Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

E Filing Income Tax

Www Taxact ComHow Do I File 2012 Tax ReturnAmend 2012 Tax Return OnlineH&r Tax SoftwareWww.irs.gov1040x1040 Tax Forms 2011Free Income Tax PreparationForm 1040x 2013Free Online Tax Filing For 2011How Do I File A Amended Tax ReturnFree 1040x Forms Prepared OnlineHow Do I File An Amended Federal Tax ReturnIrs 1040x 2012Turbo Tax 2005Tax Forms Ez1040nr Form 2012Amend Federal ReturnFree Turbotax For MilitaryForm1040x2012 Amended Tax ReturnH&r Block Free State FilingTax Forms 1040 EzWhat Forms Do I Need To File My 2011 TaxesFile 2011 Taxes Online FreeWww.1040ez.comDo Students Need To File TaxesH&r Block At Home Deluxe State 2012 Download2012 Tax Return BookletFile Tax ReturnEfileHow To File 2011 Taxes Online For Free1040ez Tax FormsHow Do I File My 2012 Taxes LateHow To File Amended Tax ReturnFree Tax Filing 20131090ez Form2012 Federal Income TaxInstructions For Form 1040ezMyfreetaxes 2014Taxes 1040ez

E Filing Income Tax

E filing income tax 13. E filing income tax   Payment of Taxes Table of Contents How To Make Deposits When To Make Deposits Amount of DepositsSafe Harbor Rule Generally, semimonthly deposits of excise taxes are required. E filing income tax A semimonthly period is the first 15 days of a month (the first semimonthly period) or the 16th through the last day of a month (the second semimonthly period). E filing income tax However, no deposit is required for the situations listed below; the taxes are payable with Form 720. E filing income tax The net liability for taxes listed in Part I (Form 720) does not exceed $2,500 for the quarter. E filing income tax The gas guzzler tax is being paid on a one-time filing. E filing income tax The liability is for taxes listed in Part II (Form 720), except for the floor stocks tax which generally requires a single deposit. E filing income tax How To Make Deposits Electronic deposit requirement. E filing income tax   You must use electronic funds transfer to make excise tax deposits. E filing income tax Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). E filing income tax If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. E filing income tax Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. E filing income tax   EFTPS is a free service provided by the Department of Treasury. E filing income tax Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. E filing income tax To get more information about EFTPS or to enroll in EFTPS, visit www. E filing income tax eftps. E filing income tax gov or call 1-800-555-4477. E filing income tax Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. E filing income tax    Depositing on time. E filing income tax For EFTPS deposits to be on time, you must initiate the transaction at least 1 day before the date the deposit is due (before 8:00 p. E filing income tax m. E filing income tax Eastern time). E filing income tax You will automatically be enrolled in EFTPS when you apply for an EIN. E filing income tax You will receive a separate mailing containing instructions for activating your EFTPS enrollment after you receive your EIN. E filing income tax When To Make Deposits There are two methods for determining deposits: the regular method and the alternative method. E filing income tax The regular method applies to all taxes in Part I of Form 720 except for communications and air transportation taxes if deposits are based on amounts billed or tickets sold, rather than on amounts actually collected. E filing income tax See Alternative method below. E filing income tax If you are depositing more than one tax under a method, combine all the taxes under the method and make one deposit for the semimonthly period. E filing income tax Regular method. E filing income tax   The deposit of tax for a semimonthly period is due by the 14th day following that period. E filing income tax Generally, this is the 29th day of a month for the first semimonthly period and the 14th day of the following month for the second semimonthly period. E filing income tax If the 14th or the 29th day falls on a Saturday, Sunday, or legal holiday, you must make the deposit by the immediately preceding day that is not a Saturday, Sunday, or legal holiday. E filing income tax Alternative method (IRS Nos. E filing income tax 22, 26, 27, and 28). E filing income tax   Deposits of communications and air transportation taxes may be based on taxes included in amounts billed or tickets sold during a semimonthly period instead of on taxes actually collected during the period. E filing income tax Under the alternative method, the tax included in amounts billed or tickets sold during a semimonthly period is considered collected during the first 7 days of the second following semimonthly period. E filing income tax The deposit of tax is due by the 3rd banking day after the 7th day of that period. E filing income tax   For an example of the alternative method, see the Instructions for Form 720. E filing income tax To use the alternative method, you must keep a separate account of the