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

Earned Income Tax Credit

Amended Return Form 1040xIrs Forms 10401040 Schedule A Tax FormHow Do I File My 2011 Tax ReturnCan I Refile My TaxesForm 1040ezTax Filing TipsFree Tax ServicesIt 1040xFree Tax OnlineHr Block 2010 DownloadHow To Amend Income Tax ReturnFile Your State Taxes For FreeHow To File An Amended Tax Return 20131044ezFiling Amended Tax Return2012 Irs 1040a InstructionsFile Taxes For Free 20112012 Tax FileFile Taxes Last Year1040ez Tax Forms 2014When Can I Amend My 2011 Tax Return2014 1040 Ez Tax FormIncome Tax Form 1040H&r Block At HomeHow To File An Amended Tax Return For 2010Amend My 2012 Tax ReturnHow To Amend 1040ez Tax FormTax Act 2012 Returning User1040 Ez 2010Irs Forms 1040File 2011 Taxes Online TurbotaxCan I E File 1040xHrblock 2010 Tax CalculatorFile Taxes Online Free H&r Block1040 For 2010How To File Tax Amendment OnlineFile 2011 Taxes Late FreeFile Amended Tax ReturnAarp Tax Filing

Earned Income Tax Credit

Earned income tax credit Publication 54 - Additional Material Questions and AnswersThis section answers tax- related questions commonly asked by taxpayers living abroad. Earned income tax credit 1. Earned income tax credit Filing Requirements—Where, When, and How . Earned income tax credit 1) When are U. Earned income tax credit S. Earned income tax credit income tax returns due? . Earned income tax credit 2) I am going abroad this year and expect to qualify for the foreign earned income exclusion. Earned income tax credit How can I secure an extension of time to file my return, when should I file my return, and what forms are required? . Earned income tax credit 3) My entire income qualifies for the foreign earned income exclusion. Earned income tax credit Must I file a tax return? . Earned income tax credit 4) I was sent abroad by my company in November of last year. Earned income tax credit I plan to secure an extension of time on Form 2350 to file my tax return for last year because I expect to qualify for the foreign earned income exclusion under the physical presence test. Earned income tax credit However, if my company recalls me to the United States before the end of the qualifying period and I find I will not qualify for the exclusion, how and when should I file my return? . Earned income tax credit 5) I am a U. Earned income tax credit S. Earned income tax credit citizen and have no taxable income from the United States, but I have substantial income from a foreign source. Earned income tax credit Am I required to file a U. Earned income tax credit S. Earned income tax credit income tax return? . Earned income tax credit 6) I am a U. Earned income tax credit S. Earned income tax credit citizen who has retired, and I expect to remain in a foreign country. Earned income tax credit Do I have any further U. Earned income tax credit S. Earned income tax credit tax obligations? . Earned income tax credit 7) I have been a bona fide resident of a foreign country for over 5 years. Earned income tax credit Is it necessary for me to pay estimated tax? . Earned income tax credit 8) Will a check payable in foreign currency be acceptable in payment of my U. Earned income tax credit S. Earned income tax credit tax? . Earned income tax credit 9) I have met the test for physical presence in a foreign country and am filing returns for 2 years. Earned income tax credit Must I file a separate Form 2555 (or Form 2555-EZ) with each return? . Earned income tax credit 10) Does a Form 2555 (or 2555-EZ) with a Schedule C or Form W-2 attached constitute a return? . Earned income tax credit 11) On Form 2350, Application for Extension of Time To File U. Earned income tax credit S. Earned income tax credit Income Tax Return, I stated that I would qualify for the foreign earned income exclusion under the physical presence test. Earned income tax credit If I qualify under the bona fide residence test, can I file my return on that basis? . Earned income tax credit 12) I am a U. Earned income tax credit S. Earned income tax credit citizen who worked in the United States for 6 months last year. Earned income tax credit I accepted employment overseas in July of last year and expect to qualify for the foreign earned income exclusion. Earned income tax credit Should I file a return and pay tax on the income earned in the United States during the first 6 months and then, when I qualify, file another return covering the last 6 months of the year? . Earned income tax credit 13) I am a U. Earned income tax credit S. Earned income tax credit citizen. Earned income tax credit I have lived abroad for a number of years and recently realized that I should have been filing U. Earned income tax credit S. Earned income tax credit income tax returns. Earned income tax credit How do I correct this oversight in not having filed returns for these years? . Earned income tax credit 14) In 2008, I qualified to exclude my foreign earned income, but I did not claim this exclusion on the return I filed in 2009. Earned income tax credit I paid all outstanding taxes with the return. Earned income tax credit Can I file a claim for refund now? . Earned income tax credit 1) When are U. Earned income tax credit S. Earned income tax credit income tax returns due? Generally, for calendar year taxpayers, U. Earned income tax credit S. Earned income tax credit income tax returns are due on April 15. Earned income tax credit If you are a U. Earned income tax credit S. Earned income tax credit citizen or resident and both your tax home and your abode are outside the United States and Puerto Rico on the regular due date, an automatic extension is granted to June 15 for filing the return. Earned income tax credit Interest will be charged on any tax due, as shown on the return, from April 15. Earned income tax credit a) You should file Form 2350 by the due date of your return to request an extension of time to file. Earned income tax credit Form 2350 is a special form for those U. Earned income tax credit S. Earned income tax credit citizens or residents abroad who expect to qualify for the foreign earned income exclusion or the housing exclusion or deduction under either the bona fide residence test or physical presence test and would like to have an extension of time to delay filing until after they have qualified. Earned income tax credit b) If the extension is granted, you should file your return after you qualify, but by the approved extension date. Earned income tax credit c) You must file your Form 1040 with Form 2555 (or Form 2555-EZ). Earned income tax credit Generally, yes. Earned income tax credit Every U. Earned income tax credit S. Earned income tax credit citizen or resident who receives income must file a U. Earned income tax credit S. Earned income tax credit income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. Earned income tax credit The income levels for filing purposes are discussed under Filing Requirements in chapter 1. Earned income tax credit If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Earned income tax credit Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Earned income tax credit You must report your worldwide income on the return. Earned income tax credit If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Earned income tax credit S. Earned income tax credit income tax. Earned income tax credit However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Earned income tax credit Yes. Earned income tax credit All U. Earned income tax credit S. Earned income tax credit citizens and resident aliens are subject to U. Earned income tax credit S. Earned income tax credit tax on their worldwide income. Earned income tax credit If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Earned income tax credit S. Earned income tax credit income tax liability for the foreign taxes paid. Earned income tax credit Form 1116 is used to figure the allowable credit. Earned income tax credit Your U. Earned income tax credit S. Earned income tax credit tax obligation on your income is the same as that of a retired person living in the United States. Earned income tax credit (See the discussion on filing requirements in chapter 1 of this publication. Earned income tax credit ) U. Earned income tax credit S. Earned income tax credit taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Earned income tax credit See the discussion under Estimated Tax in chapter 1. Earned income tax credit Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Earned income tax credit S. Earned income tax credit taxation. Earned income tax credit Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Earned income tax credit The first installment of estimated tax is due on April 15 of the year for which the income is earned. Earned income tax credit Generally, only U. Earned income tax credit S. Earned income tax credit currency is acceptable for payment of income tax. Earned income tax credit However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Earned income tax credit Yes. Earned income tax credit A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Earned income tax credit No. Earned income tax credit The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Earned income tax credit Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 2) I am going abroad this year and expect to qualify for the foreign earned income exclusion. Earned income tax credit How can I secure an extension of time to file my return, when should I file my return, and what forms are required? a) You should file Form 2350 by the due date of your return to request an extension of time to file. Earned income tax credit Form 2350 is a special form for those U. Earned income tax credit S. Earned income tax credit citizens or residents abroad who expect to qualify for the foreign earned income exclusion or the housing exclusion or deduction under either the bona fide residence test or physical presence test and would like to have an extension of time to delay filing until after they have qualified. Earned income tax credit b) If the extension is granted, you should file your return after you qualify, but by the approved extension date. Earned income tax credit c) You must file your Form 1040 with Form 2555 (or Form 2555-EZ). Earned income tax credit Generally, yes. Earned income tax credit Every U. Earned income tax credit S. Earned income tax credit citizen or resident who receives income must file a U. Earned income tax credit S. Earned income tax credit income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. Earned income tax credit The income levels for filing purposes are discussed under Filing Requirements in chapter 1. Earned income tax credit If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Earned income tax credit Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Earned income tax credit You must report your worldwide income on the return. Earned income tax credit If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Earned income tax credit S. Earned income tax credit income tax. Earned income tax credit However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Earned income tax credit Yes. Earned income tax credit All U. Earned income tax credit S. Earned income tax credit citizens and resident aliens are subject to U. Earned income tax credit S. Earned income tax credit tax on their worldwide income. Earned income tax credit If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Earned income tax credit S. Earned income tax credit income tax liability for the foreign taxes paid. Earned income tax credit Form 1116 is used to figure the allowable credit. Earned income tax credit Your U. Earned income tax credit S. Earned income tax credit tax obligation on your income is the same as that of a retired person living in the United States. Earned income tax credit (See the discussion on filing requirements in chapter 1 of this publication. Earned income tax credit ) U. Earned income tax credit S. Earned income tax credit taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Earned income tax credit See the discussion under Estimated Tax in chapter 1. Earned income tax credit Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Earned income tax credit S. Earned income tax credit taxation. Earned income tax credit Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Earned income tax credit The first installment of estimated tax is due on April 15 of the year for which the income is earned. Earned income tax credit Generally, only U. Earned income tax credit S. Earned income tax credit currency is acceptable for payment of income tax. Earned income tax credit However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Earned income tax credit Yes. Earned income tax credit A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Earned income tax credit No. Earned income tax credit The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Earned income tax credit Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 3) My entire income qualifies for the foreign earned income exclusion. Earned income tax credit Must I file a tax return? Generally, yes. Earned income tax credit Every U. Earned income tax credit S. Earned income tax credit citizen or resident who receives income must file a U. Earned income tax credit S. Earned income tax credit income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. Earned income tax credit The income levels for filing purposes are discussed under Filing Requirements in chapter 1. Earned income tax credit If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Earned income tax credit Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Earned income tax credit You must report your worldwide income on the return. Earned income tax credit If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Earned income tax credit S. Earned income tax credit income tax. Earned income tax credit However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Earned income tax credit Yes. Earned income tax credit All U. Earned income tax credit S. Earned income tax credit citizens and resident aliens are subject to U. Earned income tax credit S. Earned income tax credit tax on their worldwide income. Earned income tax credit If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Earned income tax credit S. Earned income tax credit income tax liability for the foreign taxes paid. Earned income tax credit Form 1116 is used to figure the allowable credit. Earned income tax credit Your U. Earned income tax credit S. Earned income tax credit tax obligation on