherwise enter on line 8 of Worksheet 1 for Line 11 of the Schedule D Tax Worksheet – 28% Rate Gain (Line 9 Tax), shown later, (but not below zero) by the line 8 capital gain excess, and refigure the amount on line 11 of this Schedule D Tax Worksheet. Amended tax form 2012 If the child, parent, or any other child has unrecaptured section 1250 gain, reduce the amount you would otherwise enter on line 8 of Worksheet 2 for Line 11 of the Schedule D Tax Worksheet – Unrecaptured Section 1250 Gain (Line 9 Tax) (but not below zero) by the line 8 capital gain excess not used in 12(c), and refigure the amount on line 11 of this Schedule D Tax Worksheet. Amended tax form 2012 Complete lines 12 through 45 following the worksheet instructions. Amended tax form 2012 Use the parent's filing status to complete lines 15, 42, and 44. Amended tax form 2012 Enter the amount from line 45 of this Schedule D Tax Worksheet on Form 8615, line 9, and check the box on that line
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Procurement Contracts

Federally Funded Research and Development Center (FFRDC) - contract is available for task order issuance for all Treasury Bureaus as well as other Government Agencies (upon approval by the IRS Contracting Officer). The focus of this technical support is for Total Enterprise Modernization in the areas of: 1) Strategic Management, 2) Procurement (Support & Evaluation), 3) Program and Project Management, 4) Technical Management, and 5) Evaluation and Audit (includes IV&V).

Land Mobile Radio (LMR) Subscriber Unit - contracts provide standards-based and standards-compliant LMR equipment to enable communications interoperability with similarly configured equipment. The TIA/EIA-102 suite of standards, also know as Project 25, provides the basis for the required LMR technical specifications.

Prime Modernization (TIRNO-99-D-00001) - This is an indefinite Delivery/Indefinite Quantity (IDIQ) type contract under which Cost Reimbursement, Time and Materials (T&M), Fixed Price, and Performance Based Task Orders may be issued.

Prime Contract Outreach Information - IRS Small Business Program Office from time to time hosts a Prime Contract Network Opportunity Session. The purpose of these events are to assist small businesses in meeting with the IRS Prime and Alliance partners to discuss potential subcontracting opportunities available under the IRS Prime Systems Integration Contract.

Treasury Commercial Vehicles (TCV) - Blanket Purchase Agreements are a series of acquisition vehicles structured to provide commercial-off-the shelf products for the IRS and Treasury bureaus. Six (6) BPA's were established to better serve our customers. TCV is available for use by any employee of the Treasury Department or any of its bureaus. The BPA's are very flexible with items regularly added to meet specific needs.

Total Information Processing Support Services (TIPSS-4) - Discover more about the wide spectrum of Information Technology services that TIPSS-4 offers. Included you will find guidance, and useful information to help you acquire the right services to support your program goals and objectives.


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The Amended Tax Form 2012

Amended tax form 2012 36. Amended tax form 2012   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. Amended tax form 2012 Rules for EveryoneRule 1. Amended tax form 2012 Your AGI Must Be Less Than: Rule 2. Amended tax form 2012 You Must Have a Valid Social Security Number (SSN) Rule 3. Amended tax form 2012 Your Filing Status Cannot Be Married Filing Separately Rule 4. Amended tax form 2012 You Must Be a U. Amended tax form 2012 S. Amended tax form 2012 Citizen or Resident Alien All Year Rule 5. Amended tax form 2012 You Cannot File Form 2555 or Form 2555-EZ Rule 6. Amended tax form 2012 Your Investment Income Must Be $3,300 or Less Rule 7. Amended tax form 2012 You Must Have Earned Income Part B. Amended tax form 2012 Rules If You Have a Qualifying ChildRule 8. Amended tax form 2012 Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9. Amended tax form 2012 Your Qualifying Child Cannot Be Used By More Than One Person To Claim the EIC Rule 10. Amended tax form 2012 You Cannot Be a Qualifying Child of Another Taxpayer Part C. Amended tax form 2012 Rules If You Do Not Have a Qualifying ChildRule 11. Amended tax form 2012 You Must Be at Least Age 25 but Under Age 65 Rule 12. Amended tax form 2012 You Cannot Be the Dependent of Another Person Rule 13. Amended tax form 2012 You Cannot Be a Qualifying Child of Another Taxpayer Rule 14. Amended tax form 2012 You Must Have Lived in the United States More Than Half of the Year Part D. Amended tax form 2012 Figuring and Claiming the EICRule 15. Amended tax form 2012 Your Earned Income Must Be Less Than: IRS Will Figure the EIC for You How To Figure the EIC Yourself ExamplesExample 1. Amended tax form 2012 John and Janet Smith (Form 1040A) Example 2. Amended tax form 2012 Kelly Green (Form 1040EZ) What's New Earned income amount is more. Amended tax form 2012  The maximum amount of income you can earn and still get the credit has increased. Amended tax form 2012 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). Amended tax form 2012 Your adjusted gross income also must be less than the amount in the above list that applies to you. Amended tax form 2012 For details, see Rules 1 and 15. Amended tax form 2012 Investment income amount is more. Amended tax form 2012  The maximum amount of investment income you can have and still get the credit has increased to $3,300. Amended tax form 2012 See Rule 6. Amended tax form 2012 Reminders Increased EIC on certain joint returns. Amended tax form 2012  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. Amended tax form 2012 As a result, the EIC table has different columns for married persons filing jointly than for everyone else. Amended tax form 2012 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. Amended tax form 2012 Online help. Amended tax form 2012  You can use the EITC Assistant at www. Amended tax form 2012 irs. Amended tax form 2012 gov/eitc to find out if you are eligible for the credit. Amended tax form 2012 The EITC Assistant is available in English and Spanish. Amended tax form 2012 EIC questioned by IRS. Amended tax form 2012  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. Amended tax form 2012 We will tell you what documents to send us. Amended tax form 2012 These may include: birth certificates, school records, medical records, etc. Amended tax form 2012 The process of establishing your eligibility will delay your refund. Amended tax form 2012 Introduction The earned income credit (EIC) is a tax credit for certain people who work and have less than $51,567 of earned income. Amended tax form 2012 A tax credit usually means more money in your pocket. Amended tax form 2012 It reduces the amount of tax you owe. Amended tax form 2012 The EIC may also give you a refund. