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Filing Amended Tax Return 2010

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Filing Amended Tax Return 2010

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Affordable Care Act (ACA) Tax Provisions

 Individuals
 & Families
 
 Employers
 
Other Organizations

 
The health care law addresses health insurance coverage and financial assistance options for individuals and families, including the premium tax credit. It also includes the individual shared responsibility provision and exemptions from that provision.The IRS administers the tax provisions included in the law. Visit HealthCare.gov for more information on coverage options and assistance.
 


 

   
The health care law contains many tax and other provisions for employers. The IRS administers the tax provisions included in the law. Visit HealthCare.gov and SBA.gov/healthcare for more information on other provisions.
 


 

 
  • Insurers
  • Certain Business Types
  • Tax-Exempt & Government Organizations

 


 

 

The Filing Amended Tax Return 2010

Filing amended tax return 2010 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. Filing amended tax return 2010 S. Filing amended tax return 2010 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. Filing amended tax return 2010 You must meet all seven rules to qualify for the earned income credit. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 Adjusted gross income (AGI). Filing amended tax return 2010   AGI is the amount on line 4 of Form 1040EZ, line 22 of Form 1040A, or line 38 of Form 1040. Filing amended tax return 2010   If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Filing amended tax return 2010 You do not need to read the rest of this publication. Filing amended tax return 2010 Example—AGI is more than limit. Filing amended tax return 2010 Your AGI is $38,550, you are single, and you have one qualifying child. Filing amended tax return 2010 You cannot claim the EIC because your AGI is not less than $37,870. Filing amended tax return 2010 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. Filing amended tax return 2010 Community property. Filing amended tax return 2010   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. Filing amended tax return 2010 This is different from the community property rules that apply under Rule 7. Filing amended tax return 2010 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). Filing amended tax return 2010 Any qualifying child listed on Schedule EIC also must have a valid SSN. Filing amended tax return 2010 (See Rule 8 if you have a qualifying child. Filing amended tax return 2010 ) 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. Filing amended tax return 2010 An example of a federally funded benefit is Medicaid. Filing amended tax return 2010 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. Filing amended tax return 2010 S. Filing amended tax return 2010 citizen or permanent resident, ask the SSA for a new social security card without the legend. Filing amended tax return 2010 If you get the new card after you have already filed your return, you can file an amended return on Form 1040X, Amended U. Filing amended tax return 2010 S. Filing amended tax return 2010 Individual Income Tax Return, to claim the EIC. Filing amended tax return 2010 U. Filing amended tax return 2010 S. Filing amended tax return 2010 citizen. Filing amended tax return 2010   If you were a U. Filing amended tax return 2010 S. Filing amended tax return 2010 citizen when you received your SSN, you have a valid SSN. Filing amended tax return 2010 Valid for work only with INS authorization or DHS authorization. Filing amended tax return 2010   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. Filing amended tax return 2010 SSN missing or incorrect. Filing amended tax return 2010   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Filing amended tax return 2010 Other taxpayer identification number. Filing amended tax return 2010   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). Filing amended tax return 2010 ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Filing amended tax return 2010 No SSN. Filing amended tax return 2010   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). Filing amended tax return 2010 You cannot claim the EIC. Filing amended tax return 2010 Getting an SSN. Filing amended tax return 2010   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. Filing amended tax return 2010 You can get Form SS-5 online at www. Filing amended tax return 2010 socialsecurity. Filing amended tax return 2010 gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Filing amended tax return 2010 Filing deadline approaching and still no SSN. Filing amended tax return 2010   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Filing amended tax return 2010 Request an automatic 6-month extension of time to file your return. Filing amended tax return 2010 You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Filing amended tax return 2010 S. Filing amended tax return 2010 Individual Income Tax Return. Filing amended tax return 2010 For more information, see the instructions for Form 4868. Filing amended tax return 2010 File the return on time without claiming the EIC. Filing amended tax return 2010 After receiving the SSN, file an amended return, Form 1040X, claiming the EIC. Filing amended tax return 2010 Attach a filled-in Schedule EIC, Earned Income Credit, if you have a qualifying child. Filing amended tax return 2010 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. Filing amended tax return 2010 Your filing status cannot be “Married filing separately. Filing amended tax return 2010 ” Spouse did not live with you. Filing amended tax return 2010   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. Filing amended tax return 2010 In that case, you may be able to claim the EIC. Filing amended tax return 2010 For detailed information about filing as head of household, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Filing amended tax return 2010 Rule 4—You Must Be a U. Filing amended tax return 2010 S. Filing amended tax return 2010 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. Filing amended tax return 2010 You can use that filing status only if one spouse is a U. Filing amended tax return 2010 S. Filing amended tax return 2010 citizen or resident alien and you choose to treat the nonresident spouse as a U. Filing amended tax return 2010 S. Filing amended tax return 2010 resident. Filing amended tax return 2010 If you make this choice, you and your spouse are taxed on your worldwide income. Filing amended tax return 2010 If you need more information on making this choice, get Publication 519, U. Filing amended tax return 2010 S. Filing amended tax return 2010 Tax Guide for Aliens. Filing amended tax return 2010 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). Filing