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Free file fillable forms Internal Revenue Bulletin:  2010-9  March 1, 2010  Rev. Free file fillable forms Proc. Free file fillable forms 2010-18 Table of Contents SECTION 1. Free file fillable forms PURPOSE SECTION 2. Free file fillable forms BACKGROUND SECTION 3. Free file fillable forms SCOPE SECTION 4. Free file fillable forms APPLICATION SECTION 5. Free file fillable forms EFFECTIVE DATE SECTION 6. Free file fillable forms DRAFTING INFORMATION SECTION 1. Free file fillable forms PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2010, including a separate table of limitations on depreciation deductions for trucks and vans; and (2) the amounts to be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2010, including a separate table of inclusion amounts for lessees of trucks and vans. Free file fillable forms The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Free file fillable forms SECTION 2. Free file fillable forms BACKGROUND . Free file fillable forms 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Free file fillable forms Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. Free file fillable forms The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Free file fillable forms This change reflects the higher rate of price inflation for trucks and vans since 1988. Free file fillable forms . Free file fillable forms 02 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Free file fillable forms The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Free file fillable forms Under § 1. Free file fillable forms 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. Free file fillable forms One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Free file fillable forms Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Free file fillable forms SECTION 3. Free file fillable forms SCOPE . Free file fillable forms 01 The limitations on depreciation deductions in section 4. Free file fillable forms 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2010, and continue to apply for each taxable year that the passenger automobile remains in service. Free file fillable forms . Free file fillable forms 02 The tables in section 4. Free file fillable forms 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2010. Free file fillable forms Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Free file fillable forms See Rev. Free file fillable forms Proc. Free file fillable forms 2005-13, 2005-1 C. Free file fillable forms B. Free file fillable forms 759, for passenger automobiles first leased before calendar year 2006; Rev. Free file fillable forms Proc. Free file fillable forms 2006-18, 2006-1 C. Free file fillable forms B. Free file fillable forms 645, for passenger automobiles first leased during calendar year 2006; Rev. Free file fillable forms Proc. Free file fillable forms 2007-30, 2007-1 C. Free file fillable forms B. Free file fillable forms 1104, for passenger automobiles first leased during calendar year 2007; Rev. Free file fillable forms Proc. Free file fillable forms 2008-22, 2008-12 I. Free file fillable forms R. Free file fillable forms B. Free file fillable forms 658, for passenger automobiles first leased during calendar year 2008; and Rev. Free file fillable forms Proc. Free file fillable forms 2009-24, 2009-17 I. Free file fillable forms R. Free file fillable forms B. Free file fillable forms 885, for passenger automobiles first leased during calendar year 2009. Free file fillable forms SECTION 4. Free file fillable forms APPLICATION . Free file fillable forms 01 Limitations on Depreciation Deductions for Certain Automobiles. Free file fillable forms (1) Amount of the inflation adjustment. Free file fillable forms (a) Passenger automobiles (other than trucks or vans). Free file fillable forms Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Free file fillable forms The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Free file fillable forms The new car component of the CPI was 115. Free file fillable forms 2 for October 1987 and 137. Free file fillable forms 851 for October 2009. Free file fillable forms The October 2009 index exceeded the October 1987 index by 22. Free file fillable forms 651. Free file fillable forms Therefore, the automobile price inflation adjustment for 2010 for passenger automobiles (other than trucks and vans) is 19. Free file fillable forms 66 percent (22. Free file fillable forms 651/115. Free file fillable forms 2 x 100%). Free file fillable forms The dollar limitations in § 280F(a) are multiplied by a factor of 0. Free file fillable forms 1966, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2010. Free file fillable forms This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2010. Free file fillable forms (b) Trucks and vans. Free file fillable forms To determine the dollar limitations for trucks and vans first placed in service during calendar year 2010, the new truck component of the CPI is used instead of the new car component. Free file fillable forms The new truck component of the CPI was 112. Free file fillable forms 4 for October 1987 and 140. Free file fillable forms 897 for October 2009. Free file fillable forms The October 2009 index exceeded the October 1987 index by 28. Free file fillable forms 497. Free file fillable forms Therefore, the automobile price inflation adjustment for 2010 for trucks and vans is 25. Free file fillable forms 35 percent (28. Free file fillable forms 497/112. Free file fillable forms 4 x 100%). Free file fillable forms The dollar limitations in § 280F(a) are multiplied by a factor of 0. Free file fillable forms 2535, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Free file fillable forms This adjustment applies to all trucks and vans that are first placed in service in calendar year 2010. Free file fillable forms (2) Amount of the limitation. Free file fillable forms Tables 1 and 2 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2010. Free file fillable forms Use Table 1 for a passenger automobile (other than a truck or van) and Table 2 for a truck or van placed in service in calendar year 2010. Free file fillable forms REV. Free file fillable forms PROC. Free file fillable forms 2010-18 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2010 Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Free file fillable forms PROC. Free file fillable forms 2010-18 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2010 Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 . Free file fillable forms 02 Inclusions in Income of Lessees of Passenger Automobiles. Free file fillable forms A taxpayer must follow the procedures in § 1. Free file fillable forms 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2010. Free file fillable forms In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 3 of this revenue procedure, while lessees of trucks and vans should use Table 4 of this revenue procedure. Free file fillable forms REV. Free file fillable forms PROC. Free file fillable forms 2010-18 TABLE 3 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2010 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $16,700 $17,000 3 7 10 11 14 17,000 17,500 4 8 13 15 16 17,500 18,000 5 10 16 19 21 18,000 18,500 6 13 18 23 26 18,500 19,000 7 15 22 26 31 19,000 19,500 8 17 25 30 35 19,500 20,000 9 19 29 34 39 20,000 20,500 10 21 32 38 44 20,500 21,000 11 23 35 42 48 21,000 21,500 12 26 38 45 53 21,500 22,000 13 28 41 50 57 22,000 23,000 14 31 46 56 63 23,000 24,000 16 36 52 63 73 24,000 25,000 18 40 59 71 81 25,000 26,000 20 44 66 78 90 26,000 27,000 22 49 71 86 100 27,000 28,000 24 53 78 94 108 28,000 29,000 26 57 85 101 118 29,000 30,000 28 61 92 109 126 30,000 31,000 30 66 97 117 135 31,000 32,000 32 70 104 125 144 32,000 33,000 34 74 111 132 153 33,000 34,000 36 79 117 140 161 34,000 35,000 38 83 123 148 171 35,000 36,000 40 87 130 156 179 36,000 37,000 42 92 136 163 188 37,000 38,000 44 96 143 170 198 38,000 39,000 46 100 149 179 206 39,000 40,000 48 105 155 186 215 40,000 41,000 50 109 162 194 224 41,000 42,000 52 113 169 201 233 42,000 43,000 54 118 174 210 241 43,000 44,000 56 122 181 217 251 44,000 45,000 58 126 188 225 259 45,000 46,000 60 131 194 232 269 46,000 47,000 61 135 201 240 277 47,000 48,000 63 140 207 248 286 48,000 49,000 65 144 213 256 295 49,000 50,000 67 148 220 263 304 50,000 51,000 69 153 226 271 313 51,000 52,000 71 157 232 279 322 52,000 53,000 73 161 239 287 331 53,000 54,000 75 166 245 294 340 54,000 55,000 77 170 252 302 348 55,000 56,000 79 174 258 310 358 56,000 57,000 81 178 265 318 366 57,000 58,000 83 183 271 325 375 58,000 59,000 85 187 278 333 384 59,000 60,000 87 191 284 341 393 60,000 62,000 90 198 294 352 406 62,000 64,000 94 207 306 368 424 64,000 66,000 98 215 320 382 443 66,000 68,000 102 224 332 398 460 68,000 70,000 106 232 346 413 478 70,000 72,000 110 