your income is the same as that of a retired person living in the United States. Earned income tax credit (See the discussion on filing requirements in chapter 1 of this publication. Earned income tax credit ) U. Earned income tax credit S. Earned income tax credit taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Earned income tax credit See the discussion under Estimated Tax in chapter 1. Earned income tax credit Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Earned income tax credit S. Earned income tax credit taxation. Earned income tax credit Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Earned income tax credit The first installment of estimated tax is due on April 15 of the year for which the income is earned. Earned income tax credit Generally, only U. Earned income tax credit S. Earned income tax credit currency is acceptable for payment of income tax. Earned income tax credit However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Earned income tax credit Yes. Earned income tax credit A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Earned income tax credit No. Earned income tax credit The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Earned income tax credit Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 4) I was sent abroad by my company in November of last year. Earned income tax credit I plan to secure an extension of time on Form 2350 to file my tax return for last year because I expect to qualify for the foreign earned income exclusion under the physical presence test. Earned income tax credit However, if my company recalls me to the United States before the end of the qualifying period and I find I will not qualify for the exclusion, how and when should I file my return? If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. Earned income tax credit Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. Earned income tax credit You must report your worldwide income on the return. Earned income tax credit If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. Earned income tax credit S. Earned income tax credit income tax. Earned income tax credit However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. Earned income tax credit Yes. Earned income tax credit All U. Earned income tax credit S. Earned income tax credit citizens and resident aliens are subject to U. Earned income tax credit S. Earned income tax credit tax on their worldwide income. Earned income tax credit If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Earned income tax credit S. Earned income tax credit income tax liability for the foreign taxes paid. Earned income tax credit Form 1116 is used to figure the allowable credit. Earned income tax credit Your U. Earned income tax credit S. Earned income tax credit tax obligation on your income is the same as that of a retired person living in the United States. Earned income tax credit (See the discussion on filing requirements in chapter 1 of this publication. Earned income tax credit ) U. Earned income tax credit S. Earned income tax credit taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Earned income tax credit See the discussion under Estimated Tax in chapter 1. Earned income tax credit Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Earned income tax credit S. Earned income tax credit taxation. Earned income tax credit Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Earned income tax credit The first installment of estimated tax is due on April 15 of the year for which the income is earned. Earned income tax credit Generally, only U. Earned income tax credit S. Earned income tax credit currency is acceptable for payment of income tax. Earned income tax credit However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Earned income tax credit Yes. Earned income tax credit A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Earned income tax credit No. Earned income tax credit The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Earned income tax credit Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 5) I am a U. Earned income tax credit S. Earned income tax credit citizen and have no taxable income from the United States, but I have substantial income from a foreign source. Earned income tax credit Am I required to file a U. Earned income tax credit S. Earned income tax credit income tax return? Yes. Earned income tax credit All U. Earned income tax credit S. Earned income tax credit citizens and resident aliens are subject to U. Earned income tax credit S. Earned income tax credit tax on their worldwide income. Earned income tax credit If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. Earned income tax credit S. Earned income tax credit income tax liability for the foreign taxes paid. Earned income tax credit Form 1116 is used to figure the allowable credit. Earned income tax credit Your U. Earned income tax credit S. Earned income tax credit tax obligation on your income is the same as that of a retired person living in the United States. Earned income tax credit (See the discussion on filing requirements in chapter 1 of this publication. Earned income tax credit ) U. Earned income tax credit S. Earned income tax credit taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Earned income tax credit See the discussion under Estimated Tax in chapter 1. Earned income tax credit Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Earned income tax credit S. Earned income tax credit taxation. Earned income tax credit Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Earned income tax credit The first installment of estimated tax is due on April 15 of the year for which the income is earned. Earned income tax credit Generally, only U. Earned income tax credit S. Earned income tax credit currency is acceptable for payment of income tax. Earned income tax credit However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Earned income tax credit Yes. Earned income tax credit A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Earned income tax credit No. Earned income tax credit The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Earned income tax credit Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 6) I am a U. Earned income tax credit S. Earned income tax credit citizen who has retired, and I expect to remain in a foreign country. Earned income tax credit Do I have any further U. Earned income tax credit S. Earned income tax credit tax obligations? Your U. Earned income tax credit S. Earned income tax credit tax obligation on your income is the same as that of a retired person living in the United States. Earned income tax credit (See the discussion on filing requirements in chapter 1 of this publication. Earned income tax credit ) U. Earned income tax credit S. Earned income tax credit taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Earned income tax credit See the discussion under Estimated Tax in chapter 1. Earned income tax credit Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Earned income tax credit S. Earned income tax credit taxation. Earned income tax credit Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Earned income tax credit The first installment of estimated tax is due on April 15 of the year for which the income is earned. Earned income tax credit Generally, only U. Earned income tax credit S. Earned income tax credit currency is acceptable for payment of income tax. Earned income tax credit However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Earned income tax credit Yes. Earned income tax credit A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Earned income tax credit No. Earned income tax credit The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Earned income tax credit Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 7) I have been a bona fide resident of a foreign country for over 5 years. Earned income tax credit Is it necessary for me to pay estimated tax? U. Earned income tax credit S. Earned income tax credit taxpayers overseas have the same requirements for paying estimated tax as those in the United States. Earned income tax credit See the discussion under Estimated Tax in chapter 1. Earned income tax credit Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. Earned income tax credit S. Earned income tax credit taxation. Earned income tax credit Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. Earned income tax credit The first installment of estimated tax is due on April 15 of the year for which the income is earned. Earned income tax credit Generally, only U. Earned income tax credit S. Earned income tax credit currency is acceptable for payment of income tax. Earned income tax credit However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Earned income tax credit Yes. Earned income tax credit A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Earned income tax credit No. Earned income tax credit The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Earned income tax credit Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 8) Will a check payable in foreign currency be acceptable in payment of my U. Earned income tax credit S. Earned income tax credit tax? Generally, only U. Earned income tax credit S. Earned income tax credit currency is acceptable for payment of income tax. Earned income tax credit However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. Earned income tax credit Yes. Earned income tax credit A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Earned income tax credit No. Earned income tax credit The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Earned income tax credit Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 9) I have met the test for physical presence in a foreign country and am filing returns for 2 years. Earned income tax credit Must I file a separate Form 2555 (or Form 2555-EZ) with each return? Yes. Earned income tax credit A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. Earned income tax credit No. Earned income tax credit The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Earned income tax credit Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 10) Does a Form 2555 (or 2555-EZ) with a Schedule C or Form W-2 attached constitute a return? No. Earned income tax credit The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. Earned income tax credit Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 11) On Form 2350, Application for Extension of Time To File U. Earned income tax credit S. Earned income tax credit Income Tax Return, I stated that I would qualify for the foreign earned income exclusion under the physical presence test. Earned income tax credit If I qualify under the bona fide residence test, can I file my return on that basis? Yes. Earned income tax credit You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. Earned income tax credit You are not bound by the test indicated in the application for extension of time. Earned income tax credit You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. Earned income tax credit If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. Earned income tax credit No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 12) I am a U. Earned income tax credit S. Earned income tax credit citizen who worked in the United States for 6 months last year. Earned income tax credit I accepted employment overseas in July of last year and expect to qualify for the foreign earned income exclusion. Earned income tax credit Should I file a return and pay tax on the income earned in the United States during the first 6 months and then, when I qualify, file another return covering the last 6 months of the year? No. Earned income tax credit You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. Earned income tax credit After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. Earned income tax credit b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. Earned income tax credit This allows you to file only once and saves you from paying the tax and waiting for a refund. Earned income tax credit However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. Earned income tax credit If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. Earned income tax credit File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 13) I am a U. Earned income tax credit S. Earned income tax credit citizen. Earned income tax credit I have lived abroad for a number of years and recently realized that I should have been filing U. Earned income tax credit S. Earned income tax credit income tax returns. Earned income tax credit How do I correct this oversight in not having filed returns for these years? File the late returns as soon as possible, stating your reason for filing late. Earned income tax credit For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. Earned income tax credit It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit . Earned income tax credit 14) In 2008, I qualified to exclude my foreign earned income, but I did not claim this exclusion on the return I filed in 2009. Earned income tax credit I paid all outstanding taxes with the return. Earned income tax credit Can I file a claim for refund now? It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. Earned income tax credit A return filed before the due date is considered filed on the due date. Earned income tax credit 2. Earned income tax credit Meeting the Requirements of Either the Bona Fide Residence Test or the Physical Presence Test . Earned income tax credit 1) I recently came to Country X to work for the Orange Tractor Co. Earned income tax credit and I expect to be here for 5 or 6 years. Earned income tax credit I understand that upon the completion of 1 full year I will qualify for an exclusion or deduction under the bona fide residence test. Earned income tax credit Is this correct? . Earned income tax credit 2) I understand the physical presence test to be simply a matter of being physically present in a foreign country for at least 330 days within 12 consecutive months; but what are the criteria of the bona fide residence test? . Earned income tax credit 3) To meet the qualification of an uninterrupted period which includes an entire taxable year, do I have to be physically present in a foreign country for the entire year? . Earned income tax credit 4) I am a U. Earned income tax credit S. Earned income tax credit citizen and during 2012 was a bona fide resident of Country X. Earned income tax credit On January 15, 2013, I was notified that I was to be assigned to Country Y. Earned income