amended tax return 2010 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. Filing amended tax return 2010 You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Filing amended tax return 2010 U. Filing amended tax return 2010 S. Filing amended tax return 2010 possessions are not foreign countries. Filing amended tax return 2010 See Publication 54, Tax Guide for U. Filing amended tax return 2010 S. Filing amended tax return 2010 Citizens and Resident Aliens Abroad, for more detailed information. Filing amended tax return 2010 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. Filing amended tax return 2010 If your investment income is more than $3,300, you cannot claim the credit. Filing amended tax return 2010 Form 1040EZ. Filing amended tax return 2010   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. Filing amended tax return 2010 Form 1040A. Filing amended tax return 2010   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. Filing amended tax return 2010 Form 1040. Filing amended tax return 2010   If you file Form 1040, use Worksheet 1 in this chapter to figure your investment income. Filing amended tax return 2010    Worksheet 1. Filing amended tax return 2010 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. Filing amended tax return 2010 Interest and Dividends         1. Filing amended tax return 2010 Enter any amount from Form 1040, line 8a 1. Filing amended tax return 2010   2. Filing amended tax return 2010 Enter any amount from Form 1040, line 8b, plus any amount on Form 8814, line 1b 2. Filing amended tax return 2010   3. Filing amended tax return 2010 Enter any amount from Form 1040, line 9a 3. Filing amended tax return 2010   4. Filing amended tax return 2010 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. Filing amended tax return 2010 (If your child received an Alaska Permanent Fund dividend, use Worksheet 2 in this chapter to figure the amount to enter on this line. Filing amended tax return 2010 ) 4. Filing amended tax return 2010   Capital Gain Net Income         5. Filing amended tax return 2010 Enter the amount from Form 1040, line 13. Filing amended tax return 2010 If the amount on that line is a loss, enter -0- 5. Filing amended tax return 2010       6. Filing amended tax return 2010 Enter any gain from Form 4797, Sales of Business Property, line 7. Filing amended tax return 2010 If the amount on that line is a loss, enter -0-. Filing amended tax return 2010 (But, if you completed lines 8 and 9 of Form 4797, enter the amount from line 9 instead. Filing amended tax return 2010 ) 6. Filing amended tax return 2010       7. Filing amended tax return 2010 Substract line 6 of this worksheet from line 5 of this worksheet. Filing amended tax return 2010 (If the result is less than zero, enter -0-. Filing amended tax return 2010 ) 7. Filing amended tax return 2010   Royalties and Rental Income From Personal Property         8. Filing amended tax return 2010 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. Filing amended tax return 2010       9. Filing amended tax return 2010 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. Filing amended tax return 2010       10. Filing amended tax return 2010 Subtract the amount on line 9 of this worksheet from the amount on line 8. Filing amended tax return 2010 (If the result is less than zero, enter -0-. Filing amended tax return 2010 ) 10. Filing amended tax return 2010   Passive Activities         11. Filing amended tax return 2010 Enter the total of any net income from passive activities (such as income included on Schedule E, line 26, 29a (col. Filing amended tax return 2010 (g)), 34a (col. Filing amended tax return 2010 (d)), or 40). Filing amended tax return 2010 (See instructions below for lines 11 and 12. Filing amended tax return 2010 ) 11. Filing amended tax return 2010       12. Filing amended tax return 2010 Enter the total of any losses from passive activities (such as losses included on Schedule E, line 26, 29b (col. Filing amended tax return 2010 (f)), 34b (col. Filing amended tax return 2010 (c)), or 40). Filing amended tax return 2010 (See instructions below for lines 11 and 12. Filing amended tax return 2010 ) 12. Filing amended tax return 2010       13. Filing amended tax return 2010 Combine the amounts on lines 11 and 12 of this worksheet. Filing amended tax return 2010 (If the result is less than zero, enter -0-. Filing amended tax return 2010 ) 13. Filing amended tax return 2010   14. Filing amended tax return 2010 Add the amounts on lines 1, 2, 3, 4, 7, 10, and 13. Filing amended tax return 2010 Enter the total. Filing amended tax return 2010 This is your investment income 14. Filing amended tax return 2010   15. Filing amended tax return 2010 Is the amount on line 14 more than $3,300? ❑ Yes. Filing amended tax return 2010 You cannot take the credit. Filing amended tax return 2010  ❑ No. Filing amended tax return 2010 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). Filing amended tax return 2010       Instructions for lines 11 and 12. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 Worksheet 2. Filing amended tax return 2010 Worksheet for Line 4 of Worksheet 1 Complete this worksheet only if Form 8814 includes an Alaska Permanent Fund dividend. Filing amended tax return 2010 Note. Filing amended tax return 2010 Fill out a separate Worksheet 2 for each Form 8814. Filing amended tax return 2010     1. Filing amended tax return 2010 Enter the amount from Form 8814, line 2a 1. Filing amended tax return 2010   2. Filing amended tax return 2010 Enter the amount from Form 8814, line 2b 2. Filing amended tax return 2010   3. Filing amended tax return 2010 Subtract line 2 from line 1 3. Filing amended tax return 2010   4. Filing amended tax return 2010 Enter the amount from Form 8814, line 1a 4. Filing amended tax return 2010   5. Filing amended tax return 2010 Add lines 3 and 4 5. Filing amended tax return 2010   6. Filing amended tax return 2010 Enter the amount of the child's Alaska Permanent Fund dividend 6. Filing amended tax return 2010   7. Filing amended tax return 2010 Divide line 6 by line 5. Filing amended tax return 2010 Enter the result as a decimal (rounded to at least three places) 7. Filing amended tax return 2010   8. Filing amended tax return 2010 Enter the amount from Form 8814, line 12 8. Filing amended tax return 2010   9. Filing amended tax return 2010 Multiply line 7 by line 8 9. Filing amended tax return 2010   10. Filing amended tax return 2010 Subtract line 9 from line 8. Filing amended tax return 2010 Enter the result on line 4 of Worksheet 1 10. Filing amended tax return 2010     (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. Filing amended tax return 2010 )     Example—completing Worksheet 2. Filing amended tax return 2010 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. Filing amended tax return 2010 You choose to report this income on your return. Filing amended tax return 