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Hnr block Publication 575 - Additional Material Table of Contents Worksheet A. Hnr block Simplified Method 1. Hnr block Enter the total pension or annuity payments received this year. Hnr block Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Hnr block   2. Hnr block Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion. Hnr block * See Cost (Investment in the Contract) , earlier 2. Hnr block   Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Hnr block Otherwise, go to line 3. Hnr block   3. Hnr block Enter the appropriate number from Table 1 below. Hnr block But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. Hnr block 3. Hnr block   4. Hnr block Divide line 2 by the number on line 3 4. Hnr block   5. Hnr block Multiply line 4 by the number of months for which this year's payments were made. Hnr block If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Hnr block Otherwise, go to line 6 5. Hnr block   6. Hnr block Enter any amounts previously recovered tax free in years after 1986. Hnr block This is the amount shown on line 10 of your worksheet for last year 6. Hnr block   7. Hnr block Subtract line 6 from line 2 7. Hnr block   8. Hnr block Enter the smaller of line 5 or line 7 8. Hnr block   9. Hnr block Taxable amount for year. Hnr block Subtract line 8 from line 1. Hnr block Enter the result, but not less than zero. Hnr block Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Hnr block  Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. Hnr block If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers , earlier, before entering an amount on your tax return 9. Hnr block   10. Hnr block Was your annuity starting date before 1987? □ Yes. Hnr block STOP. Hnr block Do not complete the rest of this worksheet. Hnr block  □ No. Hnr block Add lines 6 and 8. Hnr block This is the amount you have recovered tax free through 2013. Hnr block You will need this number if you need to fill out this worksheet next year 10. Hnr block   11. Hnr block Balance of cost to be recovered. Hnr block Subtract line 10 from line 2. Hnr block If zero, you will not have to complete this worksheet next year. Hnr block The payments you receive next year will generally be fully taxable 11. Hnr block   * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. Hnr block Table 1 for Line 3 Above   IF the age at  annuity starting date was . Hnr block . Hnr block . Hnr block         AND your annuity starting date was—     BEFORE November 19, 1996,  enter on line 3 . Hnr block . Hnr block . Hnr block AFTER November 18, 1996,  enter on line 3 . Hnr block . Hnr block . Hnr block   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the combined ages at annuity starting date were . Hnr block . Hnr block . Hnr block   THEN enter on line 3 . Hnr block . Hnr block . Hnr block         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Prev  Up  Next   Home   More Online Publications
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The Hnr Block

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