tax credit I was recalled to New York for 90 days orientation and then went to Country Y, where I have been since. Earned income tax credit Although I was not in Country Y on January 1, I was a bona fide resident of Country X and was in Country Y on December 31, 2013. Earned income tax credit My family remained in Country X until completion of the orientation period, and my household goods were shipped directly to my new post. Earned income tax credit Am I a bona fide resident of a foreign country for 2013, or must I wait for the entire year of 2014 to become one? . Earned income tax credit 5) Due to illness, I returned to the United States before I completed my qualifying period to claim the foreign earned income exclusion. Earned income tax credit Can I figure the exclusion for the period I resided abroad? . Earned income tax credit 6) Can a resident alien of the United States qualify for an exclusion or deduction under the bona fide residence test or the physical presence test? . Earned income tax credit 7) On August 13 of last year I left the United States and arrived in Country Z to work for the Gordon Manufacturing Company. Earned income tax credit I expected to be able to exclude my foreign earned income under the physical presence test because I planned to be in Country Z for at least 1 year. Earned income tax credit However, I was reassigned back to the United States and left Country Z on July 1 of this year. Earned income tax credit Can I exclude any of my foreign earned income? . Earned income tax credit 1) I recently came to Country X to work for the Orange Tractor Co. Earned income tax credit and I expect to be here for 5 or 6 years. Earned income tax credit I understand that upon the completion of 1 full year I will qualify for an exclusion or deduction under the bona fide residence test. Earned income tax credit Is this correct? Not necessarily. Earned income tax credit The law provides that to qualify under this test for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, a person must be a “bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year. Earned income tax credit ” If, like most U. Earned income tax credit S. Earned income tax credit citizens, you file your return on a calendar year basis, the taxable year referred to in the law would be from January 1 to December 31 of any particular year. Earned income tax credit Unless you established residence in Country X on January 1, it would be more than 1 year before you would be a bona fide resident of a foreign country. Earned income tax credit Once you have completed your qualifying period, however, you are entitled to exclude the income or to claim the housing exclusion or deduction from the date you established bona fide residence. Earned income tax credit To be a bona fide resident of a foreign country, you must show that you entered a foreign country intending to remain there for an indefinite or prolonged period and, to that end, you are making your home in that country. Earned income tax credit Consideration is given to the type of quarters occupied, whether your family went with you, the type of visa, the employment agreement, and any other factor pertinent to show whether your stay in the foreign country is indefinite or prolonged. Earned income tax credit To claim the foreign earned income exclusion or foreign housing exclusion or deduction under this test, the period of foreign residence must include 1 full tax year (usually January 1 – December 31), but once you meet this time requirement, you figure the exclusions and the deduction from the date the residence actually began. Earned income tax credit No. Earned income tax credit Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. Earned income tax credit During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. Earned income tax credit To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. Earned income tax credit Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Earned income tax credit No. Earned income tax credit You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Earned income tax credit If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Earned income tax credit S. Earned income tax credit tax. Earned income tax credit Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Earned income tax credit Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Earned income tax credit No. Earned income tax credit You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Earned income tax credit . Earned income tax credit 2) I understand the physical presence test to be simply a matter of being physically present in a foreign country for at least 330 days within 12 consecutive months; but what are the criteria of the bona fide residence test? To be a bona fide resident of a foreign country, you must show that you entered a foreign country intending to remain there for an indefinite or prolonged period and, to that end, you are making your home in that country. Earned income tax credit Consideration is given to the type of quarters occupied, whether your family went with you, the type of visa, the employment agreement, and any other factor pertinent to show whether your stay in the foreign country is indefinite or prolonged. Earned income tax credit To claim the foreign earned income exclusion or foreign housing exclusion or deduction under this test, the period of foreign residence must include 1 full tax year (usually January 1 – December 31), but once you meet this time requirement, you figure the exclusions and the deduction from the date the residence actually began. Earned income tax credit No. Earned income tax credit Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. Earned income tax credit During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. Earned income tax credit To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. Earned income tax credit Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Earned income tax credit No. Earned income tax credit You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Earned income tax credit If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Earned income tax credit S. Earned income tax credit tax. Earned income tax credit Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Earned income tax credit Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Earned income tax credit No. Earned income tax credit You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Earned income tax credit . Earned income tax credit 3) To meet the qualification of “an uninterrupted period which includes an entire taxable year,” do I have to be physically present in a foreign country for the entire year? No. Earned income tax credit Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. Earned income tax credit During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. Earned income tax credit To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. Earned income tax credit Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Earned income tax credit No. Earned income tax credit You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Earned income tax credit If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Earned income tax credit S. Earned income tax credit tax. Earned income tax credit Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Earned income tax credit Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Earned income tax credit No. Earned income tax credit You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Earned income tax credit . Earned income tax credit 4) I am a U. Earned income tax credit S. Earned income tax credit citizen and during 2012 was a bona fide resident of Country X. Earned income tax credit On January 15, 2013, I was notified that I was to be assigned to Country Y. Earned income tax credit I was recalled to New York for 90 days orientation and then went to Country Y, where I have been since. Earned income tax credit Although I was not in Country Y on January 1, I was a bona fide resident of Country X and was in Country Y on December 31, 2013. Earned income tax credit My family remained in Country X until completion of the orientation period, and my household goods were shipped directly to my new post. Earned income tax credit Am I a bona fide resident of a foreign country for 2013, or must I wait for the entire year of 2014 to become one? Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. Earned income tax credit No. Earned income tax credit You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Earned income tax credit If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Earned income tax credit S. Earned income tax credit tax. Earned income tax credit Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Earned income tax credit Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Earned income tax credit No. Earned income tax credit You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Earned income tax credit . Earned income tax credit 5) Due to illness, I returned to the United States before I completed my qualifying period to claim the foreign earned income exclusion. Earned income tax credit Can I figure the exclusion for the period I resided abroad? No. Earned income tax credit You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. Earned income tax credit If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. Earned income tax credit S. Earned income tax credit tax. Earned income tax credit Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Earned income tax credit Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Earned income tax credit No. Earned income tax credit You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Earned income tax credit . Earned income tax credit 6) Can a resident alien of the United States qualify for an exclusion or deduction under the bona fide residence test or the physical presence test? Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. Earned income tax credit Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. Earned income tax credit No. Earned income tax credit You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Earned income tax credit . Earned income tax credit 7) On August 13 of last year I left the United States and arrived in Country Z to work for the Gordon Manufacturing Company. Earned income tax credit I expected to be able to exclude my foreign earned income under the physical presence test because I planned to be in Country Z for at least 1 year. Earned income tax credit However, I was reassigned back to the United States and left Country Z on July 1 of this year. Earned income tax credit Can I exclude any of my foreign earned income? No. Earned income tax credit You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. Earned income tax credit 3. Earned income tax credit Foreign Earned Income . Earned income tax credit 1) I am an employee of the U. Earned income tax credit S. Earned income tax credit Government working abroad. Earned income tax credit Can all or part of my government income earned abroad qualify for the foreign earned income exclusion? . Earned income tax credit 2) I qualify for the foreign earned income exclusion under the bona fide residence test. Earned income tax credit Does my foreign earned income include my U. Earned income tax credit S. Earned income tax credit dividends and the interest I receive on a foreign bank account? . Earned income tax credit 3) My company pays my foreign income tax on my foreign earnings. Earned income tax credit Is this taxable compensation? . Earned income tax credit 4) I live in an apartment in a foreign city for which my employer pays the rent. Earned income tax credit Should I include in my income the cost to my employer ($1,200 a month) or the fair market value of equivalent housing in the United States ($800 a month)? . Earned income tax credit 5) My U. Earned income tax credit S. Earned income tax credit employer pays my salary into my U. Earned income tax credit S. Earned income tax credit bank account. Earned income tax credit Is this income considered earned in the United States or is it considered foreign earned income? . Earned income tax credit 6) What is considered a foreign country? . Earned income tax credit 7) What is the source of earned income? . Earned income tax credit 1) I am an employee of the U. Earned income tax credit S. Earned income tax credit Government working abroad. Earned income tax credit Can all or part of my government income earned abroad qualify for the foreign earned income exclusion? No. Earned income tax credit The foreign earned income exclusion applies to your foreign earned income. Earned income tax credit Amounts paid by the United States or its agencies to their employees are not treated, for this purpose, as foreign earned income. Earned income tax credit No. Earned income tax credit The only income that is foreign earned income is income from the performance of personal services abroad. Earned income tax credit Investment income is not earned income. Earned income tax credit However, you must include it in gross income reported on your Form 1040. Earned income tax credit Yes. Earned income tax credit The amount is compensation for services performed. Earned income tax credit The tax paid by your company should be reported on Form 1040, line 7, and on Form 2555, Part IV, line 22(f) (or on Form 2555-EZ, Part IV, line 17). Earned income tax credit You must include in income the fair market value (FMV) of the facility provided, where it is provided. Earned income tax credit This will usually be the rent your employer pays. Earned income tax credit Situations when the FMV is not included in income are discussed in chapter 4 under Exclusion of Meals and Lodging. Earned income tax credit If you performed the services to earn this salary outside the United States, your salary is considered earned abroad. Earned income tax credit It does not matter that you are paid by a U. Earned income tax credit S. Earned income tax credit employer or that your salary is deposited in a U. Earned income tax credit S. Earned income tax credit bank account in the United States. Earned income tax credit The source of salary, wages, commissions, and other personal service income is the place where you perform the services. Earned income tax credit For the purposes of the foreign earned income exclusion and the foreign housing exclusion or deduction, any territory under the sovereignty of a countr
Español

Home Buying and Selling

Get help with buying or selling a home and learn more about insurance and housing laws.

