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Efile Tax Return Online Free Federal And State

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Efile Tax Return Online Free Federal And State

Efile tax return online free federal and state Index A Acknowledgment, Acknowledgment. Efile tax return online free federal and state Adoption expenses, Personal Expenses Airplanes, donations of, Cars, Boats, and Airplanes Appraisal fees, Appraisal Fees Assistance (see Tax help) Athletic events, Athletic events. Efile tax return online free federal and state B Bargain sales, Bargain Sales Blood donated, Value of Time or Services Boats, donations of, Cars, Boats, and Airplanes Boats, fair market value, Cars, boats, and airplanes. Efile tax return online free federal and state C Canadian charity, Canadian charities. Efile tax return online free federal and state Capital gain property, Capital Gain Property Car expenses, Car expenses. Efile tax return online free federal and state , Car expenses. Efile tax return online free federal and state Carryovers, Carryovers Cars, donations of, Cars, Boats, and Airplanes Cash contributions, records to keep, Cash Contributions Charity benefit events, Charity benefit events. Efile tax return online free federal and state Church deacon, Church deacon. Efile tax return online free federal and state Clothing Fair market value of, Used clothing. Efile tax return online free federal and state Conservation contribution, Special 50% Limit for Qualified Conservation Contributions Contributions from which you benefit, Contributions From Which You Benefit, Contributions From Which You Benefit Contributions of property, Contributions of Property Contributions subject to special rules Car, boat, or airplane, 1098–C, Contributions Subject to Special Rules Clothing, Contributions Subject to Special Rules Fractional interest in tangible personal property, Contributions Subject to Special Rules Future interest in tangible personal property, Contributions Subject to Special Rules Household items, Contributions Subject to Special Rules Inventory from your business, Contributions Subject to Special Rules Partial interest in property, Contributions Subject to Special Rules Patent or other intellectual property, Contributions Subject to Special Rules Property subject to a debt, Contributions Subject to Special Rules Qualified conservation contribution, Contributions Subject to Special Rules Taxidermy property, Contributions Subject to Special Rules Contributions to nonqualified organizations Foreign organizations, Contributions to Nonqualified Organizations Contributions you can deduct, Contributions You Can Deduct Conventions of a qualified organization, Conventions. Efile tax return online free federal and state D Daily allowance (per diem) from a charitable organization, Daily allowance (per diem). Efile tax return online free federal and state Deduction limits, Limits on Deductions Determining fair market value, Determining Fair Market Value Disaster relief, Reminders Donor-advised funds, Contributions to Donor-Advised Funds E Easement, Building in registered historic district. Efile tax return online free federal and state F Farmer, Qualified farmer or rancher. Efile tax return online free federal and state Food inventory, Food Inventory Foreign organizations Canadian, Canadian charities. Efile tax return online free federal and state Israeli, Israeli charities. Efile tax return online free federal and state Mexican, Mexican charities. Efile tax return online free federal and state Form 8282, Form 8282. Efile tax return online free federal and state 8283, Total deduction over $500. Efile tax return online free federal and state Foster parents, Foster parents. Efile tax return online free federal and state Free tax services, Free help with your tax return. Efile tax return online free federal and state Future interests in property, Future Interest in Tangible Personal Property H Help (see Tax help) Historic building, Building in registered historic district. Efile tax return online free federal and state Household items Fair market value of, Household items. Efile tax return online free federal and state How to report, How To Report Noncash contributions, Reporting expenses for student living with you. Efile tax return online free federal and state I Introduction, Introduction Inventory, Food Inventory Israeli charity, Israeli charities. Efile tax return online free federal and state L Legislation, influencing, Contributions From Which You Benefit Limit on itemized deductions, What's New Limits on deductions, Limits on Deductions 20% limit, 20% Limit 30% limit, 30% Limit 50% limit, 50% Limit Calculation, How To Figure Your Deduction When Limits Apply Capital gain property, Special 30% Limit for Capital Gain Property Qualified conservation contributions, Special 50% Limit for Qualified Conservation Contributions M Meals, Personal Expenses Membership fees or dues, Membership fees or dues. Efile tax return online free federal and state Mexican charity, Mexican charities. Efile tax return online free federal and state Motor vehicles, donations of, Cars, Boats, and Airplanes Motor vehicles, fair market value, Cars, boats, and airplanes. Efile tax return online free federal and state N Noncash contributions, Noncash Contributions How to report, Reporting expenses for student living with you. Efile tax return online free federal and state Records to keep, Noncash Contributions Nondeductible contributions, Contributions You Cannot Deduct O Ordinary income property, Ordinary Income Property Out-of-pocket expenses, Out-of-pocket expenses. Efile tax return online free federal and state Out-of-pocket expenses in giving services, Out-of-Pocket Expenses in Giving Services P Payroll deductions, Payroll deductions. Efile tax return online free federal and state , Payroll deductions. Efile tax return online free federal and state Penalty, valuation overstatement, Penalty Personal expenses, Personal Expenses Private foundation, 50% Limit Organizations Private nonoperating foundation, Contributions to private nonoperating foundations. Efile tax return online free federal and state , 50% Limit Organizations Private operating foundation, 50% Limit Organizations Property Bargain sales, Bargain Sales Basis, Giving Property That Has Decreased in Value Capital gain, Capital Gain Property Capital gain election, Capital gain property election. Efile tax return online free federal and state Decreased in value, Giving Property That Has Decreased in Value Future interests, Future Interest in Tangible Personal Property Increased in value, Giving Property That Has Increased in Value Inventory, Food Inventory Ordinary income, Ordinary Income Property Unrelated use, Tangible personal property put to unrelated use. Efile tax return online free federal and state Publications (see Tax help) Q Qualified charitable distributions, Qualified Charitable Distributions Qualified conservation contribution, Special 50% Limit for Qualified Conservation Contributions Qualified organizations Foreign qualified organizations Canadian, Organizations That Qualify To Receive Deductible Contributions Israeli, Organizations That Qualify To Receive Deductible Contributions Mexican, Organizations That Qualify To Receive Deductible Contributions Types, Organizations That Qualify To Receive Deductible Contributions R Raffle or bingo, Contributions From Which You Benefit Recapture No exempt use, Recapture if no exempt use. Efile tax return online free federal and state Recapture of deduction of fractional interest in tangible personal property Additional tax, Recapture of deduction. Efile tax return online free federal and state Records to keep, Records To Keep Reminders Disaster relief, Reminders Reporting, How To Report Retirement home, Contributions From Which You Benefit S Services, value of, Value of Time or Services Split-dollar insurance arrangements, Contributions From Which You Benefit Student, Mutual exchange program. Efile tax return online free federal and state Exchange program, Mutual exchange program. Efile tax return online free federal and state Living with you, Student living with you. Efile tax return online free federal and state Student living with you, Expenses Paid for Student Living With You, Reporting expenses for student living with you. Efile tax return online free federal and state T Tangible personal property Future interest in, Future Interest in Tangible Personal Property Tax help, How To Get Tax Help Time, value of, Value of Time or Services Token items, Certain membership benefits can be disregarded. Efile tax return online free federal and state Travel expenses, Travel. Efile tax return online free federal and state Travel expenses for charitable services, Deductible travel expenses. Efile tax return online free federal and state Tuition, Contributions From Which You Benefit U Underprivileged youths, Underprivileged youths selected by charity. Efile tax return online free federal and state Uniforms, Uniforms. Efile tax return online free federal and state Unrelated use, Unrelated use. Efile tax return online free federal and state V Volunteers, Out-of-Pocket Expenses in Giving Services W Whaling captain, Expenses of Whaling Captains When to deduct, When To Deduct Prev  Up     Home   More Online Publications
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Health - Medicare Prescription Drug Coverage

Medicare offers prescription drug coverage to help senior citizens and others who need medical assistance get the prescription drugs they need, under Part D of the program (or Part C if you are enrolled in the Medicare Advantage Plan). Everyone with Medicare can join a drug plan to get this coverage. Not all Medicare drug plans are the same, however. If you aren’t sure whether a drug plan is approved by Medicare, call 1-800-MEDICARE  (633-4227). Look for the “Medicare Approved” seal on drug discount cards to make sure you are getting the best deal.