241 358 429 496 72,000 74,000 114 250 371 444 513 74,000 76,000 118 258 384 460 531 76,000 78,000 122 267 396 476 549 78,000 80,000 126 276 409 491 566 80,000 85,000 132 291 432 518 598 85,000 90,000 142 313 464 556 643 90,000 95,000 152 334 497 594 687 95,000 100,000 162 356 528 634 731 100,000 110,000 177 388 577 691 798 110,000 120,000 196 432 641 768 887 120,000 130,000 216 475 705 846 976 130,000 140,000 236 518 770 922 1,065 140,000 150,000 256 561 834 1,000 1,154 150,000 160,000 275 605 898 1,077 1,243 160,000 170,000 295 648 963 1,153 1,333 170,000 180,000 315 691 1,027 1,231 1,421 180,000 190,000 334 735 1,091 1,308 1,510 190,000 200,000 354 778 1,155 1,386 1,599 200,000 210,000 374 821 1,220 1,462 1,688 210,000 220,000 393 865 1,284 1,539 1,777 220,000 230,000 413 908 1,348 1,617 1,866 230,000 240,000 433 951 1,413 1,693 1,956 240,000 and up 453 995 1,476 1,771 2,044 REV. Free file fillable forms PROC. Free file fillable forms 2010-18 TABLE 4 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2010 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later 17,000 17,500 3 6 9 10 11 17,500 18,000 4 8 12 14 16 18,000 18,500 5 10 15 18 21 18,500 19,000 6 12 19 22 24 19,000 19,500 7 15 21 26 29 19,500 20,000 8 17 25 29 34 20,000 20,500 9 19 28 33 38 20,500 21,000 10 21 31 37 43 21,000 21,500 11 23 35 41 47 21,500 22,000 12 25 38 45 51 22,000 23,000 13 29 42 51 58 23,000 24,000 15 33 49 58 67 24,000 25,000 17 37 56 66 76 25,000 26,000 19 42 62 73 85 26,000 27,000 21 46 68 82 93 27,000 28,000 23 50 75 89 103 28,000 29,000 25 55 81 97 111 29,000 30,000 27 59 88 104 121 30,000 31,000 29 63 94 113 129 31,000 32,000 31 68 100 120 138 32,000 33,000 33 72 107 127 148 33,000 34,000 35 76 114 135 156 34,000 35,000 37 81 119 143 165 35,000 36,000 39 85 126 151 174 36,000 37,000 41 89 133 158 183 37,000 38,000 43 94 139 166 191 38,000 39,000 45 98 145 174 201 39,000 40,000 47 102 152 182 209 40,000 41,000 49 106 159 189 218 41,000 42,000 51 111 164 198 227 42,000 43,000 53 115 171 205 236 43,000 44,000 55 119 178 213 245 44,000 45,000 57 124 184 220 254 45,000 46,000 59 128 190 228 263 46,000 47,000 60 133 197 235 272 47,000 48,000 62 137 203 244 280 48,000 49,000 64 142 209 251 290 49,000 50,000 66 146 216 259 298 50,000 51,000 68 150 223 266 308 51,000 52,000 70 154 229 275 316 52,000 53,000 72 159 235 282 325 53,000 54,000 74 163 242 290 334 54,000 55,000 76 167 249 297 343 55,000 56,000 78 172 254 305 352 56,000 57,000 80 176 261 313 361 57,000 58,000 82 180 268 320 370 58,000 59,000 84 185 274 328 378 59,000 60,000 86 189 280 336 388 60,000 62,000 89 195 291 347 401 62,000 64,000 93 204 303 363 418 64,000 66,000 97 213 315 379 436 66,000 68,000 101 221 329 394 454 68,000 70,000 105 230 341 410 472 70,000 72,000 109 239 354 424 490 72,000 74,000 113 247 367 440 508 74,000 76,000 117 256 380 455 526 76,000 78,000 121 264 393 471 543 78,000 80,000 125 273 406 486 561 80,000 85,000 131 289 428 513 592 85,000 90,000 141 310 461 552 636 90,000 95,000 151 332 492 591 681 95,000 100,000 161 353 525 629 726 100,000 110,000 176 386 573 686 793 110,000 120,000 195 430 637 763 882 120,000 130,000 215 473 701 841 971 130,000 140,000 235 516 766 918 1,059 140,000 150,000 255 559 830 995 1,149 150,000 160,000 274 603 894 1,072 1,238 160,000 170,000 294 646 958 1,150 1,326 170,000 180,000 314 689 1,023 1,226 1,416 180,000 190,000 333 733 1,087 1,303 1,505 190,000 200,000 353 776 1,151 1,381 1,594 200,000 210,000 373 819 1,216 1,457 1,683 210,000 220,000 392 863 1,280 1,534 1,772 220,000 230,000 412 906 1,344 1,612 1,861 230,000 240,000 432 949 1,409 1,689 1,949 240,000 and up 452 992 1,473 1,766 2,039 SECTION 5. Free file fillable forms EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2010. Free file fillable forms SECTION 6. Free file fillable forms DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Free file fillable forms Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Free file fillable forms For further information regarding this revenue procedure, contact Mr. Free file fillable forms Harvey at (202) 622-4930 (not a toll-free call). Free file fillable forms Prev  Up  Next   Home   More Internal Revenue Bulletins
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Notice CP231, Page 1

Page Last Reviewed or Updated: 28-Mar-2014

The Free File Fillable Forms

Free file fillable forms 36. Free file fillable forms   Earned Income Credit (EIC) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Do You Qualify for the Credit?If Improper Claim Made in Prior Year Part A. Free file fillable forms Rules for EveryoneRule 1. Free file fillable forms Your AGI Must Be Less Than: Rule 2. Free file fillable forms You Must Have a Valid Social Security Number (SSN) Rule 3. Free file fillable forms Your Filing Status Cannot Be Married Filing Separately Rule 4. Free file fillable forms You Must Be a U. Free file fillable forms S. Free file fillable forms Citizen or Resident Alien All Year Rule 5. Free file fillable forms You Cannot File Form 2555 or Form 2555-EZ Rule 6. Free file fillable forms Your Investment Income Must Be $3,300 or Less Rule 7. Free file fillable forms You Must Have Earned Income Part B. Free file fillable forms Rules If You Have a Qualifying ChildRule 8. Free file fillable forms Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9. Free file fillable forms Your Qualifying Child Cannot Be Used By More Than One Person To Claim the EIC Rule 10. Free file fillable forms You Cannot Be a Qualifying Child of Another Taxpayer Part C. Free file fillable forms Rules If You Do Not Have a Qualifying ChildRule 11. Free file fillable forms You Must Be at Least Age 25 but Under Age 65 Rule 12. Free file fillable forms You Cannot Be the Dependent of Another Person Rule 13. Free file fillable forms You Cannot Be a Qualifying Child of Another Taxpayer Rule 14. Free file fillable forms You Must Have Lived in the United States More Than Half of the Year Part D. Free file fillable forms Figuring and Claiming the EICRule 15. Free file fillable forms Your Earned Income Must Be Less Than: IRS Will Figure the EIC for You How To Figure the EIC Yourself ExamplesExample 1. Free file fillable forms John and Janet Smith (Form 1040A) Example 2. Free file fillable forms Kelly Green (Form 1040EZ) What's New Earned income amount is more. Free file fillable forms  The maximum amount of income you can earn and still get the credit has increased. Free file fillable forms You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). Free file fillable forms Your adjusted gross income also must be less than the amount in the above list that applies to you. Free file fillable forms For details, see Rules 1 and 15. Free file fillable forms Investment income amount is more. Free file fillable forms  The maximum amount of investment income you can have and still get the credit has increased to $3,300. Free file fillable forms See Rule 6. Free file fillable forms Reminders Increased EIC on certain joint returns. Free file fillable forms  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. Free file fillable forms As a result, the EIC table has different columns for married persons filing jointly than for everyone else. Free file fillable forms When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. Free file fillable forms Online help. Free file fillable forms  You can use the EITC Assistant at www. Free file fillable forms irs. Free file fillable forms gov/eitc to find out if you are eligible for the credit. Free file fillable forms The EITC Assistant is available in English and Spanish. Free file fillable forms EIC questioned by IRS. Free file fillable forms  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. Free file fillable forms We will tell you what documents to send us. Free file fillable forms These may include: birth certificates, school records, medical records, etc. Free file fillable forms The process of establishing your eligibility will delay your refund. Free file fillable forms Introduction The earned income credit (EIC) is a tax credit for certain people who work and have less than $51,567 of earned income. Free file fillable forms A tax credit usually means more money in your pocket. Free file fillable forms It reduces the amount of tax you owe. Free file fillable forms The EIC may also give you a refund. Free file fillable forms How do you get the earned income credit?   To claim the EIC, you must: Qualify by meeting certain rules, and File a tax return, even if you: Do not owe any tax, Did not earn enough money to file a return, or Did not have income taxes withheld from your pay. Free file fillable forms When you complete your return, you can figure your EIC by using a worksheet in the instructions for Form 1040, Form 1040A, or Form 1040EZ. Free file fillable forms Or, if you prefer, you can let the IRS figure the credit for you. Free file fillable forms How will this chapter help you?   