The Earned Income Tax Credit

Earned income tax credit 3. Earned income tax credit   Personal Exemptions and Dependents Table of Contents What's New Introduction Useful Items - You may want to see: ExemptionsPersonal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. Earned income tax credit Taxpayer identification numbers for aliens. Earned income tax credit Taxpayer identification numbers for adoptees. Earned income tax credit What's New Exemption amount. Earned income tax credit  The amount you can deduct for each exemption has increased. Earned income tax credit It was $3,800 for 2012. Earned income tax credit It is $3,900 for 2013. Earned income tax credit Exemption phaseout. Earned income tax credit  You lose at least part of the benefit of your exemptions if your adjusted gross income is more than a certain amount. Earned income tax credit For 2013, this amount is $150,000 for a married individual filing a separate return; $250,000 for a single individual; $275,000 for a head of household; and $300,000 for married individuals filing jointly or a qualifying widow(er). Earned income tax credit See Phaseout of Exemptions , later. Earned income tax credit Introduction This chapter discusses the following topics. Earned income tax credit Personal exemptions — You generally can take one for yourself and, if you are married, one for your spouse. Earned income tax credit Exemptions for dependents — You generally can take an exemption for each of your dependents. Earned income tax credit A dependent is your qualifying child or qualifying relative. Earned income tax credit If you are entitled to claim an exemption for a dependent, that dependent cannot claim a personal exemption on his or her own tax return. Earned income tax credit Phaseout of exemptions — Your deduction is reduced if your adjusted gross income is more than a certain amount. Earned income tax credit Social security number (SSN) requirement for dependents — You must list the SSN of any dependent for whom you claim an exemption. Earned income tax credit Deduction. Earned income tax credit   Exemptions reduce your taxable income. Earned income tax credit You can deduct $3,900 for each exemption you claim in 2013. Earned income tax credit But you may lose at least part of the dollar amount of your exemptions if your adjusted gross income is more than a certain amount. Earned income tax credit See Phaseout of Exemptions , later. Earned income tax credit How to claim exemptions. Earned income tax credit    How you claim an exemption on your tax return depends on which form you file. Earned income tax credit    If you file Form 1040EZ, the exemption amount is combined with the standard deduction amount and entered on line 5. Earned income tax credit    If you file Form 1040A, complete lines 6a through 6d. Earned income tax credit The total number of exemptions you can claim is the total in the box on line 6d. Earned income tax credit Also complete line 26. Earned income tax credit   If you file Form 1040, complete lines 6a through 6d. Earned income tax credit The total number of exemptions you can claim is the total in the box on line 6d. Earned income tax credit Also complete line 42. Earned income tax credit Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information Form (and Instructions) 2120 Multiple Support Declaration 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent Exemptions There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). Earned income tax credit While each is worth the same amount ($3,900 for 2013), different rules apply to each type. Earned income tax credit Personal Exemptions You are generally allowed one exemption for yourself. Earned income tax credit If you are married, you may be allowed one exemption for your spouse. Earned income tax credit These are called personal exemptions. Earned income tax credit Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. Earned income tax credit If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. Earned income tax credit Your Spouse's Exemption Your spouse is never considered your dependent. Earned income tax credit Joint return. Earned income tax credit   On a joint return you can claim one exemption for yourself and one for your spouse. Earned income tax credit Separate return. Earned income tax credit   If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. Earned income tax credit This is true even if the other taxpayer does not actually claim your spouse as a dependent. Earned income tax credit You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. Earned income tax credit S. Earned income tax credit tax purposes, must not be filing a return, and must not be the dependent of another taxpayer. Earned income tax credit Death of spouse. Earned income tax credit   If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . Earned income tax credit If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . Earned income tax credit   If you remarried during the year, you cannot take an exemption for your deceased spouse. Earned income tax credit   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. Earned income tax credit If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. Earned income tax credit Divorced or separated spouse. Earned income tax credit   If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. Earned income tax credit This rule applies even if you provided all of your former spouse's support. Earned income tax credit Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. Earned income tax credit You can claim an exemption for a dependent even if your dependent files a return. Earned income tax credit The term “dependent” means: A qualifying child, or A qualifying relative. Earned income tax credit The terms “ qualifying child ” and “ qualifying relative ” are defined later. Earned income tax credit You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. Earned income tax credit Dependent taxpayer test. Earned income tax credit Joint return test. Earned income tax credit Citizen or resident test. Earned income tax credit These three tests are explained in detail later. Earned income tax credit All the requirements for claiming an exemption for a dependent are summarized in Table 3-1. Earned income tax credit Table 3-1. Earned income tax credit Overview of the Rules for Claiming an Exemption for a Dependent Caution. Earned income tax credit This table is only an overview of the rules. Earned income tax credit For details, see the rest of this chapter. Earned income tax credit You cannot claim any dependents if you (or your spouse, if filing jointly) could be claimed as a dependent by another taxpayer. Earned income tax credit   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. Earned income tax credit   You cannot claim a person as a dependent unless that person is a U. Earned income tax credit S. Earned income tax credit citizen, U. Earned income tax credit S. Earned income tax credit resident alien, U. Earned income tax credit S. Earned income tax credit national, or a resident of Canada or Mexico. Earned income tax credit 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. Earned income tax credit   Tests To Be a Qualifying Child   Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Earned income tax credit   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled. Earned income tax credit   The child must have lived with you for more than half of the year. Earned income tax credit 2  The child must not have provided more than half of his or her own support for the year. Earned income tax credit   The child is not filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid). Earned income tax credit  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. Earned income tax credit See the Special Rule for Qualifying Child of More Than One Person to find out which person is the person entitled to claim the child as a qualifying child. Earned income tax credit   The person cannot be your qualifying child or the qualifying child of any other taxpayer. Earned income tax credit   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). Earned income tax credit   The person's gross income for the year must be less than $3,900. Earned income tax credit 3  You must provide more than half of the person's total support for the year. Earned income tax credit 4  1There is an exception for certain adopted children. Earned income tax credit 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. Earned income tax credit 3There is an exception if the person is disabled and has income from a sheltered workshop. Earned income tax credit 4There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. Earned income tax credit Dependent not allowed a personal exemption. Earned income tax credit If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. Earned income tax credit This is true even if you do not claim the dependent's exemption on your return. Earned income tax credit It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. Earned income tax credit Housekeepers, maids, or servants. Earned income tax credit   If these people work for you, you cannot claim exemptions for them. Earned income tax credit Child tax credit. Earned income tax credit   You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. Earned income tax credit For more information, see chapter 34. Earned income tax credit Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. Earned income tax credit Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. Earned income tax credit If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. Earned income tax credit Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. Earned income tax credit Exception. Earned income tax credit   You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. Earned income tax credit Example 1—child files joint return. Earned income tax credit You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Earned income tax credit He earned $25,000 for the year. Earned income tax credit The couple files a joint return. Earned income tax credit You cannot take an exemption for your daughter. Earned income tax credit Example 2—child files joint return only as claim for refund of withheld tax. Earned income tax credit Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Earned income tax credit Neither is required to file a tax return. Earned income tax credit They do not have a child. Earned income tax credit Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. Earned income tax credit The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. Earned income tax credit You can claim exemptions for each of them if all the other tests to do so are met. Earned income tax credit Example 3—child files joint return to claim American opportunity credit. Earned income tax credit The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Earned income tax credit He and his wife are not required to file a tax return. Earned income tax credit However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Earned income tax credit 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. Earned income tax credit The exception to the joint return test does not apply, so you cannot claim an exemption for either of them. Earned income tax credit Citizen or Resident Test You cannot claim a person as a dependent unless that person is a U. Earned income tax credit S. Earned income tax credit citizen, U. Earned income tax credit S. Earned income tax credit resident alien, U. Earned income tax credit S. Earned income tax credit national, or a resident of Canada or Mexico. Earned income tax credit However, there is an exception for certain adopted children, as explained next. Earned income tax credit Exception for adopted child. Earned income tax credit   If you are a U. Earned income tax credit S. Earned income tax credit citizen or U. Earned income tax credit S. Earned income tax credit national who has legally adopted a child who is not a U. Earned income tax credit S. Earned income tax credit citizen, U. Earned income tax credit S. Earned income tax credit resident alien, or U. Earned income tax credit S. Earned income tax credit national, this test is met if the child lived with you as a member of your household all year. Earned income tax credit This exception also applies if the child was lawfully placed with you for legal adoption. Earned income tax credit Child's place of residence. Earned income tax credit   Children usually are citizens or residents of the country of their parents. Earned income tax credit   If you were a U. Earned income tax credit S. Earned income tax credit citizen when your child was born, the child may be a U. Earned income tax credit S. Earned income tax credit citizen and meet this test even if the other parent was a nonresident alien and the child was born in a foreign country. Earned income tax credit Foreign students' place of residence. Earned income tax credit   Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. Earned income tax credit S. Earned income tax credit residents and do not meet this test. Earned income tax credit You cannot claim an exemption for them. Earned income tax credit However, if you provided a home for a foreign student, you may be able to take a charitable contribution deduction. Earned income tax credit See Expenses Paid for Student Living With You in chapter 24. Earned income tax credit U. Earned income tax credit S. Earned income tax credit national. Earned income tax credit   A U. Earned income tax credit S. Earned income tax credit national is an individual who, although not a U. Earned income tax credit S. Earned income tax credit citizen, owes his or her allegiance to the United States. Earned income tax credit U. Earned income tax credit S. Earned income tax credit nationals include American Samoans and Northern Mariana Islanders who chose to become U. Earned income tax credit S. Earned income tax credit nationals instead of U. Earned income tax credit S. Earned income tax credit citizens. Earned income tax credit Qualifying Child Five tests must be met for a child to be your qualifying child. Earned income tax credit The five tests are: Relationship, Age, Residency, Support, and Joint return. Earned income tax credit These tests are explained next. Earned income tax credit If