Medicare prescription drug coverage pays expenses up to $2,800; once your prescription costs exceeds that amount, you will no longer have coverage and will be responsible for the full cost of your drugs. However, once your out-of-pocket spending reaches $4,550, your prescription coverage will kick back in. Any amount of prescription drug spending between $2,800 and $4,550 is called the coverage gap or “Medicare donut hole.” Beginning in 2013, if you reach the coverage gap, you will automatically get a 52.5% discount on covered brand-name drugs and a 14% discount on generic drugs. If you have limited income and resources, you may get extra help to cover prescription drugs for little or no cost.

The Efile Tax Return Online Free Federal And State

Efile tax return online free federal and state Publication 596 - Main Content Table of Contents Chapter 1—Rules for EveryoneRule 1—Adjusted Gross Income (AGI) Limits Rule 2—You Must Have a Valid Social Security Number (SSN) Rule 3—Your Filing Status Cannot Be Married Filing Separately Rule 4—You Must Be a U. Efile tax return online free federal and state S. Efile tax return online free federal and state Citizen or Resident Alien All Year Rule 5—You Cannot File Form 2555 or Form 2555-EZ Rule 6—Your Investment Income Must Be $3,300 or Less Rule 7—You Must Have Earned Income Chapter 2—Rules If You Have a Qualifying ChildRule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9—Your Qualifying Child Cannot Be Used by More Than One Person To Claim the EIC Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer Chapter 3—Rules If You Do Not Have a Qualifying ChildRule 11—You Must Be at Least Age 25 but Under Age 65 Rule 12—You Cannot Be the Dependent of Another Person Rule 13—You Cannot Be a Qualifying Child of Another Taxpayer Rule 14—You Must Have Lived in the United States More Than Half of the Year Chapter 4—Figuring and Claiming the EICRule 15—Earned Income Limits IRS Will Figure the EIC for You How To Figure the EIC Yourself Schedule EIC Chapter 5—Disallowance of the EICForm 8862 Are You Prohibited From Claiming the EIC for a Period of Years? Chapter 6—Detailed ExamplesExample 1—Sharon Rose Example 2—Cynthia and Jerry Grey Chapter 1—Rules for Everyone This chapter discusses Rules 1 through 7. Efile tax return online free federal and state You must meet all seven rules to qualify for the earned income credit. Efile tax return online free federal and state If you do not meet all seven rules, you cannot get the credit and you do not need to read the rest of the publication. Efile tax return online free federal and state If you meet all seven rules in this chapter, then read either chapter 2 or chapter 3 (whichever applies) for more rules you must meet. Efile tax return online free federal and state Rule 1—Adjusted Gross Income (AGI) Limits Your adjusted gross income (AGI) must be less than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Efile tax return online free federal and state Adjusted gross income (AGI). Efile tax return online free federal and state   AGI is the amount on line 4 of Form 1040EZ, line 22 of Form 1040A, or line 38 of Form 1040. Efile tax return online free federal and state   If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Efile tax return online free federal and state You do not need to read the rest of this publication. Efile tax return online free federal and state Example—AGI is more than limit. Efile tax return online free federal and state Your AGI is $38,550, you are single, and you have one qualifying child. Efile tax return online free federal and state You cannot claim the EIC because your AGI is not less than $37,870. Efile tax return online free federal and state However, if your filing status was married filing jointly, you might be able to claim the EIC because your AGI is less than $43,210. Efile tax return online free federal and state Community property. Efile tax return online free federal and state   If you are married, but qualify to file as head of household under special rules for married taxpayers living apart (see Rule 3), and live in a state that has community property laws, your AGI includes that portion of both your and your spouse's wages that you are required to include in gross income. Efile tax return online free federal and state This is different from the community property rules that apply under Rule 7. Efile tax return online free federal and state Rule 2—You Must Have a Valid Social Security Number (SSN) To claim the EIC, you (and your spouse, if filing a joint return) must have a valid SSN issued by the Social Security Administration (SSA). Efile tax return online free federal and state Any qualifying child listed on Schedule EIC also must have a valid SSN. Efile tax return online free federal and state (See Rule 8 if you have a qualifying child. Efile tax return online free federal and state ) If your social security card (or your spouse's, if filing a joint return) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. Efile tax return online free federal and state An example of a federally funded benefit is Medicaid. Efile tax return online free federal and state If you have a card with the legend “Not valid for employment” and your immigration status has changed so that you are now a U. Efile tax return online free federal and state S. Efile tax return online free federal and state citizen or permanent resident, ask the SSA for a new social security card without the legend. Efile tax return online free federal and state If you get the new card after you have already filed your return, you can file an amended return on Form 1040X, Amended U. Efile tax return online free federal and state S. Efile tax return online free federal and state Individual Income Tax Return, to claim the EIC. Efile tax return online free federal and state U. Efile tax return online free federal and state S. Efile tax return online free federal and state citizen. Efile tax return online free federal and state   If you were a U. Efile tax return online free federal and state S. Efile tax return online free federal and state citizen when you received your SSN, you have a valid SSN. Efile tax return online free federal and state Valid for work only with INS authorization or DHS authorization. Efile tax return online free federal and state   If your social security card reads “Valid for work only with INS authorization” or “Valid for work only with DHS authorization,” you have a valid SSN, but only if that authorization is still valid. Efile tax return online free federal and state SSN missing or incorrect. Efile tax return online free federal and state   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Efile tax return online free federal and state Other taxpayer identification number. Efile tax return online free federal and state   You cannot get the EIC if, instead of an SSN, you (or your spouse, if filing a joint return) have an individual taxpayer identification number (ITIN). Efile tax return online free federal and state ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Efile tax return online free federal and state No SSN. Efile tax return online free federal and state   If you do not have a valid SSN, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Efile tax return online free federal and state You cannot claim the EIC. Efile tax return online free federal and state Getting an SSN. Efile tax return online free federal and state   If you (or your spouse, if filing a joint return) do not have an SSN, you can apply for one by filing Form SS-5 with the SSA. Efile tax return online free federal and state You can get Form SS-5 online at www. Efile tax return online free federal and state socialsecurity. Efile tax return online free federal and state gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Efile tax return online free federal and state Filing deadline approaching and still no SSN. Efile tax return online free federal and state   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Efile tax return online free federal and state Request an automatic 6-month extension of time to file your return. Efile tax return online free federal and state You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Efile tax return online free federal and state S. Efile tax return online free federal and state Individual Income Tax Return. Efile tax return online free federal and state For more information, see the instructions for Form 4868. Efile tax return online free federal and state File the return on time without claiming the EIC. Efile tax return online free federal and state After receiving the SSN, file an amended return, Form 1040X, claiming the EIC. Efile tax return online free federal and state Attach a filled-in Schedule EIC, Earned Income Credit, if you have a qualifying child. Efile tax return online free federal and state Rule 3—Your Filing Status Cannot Be “Married Filing Separately” If you are married, you usually must file a joint return to claim the EIC. Efile tax return online free federal and state Your filing status cannot be “Married filing separately. Efile tax return online free federal and state ” Spouse did not live with you. Efile tax return online free federal and state   If you are married and your spouse did not live in your home at any time during the last 6 months of the year, you may be able to file as head of household, instead of married filing separately. Efile tax return online free federal and state In that case, you may be able to claim the EIC. Efile tax return online free federal and state For detailed information about filing as head of household, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Efile tax return online free federal and state Rule 4—You Must Be a U. Efile tax return online free federal and state S. Efile tax return online free federal and state Citizen or Resident Alien All Year If you (or your spouse, if married) were a nonresident alien for any part of the year, you cannot claim the earned income credit unless your filing status is married filing jointly. Efile tax return online free federal and state You can use that filing status only if one spouse is a U. Efile tax return online free federal and state S. Efile tax return online free federal and state citizen or resident alien and you choose to treat the nonresident spouse as a U. Efile tax return online free federal and state S. Efile tax return online free federal and state resident. Efile tax return online free federal and state If you make this choice, you and your spouse are taxed on your worldwide income. Efile tax return online free federal and state If you need more information on making this choice, get Publication 519, U. Efile tax return online free federal and state S. Efile tax return online free federal and state Tax Guide for Aliens. Efile tax return online free federal and state If you (or your spouse, if married) were a nonresident alien for any part of the year and your filing status is not married filing jointly, enter “No” on the dotted line next to line 64a (Form 1040) or in the space to the left of line 38a (Form 1040A). Efile tax return online free federal and state Rule 5—You Cannot File Form 2555 or Form 2555-EZ You cannot claim the earned income credit if you file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Efile tax return online free federal and state You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Efile tax return online free federal and state U. Efile tax return online free federal and state S. Efile tax return online free federal and state possessions are not foreign countries. Efile tax return online free federal and state See Publication 54, Tax Guide for U. Efile tax return online free federal and state S. Efile tax return online free federal and state Citizens and Resident Aliens Abroad, for more detailed information. Efile tax return online free federal and state Rule 6—Your Investment Income Must Be $3,300 or Less You cannot claim the earned income credit unless your investment income is $3,300 or less. Efile tax return online free federal and state If your investment income is more than $3,300, you cannot claim the credit. Efile tax return online free federal and state Form 1040EZ. Efile tax return online free federal and state   If you file Form 1040EZ, your investment income is the total of the