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 Or, if you prefer, you can let the IRS figure the credit for you. Amended tax form 2012 How will this chapter help you?   This chapter will explain the following. Amended tax form 2012 The rules you must meet to qualify for the EIC. Amended tax form 2012 How to figure the EIC. Amended tax form 2012 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 . Amended tax form 2012 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 . Amended tax form 2012 There is one final rule you must meet in Part D, Figuring and Claiming the EIC . Amended tax form 2012 You qualify for the credit if you meet all the rules in each part that applies to you. Amended tax form 2012 If you have a qualifying child, the rules in Parts A, B, and D apply to you. Amended tax form 2012 If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Amended tax form 2012 Table 36-1, Earned Income Credit in a Nutshell. Amended tax form 2012   Use Table 36–1 as a guide to Parts A, B, C, and D. Amended tax form 2012 The table is a summary of all the rules in each part. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 You must also qualify to claim the EIC by meeting all the rules described in this chapter. Amended tax form 2012 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. Amended tax form 2012 For example, if your arithmetic is incorrect, the IRS can correct it. Amended tax form 2012 If you do not provide a correct social security number, the IRS can deny the EIC. Amended tax form 2012 These kinds of errors are called math or clerical errors. Amended tax form 2012 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. Amended tax form 2012 If your error was due to fraud, then you cannot claim the EIC for the next 10 years. Amended tax form 2012 More information. Amended tax form 2012   See chapter 5 in Publication 596 for more detailed information about the disallowance period and Form 8862. Amended tax form 2012 Part A. Amended tax form 2012 Rules for Everyone This part of the chapter discusses Rules 1 through 7. Amended tax form 2012 You must meet all seven rules to qualify for the earned income credit. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 Rule 1. Amended tax form 2012 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. Amended tax form 2012 Adjusted gross income (AGI). Amended tax form 2012   AGI is the amount on line 38 (Form 1040), line 22 (Form 1040A), or line 4 (Form 1040EZ). Amended tax form 2012 If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Amended tax form 2012 Example. Amended tax form 2012 Your AGI is $38,550, you are single, and you have one qualifying child. Amended tax form 2012 You cannot claim the EIC because your AGI is not less than $37,870. Amended tax form 2012 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. Amended tax form 2012 Community property. Amended tax form 2012   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. Amended tax form 2012 This is different from the community property rules that apply under Rule 7 . Amended tax form 2012 Rule 2. Amended tax form 2012 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). Amended tax form 2012 Any qualifying child listed on Schedule EIC also must have a valid SSN. Amended tax form 2012 (See Rule 8 if you have a qualifying child. Amended tax form 2012 ) 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. Amended tax form 2012 An example of a federally funded benefit is Medicaid. Amended tax form 2012 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. Amended tax form 2012 S. Amended tax form 2012 citizen or permanent resident, ask the SSA for a new social security card without the legend. Amended tax form 2012 U. Amended tax form 2012 S. Amended tax form 2012 citizen. Amended tax form 2012   If you were a U. Amended tax form 2012 S. Amended tax form 2012 citizen when you received your SSN, you have a valid SSN. Amended tax form 2012 Valid for work only with INS or DHS authorization. Amended tax form 2012   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. Amended tax form 2012 SSN missing or incorrect. Amended tax form 2012   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Amended tax form 2012 Other taxpayer identification number. Amended tax form 2012   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). Amended tax form 2012 ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Amended tax form 2012 No SSN. Amended tax form 2012   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). Amended tax form 2012 You cannot claim the EIC. Amended tax form 2012 Getting an SSN. Amended tax form 2012   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. Amended tax form 2012 You can get Form SS-5 online at www. Amended tax form 2012 socialsecurity. Amended tax form 2012 gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Amended tax form 2012 Filing deadline approaching and still no SSN. Amended tax form 2012   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Amended tax form 2012 Request an automatic 6-month extension of time to file your return. Amended tax form 2012 You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Amended tax form 2012 S. Amended tax form 2012 Individual Income Tax Return. Amended tax form 2012 For more information, see chapter 1 . Amended tax form 2012 File the return on time without claiming the EIC. Amended tax form 2012 After receiving the SSN, file an amended return (Form 1040X, Amended U. Amended tax form 2012 S. Amended tax form 2012 Individual Income Tax Return) claiming the EIC. Amended tax form 2012 Attach a filled-in Schedule EIC if you have a qualifying child. Amended tax form 2012 Table 36-1. Amended tax form 2012 Earned Income Credit in a Nutshell First, you must meet all the rules in this column. Amended tax form 2012 Second, you must meet all the rules in one of these columns, whichever applies. Amended tax form 2012 Third, you must meet the rule in this column. Amended tax form 2012 Part A. Amended tax form 2012  Rules for Everyone Part B. Amended tax form 2012  Rules If You Have a Qualifying Child Part C. Amended tax form 2012  Rules If You Do Not Have a Qualifying Child