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H&r Block Free Tax File

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H&r Block Free Tax File

H&r block free tax file Publication 536 - Introductory Material Table of Contents Reminders IntroductionOrdering forms and publications. H&r block free tax file Tax questions. H&r block free tax file Useful Items - You may want to see: Reminders Future developments. H&r block free tax file  For the latest developments related to Publication 536, such as legislation enacted after we release it, go to www. H&r block free tax file irs. H&r block free tax file gov/pub536. H&r block free tax file Photographs of missing children. H&r block free tax file  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. H&r block free tax file Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. H&r block free tax file You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. H&r block free tax file Introduction If your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). H&r block free tax file An NOL year is the year in which an NOL occurs. H&r block free tax file You can use an NOL by deducting it from your income in another year or years. H&r block free tax file What this publication covers. H&r block free tax file   This publication discusses NOLs for individuals, estates, and trusts. H&r block free tax file It covers: How to figure an NOL, When to use an NOL, How to claim an NOL deduction, and How to figure an NOL carryover. H&r block free tax file To have an NOL, your loss must generally be caused by deductions from your: Trade or business, Work as an employee, Casualty and theft losses, Moving expenses, or Rental property. H&r block free tax file A loss from operating a business is the most common reason for an NOL. H&r block free tax file Partnerships and S corporations generally cannot use an NOL. H&r block free tax file However, partners or shareholders can use their separate shares of the partnership's or S corporation's business income and business deductions to figure their individual NOLs. H&r block free tax file Keeping records. H&r block free tax file   You should keep records for any tax year that generates an NOL for 3 years after you have used the carryback/carryforward or 3 years after the carryforward expires. H&r block free tax file    You should attach all required documents to the Form 1045 or Form 1040X. H&r block free tax file For details, see the instructions for Form 1045 or Form 1040X. H&r block free tax file What is not covered in this publication?   The following topics are not covered in this publication. H&r block free tax file Bankruptcies. H&r block free tax file See Publication 908, Bankruptcy Tax Guide. H&r block free tax file NOLs of corporations. H&r block free tax file See Publication 542, Corporations. H&r block free tax file Section references. H&r block free tax file   Section references are to the Internal Revenue Code unless otherwise noted. H&r block free tax file Comments and suggestions. H&r block free tax file   We welcome your comments about this publication and your suggestions for future editions. H&r block free tax file   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. H&r block free tax file NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. H&r block free tax file Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. H&r block free tax file   You can send your comments from www. H&r block free tax file irs. H&r block free tax file gov/formspubs/. H&r block free tax file Click on “More Information. H&r block free tax file ” and then on “Comment on Tax Forms and Publications. H&r block free tax file ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. H&r block free tax file Ordering forms and publications. H&r block free tax file   Visit www. H&r block free tax file irs. H&r block free tax file gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. H&r block free tax file Internal Revenue Service 1201 N. H&r block free tax file Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. H&r block free tax file   If you have a tax question, check the information available on IRS. H&r block free tax file gov or call 1-800-829-1040. H&r block free tax file We cannot answer tax questions sent to either of the above addresses. H&r block free tax file Useful Items - You may want to see: Form (and Instructions) 1040X Amended U. H&r block free tax file S. H&r block free tax file Individual Income Tax Return 1045 Application for Tentative Refund   See How To Get Tax Help near the end of this publication for information about getting these forms. H&r block free tax file Prev  Up  Next   Home   More Online Publications
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Beware: Offers to Skip a Payment

If your credit company invites you to skip a monthly payment without a penalty, it is not doing you a favor. You will still owe finance charges on your unpaid balance. And interest could be adding up on any purchases you make after the due date you skipped.

Beware: Teaser Rates

Some cards are advertised with very low introductory interest rates called teasers. The rate is good for a short period of time. If you know you can pay what you owe while the low rate is in effect, it could be a good deal. But if the teaser time runs out and you still owe money, you could end up paying a higher rate than you might have without the special introductory rate. Just one late payment could also cancel the teaser rate.

Beware: Credit Insurance

When you take out a loan for a big purchase, a salesperson may try to sell you credit insurance. Your credit card company may also encourage you to purchase credit insurance. The coverage may be promoted as a way for you to protect yourself if your property is damaged or lost. Other credit insurance offers promises to make loan payments if you are laid off, become disabled or die. It is almost always better to buy regular property, life or disability insurance instead of credit insurance.

