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Blank 1040ez Form

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Blank 1040ez Form

Blank 1040ez form 6. Blank 1040ez form   How To Figure Cost of Goods Sold Table of Contents Introduction Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42Line 35 Inventory at Beginning of Year Line 36 Purchases Less Cost of Items Withdrawn for Personal Use Line 37 Cost of Labor Line 38 Materials and Supplies Line 39 Other Costs Line 40 Add Lines 35 through 39 Line 41 Inventory at End of Year Line 42 Cost of Goods Sold Introduction If you make or buy goods to sell, you can deduct the cost of goods sold from your gross receipts on Schedule C. Blank 1040ez form However, to determine these costs, you must value your inventory at the beginning and end of each tax year. Blank 1040ez form This chapter applies to you if you are a manufacturer, wholesaler, or retailer or if you are engaged in any business that makes, buys, or sells goods to produce income. Blank 1040ez form This chapter does not apply to a personal service business, such as the business of a doctor, lawyer, carpenter, or painter. Blank 1040ez form However, if you work in a personal service business and also sell or charge for the materials and supplies normally used in your business, this chapter applies to you. Blank 1040ez form If you must account for an inventory in your business, you must generally use an accrual method of accounting for your purchases and sales. Blank 1040ez form For more information, see chapter 2. Blank 1040ez form Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42 Figure your cost of goods sold by filling out lines 35 through 42 of Schedule C. Blank 1040ez form These lines are reproduced below and are explained in the discussion that follows. Blank 1040ez form 35 Inventory at beginning of year. Blank 1040ez form If different from last year's closing inventory, attach explanation   36 Purchases less cost of items withdrawn for personal use   37 Cost of labor. Blank 1040ez form Do not include any amounts paid to yourself   38 Materials and supplies   39 Other costs   40 Add lines 35 through 39   41 Inventory at end of year   42 Cost of goods sold. Blank 1040ez form Subtract line 41 from line 40. Blank 1040ez form  Enter the result here and on line 4   Line 35 Inventory at Beginning of Year If you are a merchant, beginning inventory is the cost of merchandise on hand at the beginning of the year that you will sell to customers. Blank 1040ez form If you are a manufacturer or producer, it includes the total cost of raw materials, work in process, finished goods, and materials and supplies used in manufacturing the goods (see Inventories in chapter 2). Blank 1040ez form Opening inventory usually will be identical to the closing inventory of the year before. Blank 1040ez form You must explain any difference in a schedule attached to your return. Blank 1040ez form Donation of inventory. Blank 1040ez form   If you contribute inventory (property that you sell in the course of your business), the amount you can claim as a contribution deduction is the smaller of its fair market value on the day you contributed it or its basis. Blank 1040ez form The basis of donated inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. Blank 1040ez form You must remove the amount of your contribution deduction from your opening inventory. Blank 1040ez form It is not part of the cost of goods sold. Blank 1040ez form   If the cost of donated inventory is not included in your opening inventory, the inventory's basis is zero and you cannot claim a charitable contribution deduction. Blank 1040ez form Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Blank 1040ez form For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Blank 1040ez form   A special rule may apply to certain donations of food inventory. Blank 1040ez form See Publication 526, Charitable Contributions. Blank 1040ez form Example 1. Blank 1040ez form You are a calendar year taxpayer who uses an accrual method of accounting. Blank 1040ez form In 2013, you contributed property from inventory to a church. Blank 1040ez form It had a fair market value of $600. Blank 1040ez form The closing inventory at the end of 2012 properly included $400 of costs due to the acquisition of the property, and in 2012, you properly deducted $50 of administrative and other expenses attributable to the property as business expenses. Blank 1040ez form The charitable contribution allowed for 2013 is $400 ($600 − $200). Blank 1040ez form The $200 is the amount that would be ordinary income if you had sold the contributed inventory at fair market value on the date of the gift. Blank 1040ez form The cost of goods sold you use in determining gross income for 2013 must not include the $400. Blank 1040ez form You remove that amount from opening inventory for 2013. Blank 1040ez form Example 2. Blank 1040ez form If, in Example 1, you acquired the contributed property in 2013 at a cost of $400, you would include the $400 cost of the property in figuring the cost of goods sold for 2013 and deduct the $50 of administrative and other expenses attributable to the property for that year. Blank 1040ez form You would not be allowed any charitable contribution deduction for the contributed property. Blank 1040ez form Line 36 Purchases Less Cost of Items Withdrawn for Personal Use If you are a merchant, use the cost of all merchandise you bought for sale. Blank 1040ez form If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into a finished product. Blank 1040ez form Trade discounts. Blank 1040ez form   The differences between the stated prices of articles and the actual prices you pay for them are called trade discounts. Blank 1040ez form You must use the prices you pay (not the stated prices) in figuring your cost of purchases. Blank 1040ez form Do not show the discount amount separately as an item in gross income. Blank 1040ez form   An automobile dealer must record the cost of a car in inventory