Part D. Amended tax form 2012  Figuring and Claiming the EIC 1. Amended tax form 2012 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. Amended tax form 2012 2. Amended tax form 2012 You must have a valid social security number. Amended tax form 2012  3. Amended tax form 2012 Your filing status cannot be “Married filing separately. Amended tax form 2012 ” 4. Amended tax form 2012 You must be a U. Amended tax form 2012 S. Amended tax form 2012 citizen or resident alien all year. Amended tax form 2012  5. Amended tax form 2012 You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Amended tax form 2012  6. Amended tax form 2012 Your investment income must be $3,300 or less. Amended tax form 2012  7. Amended tax form 2012 You must have earned income. Amended tax form 2012 8. Amended tax form 2012 Your child must meet the relationship, age, residency, and joint return tests. Amended tax form 2012  9. Amended tax form 2012 Your qualifying child cannot be used by more than one person to claim the EIC. Amended tax form 2012  10. Amended tax form 2012 You cannot be a qualifying child of another person. Amended tax form 2012 11. Amended tax form 2012 You must be at least age 25 but under age 65. Amended tax form 2012  12. Amended tax form 2012 You cannot be the dependent of another person. Amended tax form 2012  13. Amended tax form 2012 You cannot be a qualifying child of another person. Amended tax form 2012  14. Amended tax form 2012 You must have lived in the United States more than half of the year. Amended tax form 2012 15. Amended tax form 2012 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. Amended tax form 2012 Rule 3. Amended tax form 2012 Your Filing Status Cannot Be Married Filing Separately If you are married, you usually must file a joint return to claim the EIC. Amended tax form 2012 Your filing status cannot be “Married filing separately. Amended tax form 2012 ” Spouse did not live with you. Amended tax form 2012   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. Amended tax form 2012 In that case, you may be able to claim the EIC. Amended tax form 2012 For detailed information about filing as head of household, see chapter 2 . Amended tax form 2012 Rule 4. Amended tax form 2012 You Must Be a U. Amended tax form 2012 S. Amended tax form 2012 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. Amended tax form 2012 You can use that filing status only if one spouse is a U. Amended tax form 2012 S. Amended tax form 2012 citizen or resident alien and you choose to treat the nonresident spouse as a U. Amended tax form 2012 S. Amended tax form 2012 resident. Amended tax form 2012 If you make this choice, you and your spouse are taxed on your worldwide income. Amended tax form 2012 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). Amended tax form 2012 If you need more information on making this choice, get Publication 519, U. Amended tax form 2012 S. Amended tax form 2012 Tax Guide for Aliens. Amended tax form 2012 Rule 5. Amended tax form 2012 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. Amended tax form 2012 You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Amended tax form 2012 U. Amended tax form 2012 S. Amended tax form 2012 possessions are not foreign countries. Amended tax form 2012 See Publication 54, Tax Guide for U. Amended tax form 2012 S. Amended tax form 2012 Citizens and Resident Aliens Abroad, for more detailed information. Amended tax form 2012 Rule 6. Amended tax form 2012 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. Amended tax form 2012 If your investment income is more than $3,300, you cannot claim the credit. Amended tax form 2012 For most people, investment income is the total of the following amounts. Amended tax form 2012 Taxable interest (line 8a of Form 1040 or 1040A). Amended tax form 2012 Tax-exempt interest (line 8b of Form 1040 or 1040A). Amended tax form 2012 Dividend income (line 9a of Form 1040 or 1040A). Amended tax form 2012 Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 Rule 7. Amended tax form 2012 You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. Amended tax form 2012 If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Amended tax form 2012 If you are an employee, earned income includes all the taxable income you get from your employer. Amended tax form 2012 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. Amended tax form 2012 Earned Income Earned income includes all of the following types of income. Amended tax form 2012 Wages, salaries, tips, and other taxable employee pay. Amended tax form 2012 Employee pay is earned income only if it is taxable. Amended tax form 2012 Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Amended tax form 2012 But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained below. Amended tax form 2012 Net earnings from self-employment. Amended tax form 2012 Gross income received as a statutory employee. Amended tax form 2012 Wages, salaries, and tips. Amended tax form 2012   Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Amended tax form 2012 You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Amended tax form 2012 Nontaxable combat pay election. Amended tax form 2012   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Amended tax form 2012 Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Amended tax form 2012 Figure the credit with and without your nontaxable combat pay before making the election. Amended tax form 2012   If you make the election, you must include in earned income all nontaxable combat pay you received. Amended tax form 2012 If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Amended tax form 2012 In other words, if one of you makes the election, the other one can also make it but does not have to. Amended tax form 2012   The amount of your nontaxable combat pay should be shown in box 12 of your Form W-2 with code “Q. Amended tax form 2012 ” Self-employed persons and statutory employees. Amended tax form 2012   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. Amended tax form 2012 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. Amended tax form 2012 Each approved form exempts certain income from social security taxes. Amended tax form 2012 Each form is discussed here in terms of what is or is not earned income for the EIC. Amended tax form 2012 Form 4361. Amended tax form 2012   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Amended tax form 2012 This includes wages, salaries, tips, and other taxable employee compensation. Amended tax form 2012 