This chapter will explain the following. Free file fillable forms The rules you must meet to qualify for the EIC. Free file fillable forms How to figure the EIC. Free file fillable forms Useful Items - You may want to see: Publication 596 Earned Income Credit (EIC) Form (and Instructions) Schedule EIC Earned Income Credit (Qualifying Child Information) 8862 Information To Claim Earned Income Credit After Disallowance Do You Qualify for the Credit? To qualify to claim the EIC, you must first meet all of the rules explained in Part A, Rules for Everyone . Free file fillable forms Then you must meet the rules in Part B, Rules If You Have a Qualifying Child , or Part C, Rules If You Do Not Have a Qualifying Child . Free file fillable forms There is one final rule you must meet in Part D, Figuring and Claiming the EIC . Free file fillable forms You qualify for the credit if you meet all the rules in each part that applies to you. Free file fillable forms If you have a qualifying child, the rules in Parts A, B, and D apply to you. Free file fillable forms If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Free file fillable forms Table 36-1, Earned Income Credit in a Nutshell. Free file fillable forms   Use Table 36–1 as a guide to Parts A, B, C, and D. Free file fillable forms The table is a summary of all the rules in each part. Free file fillable forms Do you have a qualifying child?   You have a qualifying child only if you have a child who meets the four tests described in Rule 8 and illustrated in Figure 36–1. Free file fillable forms If Improper Claim Made in Prior Year If your EIC for any year after 1996 was denied or reduced for any reason other than a math or clerical error, you must attach a completed Form 8862 to your next tax return to claim the EIC. Free file fillable forms You must also qualify to claim the EIC by meeting all the rules described in this chapter. Free file fillable forms However, if your EIC was denied or reduced as a result of a math or clerical error, do not attach Form 8862 to your next tax return. Free file fillable forms For example, if your arithmetic is incorrect, the IRS can correct it. Free file fillable forms If you do not provide a correct social security number, the IRS can deny the EIC. Free file fillable forms These kinds of errors are called math or clerical errors. Free file fillable forms If your EIC for any year after 1996 was denied and it was determined that your error was due to reckless or intentional disregard of the EIC rules, then you cannot claim the EIC for the next 2 years. Free file fillable forms If your error was due to fraud, then you cannot claim the EIC for the next 10 years. Free file fillable forms More information. Free file fillable forms   See chapter 5 in Publication 596 for more detailed information about the disallowance period and Form 8862. Free file fillable forms Part A. Free file fillable forms Rules for Everyone This part of the chapter discusses Rules 1 through 7. Free file fillable forms You must meet all seven rules to qualify for the earned income credit. Free file fillable forms If you do not meet all seven rules, you cannot get the credit and you do not need to read the rest of the chapter. Free file fillable forms If you meet all seven rules in this part, then read either Part B or Part C (whichever applies) for more rules you must meet. Free file fillable forms Rule 1. Free file fillable forms Your AGI Must Be Less Than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Free file fillable forms Adjusted gross income (AGI). Free file fillable forms   AGI is the amount on line 38 (Form 1040), line 22 (Form 1040A), or line 4 (Form 1040EZ). Free file fillable forms If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Free file fillable forms Example. Free file fillable forms Your AGI is $38,550, you are single, and you have one qualifying child. Free file fillable forms You cannot claim the EIC because your AGI is not less than $37,870. Free file fillable forms 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. Free file fillable forms Community property. Free file fillable forms   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. Free file fillable forms This is different from the community property rules that apply under Rule 7 . Free file fillable forms Rule 2. Free file fillable forms 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). Free file fillable forms Any qualifying child listed on Schedule EIC also must have a valid SSN. Free file fillable forms (See Rule 8 if you have a qualifying child. Free file fillable forms ) 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. Free file fillable forms An example of a federally funded benefit is Medicaid. Free file fillable forms 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. Free file fillable forms S. Free file fillable forms citizen or permanent resident, ask the SSA for a new social security card without the legend. Free file fillable forms U. Free file fillable forms S. Free file fillable forms citizen. Free file fillable forms   If you were a U. Free file fillable forms S. Free file fillable forms citizen when you received your SSN, you have a valid SSN. Free file fillable forms Valid for work only with INS or DHS authorization. Free file fillable forms   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. Free file fillable forms SSN missing or incorrect. Free file fillable forms   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Free file fillable forms Other taxpayer identification number. Free file fillable forms   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). Free file fillable forms ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Free file fillable forms No SSN. Free file fillable forms   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). Free file fillable forms You cannot claim the EIC. Free file fillable forms Getting an SSN. Free file fillable forms   If you (or your spouse, if filing a joint return) do not have an SSN, you can apply for one by filing Form SS-5, Application for a Social Security Card, with the SSA. Free file fillable forms You can get Form SS-5 online at www. Free file fillable forms socialsecurity. Free file fillable forms gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Free file fillable forms Filing deadline approaching and still no SSN. Free file fillable forms   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Free file fillable forms Request an automatic 6-month extension of time to file your return. Free file fillable forms You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Free file fillable forms S. Free file fillable forms Individual Income Tax Return. Free file fillable forms For more information, see chapter 1 . Free file fillable forms File the return on time without claiming the EIC. Free file fillable forms After receiving the SSN, file an amended return (Form 1040X, Amended U. Free file fillable forms S. Free file fillable forms Individual Income Tax Return) claiming the EIC. Free file fillable forms Attach a filled-in Schedule EIC if you have a qualifying child. Free file fillable forms Table 36-1. Free file fillable forms Earned Income Credit in a Nutshell First, you must meet all the rules in this column. Free file fillable forms Second, you must meet all the rules in one of these columns, whichever applies. Free file fillable forms Third, you must meet the rule in this column. Free file fillable forms Part A. Free file fillable forms  Rules for Everyone Part B. Free file fillable forms  Rules If You Have a Qualifying Child Part C. Free file fillable forms  Rules If You Do Not Have a Qualifying Child Part D. Free file fillable forms  Figuring and Claiming the EIC 1. Free file fillable forms 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. Free file fillable forms 2. Free file fillable forms You must have a valid social security number. Free file fillable forms  3. Free file fillable forms Your filing status cannot be “Married filing separately. Free file fillable forms ” 4. Free file fillable forms You must be a U. Free file fillable forms S. Free file fillable forms citizen or resident alien all year. Free file fillable forms  5. Free file fillable forms You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Free file fillable forms  6. Free file fillable forms Your investment income must be $3,300 or less. Free file fillable forms  7. Free file fillable forms You must have earned income. Free file fillable forms 8. Free file fillable forms Your child must meet the relationship, age, residency, and joint return tests. Free file fillable forms  9. Free file fillable forms Your qualifying child cannot be used by more than one person to claim the EIC. Free file fillable forms  10. Free file fillable forms You cannot be a qualifying child of another person. Free file fillable