amount on line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. Efile tax return online free federal and state Form 1040A. Efile tax return online free federal and state   If you file Form 1040A, your investment income is the total of the amounts on lines 8a (taxable interest), 8b (tax-exempt interest), 9a (ordinary dividends), and 10 (capital gain distributions) on that form. Efile tax return online free federal and state Form 1040. Efile tax return online free federal and state   If you file Form 1040, use Worksheet 1 in this chapter to figure your investment income. Efile tax return online free federal and state    Worksheet 1. Efile tax return online free federal and state Investment Income If You Are Filing Form 1040 Use this worksheet to figure investment income for the earned income credit when you file Form 1040. Efile tax return online free federal and state Interest and Dividends         1. Efile tax return online free federal and state Enter any amount from Form 1040, line 8a 1. Efile tax return online free federal and state   2. Efile tax return online free federal and state Enter any amount from Form 1040, line 8b, plus any amount on Form 8814, line 1b 2. Efile tax return online free federal and state   3. Efile tax return online free federal and state Enter any amount from Form 1040, line 9a 3. Efile tax return online free federal and state   4. Efile tax return online free federal and state Enter the amount from Form 1040, line 21, that is from Form 8814 if you are filing that form to report your child's interest and dividend income on your return. Efile tax return online free federal and state (If your child received an Alaska Permanent Fund dividend, use Worksheet 2 in this chapter to figure the amount to enter on this line. Efile tax return online free federal and state ) 4. Efile tax return online free federal and state   Capital Gain Net Income         5. Efile tax return online free federal and state Enter the amount from Form 1040, line 13. Efile tax return online free federal and state If the amount on that line is a loss, enter -0- 5. Efile tax return online free federal and state       6. Efile tax return online free federal and state Enter any gain from Form 4797, Sales of Business Property, line 7. Efile tax return online free federal and state If the amount on that line is a loss, enter -0-. Efile tax return online free federal and state (But, if you completed lines 8 and 9 of Form 4797, enter the amount from line 9 instead. Efile tax return online free federal and state ) 6. Efile tax return online free federal and state       7. Efile tax return online free federal and state Substract line 6 of this worksheet from line 5 of this worksheet. Efile tax return online free federal and state (If the result is less than zero, enter -0-. Efile tax return online free federal and state ) 7. Efile tax return online free federal and state   Royalties and Rental Income From Personal Property         8. Efile tax return online free federal and state Enter any royalty income from Schedule E, line 23b, plus any income from the rental of personal property shown on Form 1040, line 21 8. Efile tax return online free federal and state       9. Efile tax return online free federal and state Enter any expenses from Schedule E, line 20, related to royalty income, plus any expenses from the rental of personal property deducted on Form 1040, line 36 9. Efile tax return online free federal and state       10. Efile tax return online free federal and state Subtract the amount on line 9 of this worksheet from the amount on line 8. Efile tax return online free federal and state (If the result is less than zero, enter -0-. Efile tax return online free federal and state ) 10. Efile tax return online free federal and state   Passive Activities         11. Efile tax return online free federal and state Enter the total of any net income from passive activities (such as income included on Schedule E, line 26, 29a (col. Efile tax return online free federal and state (g)), 34a (col. Efile tax return online free federal and state (d)), or 40). Efile tax return online free federal and state (See instructions below for lines 11 and 12. Efile tax return online free federal and state ) 11. Efile tax return online free federal and state       12. Efile tax return online free federal and state Enter the total of any losses from passive activities (such as losses included on Schedule E, line 26, 29b (col. Efile tax return online free federal and state (f)), 34b (col. Efile tax return online free federal and state (c)), or 40). Efile tax return online free federal and state (See instructions below for lines 11 and 12. Efile tax return online free federal and state ) 12. Efile tax return online free federal and state       13. Efile tax return online free federal and state Combine the amounts on lines 11 and 12 of this worksheet. Efile tax return online free federal and state (If the result is less than zero, enter -0-. Efile tax return online free federal and state ) 13. Efile tax return online free federal and state   14. Efile tax return online free federal and state Add the amounts on lines 1, 2, 3, 4, 7, 10, and 13. Efile tax return online free federal and state Enter the total. Efile tax return online free federal and state This is your investment income 14. Efile tax return online free federal and state   15. Efile tax return online free federal and state Is the amount on line 14 more than $3,300? ❑ Yes. Efile tax return online free federal and state You cannot take the credit. Efile tax return online free federal and state  ❑ No. Efile tax return online free federal and state Go to Step 3 of the Form 1040 instructions for lines 64a and 64b to find out if you can take the credit (unless you are using this publication to find out if you can take the credit; in that case, go to Rule 7, next). Efile tax return online free federal and state       Instructions for lines 11 and 12. Efile tax return online free federal and state In figuring the amount to enter on lines 11 and 12, do not take into account any royalty income (or loss) included on line 26 of Schedule E or any amount included in your earned income. Efile tax return online free federal and state To find out if the income on line 26 or line 40 of Schedule E is from a passive activity, see the Schedule E instructions. Efile tax return online free federal and state If any of the rental real estate income (or loss) included on Schedule E, line 26, is not from a passive activity, print “NPA” and the amount of that income (or loss) on the dotted line next to line 26. Efile tax return online free federal and state Worksheet 2. Efile tax return online free federal and state Worksheet for Line 4 of Worksheet 1 Complete this worksheet only if Form 8814 includes an Alaska Permanent Fund dividend. Efile tax return online free federal and state Note. Efile tax return online free federal and state Fill out a separate Worksheet 2 for each Form 8814. Efile tax return online free federal and state     1. Efile tax return online free federal and state Enter the amount from Form 8814, line 2a 1. Efile tax return online free federal and state   2. Efile tax return online free federal and state Enter the amount from Form 8814, line 2b 2. Efile tax return online free federal and state   3. Efile tax return online free federal and state Subtract line 2 from line 1 3. Efile tax return online free federal and state   4. Efile tax return online free federal and state Enter the amount from Form 8814, line 1a 4. Efile tax return online free federal and state   5. Efile tax return online free federal and state Add lines 3 and 4 5. Efile tax return online free federal and state   6. Efile tax return online free federal and state Enter the amount of the child's Alaska Permanent Fund dividend 6. Efile tax return online free federal and state   7. Efile tax return online free federal and state Divide line 6 by line 5. Efile tax return online free federal and state Enter the result as a decimal (rounded to at least three places) 7. Efile tax return online free federal and state   8. Efile tax return online free federal and state Enter the amount from Form 8814, line 12 8. Efile tax return online free federal and state   9. Efile tax return online free federal and state Multiply line 7 by line 8 9. Efile tax return online free federal and state   10. Efile tax return online free federal and state Subtract line 9 from line 8. Efile tax return online free federal and state Enter the result on line 4 of Worksheet 1 10. Efile tax return online free federal and state     (If filing more than one Form 8814, enter on line 4 of Worksheet 1 the total of the amounts on line 10 of all Worksheets 2. Efile tax return online free federal and state )     Example—completing Worksheet 2. Efile tax return online free federal and state Your 10-year-old child has taxable interest income of $400, an Alaska Permanent Fund dividend of $1,000, and ordinary dividends of $1,100, of which $500 are qualified dividends. Efile tax return online free federal and state You choose to report this income on your return. Efile tax return online free federal and state You enter $400 on line 1a of Form 8814, $2,100 ($1,000 + $1,100) on line 2a, and $500 on line 2b. Efile tax return online free federal and state After completing lines 4 through 11, you enter $400 on line 12 of Form 8814 and line 21 of Form 1040. Efile tax return online free federal and state On Worksheet 2, you enter $2,100 on line 1, $500 on line 2, $1,600 on line 3, $400 on line 4, $2,000 on line 5, $1,000 on line 6, 0. Efile tax return online free federal and state 500 on line 7, $400 on line 8, $200 on line 9, and $200 on line 10. Efile tax return online free federal and state You then enter $200 on line 4 of Worksheet 1. Efile tax return online free federal and state Rule 7—You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. Efile tax return online free federal and state If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Efile tax return online free federal and state If you are an employee, earned income includes all the taxable income you get from your employer. Efile tax return online free federal and state Rule 15 has information that will help you figure the amount of your earned income. Efile tax return online free federal and state If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the Form 1040 instructions. Efile tax return online free federal and state Earned Income Earned income includes all of the following types of income. Efile tax return online free federal and state Wages, salaries, tips, and other taxable employee pay. Efile tax return online free federal and state Employee pay is earned income only if it is taxable. Efile tax return online free federal and state Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Efile tax return online free federal and state But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained later in this chapter. Efile tax return online free federal and state Net earnings from self-employment. Efile tax return online free federal and state Gross income received as a statutory employee. Efile tax return online free federal and state Wages, salaries, and tips. Efile tax return online free federal and state    Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Efile tax return online free federal and state You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Efile tax return online free federal and state Nontaxable combat pay election. Efile tax return online free federal and state   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Efile tax return online free federal and state The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q. Efile tax return online free federal and state Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Efile tax return online free federal and state For details, see Nontaxable combat pay in chapter 4. Efile tax return online free federal and state Net earnings from self-employment. Efile tax return online free federal and state   You may have net earnings from self-employment if: You own your own business, or You are a minister or member of a religious order. Efile tax return online free federal and state Minister's housing. Efile tax return online free federal and state   The rental value of a home or a housing