tax included in amounts billed or tickets sold during the month and report on Form 720 the tax included in amounts billed or tickets sold and not the amount of tax that is actually collected. E filing income tax For example, amounts billed in December, January, and February are considered collected during January, February, and March and are reported on Form 720 as the tax for the 1st quarter of the calendar year. E filing income tax The separate account for each month must reflect: All items of tax included in amounts billed or tickets sold during the month, and Other items of adjustment relating to tax for prior months (within the statute of limitations on credits or refunds). E filing income tax The separate account for any month cannot include an adjustment resulting from a refusal to pay or inability to collect unless the refusal has been reported to the IRS. E filing income tax See Uncollected Tax Report in chapter 4. E filing income tax The net amount of tax that is considered collected during the semimonthly period must be either: The net amount of tax reflected in the separate account for the corresponding semimonthly period of the preceding month, or One-half of the net amount of tax reflected in the separate account for the preceding month. E filing income tax Special rule for deposits of taxes in September. E filing income tax   See the Instructions for Form 720 for a special rule on deposits made in September. E filing income tax Amount of Deposits Deposits for a semimonthly period generally must be at least 95% of the net tax liability for that period unless the safe harbor rule (discussed later) applies. E filing income tax Generally, you do not have to make a deposit for a period in which you incurred no tax liability. E filing income tax Net tax liability. E filing income tax   Your net tax liability is your tax liability for the period minus any claims on Schedule C (Form 720) for the period. E filing income tax You may figure your net tax liability for a semimonthly period by dividing your net liability incurred during the calendar month by two. E filing income tax If you use this method, you must use it for all semimonthly periods in the calendar quarter. E filing income tax Do not reduce your liability by any amounts from Form 720X. E filing income tax Safe Harbor Rule The safe harbor rule applies separately to deposits under the regular method and the alternative method. E filing income tax Persons who filed Form 720 for the look-back quarter (the 2nd calendar quarter preceding the current quarter) are considered to meet the semimonthly deposit requirement if the deposit for each semimonthly period in the current quarter is at least 1/6 (16. E filing income tax 67%) of the net tax liability reported for the look-back quarter. E filing income tax For the semimonthly period for which the additional deposit is required, the additional deposit must be at least 11/90 12. E filing income tax 23%), 10/90 (11. E filing income tax 12%) for non-EFTPS, of the net tax liability reported for the look-back quarter. E filing income tax Also, the total deposit for that semimonthly period must be at least 1/6 (16. E filing income tax 67%) of the net tax liability reported for the look-back quarter. E filing income tax Exceptions. E filing income tax   The safe harbor rule does not apply to: The 1st and 2nd quarters beginning on or after the effective date of an increase in the rate of tax unless the deposit of taxes for each semimonthly period in the calendar quarter is at least 1/6 (16. E filing income tax 67%) of the tax liability you would have had for the look-back quarter if the increased rate of tax had been in effect for that look-back quarter, Any quarter if liability includes any tax not in effect throughout the look-back quarter, or For deposits under the alternative method, any quarter if liability includes any tax not in effect throughout the look-back quarter and the month preceding the look-back quarter. E filing income tax Requirements to be met. E filing income tax   For the safe harbor rule to apply, you must: Make each deposit timely at an authorized financial institution, and Pay any underpayment for the current quarter by the due date of the return. E filing income tax    The IRS may withdraw the right to make deposits of tax using the safe harbor rule from any person not complying with these rules. E filing income tax Tax rate increases. E filing income tax   You must modify the safe harbor rule if there has been an increase in the rate of tax. E filing income tax You must figure your tax liability in the look-back quarter as if the increased rate had been in effect. E filing income tax To qualify for the safe harbor rule, your deposits cannot be less than 1/6 of the refigured tax liability. E filing income tax Prev  Up  Next   Home   More Online Publications
Español

Health RSS Feeds

Government RSS feeds on topics such as diseases, healthcare, Medicare, Medicaid, healthcare, and medical research.

The E Filing Income Tax

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