Be Alert: 'Credit Repair' Scams

Beware! Before you sign up for fee based credit repair services, beware. Many of the promised services are either illegal or ones you can do for free by yourself. Before you sign up to work with these companies, here are some tidbits to keep in mind:

  • A credit repair company must give you a copy of the "Consumer Credit File Rights under State and Federal Law" before you sign a contract.
  • The company cannot perform any services until you have signed a written contract and completed a three day waiting period, during which time you can cancel the contract without paying any fees.
  • The company cannot charge you until it has completed the promised services, according to the Credit Repair Organizations Act.
  • It is illegal to erase timely and accurate negative information contained in your credit history.
  • Suggestions that you create a new credit history (also called file segregation) by requesting an Employer Identification Number from the IRS are also illegal.
  • You can work to solve your own credit challenges, by requesting a free copy of your credit report, and by working with creditors to dispute incorrect information.

CARD Act Protections for Consumers

The Credit Card Accountability Responsibility & Disclosure (CARD) Act brought about sweeping protections for consumers. Among other things, your credit card company:

Fees

  • Cannot change rates or fees without sending you a notice 45 days in advance in most cases.
  • Must give you the option of rejecting a fee increase, but be aware that the credit card company may close your account if you reject the fee increase and may require a higher monthly payment.
  • Cannot charge you a late payment fee of more than $25, regardless of how much you owe- unless one of your last six payments was late or the credit card company can justify a higher fee based on the cost of late payments.
  • Cannot charge a late payment fee that is greater than your minimum payment.
  • Cannot charge you an inactivity fee for not using your card.
  • Cannot charge you more than one fee for a single late payment or any other violation of your cardholder agreement.
  • Cannot charge you over-the-limit transaction fees unless you opt in, stating that you want to allow transactions that take you over your credit card limit. If the credit card company allows the transaction without your opt-in, it cannot charge you a fee.
  • Can impose only one fee per billing cycle for transactions that take you over your credit limit if you opt in to over-the-limit transactions. You can revoke your opt-in at any time.

Payments

  • Has to tell you how long it will take to pay off your balance if you make only minimum payments.
  • Must mail or deliver your credit card bill at least 21 days before your payment is due.
  • Must apply any payments above the minimum required amount to the balance with the highest interest rate, if you have more than one rate.

Interest Rates

  • Cannot increase your rate for the first 12 months after you open an account unless you have a variable interest rate or an introductory rate; you are more than 60 days late paying your bill; or you are in a workout agreement and don't make payments as arranged.
  • Cannot charge higher rates for purchases made before you receive notice of a new rate.
  • Cannot use the double-cycle billing method when calculating interest; interest can only be charged on balances within the current billing cycle.
  • Cannot increase your Annual Percentage Rate (APR) without explaining why it is doing so. If your credit card company increases your APR, it generally must re-evaluate that rate increase every six months. Under some circumstances, it may have to reduce your rate after the evaluation.

What's more, a credit card company can grant credit cards to consumers under age 21 only if they can show they are able to make payments or have a cosigner for the card. The Federal Reserve has more information about CARD Act protections.