allowance provided to a minister as part of the minister's pay generally is not subject to income tax but is included in net earnings from self-employment. Efile tax return online free federal and state For that reason, it is included in earned income for the EIC (except in the cases described in Approved Form 4361 or Form 4029 , below). Efile tax return online free federal and state Statutory employee. Efile tax return online free federal and state   You are a statutory employee if you receive a Form W-2 on which the “Statutory employee” box (box 13) is checked. Efile tax return online free federal and state You report your income and expenses as a statutory employee on Schedule C or C-EZ (Form 1040). Efile tax return online free federal and state Strike benefits. Efile tax return online free federal and state   Strike benefits paid by a union to its members are earned income. Efile tax return online free federal and state Approved Form 4361 or Form 4029 This section is for persons who have an approved: Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, or Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits. Efile tax return online free federal and state Each approved form exempts certain income from social security taxes. Efile tax return online free federal and state Each form is discussed here in terms of what is or is not earned income for the EIC. Efile tax return online free federal and state Form 4361. Efile tax return online free federal and state   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Efile tax return online free federal and state This includes wages, salaries, tips, and other taxable employee compensation. Efile tax return online free federal and state A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Efile tax return online free federal and state Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Efile tax return online free federal and state Examples include fees for performing marriages and honoraria for delivering speeches. Efile tax return online free federal and state Form 4029. Efile tax return online free federal and state   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Efile tax return online free federal and state However, amounts you received as a self-employed individual do not count as earned income. Efile tax return online free federal and state Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Efile tax return online free federal and state Disability Benefits If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Efile tax return online free federal and state Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Efile tax return online free federal and state You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Efile tax return online free federal and state Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Efile tax return online free federal and state Report taxable pension payments on Form 1040, lines 16a and 16b, or Form 1040A, lines 12a and 12b. Efile tax return online free federal and state Disability insurance payments. Efile tax return online free federal and state   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Efile tax return online free federal and state It does not matter whether you have reached minimum retirement age. Efile tax return online free federal and state If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Efile tax return online free federal and state ” Income That Is Not Earned Income Examples of items that are not earned income include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Efile tax return online free federal and state Do not include any of these items in your earned income. Efile tax return online free federal and state Earnings while an inmate. Efile tax return online free federal and state   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Efile tax return online free federal and state This includes amounts for work performed while in a work release program or while in a halfway house. Efile tax return online free federal and state Workfare payments. Efile tax return online free federal and state   Nontaxable workfare payments are not earned income for the EIC. Efile tax return online free federal and state These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. Efile tax return online free federal and state Community property. Efile tax return online free federal and state   If you are married, but qualify to file as head of household under special rules for married taxpayers living apart (see Rule 3), and live in a state that has community property laws, your earned income for the EIC does not include any amount earned by your spouse that is treated as belonging to you under those laws. Efile tax return online free federal and state That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Efile tax return online free federal and state Your earned income includes the entire amount you earned, even if part of it is treated as belonging to your spouse under your state's community property laws. Efile tax return online free federal and state Nevada, Washington, and California domestic partners. Efile tax return online free federal and state   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Efile tax return online free federal and state Your earned income for the EIC does not include any amount earned by your partner. Efile tax return online free federal and state Your earned income includes the entire amount you earned. Efile tax return online free federal and state For details, see Publication 555. Efile tax return online free federal and state Conservation Reserve Program (CRP) payments. Efile tax return online free federal and state   If you were receiving social security retirement benefits or social security disability benefits at the time you received any CRP payments, your CRP payments are not earned income for the EIC. Efile tax return online free federal and state Nontaxable military pay. Efile tax return online free federal and state   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Efile tax return online free federal and state Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Efile tax return online free federal and state See Publication 3, Armed Forces' Tax Guide, for more information. Efile tax return online free federal and state    Combat pay. Efile tax return online free federal and state You can elect to include your nontaxable combat pay in earned income for the EIC. Efile tax return online free federal and state See Nontaxable combat pay in chapter 4. Efile tax return online free federal and state Chapter 2—Rules If You Have a Qualifying Child If you have met all the rules in chapter 1, use this chapter to see if you have a qualifying child. Efile tax return online free federal and state This chapter discusses Rules 8 through 10. Efile tax return online free federal and state You must meet all three of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit with a qualifying child. Efile tax return online free federal and state You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Efile tax return online free federal and state (You cannot file Form 1040EZ. Efile tax return online free federal and state ) You also must complete Schedule EIC and attach it to your return. Efile tax return online free federal and state If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Efile tax return online free federal and state No qualifying child. Efile tax return online free federal and state   If you do not meet Rule 8, you do not have a qualifying child. Efile tax return online free federal and state Read chapter 3 to find out if you can get the earned income credit without a qualifying child. Efile tax return online free federal and state Rule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. Efile tax return online free federal and state The fours tests are: Relationship, Age, Residency, and Joint return. Efile tax return online free federal and state The four tests are illustrated in Figure 1. Efile tax return online free federal and state The paragraphs that follow contain more information about each test. Efile tax return online free federal and state Relationship Test To be your qualifying child, a child must be your: Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild), or Brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew). Efile tax return online free federal and state The following definitions clarify the relationship test. Efile tax return online free federal and state Adopted child. Efile tax return online free federal and state   An adopted child is always treated as your own child. Efile tax return online free federal and state The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Efile tax return online free federal and state Foster child. Efile tax return online free federal and state   For the EIC, a person is your foster child if the child is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Efile tax return online free federal and state (An authorized placement agency includes a state or local government agency. Efile tax return online free federal and state It also includes a tax-exempt organization licensed by a state. Efile tax return online free federal and state In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Efile tax return online free federal and state ) Example. Efile tax return online free federal and state Debbie, who is 12 years old, was placed in your care 2 years ago by an authorized agency responsible for placing children in foster homes. Efile tax return online free federal and state Debbie is your foster child. Efile tax return online free federal and state Figure 1. Efile tax return online free federal and state Tests for Qualifying Child Please click here for the text description of the image. Efile tax return online free federal and state Conditions for Qualifying Child Age Test Your child must be: Under age 19 at the end of 2013 and younger than you (or your spouse, if filing jointly), Under age 24 at the end of 2013, a student, and younger than you (or your spouse, if filing jointly, or Permanently and totally disabled at any time during 2013, regardless of age. Efile tax return online free federal and state The following examples and definitions clarify the age test. Efile tax return online free federal and state Example 1—child not under age 19. Efile tax return online free federal and state Your son turned 19 on December 10. Efile tax return online free federal and state Unless he was permanently and totally disabled or a student, he is not a qualifying child because, at the end of the year, he was not under age 19. Efile tax return online free federal and state Example 2—child not younger than you or your spouse. Efile tax return online free federal and state Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Efile tax return online free federal and state He is not disabled. Efile tax return online free federal and state Both you and your spouse are 21 years old, and you file a joint return. Efile tax return online free federal and state Your brother is not your qualifying child because he is not younger than you or your spouse. Efile tax return online free federal and state Example 3—child younger than your spouse but not younger than you. Efile tax return online free federal and state The facts are the same as in Example 2 except that your spouse is 25 years old. Efile tax return online free federal and state Because your brother is younger than your spouse, he is your qualifying child, even though he is not younger than you. Efile tax return online free federal and state Student defined. Efile tax return online free federal and state   To qualify as a student, your child must be, during some part of each of any 5 calendar months during the calendar year: A full-time student at a school that has a regular teaching staff, course of study, and regular student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or a state, county, or local government. Efile tax return online free federal and state   The 5 calendar months need not be consecutive. Efile tax return online free federal and state   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. Efile tax return online free federal and state School defined. Efile tax return online free federal and state   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Efile tax return online free federal