2010 You enter $400 on line 1a of Form 8814, $2,100 ($1,000 + $1,100) on line 2a, and $500 on line 2b. Filing amended tax return 2010 After completing lines 4 through 11, you enter $400 on line 12 of Form 8814 and line 21 of Form 1040. Filing amended tax return 2010 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. Filing amended tax return 2010 500 on line 7, $400 on line 8, $200 on line 9, and $200 on line 10. Filing amended tax return 2010 You then enter $200 on line 4 of Worksheet 1. Filing amended tax return 2010 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. Filing amended tax return 2010 If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Filing amended tax return 2010 If you are an employee, earned income includes all the taxable income you get from your employer. Filing amended tax return 2010 Rule 15 has information that will help you figure the amount of your earned income. Filing amended tax return 2010 If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the Form 1040 instructions. Filing amended tax return 2010 Earned Income Earned income includes all of the following types of income. Filing amended tax return 2010 Wages, salaries, tips, and other taxable employee pay. Filing amended tax return 2010 Employee pay is earned income only if it is taxable. Filing amended tax return 2010 Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Filing amended tax return 2010 But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained later in this chapter. Filing amended tax return 2010 Net earnings from self-employment. Filing amended tax return 2010 Gross income received as a statutory employee. Filing amended tax return 2010 Wages, salaries, and tips. Filing amended tax return 2010    Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Filing amended tax return 2010 You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Filing amended tax return 2010 Nontaxable combat pay election. Filing amended tax return 2010   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Filing amended tax return 2010 The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q. Filing amended tax return 2010 Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Filing amended tax return 2010 For details, see Nontaxable combat pay in chapter 4. Filing amended tax return 2010 Net earnings from self-employment. Filing amended tax return 2010   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. Filing amended tax return 2010 Minister's housing. Filing amended tax return 2010   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. Filing amended tax return 2010 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). Filing amended tax return 2010 Statutory employee. Filing amended tax return 2010   You are a statutory employee if you receive a Form W-2 on which the “Statutory employee” box (box 13) is checked. Filing amended tax return 2010 You report your income and expenses as a statutory employee on Schedule C or C-EZ (Form 1040). Filing amended tax return 2010 Strike benefits. Filing amended tax return 2010   Strike benefits paid by a union to its members are earned income. Filing amended tax return 2010 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. Filing amended tax return 2010 Each approved form exempts certain income from social security taxes. Filing amended tax return 2010 Each form is discussed here in terms of what is or is not earned income for the EIC. Filing amended tax return 2010 Form 4361. Filing amended tax return 2010   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Filing amended tax return 2010 This includes wages, salaries, tips, and other taxable employee compensation. Filing amended tax return 2010 A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Filing amended tax return 2010 Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Filing amended tax return 2010 Examples include fees for performing marriages and honoraria for delivering speeches. Filing amended tax return 2010 Form 4029. Filing amended tax return 2010   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Filing amended tax return 2010 However, amounts you received as a self-employed individual do not count as earned income. Filing amended tax return 2010 Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Filing amended tax return 2010 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. Filing amended tax return 2010 Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Filing amended tax return 2010 You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Filing amended tax return 2010 Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Filing amended tax return 2010 Report taxable pension payments on Form 1040, lines 16a and 16b, or Form 1040A, lines 12a and 12b. Filing amended tax return 2010 Disability insurance payments. Filing amended tax return 2010   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Filing amended tax return 2010 It does not matter whether you have reached minimum retirement age. Filing amended tax return 2010 If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Filing amended tax return 2010 ” 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. Filing amended tax return 2010 Do not include any of these items in your earned income. Filing amended tax return 2010 Earnings while an inmate. Filing amended tax return 2010   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Filing amended tax return 2010 This includes amounts for work performed while in a work release program or while in a halfway house. Filing amended tax return 2010 Workfare payments. Filing amended tax return 2010   Nontaxable workfare payments are not earned income for the EIC. Filing amended tax return 2010 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. Filing amended tax return 2010 Community property. Filing amended tax return 2010   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. Filing amended tax return 2010 That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Filing amended tax return 2010 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. Filing amended tax return 2010 Nevada, Washington, and California domestic partners. Filing amended tax return 2010   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Filing amended tax return 2010 Your earned income for the EIC does not include any amount earned by your partner. Filing amended tax return 2010 Your earned income includes the entire amount you earned. Filing amended tax return 2010 For details, see Publication 555. Filing amended tax return 2010 Conservation Reserve Program (CRP) payments. Filing amended tax return 2010   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. Filing amended tax return 2010 Nontaxable military pay. Filing amended tax return 2010   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Filing amended tax return 2010 Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Filing amended tax return 2010 See