The H&r Block Free Tax File

H&r block free tax file 5. H&r block free tax file   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. H&r block free tax file You may be able to reduce your federal income tax by claiming one or more of these credits. H&r block free tax file Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. H&r block free tax file For more information, see Publication 524, Credit for the Elderly or the Disabled. H&r block free tax file You can take the credit only if you file Form 1040 or Form 1040A. H&r block free tax file You cannot take the credit if you file Form 1040EZ or Form 1040NR. H&r block free tax file Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. H&r block free tax file You are a qualified individual. H&r block free tax file Your income is not more than certain limits. H&r block free tax file  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. H&r block free tax file   Qualified Individual You are a qualified individual for this credit if you are a U. H&r block free tax file S. H&r block free tax file citizen or resident alien, and either of the following applies. H&r block free tax file You were age 65 or older at the end of 2013. H&r block free tax file You were under age 65 at the end of 2013 and all three of the following statements are true. H&r block free tax file You retired on permanent and total disability (explained later). H&r block free tax file You received taxable disability income for 2013. H&r block free tax file On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). H&r block free tax file Age 65. H&r block free tax file You are considered to be age 65 on the day before your 65th birthday. H&r block free tax file Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. H&r block free tax file Figure 5-A. H&r block free tax file Are You a Qualified Individual? This image is too large to be displayed in the current screen. H&r block free tax file Please click the link to view the image. H&r block free tax file Figure 5-A, Are you a qualified individual? U. H&r block free tax file S. H&r block free tax file citizen or resident alien. H&r block free tax file   You must be a U. H&r block free tax file S. H&r block free tax file citizen or resident alien (or be treated as a resident alien) to take the credit. H&r block free tax file Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. H&r block free tax file Exceptions. H&r block free tax file   You may be able to take the credit if you are a nonresident alien who is married to a U. H&r block free tax file S. H&r block free tax file citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. H&r block free tax file S. H&r block free tax file resident alien. H&r block free tax file If you make that choice, both you and your spouse are taxed on your worldwide income. H&r block free tax file   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. H&r block free tax file S. H&r block free tax file citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. H&r block free tax file S. H&r block free tax file resident alien for the entire year. H&r block free tax file In that case, you may be allowed to take the credit. H&r block free tax file   For information on these choices, see chapter 1 of Publication 519, U. H&r block free tax file S. H&r block free tax file Tax Guide for Aliens. H&r block free tax file Married persons. H&r block free tax file   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. H&r block free tax file However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. H&r block free tax file Head of household. H&r block free tax file   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. H&r block free tax file See Publication 524 and Publication 501. H&r block free tax file Under age 65. H&r block free tax file   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). H&r block free tax file You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. H&r block free tax file You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. H&r block free tax file   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. H&r block free tax file If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. H&r block free tax file Permanent and total disability. H&r block free tax file   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. H&r block free tax file A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. H&r block free tax file See Physician's statement , later. H&r block free tax file Substantial gainful activity. H&r block free tax file   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. H&r block free tax file   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. H&r block free tax file   Substantial gainful activity is not work you do to take care of yourself or your home. H&r block free tax file It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. H&r block free tax file However, doing this kind of work may show that you are able to engage in substantial gainful activity. H&r block free tax file    Figure 5-B. H&r block free tax file Income Limits IF your filing status is. H&r block free tax file . H&r block free tax file . H&r block free tax file THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. H&r block free tax file . H&r block free tax file . H&r block free tax file OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. H&r block free tax file . H&r block free tax file . H&r block free tax file single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. H&r block free tax file Physician's statement. H&r block free tax file   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. H&r block free tax file   You do not have to file this statement with your tax return, but you must keep it for your records. H&r block free tax file The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. H&r block free tax file Veterans. H&r block free tax file   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. H&r block free tax file VA Form 21-0172 must be signed by a person authorized by the VA to do so. H&r block free tax file You can get this form from your local VA regional office. H&r block free tax file Physician's statement obtained in earlier year. H&r block free tax file   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. H&r block free tax file For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. H&r block free tax file If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. H&r block free tax file   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. H&r block free tax file Disability income. H&r block free tax file   If you are under age 65, you must also have taxable disability income to qualify for the credit. H&r block free tax file   Disability income must meet the following two requirements. H&r block free tax file It must be paid under your employer's accident or health plan or pension plan. H&r block free tax file It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. H&r block free tax file Payments that are not disability income. H&r block free tax file   Any payment you receive from a plan that does not provide for disability retirement is not disability income. H&r block free tax file Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. H&r block free tax file   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. H&r block free tax file Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. H&r block free tax file Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. H&r block free tax file Figuring the credit yourself. H&r block free tax file   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). H&r block free tax file Next, fill out Schedule R (Form 1040A or 1040), Part III. H&r block free tax file Credit figured for you. H&r block free tax file   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). H&r block free tax file If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. H&r block free tax file Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. H&r block free tax file The credit can be up to 35% of your expenses. H&r block free tax file To qualify, you must pay these expenses so you can work or look for work. H&r block free tax file If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. H&r block free tax file If the correct information is not shown, the credit may be reduced or disallowed. H&r block free tax file You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. H&r block free tax file For more information, see Publication 503, Child and Dependent Care Expenses. H&r block free tax file Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. H&r block free tax file The EIC is available to persons with or without a qualifying child. H&r block free tax file Credit has no effect on certain welfare benefits. H&r block free tax file   Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. H&r block free tax file These programs include the following. H&r block free tax