A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Amended tax form 2012 Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Amended tax form 2012 Examples include fees for performing marriages and honoraria for delivering speeches. Amended tax form 2012 Form 4029. Amended tax form 2012   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Amended tax form 2012 However, amounts you received as a self-employed individual do not count as earned income. Amended tax form 2012 Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Amended tax form 2012 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. Amended tax form 2012 Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Amended tax form 2012 You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Amended tax form 2012 Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Amended tax form 2012 Report taxable pension payments on Form 1040, lines 16a and 16b (or Form 1040A, lines 12a and 12b). Amended tax form 2012 Disability insurance payments. Amended tax form 2012   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Amended tax form 2012 It does not matter whether you have reached minimum retirement age. Amended tax form 2012 If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Amended tax form 2012 ” 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. Amended tax form 2012 Do not include any of these items in your earned income. Amended tax form 2012 Earnings while an inmate. Amended tax form 2012   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Amended tax form 2012 This includes amounts for work performed while in a work release program or while in a halfway house. Amended tax form 2012 Workfare payments. Amended tax form 2012   Nontaxable workfare payments are not earned income for the EIC. Amended tax form 2012 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. Amended tax form 2012 Community property. Amended tax form 2012   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. Amended tax form 2012 That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Amended tax form 2012 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. Amended tax form 2012 Nevada, Washington, and California domestic partners. Amended tax form 2012   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Amended tax form 2012 Your earned income for the EIC does not include any amount earned by your partner. Amended tax form 2012 Your earned income includes the entire amount you earned. Amended tax form 2012 For details, see Publication 555. Amended tax form 2012 Conservation Reserve Program (CRP) payments. Amended tax form 2012   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. Amended tax form 2012 Nontaxable military pay. Amended tax form 2012   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Amended tax form 2012 Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Amended tax form 2012 See Publication 3, Armed Forces' Tax Guide, for more information. Amended tax form 2012    Combat pay. Amended tax form 2012 You can elect to include your nontaxable combat pay in earned income for the EIC. Amended tax form 2012 See Nontaxable combat pay election, earlier. Amended tax form 2012 Part B. Amended tax form 2012 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. Amended tax form 2012 Part B discusses Rules 8 through 10. Amended tax form 2012 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. Amended tax form 2012 You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Amended tax form 2012 (You cannot file Form 1040EZ. Amended tax form 2012 ) You also must complete Schedule EIC and attach it to your return. Amended tax form 2012 If you meet all the rules in Part A and this part, read Part D to find out what to do next. Amended tax form 2012 If you do not meet Rule 8, you do not have a qualifying child. Amended tax form 2012 Read Part C to find out if you can get the earned income credit without a qualifying child. Amended tax form 2012 Rule 8. Amended tax form 2012 Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. Amended tax form 2012 The four tests are: Relationship, Age, Residency, and Joint return. Amended tax form 2012 The four tests are illustrated in Figure 36–1. Amended tax form 2012 The paragraphs that follow contain more information about each test. Amended tax form 2012 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). Amended tax form 2012 The following definitions clarify the relationship test. Amended tax form 2012 Adopted child. Amended tax form 2012   An adopted child is always treated as your own child. Amended tax form 2012 The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Amended tax form 2012 Foster child. Amended tax form 2012   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. Amended tax form 2012 An authorized placement agency includes a state or local government agency. Amended tax form 2012 It also includes a tax-exempt organization licensed by a state. Amended tax form 2012 In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Amended tax form 2012 Example. Amended tax form 2012 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. Amended tax form 2012 Debbie is your foster child. Amended tax form 2012 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. Amended tax form 2012    The following examples and definitions clarify the age test. Amended tax form 2012 Example 1—child not under age 19. Amended tax form 2012 Your son turned 19 on December 10. Amended tax form 2012 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. Amended tax form 2012 Example 2—child not younger than you or your spouse. Amended tax form 2012 Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Amended tax form 2012 He is not disabled. Amended tax form 2012 Both you and your spouse are 21 years old and you file a joint return. Amended tax form 2012 Your brother is not your qualifying child because he is not younger than you or your spouse. Amended tax form 2012 Example 3—child younger than your spouse but not younger than you. Amended tax form 2012 The facts are the same as in Example 2 except that your spouse is 25 years old. Amended tax form 2012 Because your brother is younger than your spouse, he is your qualifying child even though he is not younger than you. Amended tax form 2012 Student defined. Amended tax form 2012   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. Amended tax form 2012 The 5 calendar months need not be consecutive. Amended tax form 2012   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. Amended tax form 2012 School defined. Amended tax form 2012   