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Income Tax For Students

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Income Tax For Students

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

RI-2012-30, Nov. 15, 2012

BOSTON — Victims of Hurricane Sandy that began on Oct. 26, 2012 in parts of Rhode Island may qualify for tax relief from the Internal Revenue Service.

The President has declared Newport and Washington counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Oct. 26, and on or before Feb. 1, have been postponed to Feb. 1, 2013.  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Oct. 26, and on or before Nov. 26, as long as the deposits are made by Nov. 26, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area need to call the IRS disaster hotline at 866-562-5227 to request this tax relief.

For a full description of the relief being provided by the IRS to the victims of Hurricane Sandy, visit IRS.gov.

Covered Disaster Area

The counties above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Feb. 1 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Oct. 26 and on or before Feb. 1.

The IRS also gives affected taxpayers until Feb. 1 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Oct. 26 and on or before Feb. 1.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Oct. 26 and on or before Nov. 26 provided the taxpayer makes these deposits by Nov. 26.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Rhode Island/Hurricane Sandy” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-TAX-FORM (800-829-3676). The IRS toll-free number for general tax questions is 800-829-1040.

Related Information

Disaster Assistance and Emergency Relief for Individuals and Businesses

Recent IRS Disaster Relief Announcements

 

Page Last Reviewed or Updated: 05-Nov-2013

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