Publication 3, Armed Forces' Tax Guide, for more information. Filing amended tax return 2010    Combat pay. Filing amended tax return 2010 You can elect to include your nontaxable combat pay in earned income for the EIC. Filing amended tax return 2010 See Nontaxable combat pay in chapter 4. Filing amended tax return 2010 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. Filing amended tax return 2010 This chapter discusses Rules 8 through 10. Filing amended tax return 2010 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. Filing amended tax return 2010 You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Filing amended tax return 2010 (You cannot file Form 1040EZ. Filing amended tax return 2010 ) You also must complete Schedule EIC and attach it to your return. Filing amended tax return 2010 If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Filing amended tax return 2010 No qualifying child. Filing amended tax return 2010   If you do not meet Rule 8, you do not have a qualifying child. Filing amended tax return 2010 Read chapter 3 to find out if you can get the earned income credit without a qualifying child. Filing amended tax return 2010 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. Filing amended tax return 2010 The fours tests are: Relationship, Age, Residency, and Joint return. Filing amended tax return 2010 The four tests are illustrated in Figure 1. Filing amended tax return 2010 The paragraphs that follow contain more information about each test. Filing amended tax return 2010 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). Filing amended tax return 2010 The following definitions clarify the relationship test. Filing amended tax return 2010 Adopted child. Filing amended tax return 2010   An adopted child is always treated as your own child. Filing amended tax return 2010 The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Filing amended tax return 2010 Foster child. Filing amended tax return 2010   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. Filing amended tax return 2010 (An authorized placement agency includes a state or local government agency. Filing amended tax return 2010 It also includes a tax-exempt organization licensed by a state. Filing amended tax return 2010 In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Filing amended tax return 2010 ) Example. Filing amended tax return 2010 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. Filing amended tax return 2010 Debbie is your foster child. Filing amended tax return 2010 Figure 1. Filing amended tax return 2010 Tests for Qualifying Child Please click here for the text description of the image. Filing amended tax return 2010 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. Filing amended tax return 2010 The following examples and definitions clarify the age test. Filing amended tax return 2010 Example 1—child not under age 19. Filing amended tax return 2010 Your son turned 19 on December 10. Filing amended tax return 2010 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. Filing amended tax return 2010 Example 2—child not younger than you or your spouse. Filing amended tax return 2010 Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Filing amended tax return 2010 He is not disabled. Filing amended tax return 2010 Both you and your spouse are 21 years old, and you file a joint return. Filing amended tax return 2010 Your brother is not your qualifying child because he is not younger than you or your spouse. Filing amended tax return 2010 Example 3—child younger than your spouse but not younger than you. Filing amended tax return 2010 The facts are the same as in Example 2 except that your spouse is 25 years old. Filing amended tax return 2010 Because your brother is younger than your spouse, he is your qualifying child, even though he is not younger than you. Filing amended tax return 2010 Student defined. Filing amended tax return 2010   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. Filing amended tax return 2010   The 5 calendar months need not be consecutive. Filing amended tax return 2010   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. Filing amended tax return 2010 School defined. Filing amended tax return 2010   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Filing amended tax return 2010 However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Filing amended tax return 2010 Vocational high school students. Filing amended tax return 2010   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. Filing amended tax return 2010 Permanently and totally disabled. Filing amended tax return 2010   Your child is permanently and totally disabled if both of the following apply. Filing amended tax return 2010 He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Filing amended tax return 2010 A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Filing amended tax return 2010 Residency Test Your child must have lived with you in the United States for more than half of 2013. Filing amended tax return 2010 The following definitions clarify the residency test. Filing amended tax return 2010 United States. Filing amended tax return 2010   This means the 50 states and the District of Columbia. Filing amended tax return 2010 It does not include Puerto Rico or U. Filing amended tax return 2010 S. Filing amended tax return 2010 possessions such as Guam. Filing amended tax return 2010 Homeless shelter. Filing amended tax return 2010   Your home can be any location where you regularly live. Filing amended tax return 2010 You do not need a traditional home. Filing amended tax return 2010 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. Filing amended tax return 2010 Military personnel stationed outside the United States. Filing amended tax return 2010   U. Filing amended tax return 2010 S. Filing amended tax return 2010 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. Filing amended tax return 2010 Extended active duty. Filing amended tax return 2010   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Filing amended tax return 2010 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. Filing amended tax return 2010 Birth or death of child. Filing amended tax return 2010    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. Filing amended tax return 2010 Temporary absences. Filing amended tax return 2010   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. Filing amended tax return 2010 Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Filing amended tax return 2010 Kidnapped child. Filing amended tax return 2010   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. Filing amended tax return 2010 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. Filing amended tax return 2010 This treatment applies for all years until the child is returned. Filing amended tax return 2010 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. Filing amended tax return 