forms 11. Free file fillable forms You must be at least age 25 but under age 65. Free file fillable forms  12. Free file fillable forms You cannot be the dependent of another person. Free file fillable forms  13. Free file fillable forms You cannot be a qualifying child of another person. Free file fillable forms  14. Free file fillable forms You must have lived in the United States more than half of the year. Free file fillable forms 15. Free file fillable forms 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. Free file fillable forms Rule 3. Free file fillable forms Your Filing Status Cannot Be Married Filing Separately If you are married, you usually must file a joint return to claim the EIC. Free file fillable forms Your filing status cannot be “Married filing separately. Free file fillable forms ” Spouse did not live with you. Free file fillable forms   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. Free file fillable forms In that case, you may be able to claim the EIC. Free file fillable forms For detailed information about filing as head of household, see chapter 2 . Free file fillable forms Rule 4. Free file fillable forms You Must Be a U. Free file fillable forms S. Free file fillable forms 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. Free file fillable forms You can use that filing status only if one spouse is a U. Free file fillable forms S. Free file fillable forms citizen or resident alien and you choose to treat the nonresident spouse as a U. Free file fillable forms S. Free file fillable forms resident. Free file fillable forms If you make this choice, you and your spouse are taxed on your worldwide income. Free file fillable forms 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). Free file fillable forms If you need more information on making this choice, get Publication 519, U. Free file fillable forms S. Free file fillable forms Tax Guide for Aliens. Free file fillable forms Rule 5. Free file fillable forms 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. Free file fillable forms You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Free file fillable forms U. Free file fillable forms S. Free file fillable forms possessions are not foreign countries. Free file fillable forms See Publication 54, Tax Guide for U. Free file fillable forms S. Free file fillable forms Citizens and Resident Aliens Abroad, for more detailed information. Free file fillable forms Rule 6. Free file fillable forms 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. Free file fillable forms If your investment income is more than $3,300, you cannot claim the credit. Free file fillable forms For most people, investment income is the total of the following amounts. Free file fillable forms Taxable interest (line 8a of Form 1040 or 1040A). Free file fillable forms Tax-exempt interest (line 8b of Form 1040 or 1040A). Free file fillable forms Dividend income (line 9a of Form 1040 or 1040A). Free file fillable forms Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Free file fillable forms If you file Form 1040EZ, your investment income is the total of the amount of line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. Free file fillable forms However, see Rule 6 in chapter 1 of Publication 596 if: You are filing Schedule E (Form 1040), Form 4797, or Form 8814, or You are reporting income from the rental of personal property on Form 1040, line 21. Free file fillable forms Rule 7. Free file fillable forms You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. Free file fillable forms If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Free file fillable forms If you are an employee, earned income includes all the taxable income you get from your employer. Free file fillable forms If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the instructions for Form 1040. Free file fillable forms Earned Income Earned income includes all of the following types of income. Free file fillable forms Wages, salaries, tips, and other taxable employee pay. Free file fillable forms Employee pay is earned income only if it is taxable. Free file fillable forms Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Free file fillable forms But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained below. Free file fillable forms Net earnings from self-employment. Free file fillable forms Gross income received as a statutory employee. Free file fillable forms Wages, salaries, and tips. Free file fillable forms   Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Free file fillable forms You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Free file fillable forms Nontaxable combat pay election. Free file fillable forms   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Free file fillable forms Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Free file fillable forms Figure the credit with and without your nontaxable combat pay before making the election. Free file fillable forms   If you make the election, you must include in earned income all nontaxable combat pay you received. Free file fillable forms If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Free file fillable forms In other words, if one of you makes the election, the other one can also make it but does not have to. Free file fillable forms   The amount of your nontaxable combat pay should be shown in box 12 of your Form W-2 with code “Q. Free file fillable forms ” Self-employed persons and statutory employees. Free file fillable forms   If you are self-employed or received income as a statutory employee, you must use the Form 1040 instructions to see if you qualify to get the EIC. Free file fillable forms 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. Free file fillable forms Each approved form exempts certain income from social security taxes. Free file fillable forms Each form is discussed here in terms of what is or is not earned income for the EIC. Free file fillable forms Form 4361. Free file fillable forms   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Free file fillable forms This includes wages, salaries, tips, and other taxable employee compensation. Free file fillable forms A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Free file fillable forms Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Free file fillable forms Examples include fees for performing marriages and honoraria for delivering speeches. Free file fillable forms Form 4029. Free file fillable forms   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Free file fillable forms However, amounts you received as a self-employed individual do not count as earned income. Free file fillable forms Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Free file fillable forms 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. Free file fillable forms Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Free file fillable forms You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Free file fillable forms Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Free file fillable forms Report taxable pension payments on Form 1040, lines 16a and 16b (or Form 1040A, lines 12a and 12b). Free file fillable forms Disability insurance payments. Free file fillable forms   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Free file fillable forms It does not matter whether you have reached minimum retirement age. Free file fillable forms If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Free file fillable forms ” 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. Free file fillable forms Do not include any of these items in your earned income. Free file fillable forms Earnings while an inmate. Free file fillable forms   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Free file fillable forms This includes amounts for work performed while in a work release program or while in a halfway house. Free file fillable forms Workfare payments. Free file fillable forms   Nontaxable workfare payments are not earned income for the EIC. Free file fillable forms These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if private sector employment is not available, or (2) community service program activities. Free file fillable forms Community property. Free file fillable forms   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. Free file fillable forms That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Free file fillable forms 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. Free file fillable forms Nevada, Washington, and California domestic partners. Free file fillable forms   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Free file fillable forms Your earned income for the EIC does not include any amount earned by your partner. Free file fillable forms Your earned income includes the entire amount you earned. Free file fillable forms For details, see