a child meets the five tests to be the qualifying child of more than one person, a special rule applies to determine which person can actually treat the child as a qualifying child. Earned income tax credit See Special Rule for Qualifying Child of More Than One Person, later. Earned income tax credit Relationship Test To meet this test, a child must be: Your son, daughter, stepchild, foster child, or a descendant (for example, your grandchild) of any of them, or Your brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant (for example, your niece or nephew) of any of them. Earned income tax credit Adopted child. Earned income tax credit   An adopted child is always treated as your own child. Earned income tax credit The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Earned income tax credit Foster child. Earned income tax credit   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Earned income tax credit Age Test To meet this test, a child must be: Under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), A student under age 24 at the end of the year and younger than you (or your spouse, if filing jointly), or Permanently and totally disabled at any time during the year, regardless of age. Earned income tax credit Example. Earned income tax credit Your son turned 19 on December 10. Earned income tax credit Unless he was permanently and totally disabled or a student, he does not meet the age test because, at the end of the year, he was not under age 19. Earned income tax credit Child must be younger than you or spouse. Earned income tax credit   To be your qualifying child, a child who is not permanently and totally disabled must be younger than you. Earned income tax credit However, if you are married filing jointly, the child must be younger than you or your spouse but does not have to be younger than both of you. Earned income tax credit Example 1—child not younger than you or spouse. Earned income tax credit Your 23-year-old brother, who is a student and unmarried, lives with you and your spouse. Earned income tax credit He is not disabled. Earned income tax credit Both you and your spouse are 21 years old, and you file a joint return. Earned income tax credit Your brother is not your qualifying child because he is not younger than you or your spouse. Earned income tax credit Example 2—child younger than your spouse but not younger than you. Earned income tax credit The facts are the same as in Example 1 except your spouse is 25 years old. Earned income tax credit Because your brother is younger than your spouse, and you and your spouse are filing a joint return, your brother is your qualifying child, even though he is not younger than you. Earned income tax credit Student defined. Earned income tax credit   To qualify as a student, your child must be, during some part of each of any 5 calendar months of the year: A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency. Earned income tax credit The 5 calendar months do not have to be consecutive. Earned income tax credit Full-time student. Earned income tax credit   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. Earned income tax credit School defined. Earned income tax credit   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Earned income tax credit However, an on-the-job training course, correspondence school, or school offering courses only through the Internet does not count as a school. Earned income tax credit Vocational high school students. Earned income tax credit   Students who work on “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. Earned income tax credit Permanently and totally disabled. Earned income tax credit   Your child is permanently and totally disabled if both of the following apply. Earned income tax credit He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Earned income tax credit A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Earned income tax credit Residency Test To meet this test, your child must have lived with you for more than half the year. Earned income tax credit There are exceptions for temporary absences, children who were born or died during the year, kidnapped children, and children of divorced or separated parents. Earned income tax credit Temporary absences. Earned income tax credit   Your child is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. Earned income tax credit Your child is also considered to have lived with you during any required hospital stay following birth, as long as the child would have lived with you during that time but for the hospitalization. Earned income tax credit Death or birth of child. Earned income tax credit   A child who was born or died during the year is treated as having lived with you more than half of the year if your home was the child's home more than half of the time he or she was alive during the year. Earned income tax credit Child born alive. Earned income tax credit   You may be able to claim an exemption for a child born alive during the year, even if the child lived only for a moment. Earned income tax credit State or local law must treat the child as having been born alive. Earned income tax credit There must be proof of a live birth shown by an official document, such as a birth certificate. Earned income tax credit The child must be your qualifying child or qualifying relative, and all the other tests to claim an exemption for a dependent must be met. Earned income tax credit Stillborn child. Earned income tax credit   You cannot claim an exemption for a stillborn child. Earned income tax credit Kidnapped child. Earned income tax credit   You may be able to treat your child as meeting the residency test even if the child has been kidnapped. Earned income tax credit See Publication 501 for details. Earned income tax credit Children of divorced or separated parents (or parents who live apart). Earned income tax credit   In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. Earned income tax credit However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true. Earned income tax credit 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 the year, whether or not they are or were married. Earned income tax credit The child received over half of his or her support for the year from the parents. Earned income tax credit The child is in the custody of one or both parents for more than half of the year. Earned income tax credit Either of the following statements is true. Earned income tax credit The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. Earned income tax credit (If the decree or agreement went into effect after 1984 and before 2009, see Post-1984 and pre-2009 divorce decree or separation agreement , later. Earned income tax credit If the decree or agreement went into effect after 2008, see Post-2008 divorce decree or separation agreement , later. Earned income tax credit ) A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during the year. Earned income tax credit Custodial parent and noncustodial parent. Earned income tax credit   The custodial parent is the parent with whom the child lived for the greater number of nights during the year. Earned income tax credit The other parent is the noncustodial parent. Earned income tax credit   If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the year. Earned income tax credit   A child is treated as living with a parent for a night if the child sleeps: At that parent's home, whether or not the parent is present, or In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation together). Earned income tax credit Equal number of nights. Earned income tax credit   If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income (AGI). Earned income tax credit December 31. Earned income tax credit   The night of December 31 is treated as part of the year in which it begins. Earned income tax credit For example, December 31, 2013, is treated as part of 2013. Earned income tax credit Emancipated child. Earned income tax credit   If a child is emancipated under state law, the child is treated as not living with either parent. Earned income tax credit See Examples 5 and 6. Earned income tax credit Absences. Earned income tax credit   If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. Earned income tax credit But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that night. Earned income tax credit Parent works at night. Earned income tax credit   If, due to a parent's nighttime work schedule, a child lives for a greater number of days, but not nights, with the parent who works at night, that parent is treated as the custodial parent. Earned income tax credit On a school day, the child is treated as living at the primary residence registered with the school. Earned income tax credit Example 1—child lived with one parent for a greater number of nights. Earned income tax credit You and your child’s other parent are divorced. Earned income tax credit In 2013, your child lived with you 210 nights and with the other parent 155 nights. Earned income tax credit You are the custodial parent. Earned income tax credit Example 2—child is away at camp. Earned income tax credit In 2013, your daughter lives with each parent for alternate weeks. Earned income tax credit In the summer, she spends 6 weeks at summer camp. Earned income tax credit During the time she is at camp, she is treated as living with you for 3 weeks and with her other parent, your ex-spouse, for 3 weeks because this is how long she would have lived with each parent if she had not attended summer camp. Earned income tax credit Example 3—child lived same number of nights with each parent. Earned income tax credit Your son lived with you 180 nights during the year and lived the same number of nights with his other parent, your ex-spouse. Earned income tax credit Your AGI is $40,000. Earned income tax credit Your ex-spouse's AGI is $25,000. Earned income tax credit You are treated as your son's custodial parent because you have the higher AGI. Earned income tax credit Example 4—child is at parent’s home but with other parent. Earned income tax credit Your son normally lives with you during the week and with his other parent, your ex-spouse, every other weekend. Earned income tax credit You become ill and are hospitalized. Earned income tax credit The other parent lives in your home with your son for 10 consecutive days while you are in the hospital. Earned income tax credit Your son is treated as living with you during this 10-day period because he was living in your home. Earned income tax credit Example 5—child emancipated in May. Earned income tax credit When your son turned age 18 in May 2013, he became emancipated under the law of the state where he lives. Earned income tax credit As a result, he is not considered in the custody of his parents for more than half of the year. Earned income tax credit The special rule for children of divorced or separated parents does not apply. Earned income tax credit Example 6—child emancipated in August. Earned income tax credit Your daughter lives with you from January 1, 2013, until May 31, 2013, and lives with her other parent, your ex-spouse, from June 1, 2013, through the end of the year. Earned income tax credit She turns 18 and is emancipated under state law on August 1, 2013. Earned income tax credit Because she is treated as not living with either parent beginning on August 1, she is treated as living with you the greater number of nights in 2013. Earned income tax credit You are the custodial parent. Earned income tax credit Written declaration. Earned income tax credit    The custodial parent may use either Form 8332 or a similar statement (containing the same information required by the form) to make the written declaration to release the exemption to the noncustodial parent. Earned income tax credit The noncustodial parent must attach a copy of the form or statement to his or her tax return. Earned income tax credit   The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. Earned income tax credit Post-1984 and pre-2009 divorce decree or separation agreement. Earned income tax credit   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. Earned income tax credit The decree or agreement must state all three of the following. Earned income tax credit The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support. Earned income tax credit The custodial parent will not claim the child as a dependent for the year. Earned income tax credit The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent. Earned income tax credit   The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return. Earned income tax credit The cover page (write the other parent's social security number on this page). Earned income tax credit The pages that include all of the information identified in items (1) through (3) above. Earned income tax credit The signature page with the other parent's signature and the date of the agreement. Earned income tax credit Post-2008 divorce decree or separation agreement. Earned income tax credit   The noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. Earned income tax credit The custodial parent must sign either Form 8332 or a similar statement whose only purpose is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must attach a copy to his or her return. Earned income tax credit The form or statement must release the custodial parent's claim to the child without any conditions. Earned income tax credit For example, the release must not depend on the noncustodial parent paying support. Earned income tax credit    The noncustodial parent must attach the required information even if it was filed with a return in an earlier year. Earned income tax credit Revocation of release of claim to an exemption. Earned income tax credit   The custodial parent can revoke a release of claim to exemption that he or she previously released to the noncustodial parent on Form 8332 (or a similar statement). Earned income tax credit For the revocation to be effective for 2013, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2012 or earlier. Earned income tax credit The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the revocation. Earned income tax credit Remarried parent. Earned income tax credit   If you remarry, the support provided by