2010   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Filing amended tax return 2010 Joint Return Test To meet this test, the child cannot file a joint return for the year. Filing amended tax return 2010 Exception. Filing amended tax return 2010   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. Filing amended tax return 2010 Example 1—child files joint return. Filing amended tax return 2010 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Filing amended tax return 2010 He earned $25,000 for the year. Filing amended tax return 2010 The couple files a joint return. Filing amended tax return 2010 Because your daughter and her husband file a joint return, she is not your qualifying child. Filing amended tax return 2010 Example 2—child files joint return to get refund of tax withheld. Filing amended tax return 2010 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Filing amended tax return 2010 They do not have a child. Filing amended tax return 2010 Neither is required to file a tax return. Filing amended tax return 2010 Taxes were taken out of their pay, so they file a joint return only to get a refund of the withheld taxes. Filing amended tax return 2010 The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Filing amended tax return 2010 Example 3—child files joint return to claim American opportunity credit. Filing amended tax return 2010 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 The exception to the joint return test does not apply, so your son is not your qualifying child. Filing amended tax return 2010 Married child. Filing amended tax return 2010   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. Filing amended tax return 2010    Social security number. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010   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. Filing amended tax return 2010 For more information about SSNs, see Rule 2. Filing amended tax return 2010 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. Filing amended tax return 2010 However, only one of these persons can actually treat the child as a qualifying child. Filing amended tax return 2010 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). Filing amended tax return 2010 The exemption for the child. Filing amended tax return 2010 The child tax credit. Filing amended tax return 2010 Head of household filing status. Filing amended tax return 2010 The credit for child and dependent care expenses. Filing amended tax return 2010 The exclusion for dependent care benefits. Filing amended tax return 2010 The EIC. Filing amended tax return 2010 The other person cannot take any of these benefits based on this qualifying child. Filing amended tax return 2010 In other words, you and the other person cannot agree to divide these tax benefits between you. Filing amended tax return 2010 The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Filing amended tax return 2010 The tiebreaker rules, which follow, explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Filing amended tax return 2010 However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Filing amended tax return 2010 Tiebreaker rules. Filing amended tax return 2010   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. Filing amended tax return 2010 If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 See Example 8. Filing amended tax return 2010   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. Filing amended tax return 2010 See Examples 1 through 13. Filing amended tax return 2010   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. Filing amended tax return 2010 If the other person cannot claim the EIC. Filing amended tax return 2010   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. Filing amended tax return 2010 See Examples 6 and 7. Filing amended tax return 2010 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. Filing amended tax return 2010 Examples. Filing amended tax return 2010    The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Filing amended tax return 2010 Example 1—child lived with parent and grandparent. Filing amended tax return 2010 You and your 2-year-old son Jimmy lived with your mother all year. Filing amended tax return 2010 You are 25 years old, unmarried, and your AGI is $9,000. Filing amended tax return 2010 Your only income was $9,000 from a part-time job. Filing amended tax return 2010 Your mother's only income was $20,000 from her job, and her AGI is $20,000. Filing amended tax return 2010 Jimmy's father did not live with you or Jimmy. Filing amended tax return 2010 The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Filing amended tax return 2010 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. Filing amended tax return 2010 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). Filing amended tax return 2010 He is not a qualifying child of anyone else, including his father. Filing amended tax return 2010 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). Filing amended tax return 2010 Example 2—parent has higher AGI than grandparent. Filing amended tax return 2010 The facts are the same as in Example 1 except your AGI is $25,000. Filing amended tax return 2010 Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Filing amended tax return 2010 Only you can claim him. Filing amended tax return 2010 Example 3—two persons claim same child. Filing amended tax return 2010 The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 Example 4—qualifying children split between two persons. Filing amended tax return 2010 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. Filing amended tax return 2010 Only one of you can claim each child. Filing amended tax return 2010 However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Filing amended tax return 2010 For example, if you claim one child, your mother can claim the other two. Filing amended tax return 2010 Example 5—taxpayer who is a qualifying child. Filing amended tax return 2010 The facts are the same as in Example 1 except that you are only 18 years old. Filing amended tax return 2010 This means you are a qualifying child of your mother. Filing amended tax return 2010 Because of Rule 10, discussed next, you cannot claim the EIC and cannot claim your son as a qualifying child. Filing amended tax return 2010 Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Filing amended tax return 2010 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. Filing amended tax return 2010 Example 6—grandparent with too much earned income to claim EIC. Filing amended tax return 2010 The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Filing amended tax return 2010 Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Filing amended tax return 2010 Example 7—parent with too much earned income to claim EIC. Filing amended tax return 2010 The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Filing amended tax return 2010 Your earned income is too high for you to claim the EIC. Filing amended tax return 2010 But your mother cannot claim the EIC either, because her AGI is not higher than yours. Filing amended tax return 2010 Example 8—child lived with both parents and grandparent. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 In other words, each parent's AGI can be treated as $15,000. Filing amended tax return 2010 Example 9—separated parents. Filing amended tax return 2010 You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Filing amended tax return 2010 In August and September, Joey lived with you. Filing amended tax return 2010 For the rest of the year, Joey lived with your husband, who is Joey's father. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 You and your husband will file separate returns. Filing amended tax return 2010 Your husband agrees to let you treat Joey as a qualifying child. Filing amended tax return 2010 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. Filing amended tax return 2010 However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Filing amended tax return 2010 See Rule 3. Filing amended tax return 2010 Example 10—separated parents claim same child. Filing amended tax return 2010 The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Filing amended tax return 2010 In this case, only your husband will be allowed to treat Joey as a qualifying child. Filing amended tax return 2010 This is because, during 2013, the boy lived with him longer than with you. Filing amended tax return 2010 You cannot claim the EIC (either with or without a qualifying child). Filing amended tax return 2010 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. Filing amended tax return 2010 See Rule 3. Filing amended tax return 2010 Example 11—unmarried parents. Filing amended tax return 2010 You, your 5-year-old son, and your son's father lived together all year. Filing amended tax return 2010 You and your son's father are not married. Filing amended tax return 2010 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. Filing amended tax return 2010 Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Filing amended tax return 2010 Neither of you had any other income. Filing amended tax return 2010 Your son's father agrees to let you treat the child as a qualifying child. Filing amended tax return 2010 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. Filing amended tax return 2010 Example 12—unmarried parents claim same child. Filing amended tax return 2010 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. Filing amended tax return 2010 In this case, only your son's father will be allowed to treat your son as a qualifying child. Filing amended tax return 2010 This is because his AGI, $14,000, is more than your AGI, $12,000. Filing amended tax return 2010 You cannot claim the EIC (either with or without a qualifying child). Filing amended tax return 2010 Example 13—child did not live with a parent. Filing amended tax return 2010 You and your 7-year-old niece, your sister's child, lived with your mother all year. Filing amended tax return 2010 You are 25 years old, and your AGI is $9,300. Filing amended tax return 2010 Your only income was from a part-time job. Filing amended tax return 2010 Your mother's AGI is $15,000. Filing amended tax return 2010 Her only income was from her job. Filing amended tax return 2010 Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Filing amended tax return 2010 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. Filing amended tax return 2010 However, only your mother can treat her as a qualifying child. Filing amended tax return 2010 This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Filing amended tax return 2010 Special rule for divorced or separated parents (or parents who live apart). Filing amended tax return 2010   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. Filing amended tax return 2010 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. Filing amended tax return 2010 The child received over half of his or her support for the year from the parents. Filing amended tax return 2010 The child is in the custody of one or both parents for more than half of 2013. Filing amended tax return 2010 Either of the following statements is true. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 For details, see Publication 501. Filing amended tax return 2010 Also see Applying Rule 9 to divorced or separated parents (or parents who live apart), next. Filing amended tax return 2010 Applying Rule 9 to divorced or separated parents (or parents who live apart). Filing amended tax return 2010   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. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 Example 1. Filing amended tax return 2010 You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Filing amended tax return 2010 Your AGI is $10,000. Filing amended tax return 2010 Your mother’s AGI is $25,000. Filing amended tax return 2010 Your son's father did not live with you or your son. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 You and your mother did not have any child care expenses or dependent care benefits. Filing amended tax return 2010 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. Filing amended tax return 2010 Example 2. Filing amended tax return 2010 The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Filing amended tax return 2010 Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Filing amended tax return 2010 Example 3. Filing amended tax return 2010 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. Filing amended tax return 2010 Your mother also claims him as a qualifying child for head of household filing status. Filing amended tax return 2010 You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Filing amended tax return 2010 The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Filing amended tax return 2010 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. Filing amended tax return 2010 ) if all of the following statements are true. Filing amended tax return 2010 You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Filing amended tax return 2010 Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Filing amended tax return 2010 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. Filing amended tax return 2010 You lived with that person in the United States for more than half of the year. Filing amended tax return 2010 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). Filing amended tax return 2010 For more details about the tests to be a qualifying child, see Rule 8. Filing amended tax return 2010 If you are a qualifying child of another taxpayer, you cannot claim the EIC. Filing amended tax return 2010 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. Filing amended tax return 2010 Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Filing amended tax return 2010 Example. Filing amended tax return 2010 You and