and state However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Efile tax return online free federal and state Vocational high school students. Efile tax return online free federal and state   Students who work in co-op jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. Efile tax return online free federal and state Permanently and totally disabled. Efile tax return online free federal and state   Your child is permanently and totally disabled if both of the following apply. Efile tax return online free federal and state He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Efile tax return online free federal and state A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Efile tax return online free federal and state Residency Test Your child must have lived with you in the United States for more than half of 2013. Efile tax return online free federal and state The following definitions clarify the residency test. Efile tax return online free federal and state United States. Efile tax return online free federal and state   This means the 50 states and the District of Columbia. Efile tax return online free federal and state It does not include Puerto Rico or U. Efile tax return online free federal and state S. Efile tax return online free federal and state possessions such as Guam. Efile tax return online free federal and state Homeless shelter. Efile tax return online free federal and state   Your home can be any location where you regularly live. Efile tax return online free federal and state You do not need a traditional home. Efile tax return online free federal and state For example, if your child lived with you for more than half the year in one or more homeless shelters, your child meets the residency test. Efile tax return online free federal and state Military personnel stationed outside the United States. Efile tax return online free federal and state   U. Efile tax return online free federal and state S. Efile tax return online free federal and state military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC. Efile tax return online free federal and state Extended active duty. Efile tax return online free federal and state   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Efile tax return online free federal and state Once you begin serving your extended active duty, you are still considered to have been on extended active duty even if you do not serve more than 90 days. Efile tax return online free federal and state Birth or death of child. Efile tax return online free federal and state    child who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the child's home for more than half the time he or she was alive in 2013. Efile tax return online free federal and state Temporary absences. Efile tax return online free federal and state   Count time that you or your child is away from home on a temporary absence due to a special circumstance as time the child lived with you. Efile tax return online free federal and state Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Efile tax return online free federal and state Kidnapped child. Efile tax return online free federal and state   A kidnapped child is treated as living with you for more than half of the year if the child lived with you for more than half the part of the year before the date of the kidnapping. Efile tax return online free federal and state The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Efile tax return online free federal and state This treatment applies for all years until the child is returned. Efile tax return online free federal and state However, the last year this treatment can apply is the earlier of: The year there is a determination that the child is dead, or The year the child would have reached age 18. Efile tax return online free federal and state   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Efile tax return online free federal and state Joint Return Test To meet this test, the child cannot file a joint return for the year. Efile tax return online free federal and state Exception. Efile tax return online free federal and state   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. Efile tax return online free federal and state Example 1—child files joint return. Efile tax return online free federal and state You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Efile tax return online free federal and state He earned $25,000 for the year. Efile tax return online free federal and state The couple files a joint return. Efile tax return online free federal and state Because your daughter and her husband file a joint return, she is not your qualifying child. Efile tax return online free federal and state Example 2—child files joint return to get refund of tax withheld. Efile tax return online free federal and state Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Efile tax return online free federal and state They do not have a child. Efile tax return online free federal and state Neither is required to file a tax return. Efile tax return online free federal and state Taxes were taken out of their pay, so they file a joint return only to get a refund of the withheld taxes. Efile tax return online free federal and state The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Efile tax return online free federal and state Example 3—child files joint return to claim American opportunity credit. Efile tax return online free federal and state The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Efile tax return online free federal and state He and his wife are not required to file a tax return, but they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Efile tax return online free federal and state Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to claim a refund of income tax withheld or estimated tax paid. Efile tax return online free federal and state The exception to the joint return test does not apply, so your son is not your qualifying child. Efile tax return online free federal and state Married child. Efile tax return online free federal and state   Even if your child does not file a joint return, if your child was married at the end of the year, he or she cannot be your qualifying child unless: You can claim an exemption for the child, or The reason you cannot claim an exemption for the child is that you let the child's other parent claim the exemption under the Special rule for divorced or separated parents (or parents who live apart) described later. Efile tax return online free federal and state    Social security number. Efile tax return online free federal and state Your qualifying child must have a valid social security number (SSN), unless the child was born and died in 2013 and you attach to your return a copy of the child's birth certificate, death certificate, or hospital records showing a live birth. Efile tax return online free federal and state You cannot claim the EIC on the basis of a qualifying child if: The qualifying child's SSN is missing from your tax return or is incorrect, The qualifying child's social security card says “Not valid for employment” and was issued for use in getting a federally funded benefit, or Instead of an SSN, the qualifying child has: An individual taxpayer identification number (ITIN), which is issued to a noncitizen who cannot get an SSN, or An adoption taxpayer identification number (ATIN), issued to adopting parents who cannot get an SSN for the child being adopted until the adoption is final. Efile tax return online free federal and state   If you have more than one qualifying child and only one has a valid SSN, you can use only that child to claim the EIC. Efile tax return online free federal and state For more information about SSNs, see Rule 2. Efile tax return online free federal and state Rule 9—Your Qualifying Child Cannot Be Used by More Than One Person To Claim the EIC Sometimes a child meets the tests to be a qualifying child of more than one person. Efile tax return online free federal and state However, only one of these persons can actually treat the child as a qualifying child. Efile tax return online free federal and state Only that person can use the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). Efile tax return online free federal and state The exemption for the child. Efile tax return online free federal and state The child tax credit. Efile tax return online free federal and state Head of household filing status. Efile tax return online free federal and state The credit for child and dependent care expenses. Efile tax return online free federal and state The exclusion for dependent care benefits. Efile tax return online free federal and state The EIC. Efile tax return online free federal and state The other person cannot take any of these benefits based on this qualifying child. Efile tax return online free federal and state In other words, you and the other person cannot agree to divide these tax benefits between you. Efile tax return online free federal and state The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Efile tax return online free federal and state The tiebreaker rules, which follow, explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Efile tax return online free federal and state However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Efile tax return online free federal and state Tiebreaker rules. Efile tax return online free federal and state   To determine which person can treat the child as a qualifying child to claim the six tax benefits just listed, the following tiebreaker rules apply. Efile tax return online free federal and state If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Efile tax return online free federal and state 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. Efile tax return online free federal and state 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. Efile tax return online free federal and state 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. Efile tax return online free federal and state 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. Efile tax return online free federal and state 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. Efile tax return online free federal and state If the child's parents file a joint return with each other, this rule can be applied by treating the parents' total AGI as divided evenly between them. Efile tax return online free federal and state See Example 8. Efile tax return online free federal and state   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. Efile tax return online free federal and state See Examples 1 through 13. Efile tax return online free federal and state   If you cannot claim the EIC because your qualifying child is treated under the tiebreaker rules as the qualifying child of another person for 2013, you may be able to take the EIC using a different qualifying child, but you cannot take the EIC using the rules in chapter 3 for people who do not have a qualifying child. Efile tax return online free federal and state If the other person cannot claim the EIC. Efile tax return online free federal and state   If you and someone else have the same qualifying child but the other person cannot claim the EIC because he or she is not eligible or his or her earned income or AGI is too high, you may be able to treat the child as a qualifying child. Efile tax return online free federal and state See Examples 6 and 7. Efile tax return online free federal and state But you cannot treat the child as a qualifying child to claim the EIC if the other person uses the child to claim any of the other six tax benefits listed earlier in this chapter. Efile tax return online free federal and state Examples. Efile tax return online free federal and state    The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Efile tax return online free federal and state Example 1—child lived with parent and grandparent. Efile tax return online free federal and state You and your 2-year-old son Jimmy lived with your mother all year. Efile tax return online free federal and state You are 25 years old, unmarried, and your AGI is $9,000. Efile tax return online free federal and state Your only income was $9,000 from a part-time job. Efile tax return online free federal and state Your mother's only income was $20,000 from her job, and