your new spouse is treated as provided by you. Earned income tax credit Parents who never married. Earned income tax credit   This special rule for divorced or separated parents also applies to parents who never married, and who lived apart at all times during the last 6 months of the year. Earned income tax credit Support Test (To Be a Qualifying Child) To meet this test, the child cannot have provided more than half of his or her own support for the year. Earned income tax credit This test is different from the support test to be a qualifying relative, which is described later. Earned income tax credit However, to see what is or is not support, see Support Test (To Be a Qualifying Relative) , later. Earned income tax credit If you are not sure whether a child provided more than half of his or her own support, you may find Worksheet 3-1 helpful. Earned income tax credit Worksheet 3-1. Earned income tax credit Worksheet for Determining Support Funds Belonging to the Person You Supported       1. Earned income tax credit Enter the total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year. Earned income tax credit Do not include funds provided by the state; include those amounts on line 23 instead 1. Earned income tax credit     2. Earned income tax credit Enter the amount on line 1 that was used for the person's support 2. Earned income tax credit     3. Earned income tax credit Enter the amount on line 1 that was used for other purposes 3. Earned income tax credit     4. Earned income tax credit Enter the total amount in the person's savings and other accounts at the end of the year 4. Earned income tax credit     5. Earned income tax credit Add lines 2 through 4. Earned income tax credit (This amount should equal line 1. Earned income tax credit ) 5. Earned income tax credit     Expenses for Entire Household (where the person you supported lived)       6. Earned income tax credit Lodging (complete line 6a or 6b):         a. Earned income tax credit Enter the total rent paid 6a. Earned income tax credit       b. Earned income tax credit Enter the fair rental value of the home. Earned income tax credit If the person you supported owned the home,  also include this amount in line 21 6b. Earned income tax credit     7. Earned income tax credit Enter the total food expenses 7. Earned income tax credit     8. Earned income tax credit Enter the total amount of utilities (heat, light, water, etc. Earned income tax credit not included in line 6a or 6b) 8. Earned income tax credit     9. Earned income tax credit Enter the total amount of repairs (not included in line 6a or 6b) 9. Earned income tax credit     10. Earned income tax credit Enter the total of other expenses. Earned income tax credit Do not include expenses of maintaining the home, such as mortgage interest, real estate taxes, and insurance 10. Earned income tax credit     11. Earned income tax credit Add lines 6a through 10. Earned income tax credit These are the total household expenses 11. Earned income tax credit     12. Earned income tax credit Enter total number of persons who lived in the household 12. Earned income tax credit     Expenses for the Person You Supported       13. Earned income tax credit Divide line 11 by line 12. Earned income tax credit This is the person's share of the household expenses 13. Earned income tax credit     14. Earned income tax credit Enter the person's total clothing expenses 14. Earned income tax credit     15. Earned income tax credit Enter the person's total education expenses 15. Earned income tax credit     16. Earned income tax credit Enter the person's total medical and dental expenses not paid for or reimbursed by insurance 16. Earned income tax credit     17. Earned income tax credit Enter the person's total travel and recreation expenses 17. Earned income tax credit     18. Earned income tax credit Enter the total of the person's other expenses 18. Earned income tax credit     19. Earned income tax credit Add lines 13 through 18. Earned income tax credit This is the total cost of the person's support for the year 19. Earned income tax credit     Did the Person Provide More Than Half of His or Her Own Support?       20. Earned income tax credit Multiply line 19 by 50% (. Earned income tax credit 50) 20. Earned income tax credit     21. Earned income tax credit Enter the amount from line 2, plus the amount from line 6b if the person you supported owned  the home. Earned income tax credit This is the amount the person provided for his or her own support 21. Earned income tax credit     22. Earned income tax credit Is line 21 more than line 20?   No. Earned income tax credit You meet the support test for this person to be your qualifying child. Earned income tax credit If this person also meets the other tests to be a qualifying child, stop here; do not complete lines 23–26. Earned income tax credit Otherwise, go to line 23 and fill out the rest of the worksheet to determine if this person is your qualifying relative. Earned income tax credit    Yes. Earned income tax credit You do not meet the support test for this person to be either your qualifying child or your qualifying relative. Earned income tax credit Stop here. Earned income tax credit        Did You Provide More Than Half?       23. Earned income tax credit Enter the amount others provided for the person's support. Earned income tax credit Include amounts provided by state, local, and other welfare societies or agencies. Earned income tax credit Do not include any amounts included on line 1 23. Earned income tax credit     24. Earned income tax credit Add lines 21 and 23 24. Earned income tax credit     25. Earned income tax credit Subtract line 24 from line 19. Earned income tax credit This is the amount you provided for the person's support 25. Earned income tax credit     26. Earned income tax credit Is line 25 more than line 20?   Yes. Earned income tax credit You meet the support test for this person to be your qualifying relative. Earned income tax credit    No. Earned income tax credit You do not meet the support test for this person to be your qualifying relative. Earned income tax credit You cannot claim an exemption for this person unless you can do so under a multiple support agreement, the support test for children of divorced or separated parents, or the special rule for kidnapped children. Earned income tax credit See Multiple Support Agreement or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) , or Kidnapped child under Qualifying Relative. Earned income tax credit   Example. Earned income tax credit You provided $4,000 toward your 16-year-old son's support for the year. Earned income tax credit He has a part-time job and provided $6,000 to his own support. Earned income tax credit He provided more than half of his own support for the year. Earned income tax credit He is not your qualifying child. Earned income tax credit Foster care payments and expenses. Earned income tax credit   Payments you receive for the support of a foster child from a child placement agency are considered support provided by the agency. Earned income tax credit Similarly, payments you receive for the support of a foster child from a state or county are considered support provided by the state or county. Earned income tax credit   If you are not in the trade or business of providing foster care and your unreimbursed out-of-pocket expenses in caring for a foster child were mainly to benefit an organization qualified to receive deductible charitable contributions, the expenses are deductible as charitable contributions but are not considered support you provided. Earned income tax credit For more information about the deduction for charitable contributions, see chapter 24. Earned income tax credit If your unreimbursed expenses are not deductible as charitable contributions, they may qualify as support you provided. Earned income tax credit   If you are in the trade or business of providing foster care, your unreimbursed expenses are not considered support provided by you. Earned income tax credit Example 1. Earned income tax credit Lauren, a foster child, lived with Mr. Earned income tax credit and Mrs. Earned income tax credit Smith for the last 3 months of the year. Earned income tax credit The Smiths cared for Lauren because they wanted to adopt her (although she had not been placed with them for adoption). Earned income tax credit They did not care for her as a trade or business or to benefit the agency that placed her in their home. Earned income tax credit The Smiths' unreimbursed expenses are not deductible as charitable contributions but are considered support they provided for Lauren. Earned income tax credit Example 2. Earned income tax credit You provided $3,000 toward your 10-year-old foster child's support for the year. Earned income tax credit The state government provided $4,000, which is considered support provided by the state, not by the child. Earned income tax credit See Support provided by the state (welfare, food stamps, housing, etc. Earned income tax credit ) , later. Earned income tax credit Your foster child did not provide more than half of her own support for the year. Earned income tax credit Scholarships. Earned income tax credit   A scholarship received by a child who is a student is not taken into account in determining whether the child provided more than half of his or her own support. Earned income tax credit Joint Return Test (To Be a Qualifying Child) To meet this test, the child cannot file a joint return for the year. Earned income tax credit Exception. Earned income tax credit   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. Earned income tax credit Example 1—child files joint return. Earned income tax credit You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Earned income tax credit He earned $25,000 for the year. Earned income tax credit The couple files a joint return. Earned income tax credit Because your daughter and her husband file a joint return, she is not your qualifying child. Earned income tax credit Example 2—child files joint return only as a claim for refund of withheld tax. Earned income tax credit Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Earned income tax credit Neither is required to file a tax return. Earned income tax credit They do not have a child. Earned income tax credit Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. Earned income tax credit The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Earned income tax credit Example 3—child files joint return to claim American opportunity credit. Earned income tax credit The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Earned income tax credit He and his wife were not required to file a tax return. Earned income tax credit However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Earned income tax credit 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. Earned income tax credit The exception to the joint return test does not apply, so your son is not your qualifying child. Earned income tax credit Special Rule for Qualifying Child of More Than One Person If your qualifying child is not a qualifying child of anyone else, this special rule does not apply to you and you do not need to read about it. Earned income tax credit This is also true if your qualifying child is not a qualifying child of anyone else except your spouse with whom you file a joint return. Earned income tax credit If a child is treated as the qualifying child of the noncustodial parent under the rules for children of divorced or separated parents (or parents who live apart) described earlier, see Applying this special rule to divorced or separated parents (or parents who live apart), later. Earned income tax credit Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. Earned income tax credit Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). Earned income tax credit The exemption for the child. Earned income tax credit The child tax credit. Earned income tax credit Head of household filing status. Earned income tax credit The credit for child and dependent care expenses. Earned income tax credit The exclusion from income for dependent care benefits. Earned income tax credit The earned income credit. Earned income tax credit The other person cannot take any of these benefits based on this qualifying child. Earned income tax credit In other words, you and the other person cannot agree to divide these benefits between you. Earned income tax credit The other person cannot take any of these tax benefits for a child unless he or she has a different qualifying child. Earned income tax credit Tiebreaker rules. Earned income tax credit   To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker rules apply. Earned income tax credit If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Earned income tax credit 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. Earned income tax credit 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. Earned income tax credit 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. Earned income tax credit 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. Earned income tax credit 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. Earned income tax credit If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' combined AGI equally between the parents. Earned income tax credit See Example 6 . Earned income tax credit   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. Earned income tax credit Example 1—child lived with parent and grandparent. Earned income tax credit You and your 3-year-old daughter Jane lived with your mother all year. Earned income tax credit You are 25 years old, unmarried, and your AGI is $9,000. Earned income tax credit Your mother's AGI is $15,000. Earned income tax credit Jane's father did not live with you or your daughter. Earned income tax credit You have not signed Form 8332 (or a similar statement) to release the child's exemption to the noncustodial parent. Earned income tax credit Jane is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. Earned income tax credit However, only one of you can claim her. Earned income tax credit Jane is not a qualifying child of anyone else, including her father. Earned income tax credit You agree to let your mother