your daughter lived with your mother all year. Filing amended tax return 2010 You are 22 years old, unmarried, and attended a trade school full time. Filing amended tax return 2010 You had a part-time job and earned $5,700. Filing amended tax return 2010 You had no other income. Filing amended tax return 2010 Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Filing amended tax return 2010 She can claim the EIC if she meets all the other requirements. Filing amended tax return 2010 Because you are your mother's qualifying child, you cannot claim the EIC. Filing amended tax return 2010 This is so even if your mother cannot or does not claim the EIC. Filing amended tax return 2010 Child of person not required to file a return. Filing amended tax return 2010   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. Filing amended tax return 2010 Example 1—return not required. Filing amended tax return 2010 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. Filing amended tax return 2010 As a result, you are not your mother's qualifying child. Filing amended tax return 2010 You can claim the EIC if you meet all the other requirements to do so. Filing amended tax return 2010 Example 2—return filed to get refund of tax withheld. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 As a result, you are not your mother's qualifying child. Filing amended tax return 2010 You can claim the EIC if you meet all the other requirements to do so. Filing amended tax return 2010 Example 3—return filed to get EIC. Filing amended tax return 2010 The facts are the same as in Example 2 except your mother claimed the EIC on her return. Filing amended tax return 2010 Since she filed the return to get the EIC, she is not filing it only to get a refund of income tax withheld. Filing amended tax return 2010 As a result, you are your mother's qualifying child. Filing amended tax return 2010 You cannot claim the EIC. Filing amended tax return 2010 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. Filing amended tax return 2010 This chapter discusses Rules 11 through 14. Filing amended tax return 2010 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. Filing amended tax return 2010 You can file Form 1040, Form 1040A, or Form 1040EZ to claim the EIC without a qualifying child. Filing amended tax return 2010 If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Filing amended tax return 2010 If you have a qualifying child. Filing amended tax return 2010   If you meet Rule 8, you have a qualifying child. Filing amended tax return 2010 If you meet Rule 8 and do not claim the EIC with a qualifying child, you cannot claim the EIC without a qualifying child. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 It does not matter which spouse meets the age test, as long as one of the spouses does. Filing amended tax return 2010 You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Filing amended tax return 2010 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. Filing amended tax return 2010 If neither you nor your spouse meets the age test, you cannot claim the EIC. Filing amended tax return 2010 Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Filing amended tax return 2010 Death of spouse. Filing amended tax return 2010   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. Filing amended tax return 2010 Example 1. Filing amended tax return 2010 You are age 28 and unmarried. Filing amended tax return 2010 You meet the age test. Filing amended tax return 2010 Example 2—spouse meets age test. Filing amended tax return 2010 You are married and filing a joint return. Filing amended tax return 2010 You are age 23 and your spouse is age 27. Filing amended tax return 2010 You meet the age test because your spouse is at least age 25 but under age 65. Filing amended tax return 2010 Example 3—spouse dies in 2013. Filing amended tax return 2010 You are married and filing a joint return with your spouse who died in August 2013. Filing amended tax return 2010 You are age 67. Filing amended tax return 2010 Your spouse would have become age 65 in November 2013. Filing amended tax return 2010 Because your spouse was under age 65 when she died, you meet the age test. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 If someone else can claim you as a dependent on his or her return, but does not, you still cannot claim the credit. Filing amended tax return 2010 Example 1. Filing amended tax return 2010 In 2013, you were age 25, single, and living at home with your parents. Filing amended tax return 2010 You worked and were not a student. Filing amended tax return 2010 You earned $7,500. Filing amended tax return 2010 Your parents cannot claim you as a dependent. Filing amended tax return 2010 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. Filing amended tax return 2010 You meet this rule. Filing amended tax return 2010 You can claim the EIC if you meet all the other requirements. Filing amended tax return 2010 Example 2. Filing amended tax return 2010 The facts are the same as in Example 1, except that you earned $2,000. Filing amended tax return 2010 Your parents can claim you as a dependent but decide not to. Filing amended tax return 2010 You do not meet this rule. Filing amended tax return 2010 You cannot claim the credit because your parents could have claimed you as a dependent. Filing amended tax return 2010 Joint returns. Filing amended tax return 2010   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Filing amended tax return 2010   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. Filing amended tax return 2010 But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Filing amended tax return 2010 Example 1—return filed to get refund of tax withheld. Filing amended tax return 2010 You are 26 years old. Filing amended tax return 2010 You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Filing amended tax return 2010 Neither you nor your wife is required to file a tax return. Filing amended tax return 2010 You do not have a child. Filing amended tax return 2010 Taxes were taken out of your pay so you file a joint return only to get a refund of the withheld taxes. Filing amended tax return 2010 Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Filing amended tax return 2010 They can claim exemptions for you and your wife if all the other tests to do so are met. Filing amended tax return 2010 Example 2—return filed to get EIC. Filing amended tax return 2010 The facts are the same as in Example 1except no taxes were taken out of your pay. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 Your parents cannot claim an exemption for either you or your wife. Filing amended tax return 2010 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. Filing amended tax return 2010 ) if all of the following statements are true. Filing amended tax return 2010 You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Filing amended tax return 2010 Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Filing amended tax return 2010 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. Filing amended tax return 2010 You lived with that person in the United States for more than half of the year. Filing amended tax return 2010 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). Filing amended tax return 2010 For more details about the tests to be a qualifying child, see Rule 8. Filing amended tax return 2010 If you are a qualifying child of another taxpayer, you cannot claim the EIC. Filing amended tax return 2010 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. Filing amended tax return 2010 Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Filing amended tax return 2010 Example. Filing amended tax return 2010 You lived with your mother all year. Filing amended tax return 2010 You are age 26, unmarried, and permanently and totally disabled. Filing amended tax return 2010 Your only income was from a community center where you went three days a week to answer telephones. Filing amended tax return 2010 You earned $5,000 for the year and provided more than half of your own support. Filing amended tax return 2010 Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Filing amended tax return 2010 She can claim the EIC if she meets all the other requirements. Filing amended tax return 2010 Because you are a qualifying child of your mother, you cannot claim the EIC. Filing amended tax return 2010 This is so even if your mother cannot or does not claim the EIC. Filing amended tax return 2010 Joint returns. Filing amended tax return 2010   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Filing amended tax return 2010   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. Filing amended tax return 2010 But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Filing amended tax return 2010 Child of person not required to file a return. Filing amended tax return 2010   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. Filing amended tax return 2010 Example 1—return not required. Filing amended tax return 2010 You lived all year with your father. Filing amended tax return 2010 You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Filing amended tax return 2010 You have no other income, no children, and provided more than half of your own support. Filing amended tax return 2010 Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Filing amended tax return 2010 As a result, you are not your father's qualifying child. Filing amended tax return 2010 You can claim the EIC if you meet all the other requirements to do so. Filing amended tax return 2010 Example 2—return filed to get refund of tax withheld. Filing amended tax return 2010 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. Filing amended tax return 2010 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. Filing amended tax return 2010 As a result, you are not your father's qualifying child. Filing amended tax return 2010 You can claim the EIC if you meet all the other requirements to do so. Filing amended tax return 2010 Example 3—return filed to get EIC. Filing amended tax return 2010 The facts are the same as in Example 2 except your father claimed the EIC on his return. Filing amended tax return 2010 Since he filed the return to get the EIC, he is not filing it only to get a refund of income tax withheld. Filing amended tax return 2010 As a result, you are your father's qualifying child. Filing amended tax return 2010 You cannot claim the EIC. Filing amended tax return 2010 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. Filing amended tax return 2010 If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Filing amended tax return 2010 United States. Filing amended tax return 2010   This means the 50 states and the District of Columbia. Filing amended tax return 2010 It does not include Puerto Rico or U. Filing amended tax return 2010 S. Filing amended tax return 2010 possessions such as Guam. Filing amended tax return 2010 Homeless shelter. Filing amended tax return 2010   Your home can be any location where you regularly live. Filing amended tax return 2010 You do not need a traditional home. Filing amended tax return 2010 If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Filing amended tax return 2010 Military personnel stationed outside the United States. Filing amended tax return 2010   U. Filing amended tax return 2010 S. Filing amended tax return 2010 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. Filing amended tax return 2010 Chapter 4—Figuring and Claiming the EIC You must meet one more rule to claim the EIC. Filing amended tax return 2010 You need to know the amount of your earned income to see if you meet the rule in this chapter. Filing amended tax return 2010 You also need to know that amount to figure your EIC. Filing amended tax return 2010 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. Filing amended tax return 2010 Earned Income Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Filing amended tax return 2010 Employee pay is earned income only if it is taxable. Filing amended tax return 2010 Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Filing amended tax return 2010 But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Filing amended tax return 2010 Earned income is explained in detail in Rule 7 in chapter 1. Filing amended tax return 2010 Figuring earned income. Filing amended tax return 2010   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. Filing amended tax return 2010   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. Filing amended tax return 2010   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). Filing amended tax return 2010 You will then reduce that amount by any amount included on that line and described in the following list. Filing amended tax return 2010 Scholarship or fellowship grants not reported on a Form W-2. Filing amended tax return 2010 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. Filing amended tax return 2010 Inmate's income. Filing amended tax return 2010 Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Filing amended tax return 2010 This includes amounts received for work performed while in a work release program or while in a halfway house. Filing amended tax return 2010 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). Filing amended tax return 2010 Pension or annuity from deferred compensation plans. Filing amended tax return 2010 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. Filing amended tax return 2010 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). Filing amended tax return 2010 This amount may be reported in box 11 of your Form W-2. Filing amended tax return 2010 If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or an annuity. Filing amended tax return 2010 Clergy. Filing amended tax return 2010   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