her AGI is $20,000. Efile tax return online free federal and state Jimmy's father did not live with you or Jimmy. Efile tax return online free federal and state The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Efile tax return online free federal and state Jimmy is a qualifying child of both you and your mother because he meets the relationship, age, residency, and joint return tests for both you and your mother. Efile tax return online free federal and state However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier in this chapter for which that person qualifies). Efile tax return online free federal and state He is not a qualifying child of anyone else, including his father. Efile tax return online free federal and state If you do not claim Jimmy as a qualifying child for the EIC or any of the other tax benefits listed earlier, your mother can treat him as a qualifying child to claim the EIC (and any of the other tax benefits listed earlier for which she qualifies). Efile tax return online free federal and state Example 2—parent has higher AGI than grandparent. Efile tax return online free federal and state The facts are the same as in Example 1 except your AGI is $25,000. Efile tax return online free federal and state Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Efile tax return online free federal and state Only you can claim him. Efile tax return online free federal and state Example 3—two persons claim same child. Efile tax return online free federal and state The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Efile tax return online free federal and state In this case, you as the child's parent will be the only one allowed to claim Jimmy as a qualifying child for the EIC and the other tax benefits listed earlier for which you qualify. Efile tax return online free federal and state The IRS will disallow your mother's claim to the EIC and any of the other tax benefits listed earlier unless she has another qualifying child. Efile tax return online free federal and state Example 4—qualifying children split between two persons. Efile tax return online free federal and state The facts are the same as in Example 1 except that you also have two other young children who are qualifying children of both you and your mother. Efile tax return online free federal and state Only one of you can claim each child. Efile tax return online free federal and state However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Efile tax return online free federal and state For example, if you claim one child, your mother can claim the other two. Efile tax return online free federal and state Example 5—taxpayer who is a qualifying child. Efile tax return online free federal and state The facts are the same as in Example 1 except that you are only 18 years old. Efile tax return online free federal and state This means you are a qualifying child of your mother. Efile tax return online free federal and state Because of Rule 10, discussed next, you cannot claim the EIC and cannot claim your son as a qualifying child. Efile tax return online free federal and state Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Efile tax return online free federal and state If your mother meets all the other requirements for claiming the EIC and you do not claim Jimmy as a qualifying child for any of the other tax benefits listed earlier, your mother can claim both you and Jimmy as qualifying children for the EIC. Efile tax return online free federal and state Example 6—grandparent with too much earned income to claim EIC. Efile tax return online free federal and state The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Efile tax return online free federal and state Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Efile tax return online free federal and state Example 7—parent with too much earned income to claim EIC. Efile tax return online free federal and state The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Efile tax return online free federal and state Your earned income is too high for you to claim the EIC. Efile tax return online free federal and state But your mother cannot claim the EIC either, because her AGI is not higher than yours. Efile tax return online free federal and state Example 8—child lived with both parents and grandparent. Efile tax return online free federal and state The facts are the same as in Example 1 except that you and Jimmy's father are married to each other, live with Jimmy and your mother, and have AGI of $30,000 on a joint return. Efile tax return online free federal and state If you and your husband do not claim Jimmy as a qualifying child for the EIC or any of the other tax benefits listed earlier, your mother can claim him instead. Efile tax return online free federal and state Even though the AGI on your joint return, $30,000, is more than your mother's AGI of $20,000, for this purpose half of the joint AGI can be treated as yours and half as your husband's. Efile tax return online free federal and state In other words, each parent's AGI can be treated as $15,000. Efile tax return online free federal and state Example 9—separated parents. Efile tax return online free federal and state You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Efile tax return online free federal and state In August and September, Joey lived with you. Efile tax return online free federal and state For the rest of the year, Joey lived with your husband, who is Joey's father. Efile tax return online free federal and state Joey is a qualifying child of both you and your husband because he lived with each of you for more than half the year and because he met the relationship, age, and joint return tests for both of you. Efile tax return online free federal and state At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the Special rule for divorced or separated parents (or parents who live apart) does not apply. Efile tax return online free federal and state You and your husband will file separate returns. Efile tax return online free federal and state Your husband agrees to let you treat Joey as a qualifying child. Efile tax return online free federal and state This means, if your husband does not claim Joey as a qualifying child for any of the tax benefits listed earlier, you can claim him as a qualifying child for any tax benefit listed earlier for which you qualify. Efile tax return online free federal and state However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Efile tax return online free federal and state See Rule 3. Efile tax return online free federal and state Example 10—separated parents claim same child. Efile tax return online free federal and state The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Efile tax return online free federal and state In this case, only your husband will be allowed to treat Joey as a qualifying child. Efile tax return online free federal and state This is because, during 2013, the boy lived with him longer than with you. Efile tax return online free federal and state You cannot claim the EIC (either with or without a qualifying child). Efile tax return online free federal and state However, your husband's filing status is married filing separately, so he cannot claim the EIC or the credit for child and dependent care expenses. Efile tax return online free federal and state See Rule 3. Efile tax return online free federal and state Example 11—unmarried parents. Efile tax return online free federal and state You, your 5-year-old son, and your son's father lived together all year. Efile tax return online free federal and state You and your son's father are not married. Efile tax return online free federal and state Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, and joint return tests for both you and his father. Efile tax return online free federal and state Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Efile tax return online free federal and state Neither of you had any other income. Efile tax return online free federal and state Your son's father agrees to let you treat the child as a qualifying child. Efile tax return online free federal and state This means, if your son's father does not claim your son as a qualifying child for the EIC or any of the other tax benefits listed earlier, you can claim him as a qualifying child for the EIC and any of the other tax benefits listed earlier for which you qualify. Efile tax return online free federal and state Example 12—unmarried parents claim same child. Efile tax return online free federal and state The facts are the same as in Example 11 except that you and your son's father both claim your son as a qualifying child. Efile tax return online free federal and state In this case, only your son's father will be allowed to treat your son as a qualifying child. Efile tax return online free federal and state This is because his AGI, $14,000, is more than your AGI, $12,000. Efile tax return online free federal and state You cannot claim the EIC (either with or without a qualifying child). Efile tax return online free federal and state Example 13—child did not live with a parent. Efile tax return online free federal and state You and your 7-year-old niece, your sister's child, lived with your mother all year. Efile tax return online free federal and state You are 25 years old, and your AGI is $9,300. Efile tax return online free federal and state Your only income was from a part-time job. Efile tax return online free federal and state Your mother's AGI is $15,000. Efile tax return online free federal and state Her only income was from her job. Efile tax return online free federal and state Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Efile tax return online free federal and state Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, and joint return tests for both you and your mother. Efile tax return online free federal and state However, only your mother can treat her as a qualifying child. Efile tax return online free federal and state This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Efile tax return online free federal and state Special rule for divorced or separated parents (or parents who live apart). Efile tax return online free federal and state   A child will be treated as the qualifying child of his or her noncustodial parent (for purposes of claiming an exemption and the child tax credit, but not for the EIC) if all of the following statements are true. Efile tax return online free federal and state 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 time during the last 6 months of 2013, whether or not they are or were married. Efile tax return online free federal and state The child received over half of his or her support for the year from the parents. Efile tax return online free federal and state The child is in the custody of one or both parents for more than half of 2013. Efile tax return online free federal and state Either of the following statements is true. Efile tax return online free federal and state The custodial parent signs Form 8332 or a substantially similar statement that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches the form or statement to his or her return. Efile tax return online free federal and state 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. Efile tax return online free federal and state A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 provides that the noncustodial parent can claim the child as a dependent, and the noncustodial parent provides at least $600 for support of the child during 2013. Efile tax return online free federal and state For details, see Publication 501. Efile tax return online free federal and state Also see Applying Rule 9 to divorced or separated parents (or parents who live apart), next. Efile tax return online free federal and state Applying Rule 9 to divorced or separated parents (or parents who live apart). Efile tax return online free federal and state   If a child is treated as the qualifying child of the noncustodial parent under the special rule just described for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. Efile tax return online free federal and state However, the custodial parent, if eligible, or another eligible taxpayer can claim the child as a qualifying child for the EIC and other tax benefits listed