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Amended tax form 2012 However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Amended tax form 2012 Vocational high school students. Amended tax form 2012   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. Amended tax form 2012 Permanently and totally disabled. Amended tax form 2012   Your child is permanently and totally disabled if both of the following apply. Amended tax form 2012 He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Amended tax form 2012 A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Amended tax form 2012 Residency Test Your child must have lived with you in the United States for more than half of 2013. Amended tax form 2012 The following definitions clarify the residency test. Amended tax form 2012 United States. Amended tax form 2012   This means the 50 states and the District of Columbia. Amended tax form 2012 It does not include Puerto Rico or U. Amended tax form 2012 S. Amended tax form 2012 possessions such as Guam. Amended tax form 2012 Homeless shelter. Amended tax form 2012   Your home can be any location where you regularly live. Amended tax form 2012 You do not need a traditional home. Amended tax form 2012 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. Amended tax form 2012 Military personnel stationed outside the United States. Amended tax form 2012    U. Amended tax form 2012 S. Amended tax form 2012 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. Amended tax form 2012 Figure 36-1. Amended tax form 2012 Tests for Qualifying Child Please click here for the text description of the image. Amended tax form 2012 Qualifying child Extended active duty. Amended tax form 2012   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Amended tax form 2012 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. Amended tax form 2012 Birth or death of a child. Amended tax form 2012   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. Amended tax form 2012 Temporary absences. Amended tax form 2012   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. Amended tax form 2012 Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Amended tax form 2012 Kidnapped child. Amended tax form 2012    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. Amended tax form 2012 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. Amended tax form 2012 This treatment applies for all years until the child is returned. Amended tax form 2012 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. Amended tax form 2012   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Amended tax form 2012 Joint Return Test To meet this test, the child cannot file a joint return for the year. Amended tax form 2012 Exception. Amended tax form 2012   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. Amended tax form 2012 Example 1—child files joint return. Amended tax form 2012 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Amended tax form 2012 He earned $25,000 for the year. Amended tax form 2012 The couple files a joint return. Amended tax form 2012 Because your daughter and her husband filed a joint return, she is not your qualifying child. Amended tax form 2012 Example 2—child files joint return only to claim a refund of withheld tax. Amended tax form 2012 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Amended tax form 2012 They do not have a child. Amended tax form 2012 Neither is required to file a tax return. Amended tax form 2012 Taxes were taken out of their pay, so they filed a joint return only to get a refund of the withheld taxes. Amended tax form 2012 The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Amended tax form 2012 Example 3—child files joint return to claim American opportunity credit. Amended tax form 2012 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 The exception to the joint return test does not apply, so your son is not your qualifying child. Amended tax form 2012 Married child. Amended tax form 2012   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. Amended tax form 2012 Social security number. Amended tax form 2012   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. Amended tax form 2012 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. Amended tax form 2012   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. Amended tax form 2012 For more information about SSNs, see Rule 2 . Amended tax form 2012 Rule 9. Amended tax form 2012 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. Amended tax form 2012 However, only one of these persons can actually treat the child as a qualifying child. Amended tax form 2012 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). Amended tax form 2012 The exemption for the child. Amended tax form 2012 The child tax credit. Amended tax form 2012 Head of household filing status. Amended tax form 2012 The credit for child and dependent care expenses. Amended tax form 2012 The exclusion for dependent care benefits. Amended tax form 2012 The EIC. Amended tax form 2012 The other person cannot take any of these benefits based on this qualifying child. Amended tax form 2012 In other words, you and the other person cannot agree to divide these tax benefits between you. Amended tax form 2012 The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Amended tax form 2012 The tiebreaker rules explained next explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Amended tax form 2012 However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Amended tax form 2012 Tiebreaker rules. Amended tax form 2012   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. Amended tax form 2012 If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 See Example 8 . Amended tax form 2012   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. Amended tax form 2012 See Examples 1 through 13 . Amended tax form 2012   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. Amended tax form 2012 If the other person cannot claim the EIC. Amended tax form 2012   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. Amended tax form 2012 See Examples 6 and 7 . Amended tax form 2012 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. Amended tax form 2012 Examples. Amended tax form 2012 The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Amended tax form 2012 Example 1. Amended tax form 2012 You and your 2-year-old son Jimmy lived with your mother all year. Amended tax form 2012 You are 25 years old, unmarried, and your AGI is $9,000. Amended tax form 2012 Your only income was $9,000 from a part-time