reduced by any manufacturer's rebate that represents a trade discount. Blank 1040ez form Cash discounts. Blank 1040ez form   Cash discounts are amounts your suppliers let you deduct from your purchase invoices for prompt payments. Blank 1040ez form There are two methods of accounting for cash discounts. Blank 1040ez form You can either credit them to a separate discount account or deduct them from total purchases for the year. Blank 1040ez form Whichever method you use, you must be consistent. Blank 1040ez form If you want to change your method of figuring inventory cost, you must file Form 3115, Application for Change in Accounting Method. Blank 1040ez form For more information, see Change in Accounting Method in chapter 2. Blank 1040ez form   If you credit cash discounts to a separate account, you must include this credit balance in your business income at the end of the tax year. Blank 1040ez form If you use this method, do not reduce your cost of goods sold by the cash discounts. Blank 1040ez form Purchase returns and allowances. Blank 1040ez form   You must deduct all returns and allowances from your total purchases during the year. Blank 1040ez form Merchandise withdrawn from sale. Blank 1040ez form   If you withdraw merchandise for your personal or family use, you must exclude this cost from the total amount of merchandise you bought for sale. Blank 1040ez form Do this by crediting the purchases or sales account with the cost of merchandise you withdraw for personal use. Blank 1040ez form You must also charge the amount to your drawing account. Blank 1040ez form   A drawing account is a separate account you should keep to record the business income you withdraw to pay for personal and family expenses. Blank 1040ez form As stated above, you also use it to record withdrawals of merchandise for personal or family use. Blank 1040ez form This account is also known as a “withdrawals account” or “personal account. Blank 1040ez form ” Line 37 Cost of Labor Labor costs are usually an element of cost of goods sold only in a manufacturing or mining business. Blank 1040ez form Small merchandisers (wholesalers, retailers, etc. Blank 1040ez form ) usually do not have labor costs that can properly be charged to cost of goods sold. Blank 1040ez form In a manufacturing business, labor costs properly allocable to the cost of goods sold include both the direct and indirect labor used in fabricating the raw material into a finished, saleable product. Blank 1040ez form Direct labor. Blank 1040ez form   Direct labor costs are the wages you pay to those employees who spend all their time working directly on the product being manufactured. Blank 1040ez form They also include a part of the wages you pay to employees who work directly on the product part time if you can determine that part of their wages. Blank 1040ez form Indirect labor. Blank 1040ez form   Indirect labor costs are the wages you pay to employees who perform a general factory function that does not have any immediate or direct connection with making the saleable product, but that is a necessary part of the manufacturing process. Blank 1040ez form Other labor. Blank 1040ez form   Other labor costs not properly chargeable to the cost of goods sold can be deducted as selling or administrative expenses. Blank 1040ez form Generally, the only kinds of labor costs properly chargeable to your cost of goods sold are the direct or indirect labor costs and certain other costs treated as overhead expenses properly charged to the manufacturing process, as discussed later under Line 39 Other Costs. Blank 1040ez form Line 38 Materials and Supplies Materials and supplies, such as hardware and chemicals, used in manufacturing goods are charged to cost of goods sold. Blank 1040ez form Those that are not used in the manufacturing process are treated as deferred charges. Blank 1040ez form You deduct them as a business expense when you use them. Blank 1040ez form Business expenses are discussed in chapter 8. Blank 1040ez form Line 39 Other Costs Examples of other costs incurred in a manufacturing or mining process that you charge to your cost of goods sold are as follows. Blank 1040ez form Containers. Blank 1040ez form   Containers and packages that are an integral part of the product manufactured are a part of your cost of goods sold. Blank 1040ez form If they are not an integral part of the manufactured product, their costs are shipping or selling expenses. Blank 1040ez form Freight-in. Blank 1040ez form   Freight-in, express-in, and cartage-in on raw materials, supplies you use in production, and merchandise you purchase for sale are all part of cost of goods sold. Blank 1040ez form Overhead expenses. Blank 1040ez form   Overhead expenses include expenses such as rent, heat, light, power, insurance, depreciation, taxes, maintenance, labor, and supervision. Blank 1040ez form The overhead expenses you have as direct and necessary expenses of the manufacturing operation are included in your cost of goods sold. Blank 1040ez form Line 40 Add Lines 35 through 39 The total of lines 35 through 39 equals the cost of the goods available for sale during the year. Blank 1040ez form Line 41 Inventory at End of Year Subtract the value of your closing inventory (including, as appropriate, the allocable parts of the cost of raw materials and supplies, direct labor, and overhead expenses) from line 40. Blank 1040ez form Inventory at the end of the year is also known as closing or ending inventory. Blank 1040ez form Your ending inventory will usually become the beginning inventory of your next tax year. Blank 1040ez form Line 42 Cost of Goods Sold When you subtract your closing inventory (inventory at the end of the year) from the cost of goods available for sale, the remainder is your cost of goods sold during the tax year. Blank 1040ez form Prev  Up  Next   Home   More Online Publications
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The Blank 1040ez Form

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