file Medicaid and supplemental security income (SSI). H&r block free tax file Supplemental Nutrition Assistance Program (food stamps). H&r block free tax file Low-income housing. H&r block free tax file Temporary Assistance for Needy Families (TANF). H&r block free tax file  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. H&r block free tax file Check with your local benefit coordinator to find out if your refund will affect your benefits. H&r block free tax file Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. H&r block free tax file The specific rules you must meet depend on whether you have a qualifying child. H&r block free tax file If you have a qualifying child, the rules in Parts A, B, and D apply to you. H&r block free tax file If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. H&r block free tax file  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. H&r block free tax file You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). H&r block free tax file The sections that follow provide additional information for some of the rules. H&r block free tax file Adjusted gross income (AGI). H&r block free tax file   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. H&r block free tax file Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). H&r block free tax file Table 5-1. H&r block free tax file Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. H&r block free tax file Second, you must meet all the rules in one of these columns, whichever applies. H&r block free tax file Third, you must meet the rule in this column. H&r block free tax file Part A. H&r block free tax file  Rules for Everyone Part B. H&r block free tax file  Rules If You Have a Qualifying Child Part C. H&r block free tax file  Rules If You Do Not Have a Qualifying Child Part D. H&r block free tax file  Figuring and Claiming the EIC 1. H&r block free tax file 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. H&r block free tax file 2. H&r block free tax file You must have a valid social security number. H&r block free tax file  3. H&r block free tax file Your filing status cannot be “Married filing separately. H&r block free tax file ” 4. H&r block free tax file You must be a U. H&r block free tax file S. H&r block free tax file citizen or resident alien all year. H&r block free tax file  5. H&r block free tax file You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). H&r block free tax file  6. H&r block free tax file Your investment income must be $3,300 or less. H&r block free tax file  7. H&r block free tax file You must have earned income. H&r block free tax file 8. H&r block free tax file Your child must meet the relationship, age, residency, and joint return tests. H&r block free tax file  9. H&r block free tax file Your qualifying child cannot be used by more than one person to claim the EIC. H&r block free tax file  10. H&r block free tax file You generally cannot be a qualifying child of another person. H&r block free tax file 11. H&r block free tax file You must be at least age 25 but under age 65. H&r block free tax file  12. H&r block free tax file You cannot be the dependent of another person. H&r block free tax file  13. H&r block free tax file You generally cannot be a qualifying child of another person. H&r block free tax file  14. H&r block free tax file You must have lived in the United States more than half of the year. H&r block free tax file 15. H&r block free tax file 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. H&r block free tax file Social security number. H&r block free tax file   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). H&r block free tax file Any qualifying child listed on Schedule EIC also must have a valid SSN. H&r block free tax file (See Qualifying child , later, if you have a qualifying child. H&r block free tax file )   If your social security card (or your spouse's if you are married filing jointly) 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. H&r block free tax file An example of a federally funded benefit is Medicaid. H&r block free tax file Investment income. H&r block free tax file   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. H&r block free tax file If your investment income is more than $3,300, you cannot claim the credit. H&r block free tax file For most people, investment income is the total of the following amounts. H&r block free tax file Taxable interest (line 8a of Form 1040 or 1040A). H&r block free tax file Tax-exempt interest (line 8b of Form 1040 or 1040A). H&r block free tax file Dividend income (line 9a of Form 1040 or 1040A). H&r block free tax file Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). H&r block free tax file  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. H&r block free tax file   For more information about investment income, see Publication 596, Earned Income Credit. H&r block free tax file Earned income. H&r block free tax file   Under Rule 7, you must have earned income to claim the EIC. H&r block free tax file Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. H&r block free tax file Earned income includes all of the following types of income. H&r block free tax file Wages, salaries, tips, and other taxable employee pay. H&r block free tax file Employee pay is earned income only if it is taxable. H&r block free tax file Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. H&r block free tax file But there is an exception for nontaxable combat pay, which you can choose to include in earned income. H&r block free tax file Net earnings from self-employment. H&r block free tax file Gross income received as a statutory employee. H&r block free tax file Gross income defined. H&r block free tax file   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). H&r block free tax file Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). H&r block free tax file If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. H&r block free tax file Self-employed persons. H&r block free tax file   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. H&r block free tax file If you do not, you may not get all the credit to which you are entitled. H&r block free tax file Disability benefits. H&r block free tax file   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. H&r block free tax file Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. H&r block free tax file Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. H&r block free tax file   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. H&r block free tax file It does not matter whether you have reached minimum retirement age. H&r block free tax file If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. H&r block free tax file Income that is not earned income. H&r block free tax file   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. H&r block free tax file Do not include any of these items in your earned income. H&r block free tax file Workfare payments. H&r block free tax file   Nontaxable workfare payments are not earned income for the EIC. H&r block free tax file These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. H&r block free tax file Qualifying child. H&r block free tax file   Under Rule 8, your child is a qualifying child if your child meets four tests. H&r block free tax file The four tests are: Relationship, Age, Residency, and Joint return. H&r block free tax file   The four tests are illustrated in Figure 5-C. H&r block free tax file See Publication 596 for more information about each test. H&r block free tax file Figure 5-C. H&r block free tax file Tests for Qualifying Child A qualifying child for the EIC is a child who is your. H&r block free tax file . H&r block free tax file . H&r block free tax file 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) was . H&r block free tax file . H&r block free tax file . H&r block free tax file Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR 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 the year, regardless of age who. H&r block free tax file . H&r block free tax file . H&r block free tax file Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. H&r block free tax file . H&r block free tax file . H&r block free tax file Lived with you in the United States for more than half of 2013. H&r block free tax file  If the child did not live with you for the required time, see Publication 596 for more information. H&r block free tax file Figuring the EIC To figure the amount of your credit, you have two choices. H&r block free tax file Have the IRS figure the EIC for you. H&r block free tax file If you want to do this, see IRS Will Figure the EIC for You in Publication 596. H&r block free tax file Figure the EIC yourself. H&r block free tax file If you want to do this, see How To Figure the EIC Yourself in Publication 596. H&r block free tax file Prev  Up  Next   Home   More Online Publications