job. Amended tax form 2012 Your mother's only income was $20,000 from her job, and her AGI is $20,000. Amended tax form 2012 Jimmy's father did not live with you or Jimmy. Amended tax form 2012 The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Amended tax form 2012 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. Amended tax form 2012 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). Amended tax form 2012 He is not a qualifying child of anyone else, including his father. Amended tax form 2012 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). Amended tax form 2012 Example 2. Amended tax form 2012 The facts are the same as in Example 1 except your AGI is $25,000. Amended tax form 2012 Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Amended tax form 2012 Only you can claim him. Amended tax form 2012 Example 3. Amended tax form 2012 The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 Example 4. Amended tax form 2012 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. Amended tax form 2012 Only one of you can claim each child. Amended tax form 2012 However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Amended tax form 2012 For example, if you claim one child, your mother can claim the other two. Amended tax form 2012 Example 5. Amended tax form 2012 The facts are the same as in Example 1 except that you are only 18 years old. Amended tax form 2012 This means you are a qualifying child of your mother. Amended tax form 2012 Because of Rule 10 , discussed next, you cannot claim the EIC and cannot claim Jimmy as a qualifying child. Amended tax form 2012 Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Amended tax form 2012 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. Amended tax form 2012 Example 6. Amended tax form 2012 The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Amended tax form 2012 Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Amended tax form 2012 Example 7. Amended tax form 2012 The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Amended tax form 2012 Your earned income is too high for you to claim the EIC. Amended tax form 2012 But your mother cannot claim the EIC either, because her AGI is not higher than yours. Amended tax form 2012 Example 8. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 In other words, each parent's AGI can be treated as $15,000. Amended tax form 2012 Example 9. Amended tax form 2012 You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Amended tax form 2012 In August and September, Joey lived with you. Amended tax form 2012 For the rest of the year, Joey lived with your husband, who is Joey's father. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 You and your husband will file separate returns. Amended tax form 2012 Your husband agrees to let you treat Joey as a qualifying child. Amended tax form 2012 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. Amended tax form 2012 However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Amended tax form 2012 See Rule 3 . Amended tax form 2012 Example 10. Amended tax form 2012 The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Amended tax form 2012 In this case, only your husband will be allowed to treat Joey as a qualifying child. Amended tax form 2012 This is because, during 2013, the boy lived with him longer than with you. Amended tax form 2012 You cannot claim the EIC (either with or without a qualifying child). Amended tax form 2012 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. Amended tax form 2012 See Rule 3 . Amended tax form 2012 Example 11. Amended tax form 2012 You, your 5-year-old son and your son's father lived together all year. Amended tax form 2012 You and your son's father are not married. Amended tax form 2012 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. Amended tax form 2012 Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Amended tax form 2012 Neither of you had any other income. Amended tax form 2012 Your son's father agrees to let you treat the child as a qualifying child. Amended tax form 2012 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. Amended tax form 2012 Example 12. Amended tax form 2012 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. Amended tax form 2012 In this case, only your son's father will be allowed to treat your son as a qualifying child. Amended tax form 2012 This is because his AGI, $14,000, is more than your AGI, $12,000. Amended tax form 2012 You cannot claim the EIC (either with or without a qualifying child). Amended tax form 2012 Example 13. Amended tax form 2012 You and your 7-year-old niece, your sister's child, lived with your mother all year. Amended tax form 2012 You are 25 years old, and your AGI is $9,300. Amended tax form 2012 Your only income was from a part-time job. Amended tax form 2012 Your mother's AGI is $15,000. Amended tax form 2012 Her only income was from her job. Amended tax form 2012 Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Amended tax form 2012 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. Amended tax form 2012 However, only your mother can treat her as a qualifying child. Amended tax form 2012 This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Amended tax form 2012 Special rule for divorced or separated parents (or parents who live apart). Amended tax form 2012   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. Amended tax form 2012 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. Amended tax form 2012 The child received over half of his or her support for the year from the parents. Amended tax form 2012 The child is in the custody of one or both parents for more than half of 2013. Amended tax form 2012 Either of the following statements is true. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012  For details, see chapter 3. Amended tax form 2012 Also see Applying Rule 9 to divorced or separated parents (or parents who live apart) , next. Amended tax form 2012 Applying Rule 9 to divorced or separated parents (or parents who live apart). Amended tax form 2012   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. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 Example 1. Amended tax form 2012 You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Amended tax form 2012 Your AGI is $10,000. Amended tax form 2012 Your mother’s AGI is $25,000. Amended tax form 2012 Your son's father did not live with you or your son. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 You and your mother did not have any child care expenses or dependent care benefits. Amended tax form 2012 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. Amended tax form 2012 Example 2. Amended tax form 2012 The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Amended tax form 2012 Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Amended tax form 2012 Example 3. Amended tax form 2012 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. Amended tax form 2012 Your mother also claims him as a qualifying child for head of household filing status. Amended tax form 2012 You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Amended tax form 2012 The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Amended tax form 2012 Rule 10. Amended tax form 2012 You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Amended tax form 2012 ) if all of the following statements are true. Amended tax form 2012 You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Amended tax form 2012 Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). Amended tax form 2012 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. Amended tax form 2012 You lived with that person in the United States for more than half of the year. Amended tax form 2012 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). Amended tax form 2012 For more details about the tests to be a qualifying child, see Rule 8 . Amended tax form 2012 If you are a qualifying child of another taxpayer, you cannot claim the EIC. Amended tax form 2012 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. Amended tax form 2012 Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Amended tax form 2012 Example. Amended tax form 2012 You and your daughter lived with your mother all year. Amended tax form 2012 You are 22 years old, unmarried, and attended a trade school full time. Amended tax form 2012 You had a part-time job and earned $5,700. Amended tax form 2012 You had no other income. Amended tax form 2012 Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Amended tax form 2012 She can claim the EIC if she meets all the other requirements. Amended tax form 2012 Because you are your mother's qualifying child, you cannot claim the EIC. Amended tax form 2012 This is so even if your mother cannot or does not claim the EIC. Amended tax form 2012 Child of person not required to file a return. Amended tax form 2012   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. Amended tax form 2012 Example. Amended tax form 2012 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. Amended tax form 2012 As a result, you are not your mother's qualifying child. Amended tax form 2012 You can claim the EIC if you meet all the other requirements to do so. Amended tax form 2012   See Rule 10 in Publication 596 for additional examples. Amended tax form 2012 Part C. Amended tax form 2012 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 . Amended tax form 2012  Part C discusses Rules 11 through 14. Amended tax form 2012 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. Amended tax form 2012 If you have a qualifying child, the rules in this part do not apply to you. Amended tax form 2012 You can claim the credit only if you meet all the rules in Parts A, B, and D. Amended tax form 2012 See Rule 8 to find out if you have a qualifying child. Amended tax form 2012 Rule 11. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 It does not matter which spouse meets the age test, as long as one of the spouses does. Amended tax form 2012 You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Amended tax form 2012 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. Amended tax form 2012 If neither you nor your spouse meets the age test, you cannot claim the EIC. Amended tax form 2012 Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Amended tax form 2012 Death of spouse. Amended tax form 2012   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. Amended tax form 2012 Example 1. Amended tax form 2012 You are age 28 and unmarried. Amended tax form 2012 You meet the age test. Amended tax form 2012 Example 2—spouse meets age test. Amended tax form 2012 You are married and filing a joint return. Amended tax form 2012 You are age 23 and your spouse is age 27. Amended tax form 2012 You meet the age test because your spouse is at least age 25 but under age 65. Amended tax form 2012 Example 3—spouse dies in 2013. Amended tax form 2012 You are married and filing a joint return with your spouse who died in August 2013. Amended tax form 2012 You are age 67. Amended tax form 2012 Your spouse would have become age 65 in November 2013. Amended tax form 2012 Because your spouse was under age 65 when she died, you meet the age test. Amended tax form 2012 Rule 12. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 Example 1. Amended tax form 2012 In 2013, you were age 25, single, and living at home with your parents. Amended tax form 2012 You worked and were not a student. Amended tax form 2012 You earned $7,500. Amended tax form 2012 Your parents cannot claim you as a dependent. Amended tax form 2012 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. Amended tax form 2012 You meet this rule. Amended tax form 2012 You can claim the EIC if you meet all the other requirements. Amended tax form 2012 Example 2. Amended tax form 2012 The facts are the same as in Example 1 , except that you earned $2,000. Amended tax form 2012 Your parents can claim you as a dependent but decide not to. Amended tax form 2012 You do not meet this rule. Amended tax form 2012 You cannot claim the credit because your parents could have claimed you as a dependent. Amended tax form 2012 Joint returns. Amended tax form 2012   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Amended tax form 2012   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. Amended tax form 2012 But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Amended tax form 2012 Example 1. Amended tax form 2012 You are 26 years old. Amended tax form 2012 You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Amended tax form 2012 Neither you nor your wife is required to file a tax return. Amended tax form 2012 You do not have a child. Amended tax form 2012 Taxes were taken out of your pay, so you file a joint return only to get a refund of the withheld taxes. Amended tax form 2012 Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Amended tax form 2012 They can claim exemptions for you and your wife if all the other tests to do so are met. Amended tax form 2012 Example 2. Amended tax form 2012 The facts are the same as in Example 1 except no taxes were taken out of