earlier in this chapter. Efile tax return online free federal and state If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules determine which person can treat the child as a qualifying child. Efile tax return online free federal and state Example 1. Efile tax return online free federal and state You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Efile tax return online free federal and state Your AGI is $10,000. Efile tax return online free federal and state Your mother’s AGI is $25,000. Efile tax return online free federal and state Your son's father did not live with you or your son. Efile tax return online free federal and state Under the Special rule for divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for the child. Efile tax return online free federal and state However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the EIC. Efile tax return online free federal and state You and your mother did not have any child care expenses or dependent care benefits. Efile tax return online free federal and state If you do not claim your son as a qualifying child, your mother can claim him as a qualifying child for the EIC and head of household filing status, if she qualifies for these tax benefits. Efile tax return online free federal and state Example 2. Efile tax return online free federal and state The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Efile tax return online free federal and state Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Efile tax return online free federal and state Example 3. Efile tax return online free federal and state The facts are the same as in Example 1 except that you and your mother both claim your son as a qualifying child for the EIC. Efile tax return online free federal and state Your mother also claims him as a qualifying child for head of household filing status. Efile tax return online free federal and state You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Efile tax return online free federal and state The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Efile tax return online free federal and state Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Efile tax return online free federal and state ) if all of the following statements are true. Efile tax return online free federal and state You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Efile tax return online free federal and state Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Efile tax return online free federal and state You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student, and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. Efile tax return online free federal and state You lived with that person in the United States for more than half of the year. Efile tax return online free federal and state You are not filing a joint return for the year (or are filing a joint return only to claim a refund of withheld income tax or estimated tax paid). Efile tax return online free federal and state For more details about the tests to be a qualifying child, see Rule 8. Efile tax return online free federal and state If you are a qualifying child of another taxpayer, you cannot claim the EIC. Efile tax return online free federal and state This is true even if the person for whom you are a qualifying child does not claim the EIC or meet all of the rules to claim the EIC. Efile tax return online free federal and state Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Efile tax return online free federal and state Example. Efile tax return online free federal and state You and your daughter lived with your mother all year. Efile tax return online free federal and state You are 22 years old, unmarried, and attended a trade school full time. Efile tax return online free federal and state You had a part-time job and earned $5,700. Efile tax return online free federal and state You had no other income. Efile tax return online free federal and state Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Efile tax return online free federal and state She can claim the EIC if she meets all the other requirements. Efile tax return online free federal and state Because you are your mother's qualifying child, you cannot claim the EIC. Efile tax return online free federal and state This is so even if your mother cannot or does not claim the EIC. Efile tax return online free federal and state Child of person not required to file a return. Efile tax return online free federal and state   You are not the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you met the relationship, age, residency, and joint return tests is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. Efile tax return online free federal and state Example 1—return not required. Efile tax return online free federal and state The facts are the same as in the last example except your mother had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Efile tax return online free federal and state As a result, you are not your mother's qualifying child. Efile tax return online free federal and state You can claim the EIC if you meet all the other requirements to do so. Efile tax return online free federal and state Example 2—return filed to get refund of tax withheld. Efile tax return online free federal and state The facts are the same as in Example 1 except your mother had wages of $1,500 and had income tax withheld from her wages. Efile tax return online free federal and state She files a return only to get a refund of the income tax withheld and does not claim the EIC or any other tax credits or deductions. Efile tax return online free federal and state As a result, you are not your mother's qualifying child. Efile tax return online free federal and state You can claim the EIC if you meet all the other requirements to do so. Efile tax return online free federal and state Example 3—return filed to get EIC. Efile tax return online free federal and state The facts are the same as in Example 2 except your mother claimed the EIC on her return. Efile tax return online free federal and state Since she filed the return to get the EIC, she is not filing it only to get a refund of income tax withheld. Efile tax return online free federal and state As a result, you are your mother's qualifying child. Efile tax return online free federal and state You cannot claim the EIC. Efile tax return online free federal and state Chapter 3—Rules If You Do Not Have a Qualifying Child Use this chapter if you do not have a qualifying child and have met all the rules in chapter 1. Efile tax return online free federal and state This chapter discusses Rules 11 through 14. Efile tax return online free federal and state You must meet all four of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit without a qualifying child. Efile tax return online free federal and state You can file Form 1040, Form 1040A, or Form 1040EZ to claim the EIC without a qualifying child. Efile tax return online free federal and state If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Efile tax return online free federal and state If you have a qualifying child. Efile tax return online free federal and state   If you meet Rule 8, you have a qualifying child. Efile tax return online free federal and state If you meet Rule 8 and do not claim the EIC with a qualifying child, you cannot claim the EIC without a qualifying child. Efile tax return online free federal and state Rule 11—You Must Be at Least Age 25 but Under Age 65 You must be at least age 25 but under age 65 at the end of 2013. Efile tax return online free federal and state If you are married filing a joint return, either you or your spouse must be at least age 25 but under age 65 at the end of 2013. Efile tax return online free federal and state It does not matter which spouse meets the age test, as long as one of the spouses does. Efile tax return online free federal and state You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Efile tax return online free federal and state If you are married filing a joint return, you meet the age test if either you or your spouse was born after December 31, 1948, and before January 2, 1989. Efile tax return online free federal and state If neither you nor your spouse meets the age test, you cannot claim the EIC. Efile tax return online free federal and state Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Efile tax return online free federal and state Death of spouse. Efile tax return online free federal and state   If you are filing a joint return with your spouse who died in 2013, you meet the age test if your spouse was at least age 25 but under age 65 at the time of death. Efile tax return online free federal and state Example 1. Efile tax return online free federal and state You are age 28 and unmarried. Efile tax return online free federal and state You meet the age test. Efile tax return online free federal and state Example 2—spouse meets age test. Efile tax return online free federal and state You are married and filing a joint return. Efile tax return online free federal and state You are age 23 and your spouse is age 27. Efile tax return online free federal and state You meet the age test because your spouse is at least age 25 but under age 65. Efile tax return online free federal and state Example 3—spouse dies in 2013. Efile tax return online free federal and state You are married and filing a joint return with your spouse who died in August 2013. Efile tax return online free federal and state You are age 67. Efile tax return online free federal and state Your spouse would have become age 65 in November 2013. Efile tax return online free federal and state Because your spouse was under age 65 when she died, you meet the age test. Efile tax return online free federal and state Rule 12—You Cannot Be the Dependent of Another Person If you are not filing a joint return, you meet this rule if: You checked box 6a on Form 1040 or 1040A, or You did not check the “You” box on line 5 of Form 1040EZ, and you entered $10,000 on that line. Efile tax return online free federal and state If you are filing a joint return, you meet this rule if: You checked both box 6a and box 6b on Form 1040 or 1040A, or You and your spouse did not check either the “You” box or the “Spouse” box on line 5 of Form 1040EZ, and you entered $20,000 on that line. Efile tax return online free federal and state If you are not sure whether someone else can claim you as a dependent, get Publication 501 and read the rules for claiming a dependent. Efile tax return online free federal and state If someone else can claim you as a dependent on his or her return, but does not, you still cannot claim the credit. Efile tax return online free federal and state Example 1. Efile tax return online free federal and state In 2013, you were age 25, single, and living at home with your parents. Efile tax return online free federal and state You worked and were not a student. Efile tax return online free federal and state You earned $7,500. Efile tax return online free federal and state Your parents cannot claim you as a dependent. Efile tax return online free federal and state When you file your return, you claim an exemption for yourself by not checking the You box on line 5 of your Form 1040EZ and by entering $10,000 on that line. Efile tax return online free federal and state You meet this rule. Efile tax return online free federal and state You can claim the EIC if you meet all the other requirements. Efile tax return online free federal and state Example 2. Efile tax return online free federal and state The facts are the same as in Example 1, except that you earned $2,000. Efile tax return online free federal and state Your parents can claim you as a dependent but decide not to. Efile tax return online free federal and state You do not meet this rule. Efile tax return online free federal and state You cannot claim the credit because your parents could have claimed you as a dependent. Efile tax return online free federal and state Joint returns. Efile tax return online free federal and state   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Efile tax return online free federal and state   However, another person may be able to claim you as a dependent if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. Efile tax return online free federal