claim Jane. Earned income tax credit This means your mother can claim Jane as a qualifying child for all of the six tax benefits listed earlier, if she qualifies (and if you do not claim Jane as a qualifying child for any of those tax benefits). Earned income tax credit Example 2—parent has higher AGI than grandparent. Earned income tax credit The facts are the same as in Example 1 except your AGI is $18,000. Earned income tax credit Because your mother's AGI is not higher than yours, she cannot claim Jane. Earned income tax credit Only you can claim Jane. Earned income tax credit Example 3—two persons claim same child. Earned income tax credit The facts are the same as in Example 1 except that you and your mother both claim Jane as a qualifying child. Earned income tax credit In this case, you, as the child's parent, will be the only one allowed to claim Jane as a qualifying child. Earned income tax credit The IRS will disallow your mother's claim to the six tax benefits listed earlier unless she has another qualifying child. Earned income tax credit Example 4—qualifying children split between two persons. Earned income tax credit The facts are the same as in Example 1 except you also have two other young children who are qualifying children of both you and your mother. Earned income tax credit Only one of you can claim each child. Earned income tax credit However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Earned income tax credit For example, if you claim one child, your mother can claim the other two. Earned income tax credit Example 5—taxpayer who is a qualifying child. Earned income tax credit The facts are the same as in Example 1 except you are only 18 years old and did not provide more than half of your own support for the year. Earned income tax credit This means you are your mother's qualifying child. Earned income tax credit If she can claim you as a dependent, then you cannot claim your daughter as a dependent because of the Dependent Taxpayer Test explained earlier. Earned income tax credit Example 6—child lived with both parents and grandparent. Earned income tax credit The facts are the same as in Example 1 except you are married to your daughter's father. Earned income tax credit The two of you live together with your daughter and your mother, and have an AGI of $20,000 on a joint return. Earned income tax credit If you and your husband do not claim your daughter as a qualifying child, your mother can claim her instead. Earned income tax credit Even though the AGI on your joint return, $20,000, is more than your mother's AGI of $15,000, for this purpose each parent's AGI can be treated as $10,000, so your mother's $15,000 AGI is treated as higher than the highest AGI of any of the child's parents who can claim the child. Earned income tax credit Example 7—separated parents. Earned income tax credit You, your husband, and your 10-year-old son lived together until August 1, 2013, when your husband moved out of the household. Earned income tax credit In August and September, your son lived with you. Earned income tax credit For the rest of the year, your son lived with your husband, the boy's father. Earned income tax credit Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship, age, support, and joint return tests for both of you. Earned income tax credit 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 rule for children of divorced or separated parents (or parents who live apart) does not apply. Earned income tax credit You and your husband will file separate returns. Earned income tax credit Your husband agrees to let you treat your son as a qualifying child. Earned income tax credit This means, if your husband does not claim your son as a qualifying child, you can claim your son as a qualifying child for the dependency exemption, child tax credit, and exclusion for dependent care benefits (if you qualify for each of those tax benefits). Earned income tax credit However, you cannot claim head of household filing status because you and your husband did not live apart for the last 6 months of the year. Earned income tax credit As a result, your filing status is married filing separately, so you cannot claim the earned income credit or the credit for child and dependent care expenses. Earned income tax credit Example 8—separated parents claim same child. Earned income tax credit The facts are the same as in Example 7 except that you and your husband both claim your son as a qualifying child. Earned income tax credit In this case, only your husband will be allowed to treat your son as a qualifying child. Earned income tax credit This is because, during 2013, the boy lived with him longer than with you. Earned income tax credit If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. Earned income tax credit If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the exclusion for dependent care benefits. Earned income tax credit In addition, because you and your husband did not live apart for the last 6 months of the year, your husband cannot claim head of household filing status. Earned income tax credit As a result, his filing status is married filing separately, so he cannot claim the earned income credit or the credit for child and dependent care expenses. Earned income tax credit Example 9—unmarried parents. Earned income tax credit You, your 5-year-old son, and your son's father lived together all year. Earned income tax credit You and your son's father are not married. Earned income tax credit Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, support, and joint return tests for both you and his father. Earned income tax credit Your AGI is $12,000 and your son's father's AGI is $14,000. Earned income tax credit Your son's father agrees to let you claim the child as a qualifying child. Earned income tax credit This means you can claim him as a qualifying child for the dependency exemption, child tax credit, head of household filing status, credit for child and dependent care expenses, exclusion for dependent care benefits, and the earned income credit, if you qualify for each of those tax benefits (and if your son's father does not, in fact, claim your son as a qualifying child for any of those tax benefits). Earned income tax credit Example 10—unmarried parents claim same child. Earned income tax credit The facts are the same as in Example 9 except that you and your son's father both claim your son as a qualifying child. Earned income tax credit In this case, only your son's father will be allowed to treat your son as a qualifying child. Earned income tax credit This is because his AGI, $14,000, is more than your AGI, $12,000. Earned income tax credit If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. Earned income tax credit If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the earned income credit, head of household filing status, the credit for child and dependent care expenses, and the exclusion for dependent care benefits. Earned income tax credit Example 11—child did not live with a parent. Earned income tax credit You and your 7-year-old niece, your sister's child, lived with your mother all year. Earned income tax credit You are 25 years old, and your AGI is $9,300. Earned income tax credit Your mother's AGI is $15,000. Earned income tax credit Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Earned income tax credit Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. Earned income tax credit However, only your mother can treat her as a qualifying child. Earned income tax credit This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Earned income tax credit Applying this special rule to divorced or separated parents (or parents who live apart). Earned income tax credit   If a child is treated as the qualifying child of the noncustodial parent under the rules described earlier 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. Earned income tax credit However, the custodial parent, if eligible, or other eligible person can claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. Earned income tax credit If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules just explained determine which person can treat the child as a qualifying child. Earned income tax credit Example 1. Earned income tax credit You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Earned income tax credit Your AGI is $10,000. Earned income tax credit Your mother's AGI is $25,000. Earned income tax credit Your son's father did not live with you or your son. Earned income tax credit Under the rules explained earlier 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 him. Earned income tax credit Because of this, you cannot claim an exemption or the child tax credit for your son. Earned income tax credit 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 earned income credit. Earned income tax credit You and your mother did not have any child care expenses or dependent care benefits, so neither of you can claim the credit for child and dependent care expenses or the exclusion for dependent care benefits. Earned income tax credit But the boy is a qualifying child of both you and your mother for head of household filing status and the earned income credit because he meets the relationship, age, residency, support, and joint return tests for both you and your mother. Earned income tax credit (Note: The support test does not apply for the earned income credit. Earned income tax credit ) However, you agree to let your mother claim your son. Earned income tax credit This means she can claim him for head of household filing status and the earned income credit if she qualifies for each and if you do not claim him as a qualifying child for the earned income credit. Earned income tax credit (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the home. Earned income tax credit ) Example 2. Earned income tax credit The facts are the same as in Example 1 except your AGI is $25,000 and your mother's AGI is $21,000. Earned income tax credit Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Earned income tax credit Example 3. Earned income tax credit The facts are the same as in Example 1 except you and your mother both claim your son as a qualifying child for the earned income credit. Earned income tax credit Your mother also claims him as a qualifying child for head of household filing status. Earned income tax credit You, as the child's parent, will be the only one allowed to claim your son as a qualifying child for the earned income credit. Earned income tax credit The IRS will disallow your mother's claim to the earned income credit and head of household filing status unless she has another qualifying child. Earned income tax credit Qualifying Relative Four tests must be met for a person to be your qualifying relative. Earned income tax credit The four tests are: Not a qualifying child test, Member of household or relationship test, Gross income test, and Support test. Earned income tax credit Age. Earned income tax credit   Unlike a qualifying child, a qualifying relative can be any age. Earned income tax credit There is no age test for a qualifying relative. Earned income tax credit Kidnapped child. Earned income tax credit   You may be able to treat a child as your qualifying relative even if the child has been kidnapped. Earned income tax credit See Publication 501 for details. Earned income tax credit Not a Qualifying Child Test A child is not your qualifying relative if the child is your qualifying child or the qualifying child of any other taxpayer. Earned income tax credit Example 1. Earned income tax credit Your 22-year-old daughter, who is a student, lives with you and meets all the tests to be your qualifying child. Earned income tax credit She is not your qualifying relative. Earned income tax credit Example 2. Earned income tax credit Your 2-year-old son lives with your parents and meets all the tests to be their qualifying child. Earned income tax credit He is not your qualifying relative. Earned income tax credit Example 3. Earned income tax credit Your son lives with you but is not your qualifying child because he is 30 years old and does not meet the age test. Earned income tax credit He may be your qualifying relative if the gross income test and the support test are met. Earned income tax credit Example 4. Earned income tax credit Your 13-year-old grandson lived with his mother for 3 months, with his uncle for 4 months, and with you for 5 months during the year. Earned income tax credit He is not your qualifying child because he does not meet the residency test. Earned income tax credit He may be your qualifying relative if the gross income test and the support test are met. Earned income tax credit Child of person not required to file a return. Earned income tax credit   A child is not the qualifying child of any other taxpayer and so may qualify as your qualifying relative if the child's parent (or other person for whom the child is defined as a qualifying child) 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. Earned income tax credit Example 1—return not required. Earned income tax credit You support an unrelated friend and her 3-year-old child, who lived with you all year in your home. Earned income tax credit Your friend has no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Earned income tax credit Both your friend and her child are your qualifying relatives if the support test is met. Earned income tax credit Example 2—return filed to claim refund. Earned income tax credit The facts are the same as in Example 1 except your friend had wages of $1,500 during the year and had income tax withheld from her wages. Earned income tax credit She files a return only to get a refund of the income tax withheld and does not claim the earned income credit or any other tax credits or deductions. Earned income tax credit Both your friend and her child are your qualifying relatives if the support test is met. Earned income tax credit Example 3—earned income credit claimed. Earned income tax credit The facts are the same as in Example 2 except your friend had wages of $8,000 during the year and claimed the earned income credit on her return. Earned income tax credit Your friend's child is the qualifying child of another taxpayer (your friend), so