your pay. Amended tax form 2012 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. Amended tax form 2012 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. Amended tax form 2012 Your parents cannot claim an exemption for either you or your wife. Amended tax form 2012 Rule 13. Amended tax form 2012 You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Amended tax form 2012 ) if all of the following statements are true. Amended tax form 2012 You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Amended tax form 2012 Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). Amended tax form 2012 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. Amended tax form 2012 You lived with that person in the United States for more than half of the year. Amended tax form 2012 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). Amended tax form 2012 For more details about the tests to be a qualifying child, see Rule 8 . Amended tax form 2012 If you are a qualifying child of another taxpayer, you cannot claim the EIC. Amended tax form 2012 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. Amended tax form 2012 Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Amended tax form 2012 Example. Amended tax form 2012 You lived with your mother all year. Amended tax form 2012 You are age 26, unmarried, and permanently and totally disabled. Amended tax form 2012 Your only income was from a community center where you went three days a week to answer telephones. Amended tax form 2012 You earned $5,000 for the year and provided more than half of your own support. Amended tax form 2012 Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Amended tax form 2012 She can claim the EIC if she meets all the other requirements. Amended tax form 2012 Because you are a qualifying child of your mother, you cannot claim the EIC. Amended tax form 2012 This is so even if your mother cannot or does not claim the EIC. Amended tax form 2012 Joint returns. Amended tax form 2012   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Amended tax form 2012   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. Amended tax form 2012 But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Amended tax form 2012 Child of person not required to file a return. Amended tax form 2012   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. Amended tax form 2012 Example. Amended tax form 2012 You lived all year with your father. Amended tax form 2012 You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Amended tax form 2012 You have no other income, no children, and provided more than half of your own support. Amended tax form 2012 Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Amended tax form 2012 As a result, you are not your father's qualifying child. Amended tax form 2012 You can claim the EIC if you meet all the other requirements to do so. Amended tax form 2012   See Rule 13 in Publication 596 for additional examples. Amended tax form 2012 Rule 14. Amended tax form 2012 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. Amended tax form 2012 If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Amended tax form 2012 United States. Amended tax form 2012   This means the 50 states and the District of Columbia. Amended tax form 2012 It does not include Puerto Rico or U. Amended tax form 2012 S. Amended tax form 2012 possessions such as Guam. Amended tax form 2012 Homeless shelter. Amended tax form 2012   Your home can be any location where you regularly live. Amended tax form 2012 You do not need a traditional home. Amended tax form 2012 If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Amended tax form 2012 Military personnel stationed outside the United States. Amended tax form 2012   U. Amended tax form 2012 S. Amended tax form 2012 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. Amended tax form 2012 Part D. Amended tax form 2012 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. Amended tax form 2012 Part D discusses Rule 15 . Amended tax form 2012 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. Amended tax form 2012 This part of the chapter also explains how to figure the amount of your credit. Amended tax form 2012 You have two choices. Amended tax form 2012 Have the IRS figure the EIC for you. Amended tax form 2012 If you want to do this, see IRS Will Figure the EIC for You . Amended tax form 2012 Figure the EIC yourself. Amended tax form 2012 If you want to do this, see How To Figure the EIC Yourself . Amended tax form 2012 Rule 15. Amended tax form 2012 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. Amended tax form 2012 Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Amended tax form 2012 Employee pay is earned income only if it is taxable. Amended tax form 2012 Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Amended tax form 2012 But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Amended tax form 2012 Earned income is explained in detail in Rule 7 . Amended tax form 2012 Figuring earned income. Amended tax form 2012   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. Amended tax form 2012   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. Amended tax form 2012   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). Amended tax form 2012 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. Amended tax form 2012 Scholarship or fellowship grants not reported on a Form W-2. Amended tax form 2012   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. Amended tax form 2012 Inmate's income. Amended tax form 2012   Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Amended tax form 2012 This includes amounts received for work performed while in a work release program or while in a halfway house. Amended tax form 2012 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). Amended tax form 2012 Pension or annuity from deferred compensation plans. Amended tax form 2012   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. Amended tax form 2012 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). Amended tax form 2012 This amount may be reported in box 11 of your Form W-2. Amended tax form 2012 If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity. Amended tax form 2012 Clergy. Amended tax form 2012   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. Amended tax form 2012 Put “Clergy” on the dotted line next to line 64a (Form 1040). Amended tax form 2012 Church employees. Amended tax form 2012    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. Amended tax form 2012 If you received wages as a