Publication 555. Free file fillable forms Conservation Reserve Program (CRP) payments. Free file fillable forms   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. Free file fillable forms Nontaxable military pay. Free file fillable forms   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Free file fillable forms Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Free file fillable forms See Publication 3, Armed Forces' Tax Guide, for more information. Free file fillable forms    Combat pay. Free file fillable forms You can elect to include your nontaxable combat pay in earned income for the EIC. Free file fillable forms See Nontaxable combat pay election, earlier. Free file fillable forms Part B. Free file fillable forms Rules If You Have a Qualifying Child If you have met all of the rules in Part A , read Part B to see if you have a qualifying child. Free file fillable forms Part B discusses Rules 8 through 10. Free file fillable forms You must meet all three of these rules, in addition to the rules in Parts A and D , to qualify for the earned income credit with a qualifying child. Free file fillable forms You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Free file fillable forms (You cannot file Form 1040EZ. Free file fillable forms ) You also must complete Schedule EIC and attach it to your return. Free file fillable forms If you meet all the rules in Part A and this part, read Part D to find out what to do next. Free file fillable forms If you do not meet Rule 8, you do not have a qualifying child. Free file fillable forms Read Part C to find out if you can get the earned income credit without a qualifying child. Free file fillable forms Rule 8. Free file fillable forms Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. Free file fillable forms The four tests are: Relationship, Age, Residency, and Joint return. Free file fillable forms The four tests are illustrated in Figure 36–1. Free file fillable forms The paragraphs that follow contain more information about each test. Free file fillable forms 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). Free file fillable forms The following definitions clarify the relationship test. Free file fillable forms Adopted child. Free file fillable forms   An adopted child is always treated as your own child. Free file fillable forms The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Free file fillable forms Foster child. Free file fillable forms   For the EIC, a person is your foster child if the child is placed with you by an authorized placement agency or by judgement, decree, or other order of any court of competent jurisdiction. Free file fillable forms An authorized placement agency includes a state or local government agency. Free file fillable forms It also includes a tax-exempt organization licensed by a state. Free file fillable forms In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Free file fillable forms Example. Free file fillable forms 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. Free file fillable forms Debbie is your foster child. Free file fillable forms 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. Free file fillable forms    The following examples and definitions clarify the age test. Free file fillable forms Example 1—child not under age 19. Free file fillable forms Your son turned 19 on December 10. Free file fillable forms 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. Free file fillable forms Example 2—child not younger than you or your spouse. Free file fillable forms Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Free file fillable forms He is not disabled. Free file fillable forms Both you and your spouse are 21 years old and you file a joint return. Free file fillable forms Your brother is not your qualifying child because he is not younger than you or your spouse. Free file fillable forms Example 3—child younger than your spouse but not younger than you. Free file fillable forms The facts are the same as in Example 2 except that your spouse is 25 years old. Free file fillable forms Because your brother is younger than your spouse, he is your qualifying child even though he is not younger than you. Free file fillable forms Student defined. Free file fillable forms   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. Free file fillable forms The 5 calendar months need not be consecutive. Free file fillable forms   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. Free file fillable forms School defined. Free file fillable forms   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Free file fillable forms However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Free file fillable forms Vocational high school students. Free file fillable forms   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. Free file fillable forms Permanently and totally disabled. Free file fillable forms   Your child is permanently and totally disabled if both of the following apply. Free file fillable forms He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Free file fillable forms A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Free file fillable forms Residency Test Your child must have lived with you in the United States for more than half of 2013. Free file fillable forms The following definitions clarify the residency test. Free file fillable forms United States. Free file fillable forms   This means the 50 states and the District of Columbia. Free file fillable forms It does not include Puerto Rico or U. Free file fillable forms S. Free file fillable forms possessions such as Guam. Free file fillable forms Homeless shelter. Free file fillable forms   Your home can be any location where you regularly live. Free file fillable forms You do not need a traditional home. Free file fillable forms 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. Free file fillable forms Military personnel stationed outside the United States. Free file fillable forms    U. Free file fillable forms S. Free file fillable forms 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. Free file fillable forms Figure 36-1. Free file fillable forms Tests for Qualifying Child Please click here for the text description of the image. Free file fillable forms Qualifying child Extended active duty. Free file fillable forms   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Free file fillable forms 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. Free file fillable forms Birth or death of a child. Free file fillable forms   A child who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the child's home for more than half the time he or she was alive in 2013. Free file fillable forms Temporary absences. Free file fillable forms   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. Free file fillable forms Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Free file fillable forms Kidnapped child. Free file fillable forms    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. Free file fillable forms The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or your child's family. Free file fillable forms This treatment applies for all years until the child is returned. Free file fillable forms 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. Free file fillable forms   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Free file fillable forms Joint Return Test To meet this test, the child cannot file a joint return for the year. Free file fillable forms Exception. Free file fillable forms   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. Free file fillable forms Example 1—child files joint return. Free file fillable forms You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Free file fillable forms He earned $25,000 for the year. Free file fillable forms The couple files a joint return. Free file fillable forms Because your daughter and her husband filed a joint return, she is not your qualifying child. Free file fillable forms Example 2—child files joint return only to claim a refund of withheld tax. Free file fillable forms Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Free file fillable forms They do not have a child. Free file fillable forms Neither is required to file a tax return. Free file fillable forms Taxes were taken out of their pay, so they filed a joint return only to get a refund of the withheld taxes. Free file fillable forms The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Free file fillable forms Example 3—child files joint return to claim American opportunity credit. Free file fillable forms The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Free file fillable forms 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. Free file fillable forms Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. Free file fillable forms The exception to the joint return test does not