you cannot claim your friend's child as your qualifying relative. Earned income tax credit Child in Canada or Mexico. Earned income tax credit   You may be able to claim your child as a dependent even if the child lives in Canada or Mexico. Earned income tax credit If the child does not live with you, the child does not meet the residency test to be your qualifying child. Earned income tax credit However, the child may still be your qualifying relative. Earned income tax credit If the persons the child does live with are not U. Earned income tax credit S. Earned income tax credit citizens and have no U. Earned income tax credit S. Earned income tax credit gross income, those persons are not “taxpayers,” so the child is not the qualifying child of any other taxpayer. Earned income tax credit If the child is not the qualifying child of any other taxpayer, the child is your qualifying relative as long as the gross income test and the support test are met. Earned income tax credit   You cannot claim as a dependent a child who lives in a foreign country other than Canada or Mexico, unless the child is a U. Earned income tax credit S. Earned income tax credit citizen, U. Earned income tax credit S. Earned income tax credit resident alien, or U. Earned income tax credit S. Earned income tax credit national. Earned income tax credit There is an exception for certain adopted children who lived with you all year. Earned income tax credit See Citizen or Resident Test , earlier. Earned income tax credit Example. Earned income tax credit You provide all the support of your children, ages 6, 8, and 12, who live in Mexico with your mother and have no income. Earned income tax credit You are single and live in the United States. Earned income tax credit Your mother is not a U. Earned income tax credit S. Earned income tax credit citizen and has no U. Earned income tax credit S. Earned income tax credit income, so she is not a “taxpayer. Earned income tax credit ” Your children are not your qualifying children because they do not meet the residency test. Earned income tax credit But since they are not the qualifying children of any other taxpayer, they are your qualifying relatives and you can claim them as dependents. Earned income tax credit You may also be able to claim your mother as a dependent if the gross income and support tests are met. Earned income tax credit Member of Household or Relationship Test To meet this test, a person must either: Live with you all year as a member of your household, or Be related to you in one of the ways listed under Relatives who do not have to live with you . Earned income tax credit If at any time during the year the person was your spouse, that person cannot be your qualifying relative. Earned income tax credit However, see Personal Exemptions , earlier. Earned income tax credit Relatives who do not have to live with you. Earned income tax credit   A person related to you in any of the following ways does not have to live with you all year as a member of your household to meet this test. Earned income tax credit Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Earned income tax credit (A legally adopted child is considered your child. Earned income tax credit ) Your brother, sister, half brother, half sister, stepbrother, or stepsister. Earned income tax credit Your father, mother, grandparent, or other direct ancestor, but not foster parent. Earned income tax credit Your stepfather or stepmother. Earned income tax credit A son or daughter of your brother or sister. Earned income tax credit A son or daughter of your half brother or half sister. Earned income tax credit A brother or sister of your father or mother. Earned income tax credit Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Earned income tax credit Any of these relationships that were established by marriage are not ended by death or divorce. Earned income tax credit Example. Earned income tax credit You and your wife began supporting your wife's father, a widower, in 2006. Earned income tax credit Your wife died in 2012. Earned income tax credit Despite your wife's death, your father-in-law continues to meet this test, even if he does not live with you. Earned income tax credit You can claim him as a dependent if all other tests are met, including the gross income test and support test. Earned income tax credit Foster child. Earned income tax credit   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Earned income tax credit Joint return. Earned income tax credit   If you file a joint return, the person can be related to either you or your spouse. Earned income tax credit Also, the person does not need to be related to the spouse who provides support. Earned income tax credit   For example, your spouse's uncle who receives more than half of his support from you may be your qualifying relative, even though he does not live with you. Earned income tax credit However, if you and your spouse file separate returns, your spouse's uncle can be your qualifying relative only if he lives with you all year as a member of your household. Earned income tax credit Temporary absences. Earned income tax credit   A person is considered to live with you as a member of your household during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. Earned income tax credit   If the person is placed in a nursing home for an indefinite period of time to receive constant medical care, the absence may be considered temporary. Earned income tax credit Death or birth. Earned income tax credit   A person who died during the year, but lived with you as a member of your household until death, will meet this test. Earned income tax credit The same is true for a child who was born during the year and lived with you as a member of your household for the rest of the year. Earned income tax credit The test is also met if a child lived with you as a member of your household except for any required hospital stay following birth. Earned income tax credit   If your dependent died during the year and you otherwise qualify to claim an exemption for the dependent, you can still claim the exemption. Earned income tax credit Example. Earned income tax credit Your dependent mother died on January 15. Earned income tax credit She met the tests to be your qualifying relative. Earned income tax credit The other tests to claim an exemption for a dependent were also met. Earned income tax credit You can claim an exemption for her on your return. Earned income tax credit Local law violated. Earned income tax credit   A person does not meet this test if at any time during the year the relationship between you and that person violates local law. Earned income tax credit Example. Earned income tax credit Your girlfriend lived with you as a member of your household all year. Earned income tax credit However, your relationship with her violated the laws of the state where you live, because she was married to someone else. Earned income tax credit Therefore, she does not meet this test and you cannot claim her as a dependent. Earned income tax credit Adopted child. Earned income tax credit   An adopted child is always treated as your own child. Earned income tax credit The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Earned income tax credit Cousin. Earned income tax credit   Your cousin meets this test only if he or she lives with you all year as a member of your household. Earned income tax credit A cousin is a descendant of a brother or sister of your father or mother. Earned income tax credit Gross Income Test To meet this test, a person's gross income for the year must be less than $3,900. Earned income tax credit Gross income defined. Earned income tax credit   Gross income is all income in the form of money, property, and services that is not exempt from tax. Earned income tax credit   In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business. Earned income tax credit   Gross receipts from rental property are gross income. Earned income tax credit Do not deduct taxes, repairs, or other expenses, to determine the gross income from rental property. Earned income tax credit   Gross income includes a partner's share of the gross (not a share of the net) partnership income. Earned income tax credit    Gross income also includes all taxable unemployment compensation and certain scholarship and fellowship grants. Earned income tax credit Scholarships received by degree candidates and used for tuition, fees, supplies, books, and equipment required for particular courses generally are not included in gross income. Earned income tax credit For more information about scholarships, see chapter 12. Earned income tax credit   Tax-exempt income, such as certain social security benefits, is not included in gross income. Earned income tax credit Disabled dependent working at sheltered workshop. Earned income tax credit   For purposes of the gross income test, the gross income of an individual who is permanently and totally disabled at any time during the year does not include income for services the individual performs at a sheltered workshop. Earned income tax credit The availability of medical care at the workshop must be the main reason for the individual's presence there. Earned income tax credit Also, the income must come solely from activities at the workshop that are incident to this medical care. Earned income tax credit   A “sheltered workshop” is a school that: Provides special instruction or training designed to alleviate the disability of the individual, and Is operated by certain tax-exempt organizations, or by a state, a U. Earned income tax credit S. Earned income tax credit possession, a political subdivision of a state or possession, the United States, or the District of Columbia. Earned income tax credit “Permanently and totally disabled” has the same meaning here as under Qualifying Child, earlier. Earned income tax credit Support Test (To Be a Qualifying Relative) To meet this test, you generally must provide more than half of a person's total support during the calendar year. Earned income tax credit However, if two or more persons provide support, but no one person provides more than half of a person's total support, see Multiple Support Agreement , later. Earned income tax credit How to determine if support test is met. Earned income tax credit   You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support with the entire amount of support that person received from all sources. Earned income tax credit This includes support the person provided from his or her own funds. Earned income tax credit   You may find Worksheet 3-1 helpful in figuring whether you provided more than half of a person's support. Earned income tax credit Person's own funds not used for support. Earned income tax credit   A person's own funds are not support unless they are actually spent for support. Earned income tax credit Example. Earned income tax credit Your mother received $2,400 in social security benefits and $300 in interest. Earned income tax credit She paid $2,000 for lodging and $400 for recreation. Earned income tax credit She put $300 in a savings account. Earned income tax credit Even though your mother received a total of $2,700 ($2,400 + $300), she spent only $2,400 ($2,000 + $400) for her own support. Earned income tax credit If you spent more than $2,400 for her support and no other support was received, you have provided more than half of her support. Earned income tax credit Child's wages used for own support. Earned income tax credit   You cannot include in your contribution to your child's support any support paid for by the child with the child's own wages, even if you paid the wages. Earned income tax credit Year support is provided. Earned income tax credit   The year you provide the support is the year you pay for it, even if you do so with borrowed money that you repay in a later year. Earned income tax credit   If you use a fiscal year to report your income, you must provide more than half of the dependent's support for the calendar year in which your fiscal year begins. Earned income tax credit Armed Forces dependency allotments. Earned income tax credit   The part of the allotment contributed by the government and the part taken out of your military pay are both considered provided by you in figuring whether you provide more than half of the support. Earned income tax credit If your allotment is used to support persons other than those you name, you can take the exemptions for them if they otherwise qualify. Earned income tax credit Example. Earned income tax credit You are in the Armed Forces. Earned income tax credit You authorize an allotment for your widowed mother that she uses to support herself and her sister. Earned income tax credit If the allotment provides more than half of each person's support, you can take an exemption for each of them, if they otherwise qualify, even though you authorize the allotment only for your mother. Earned income tax credit Tax-exempt military quarters allowances. Earned income tax credit   These allowances are treated the same way as dependency allotments in figuring support. Earned income tax credit The allotment of pay and the tax-exempt basic allowance for quarters are both considered as provided by you for support. Earned income tax credit Tax-exempt income. Earned income tax credit   In figuring a person's total support, include tax-exempt income, savings, and borrowed amounts used to support that person. Earned income tax credit Tax-exempt income includes certain social security benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments, nontaxable pensions, and tax-exempt interest. Earned income tax credit Example 1. Earned income tax credit You provide $4,000 toward your mother's support during the year. Earned income tax credit She has earned income of $600, nontaxable social security benefits of $4,800, and tax-exempt interest of $200. Earned income tax credit She uses all these for her support. Earned income tax credit You cannot claim an exemption for your mother because the $4,000 you provide is not more than half of her total support of $9,600 ($4,000 + $600 + $4,800 + $200). Earned income tax credit Example 2. Earned income tax credit Your niece takes out a student loan of $2,500 a