and state But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Efile tax return online free federal and state Example 1—return filed to get refund of tax withheld. Efile tax return online free federal and state You are 26 years old. Efile tax return online free federal and state You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Efile tax return online free federal and state Neither you nor your wife is required to file a tax return. Efile tax return online free federal and state You do not have a child. Efile tax return online free federal and state Taxes were taken out of your pay so you file a joint return only to get a refund of the withheld taxes. Efile tax return online free federal and state Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Efile tax return online free federal and state They can claim exemptions for you and your wife if all the other tests to do so are met. Efile tax return online free federal and state Example 2—return filed to get EIC. Efile tax return online free federal and state The facts are the same as in Example 1except no taxes were taken out of your pay. Efile tax return online free federal and state Also, you and your wife are not required to file a tax return, but you file a joint return to claim an EIC of $63 and get a refund of that amount. Efile tax return online free federal and state Because claiming the EIC is your reason for filing the return, you are not filing it only to claim a refund of income tax withheld or estimated tax paid. Efile tax return online free federal and state Your parents cannot claim an exemption for either you or your wife. Efile tax return online free federal and state Rule 13—You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Efile tax return online free federal and state ) if all of the following statements are true. Efile tax return online free federal and state You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Efile tax return online free federal and state Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Efile tax return online free federal and state You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student, and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. Efile tax return online free federal and state You lived with that person in the United States for more than half of the year. Efile tax return online free federal and state You are not filing a joint return for the year (or are filing a joint return only to claim a refund of withheld income tax or estimated tax paid). Efile tax return online free federal and state For more details about the tests to be a qualifying child, see Rule 8. Efile tax return online free federal and state If you are a qualifying child of another taxpayer, you cannot claim the EIC. Efile tax return online free federal and state This is true even if the person for whom you are a qualifying child does not claim the EIC or meet all of the rules to claim the EIC. Efile tax return online free federal and state Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Efile tax return online free federal and state Example. Efile tax return online free federal and state You lived with your mother all year. Efile tax return online free federal and state You are age 26, unmarried, and permanently and totally disabled. Efile tax return online free federal and state Your only income was from a community center where you went three days a week to answer telephones. Efile tax return online free federal and state You earned $5,000 for the year and provided more than half of your own support. Efile tax return online free federal and state Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Efile tax return online free federal and state She can claim the EIC if she meets all the other requirements. Efile tax return online free federal and state Because you are a qualifying child of your mother, you cannot claim the EIC. Efile tax return online free federal and state This is so even if your mother cannot or does not claim the EIC. Efile tax return online free federal and state Joint returns. Efile tax return online free federal and state   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Efile tax return online free federal and state   However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. Efile tax return online free federal and state But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Efile tax return online free federal and state Child of person not required to file a return. Efile tax return online free federal and state   You are not the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you meet the relationship, age, residency, and joint return tests is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. Efile tax return online free federal and state Example 1—return not required. Efile tax return online free federal and state You lived all year with your father. Efile tax return online free federal and state You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Efile tax return online free federal and state You have no other income, no children, and provided more than half of your own support. Efile tax return online free federal and state Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Efile tax return online free federal and state As a result, you are not your father's qualifying child. Efile tax return online free federal and state You can claim the EIC if you meet all the other requirements to do so. Efile tax return online free federal and state Example 2—return filed to get refund of tax withheld. Efile tax return online free federal and state The facts are the same as in Example 1 except your father had wages of $1,500 and had income tax withheld from his wages. Efile tax return online free federal and state He files a return only to get a refund of the income tax withheld and does not claim the EIC or any other tax credits or deductions. Efile tax return online free federal and state As a result, you are not your father's qualifying child. Efile tax return online free federal and state You can claim the EIC if you meet all the other requirements to do so. Efile tax return online free federal and state Example 3—return filed to get EIC. Efile tax return online free federal and state The facts are the same as in Example 2 except your father claimed the EIC on his return. Efile tax return online free federal and state Since he filed the return to get the EIC, he is not filing it only to get a refund of income tax withheld. Efile tax return online free federal and state As a result, you are your father's qualifying child. Efile tax return online free federal and state You cannot claim the EIC. Efile tax return online free federal and state Rule 14—You Must Have Lived in the United States More Than Half of the Year Your home (and your spouse's, if filing a joint return) must have been in the United States for more than half the year. Efile tax return online free federal and state If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Efile tax return online free federal and state United States. Efile tax return online free federal and state   This means the 50 states and the District of Columbia. Efile tax return online free federal and state It does not include Puerto Rico or U. Efile tax return online free federal and state S. Efile tax return online free federal and state possessions such as Guam. Efile tax return online free federal and state Homeless shelter. Efile tax return online free federal and state   Your home can be any location where you regularly live. Efile tax return online free federal and state You do not need a traditional home. Efile tax return online free federal and state If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Efile tax return online free federal and state Military personnel stationed outside the United States. Efile tax return online free federal and state   U. Efile tax return online free federal and state S. Efile tax return online free federal and state military personnel stationed outside the United States on extended active duty (defined in chapter 2) are considered to live in the United States during that duty period for purposes of the EIC. Efile tax return online free federal and state Chapter 4—Figuring and Claiming the EIC You must meet one more rule to claim the EIC. Efile tax return online free federal and state You need to know the amount of your earned income to see if you meet the rule in this chapter. Efile tax return online free federal and state You also need to know that amount to figure your EIC. Efile tax return online free federal and state Rule 15—Earned Income Limits Your earned income must be less than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Efile tax return online free federal and state Earned Income Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Efile tax return online free federal and state Employee pay is earned income only if it is taxable. Efile tax return online free federal and state Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Efile tax return online free federal and state But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Efile tax return online free federal and state Earned income is explained in detail in Rule 7 in chapter 1. Efile tax return online free federal and state Figuring earned income. Efile tax return online free federal and state   If you are self-employed, a statutory employee, or a member of the clergy or a church employee who files Schedule SE (Form 1040), you will figure your earned income when you fill out Part 4 of EIC Worksheet B in the Form 1040 instructions. Efile tax return online free federal and state   Otherwise, figure your earned income by using the worksheet in Step 5 of the Form 1040 instructions for lines 64a and 64b or the Form 1040A instructions for lines 38a and 38b, or the worksheet in Step 2 of the Form 1040EZ instructions for lines 8a and 8b. Efile tax return online free federal and state   When using one of those worksheets to figure your earned income, you will start with the amount on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). Efile tax return online free federal and state You will then reduce that amount by any amount included on that line and described in the following list. Efile tax return online free federal and state Scholarship or fellowship grants not reported on a Form W-2. Efile tax return online free federal and state A scholarship or fellowship grant that was not reported to you on a Form W-2 is not considered earned income for the earned income credit. Efile tax return online free federal and state Inmate's income. Efile tax return online free federal and state Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Efile tax return online free federal and state This includes amounts received for work performed while in a work release program or while in a halfway house. Efile tax return online free federal and state If you received any amount for work done while an inmate in a penal institution and that amount is included in the total on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ), put “PRI” and the amount on the dotted line next to line 7 (Form 1040), in the space to the left of the entry space for line 7 (Form 1040A), or in the space to the left of line 1 (Form 1040EZ). Efile tax return online free federal and state Pension or annuity from deferred compensation plans. Efile tax return online free federal and state A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan is not considered earned income for the earned income credit. Efile tax return online free federal and state If you received such an amount and it was included in the total on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ), put “DFC” and the amount on the dotted line next to line 7 (Form 1040), in the space to the left of the entry space for line 7 (Form 1040A), or in the space to the left of line 1 (Form 1040EZ). Efile tax return online free federal and state This amount may be reported in box 11 of your Form W-2. Efile tax return online free federal and state If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or an annuity. Efile tax return online free federal and state Clergy. Efile tax return online free federal and state   If you are a member of the clergy who files Schedule SE and the amount on line 2 of that schedule includes an amount that was also re