apply, so your son is not your qualifying child. Free file fillable forms Married child. Free file fillable forms   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. Free file fillable forms Social security number. Free file fillable forms   The qualifying child must have a valid social security number (SSN) unless the child was born and died in 2013 and you attach to your return a copy of the child's birth certificate, death certificate, or hospital records showing a live birth. Free file fillable forms You cannot claim the EIC on the basis of a qualifying child if: The qualifying child's SSN is missing from your tax return or is incorrect, The qualifying child's social security card says “Not valid for employment” and was issued for use in getting a federally funded benefit, or Instead of an SSN, the qualifying child has: An individual taxpayer identification number (ITIN), which is issued to a noncitizen who cannot get an SSN, or An adoption taxpayer identification number (ATIN), which is issued to adopting parents who cannot get an SSN for the child being adopted until the adoption is final. Free file fillable forms   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. Free file fillable forms For more information about SSNs, see Rule 2 . Free file fillable forms Rule 9. Free file fillable forms 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. Free file fillable forms However, only one of these persons can actually treat the child as a qualifying child. Free file fillable forms 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). Free file fillable forms The exemption for the child. Free file fillable forms The child tax credit. Free file fillable forms Head of household filing status. Free file fillable forms The credit for child and dependent care expenses. Free file fillable forms The exclusion for dependent care benefits. Free file fillable forms The EIC. Free file fillable forms The other person cannot take any of these benefits based on this qualifying child. Free file fillable forms In other words, you and the other person cannot agree to divide these tax benefits between you. Free file fillable forms The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Free file fillable forms The tiebreaker rules explained next explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Free file fillable forms However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Free file fillable forms Tiebreaker rules. Free file fillable forms   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. Free file fillable forms If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms See Example 8 . Free file fillable forms   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. Free file fillable forms See Examples 1 through 13 . Free file fillable forms   If you cannot claim the EIC because your qualifying child is treated under the tiebreaker rules as the qualifying child of another person for 2013, you may be able to take the EIC using a different qualifying child, but you cannot take the EIC using the rules in Part C for people who do not have a qualifying child. Free file fillable forms If the other person cannot claim the EIC. Free file fillable forms   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. Free file fillable forms See Examples 6 and 7 . Free file fillable forms 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. Free file fillable forms Examples. Free file fillable forms The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Free file fillable forms Example 1. Free file fillable forms You and your 2-year-old son Jimmy lived with your mother all year. Free file fillable forms You are 25 years old, unmarried, and your AGI is $9,000. Free file fillable forms Your only income was $9,000 from a part-time job. Free file fillable forms Your mother's only income was $20,000 from her job, and her AGI is $20,000. Free file fillable forms Jimmy's father did not live with you or Jimmy. Free file fillable forms The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Free file fillable forms 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. Free file fillable forms However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier for which that person qualifies). Free file fillable forms He is not a qualifying child of anyone else, including his father. Free file fillable forms 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). Free file fillable forms Example 2. Free file fillable forms The facts are the same as in Example 1 except your AGI is $25,000. Free file fillable forms Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Free file fillable forms Only you can claim him. Free file fillable forms Example 3. Free file fillable forms The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms Example 4. Free file fillable forms 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. Free file fillable forms Only one of you can claim each child. Free file fillable forms However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Free file fillable forms For example, if you claim one child, your mother can claim the other two. Free file fillable forms Example 5. Free file fillable forms The facts are the same as in Example 1 except that you are only 18 years old. Free file fillable forms This means you are a qualifying child of your mother. Free file fillable forms Because of Rule 10 , discussed next, you cannot claim the EIC and cannot claim Jimmy as a qualifying child. Free file fillable forms Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Free file fillable forms 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. Free file fillable forms Example 6. Free file fillable forms The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Free file fillable forms Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Free file fillable forms Example 7. Free file fillable forms The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Free file fillable forms Your earned income is too high for you to claim the EIC. Free file fillable forms But your mother cannot claim the EIC either, because her AGI is not higher than yours. Free file fillable forms Example 8. Free file fillable forms The facts are the same as in Example 1 except that you and Jimmy's father are married to each other, live with Jimmy and your mother, and have an AGI of $30,000 on a joint return. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms In other words, each parent's AGI can be treated as $15,000. Free file fillable forms Example 9. Free file fillable forms You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Free file fillable forms In August and September, Joey lived with you. Free file fillable forms For the rest of the year, Joey lived with your husband, who is Joey's father. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms You and your husband will file separate returns. Free file fillable forms Your husband agrees to let you treat Joey as a qualifying child. Free file fillable forms 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. Free file fillable forms However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Free file fillable forms See Rule 3 . Free file fillable forms Example 10. Free file fillable forms The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Free file fillable forms In this case, only your husband will be allowed to treat Joey as a qualifying child. Free file fillable forms This is because, during 2013, the boy lived with him longer than with you. Free file fillable forms You cannot claim the EIC (either with or without a qualifying child). Free file fillable forms 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. Free file fillable forms See Rule 3 . Free file fillable forms Example 11. Free file fillable forms You, your 5-year-old son and your son's father lived together all year. Free file fillable forms You and your son's father are not married. Free file fillable forms 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. Free file fillable forms Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Free file fillable forms Neither of you had any other income. Free file fillable forms Your son's father agrees to let you treat the child as a qualifying child. Free file fillable forms 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. Free file fillable forms Example 12. Free file fillable forms 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. Free file fillable forms In this case, only your son's father will be allowed to treat your son as a qualifying child. Free file fillable forms This is because his AGI, $14,000, is more than your AGI, $12,000. Free file fillable forms You cannot claim the EIC (either with or without a qualifying child). Free file fillable forms Example 13. Free file fillable forms You and your 7-year-old niece, your sister's child, lived with your mother all year. Free file fillable forms You are 25 years old, and your AGI is $9,300. Free file fillable forms Your only income was from a part-time job. Free file fillable forms Your mother's AGI is $15,000. Free file fillable forms Her only income was from her job. Free file fillable forms Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Free file fillable forms 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. Free file fillable forms However, only your mother can treat her as a qualifying child. Free file fillable forms This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Free file fillable forms Special rule for divorced or separated parents (or parents who live apart). Free file fillable forms   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. Free file fillable forms The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of 2013, whether or not they are or were married. Free file fillable forms The child received over half of his or her support for the year from the parents. Free file fillable forms The child is in the custody of one or both parents for more than half of 2013. Free file fillable forms Either of the following statements is true. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms  For details, see chapter 3. Free file fillable forms Also see Applying Rule 9 to divorced or separated parents (or parents who live apart) , next. Free file fillable forms Applying Rule 9 to divorced or separated parents (or parents who live apart). Free file fillable forms   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. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms Example 1. Free file fillable forms You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Free file fillable forms Your AGI is $10,000. Free file fillable forms Your mother’s AGI is $25,000. Free file fillable forms Your son's father did not live with you or your son. Free file fillable forms Under the special rule for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for the child. Free file fillable forms 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. Free file fillable forms You and your mother did not have any child care expenses or dependent care benefits. Free file fillable forms 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. Free file fillable forms Example 2. Free file fillable forms The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Free file fillable forms Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Free file fillable forms Example 3. Free file fillable forms 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. Free file fillable forms Your mother also claims him as a qualifying child for head of household filing status. Free file fillable forms You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Free file fillable forms The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Free file fillable forms Rule 10. Free file fillable forms You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Free file fillable forms ) if all of the following statements are true. Free file fillable forms You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Free file fillable forms Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). Free file fillable forms 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. Free file fillable forms You lived with that person in the United States for more than half of the year. Free file fillable forms 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). Free file fillable forms For more details about the tests to be a qualifying child, see Rule 8 . Free file fillable forms If you are a qualifying child of another taxpayer, you cannot claim the EIC. Free file fillable forms 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. Free file fillable forms Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Free file fillable forms Example. Free file fillable forms You and your daughter lived with your mother all year. Free file fillable forms You are 22 years old, unmarried, and attended a trade school full time. Free file fillable forms You had a part-time job and earned $5,700. Free file fillable forms You had no other income. Free file fillable forms Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Free file fillable forms She can claim the EIC if she meets all the other requirements. Free file fillable forms Because you are your mother's qualifying child, you cannot claim the EIC. Free file fillable forms This is so even if your mother cannot or does not claim the EIC. Free file fillable forms Child of person not required to file a return. Free file fillable forms   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. Free file fillable forms Example. Free file fillable forms 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. Free file fillable forms As a result, you are not your mother's qualifying child. Free file fillable forms You can claim the EIC if you meet all the other requirements to do so. Free file fillable forms   See Rule 10 in Publication 596 for additional examples. Free file fillable forms Part C. Free file fillable forms Rules If You Do Not Have a Qualifying Child Read this part if you: Do not have a qualifying child, and Have met all the rules in Part A . Free file fillable forms  Part C discusses Rules 11 through 14. Free file fillable forms You must meet all four of these rules, in addition to the rules in Parts A and D , to qualify for the earned income credit without a qualifying child. Free file fillable forms If you have a qualifying child, the rules in this part do not apply to you. Free file fillable forms You can claim the credit only if you meet all the rules in Parts A, B, and D. Free file fillable forms See Rule 8 to find out if you have a qualifying child. Free file fillable forms Rule 11. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms It does not matter which spouse meets the age test, as long as one of the spouses does. Free file fillable forms You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Free file fillable forms 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. Free file fillable forms If neither you nor your spouse meets the age test, you cannot claim the EIC. Free file fillable forms Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Free file fillable forms Death of spouse. Free file fillable forms   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. Free file fillable forms Example 1. Free file fillable forms You are age 28 and unmarried. Free file fillable forms You meet the age test. Free file fillable forms Example 2—spouse meets age test. Free file fillable forms You are married and filing a joint return. Free file fillable forms You are age 23 and your spouse is age 27. Free file fillable forms You meet the age test because your spouse is at least age 25 but under age 65. Free file fillable forms Example 3—spouse dies in 2013. Free file fillable forms You are married and filing a joint return with your spouse who died in August 2013. Free file fillable forms You are age 67. Free file fillable forms Your spouse would have become age 65 in November 2013. Free file fillable forms Because your spouse was under age 65 when she died, you meet the age test. Free file fillable forms Rule 12. Free file fillable forms 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. Free file fillable forms 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. Free file fillable forms If you are not sure whether someone else can claim you (or your spouse, if filing a joint return) as a dependent, read the rules for claiming a dependent in chapter 3. Free file fillable forms If someone else can claim you (or your spouse, if filing a joint return) as a dependent on his or her return, but does not, you still cannot claim the credit. Free file fillable forms Example 1. Free file fillable forms In 2013, you were age 25, single, and living at home with your parents. Free file fillable forms You worked and were not a student. Free file fillable forms You earned $7,500. Free file fillable forms Your parents cannot claim you as a dependent. Free file fillable forms 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. Free file fillable forms You meet this rule. Free file fillable forms You can claim the EIC if you meet all the other requirements. Free file fillable forms Example 2. Free file fillable forms The facts are the same as in Example 1 , except that you earned $2,000. Free file fillable forms Your parents can claim you as a dependent but decide not to. Free file fillable forms You do not meet this rule. Free file fillable forms You cannot claim the credit because your parents could have claimed you as a dependent. Free file fillable forms Joint returns. Free file fillable forms   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Free file fillable forms   However, another person may be able to claim you as a dependent if you and your spouse file a joint return only to get a refund of income tax withheld or estimated tax paid. Free file fillable forms But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Free file fillable forms Example 1. Free file fillable forms You are 26 years old. Free file fillable forms You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Free file fillable forms Neither you nor your wife is required to file a tax return. Free file fillable forms You do not have a child. Free file fillable forms Taxes were taken out of your pay, so you file a joint return only to get a refund of the withheld taxes. Free file fillable forms Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Free file fillable forms They can claim exemptions for you and your wife if all the other tests to do so are met. Free file fillable forms Example 2. Free file fillable forms The facts are the same as in Example 1 except no taxes were taken out of your pay. Free file fillable forms 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. Free file fillable forms Because claiming the EIC is your reason for filing the return, you are not filing it only to get a refund of income tax withheld or estimated tax paid. Free file fillable forms Your parents cannot claim an exemption for either you or your wife. Free file fillable forms Rule 13. Free file fillable forms You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Free file fillable forms ) if all of the following statements are true. Free file fillable forms You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Free file fillable forms Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). Free file fillable forms You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student (as defined in Rule 8 ), and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. Free file fillable forms You lived with that person in the United States for more than half of the year. Free file fillable forms 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). Free file fillable forms For more details about the tests to be a qualifying child, see Rule 8 . Free file fillable forms If you are a qualifying child of another taxpayer, you cannot claim the EIC. Free file fillable forms 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. Free file fillable forms Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Free file fillable forms Example. Free file fillable forms You lived with your mother all year. Free file fillable forms You are age 26, unmarried, and permanently and totally disabled. Free file fillable forms Your only income was from a community center where you went three days a week to answer telephones. Free file fillable forms You earned $5,000 for the year and provided more than half of your own support. Free file fillable forms Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Free file fillable forms She can claim the EIC if she meets all the other requirements. Free file fillable forms Because you are a qualifying child of your mother, you cannot claim the EIC. Free file fillable forms This is so even if your mother cannot or does not claim the EIC. Free file fillable forms Joint returns. Free file fillable forms   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Free file fillable forms   However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return for the year only to get a refund of income tax withheld or estimated tax paid. Free file fillable forms But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Free file fillable forms Child of person not required to file a return. Free file fillable forms   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. Free file fillable forms Example. Free file fillable forms You lived all year with your father. Free file fillable forms You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Free file fillable forms You have no other income, no children, and provided more than half of your own support. Free file fillable forms Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Free file fillable forms As a result, you are not your father's qualifying child. Free file fillable forms You can claim the EIC if you meet all the other requirements to do so. Free file fillable forms   See Rule 13 in Publication 596 for additional examples. Free file fillable forms Rule 14. Free file fillable forms 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. Free file fillable forms If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Free file fillable forms United States. Free file fillable forms   This means the 50 states and the District of Columbia. Free file fillable forms It does not include Puerto Rico or U. Free file fillable forms S. Free file fillable forms possessions such as Guam. Free file fillable forms Homeless shelter. Free file fillable forms   Your home can be any location where you regularly live. Free file fillable forms You do not need a traditional home. Free file fillable forms If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Free file fillable forms Military personnel stationed outside the United States. Free file fillable forms   U. Free file fillable forms S. Free file fillable forms military personnel stationed outside the United States on extended active duty (defined in Rule 8 ) are considered to live in the United States during that duty period for purposes of the EIC. Free file fillable forms Part D. Free file fillable forms Figuring and Claiming the EIC Read this part if you have met all the rules in Parts A and B, or all the rules in Parts A and C. Free file fillable forms Part D discusses Rule 15 . Free file fillable forms You must meet this rule, in addition to the rules in Parts A and B , or Parts A and C , to qualify for the earned income credit. Free file fillable forms This part of the chapter also explains how to figure the amount of your credit. Free file fillable forms You have two choices. Free file fillable forms Have the IRS figure the EIC for you. Free file fillable forms If you want to do this, see IRS Will Figure the EIC for You . Free file fillable forms Figure the EIC yourself. Free file fillable forms If you want to do this, see How To Figure the EIC Yourself . Free file fillable forms Rule 15. Free file fillable forms 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. Free file fillable forms Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Free file fillable forms Employee pay is earned income only if it is taxable. Free file fillable forms Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Free file fillable forms But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Free file fillable forms Earned income is explained in detail in Rule 7 . Free file fillable forms Figuring earned income. Free file fillable forms   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. Free file fillable forms   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. Free file fillable forms   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). Free file fillable forms You will then reduce that amount by any amount included on that line and described in the following list: Scholarship or fellowship grants not reported on a Form W-2, Inmate's income, and Pension or annuity from deferred compensation plans. Free file fillable forms Scholarship or fellowship grants not reported on a Form W-2. Free file fillable forms   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. Free file fillable forms Inmate's income. Free file fillable forms   Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Free file fillable forms This includes amounts received for work performed while in a work release program or while in a halfway house. Free file fillable forms 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). Free file fillable forms Pension or annuity from deferred compensation plans. Free file fillable forms   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. Free file fillable forms 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). Free file fillable forms This amount may be reported in box 11 of your Form W-2. Free file fillable forms If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity. Free file fillable forms Clergy. Free file fillable forms   If you are a member of the clergy who files Schedule SE and the amount on line 2 of that schedule includes an amount that was also reported on line 7 (Form 1040), subtract that amount from the amount on line 7 (Form 1040) and enter the result in the first space of the worksheet in Step 5 of the Form 1040 instructions for lines 64a and 64b. Free file fillable forms Put “Clergy” on the dotted line next to line 64a (Form 1040). Free file fillable forms Church employees. Free file fillable forms    A church employee means an employee (other than a minister or member of a religious order) of a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Free file fillable forms If you received wages as a