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Irs Forms 1040ez Instructions

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Irs Forms 1040ez Instructions

Irs forms 1040ez instructions Publication 503 - Main Content Table of Contents Tests To Claim the CreditQualifying Person Test Earned Income Test Work-Related Expense Test Joint Return Test Provider Identification Test How To Figure the CreditFiguring Total Work-Related Expenses Earned Income Limit Dollar Limit Amount of Credit How To Claim the CreditTax credit not refundable. Irs forms 1040ez instructions Employment Taxes for Household Employers How To Get Tax HelpLow Income Taxpayer Clinics Tests To Claim the Credit To be able to claim the credit for child and dependent care expenses, you must file Form 1040, Form 1040A, or Form 1040NR, not Form 1040EZ or Form 1040NR-EZ, and meet all the following tests. Irs forms 1040ez instructions The care must be for one or more qualifying persons who are identified on Form 2441. Irs forms 1040ez instructions (See Qualifying Person Test. Irs forms 1040ez instructions ) You (and your spouse if filing jointly) must have earned income during the year. Irs forms 1040ez instructions (However, see Rule for student-spouse or spouse not able to care for self under Earned Income Test, later. Irs forms 1040ez instructions ) You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work. Irs forms 1040ez instructions (See Work-Related Expense Test, later. Irs forms 1040ez instructions ) You must make payments for child and dependent care to someone you (and your spouse) cannot claim as a dependent. Irs forms 1040ez instructions If you make payments to your child, he or she cannot be your dependent and must be age 19 or older by the end of the year. Irs forms 1040ez instructions You cannot make payments to: Your spouse, or The parent of your qualifying person if your qualifying person is your child and under age 13. Irs forms 1040ez instructions See Payments to Relatives or Dependents under Work-Related Expense Test, later. Irs forms 1040ez instructions Your filing status may be single, head of household, or qualifying widow(er) with dependent child. Irs forms 1040ez instructions If you are married, you must file a joint return, unless an exception applies to you. Irs forms 1040ez instructions See Joint Return Test, later. Irs forms 1040ez instructions You must identify the care provider on your tax return. Irs forms 1040ez instructions (See Provider Identification Test, later. Irs forms 1040ez instructions ) If you exclude or deduct dependent care benefits provided by a dependent care benefit plan, the total amount you exclude or deduct must be less than the dollar limit for qualifying expenses (generally, $3,000 if one qualifying person was cared for or $6,000 if two or more qualifying persons were cared for). Irs forms 1040ez instructions (If two or more qualifying persons were cared for, the amount you exclude or deduct will always be less than the dollar limit, since the total amount you can exclude or deduct is limited to $5,000. Irs forms 1040ez instructions See Reduced Dollar Limit under How To Figure the Credit, later. Irs forms 1040ez instructions ) These tests are presented in Figure A and are also explained in detail in this publication. Irs forms 1040ez instructions Qualifying Person Test Your child and dependent care expenses must be for the care of one or more qualifying persons. Irs forms 1040ez instructions A qualifying person is: Your qualifying child who is your dependent and who was under age 13 when the care was provided (but see Child of divorced or separated parents or parents living apart , later), Your spouse who was not physically or mentally able to care for himself or herself and lived with you for more than half the year, or A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year, and either: Was your dependent, or Would have been your dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Irs forms 1040ez instructions Dependent defined. Irs forms 1040ez instructions   A dependent is a person, other than you or your spouse, for whom you can claim an exemption. Irs forms 1040ez instructions To be your dependent, a person must be your qualifying child (or your qualifying relative). Irs forms 1040ez instructions Qualifying child. Irs forms 1040ez instructions   To be your qualifying child, a child must live with you for more than half the year and meet other requirements. Irs forms 1040ez instructions More information. Irs forms 1040ez instructions   For more information about who is a dependent or a qualifying child, see Publication 501. Irs forms 1040ez instructions Physically or mentally not able to care for oneself. Irs forms 1040ez instructions   Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. Irs forms 1040ez instructions Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves. Irs forms 1040ez instructions Person qualifying for part of year. Irs forms 1040ez instructions   You determine a person's qualifying status each day. Irs forms 1040ez instructions For example, if the person for whom you pay child and dependent care expenses no longer qualifies on September 16, count only those expenses through September 15. Irs forms 1040ez instructions Also see Yearly limit under Dollar Limit, later. Irs forms 1040ez instructions Birth or death of otherwise qualifying person. Irs forms 1040ez instructions   In determining whether a person is a qualifying person, a person 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 person's home more than half the time he or she was alive in 2013. Irs forms 1040ez instructions Taxpayer identification number. Irs forms 1040ez instructions   You must include on your return the name and taxpayer identification number (generally the social security number) of the qualifying person(s). Irs forms 1040ez instructions If the correct information is not shown, the credit may be reduced or disallowed. Irs forms 1040ez instructions Individual taxpayer identification number (ITIN) for aliens. Irs forms 1040ez instructions   If your qualifying person is a nonresident or resident alien who does not have and cannot get a social security number (SSN), use that person's ITIN. Irs forms 1040ez instructions The ITIN is entered wherever an SSN is requested on a tax return. Irs forms 1040ez instructions If the alien does not have an ITIN, he or she must apply for one. Irs forms 1040ez instructions See Form W-7, Application for IRS Individual Taxpayer Identification Number, for details. Irs forms 1040ez instructions   An ITIN is for tax use only. Irs forms 1040ez instructions It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U. Irs forms 1040ez instructions S. Irs forms 1040ez instructions law. Irs forms 1040ez instructions Adoption taxpayer identification number (ATIN). Irs forms 1040ez instructions   If your qualifying person is a child who was placed in your home for adoption and for whom you do not have an SSN, you must get an ATIN for the child. Irs forms 1040ez instructions File Form W-7A, Application for Taxpayer Identification Number for Pending U. Irs forms 1040ez instructions S. Irs forms 1040ez instructions Adoptions. Irs forms 1040ez instructions Child of divorced or separated parents or parents living apart. Irs forms 1040ez instructions   Even if you cannot claim your child as a dependent, he or she is treated as your qualifying person if: The child was under age 13 or was not physically or mentally able to care for himself or herself, The child received over half of his or her support during the calendar year from one or both parents who 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 the calendar year, The child was in the custody of one or both parents for more than half the year, and You were the child's custodial parent. Irs forms 1040ez instructions   The custodial parent is the parent with whom the child lived for the greater number of nights in 2013. Irs forms 1040ez instructions If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. Irs forms 1040ez instructions For details and an exception for a parent who works at night, see Publication 501. Irs forms 1040ez instructions   The noncustodial parent cannot treat the child as a qualifying person even if that parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents. Irs forms 1040ez instructions Please click here for the text description of the image. Irs forms 1040ez instructions Figure a. Irs forms 1040ez instructions Can you claim the credit Earned Income Test To claim the credit, you (and your spouse if filing jointly) must have earned income during the year. Irs forms 1040ez instructions Earned income. Irs forms 1040ez instructions   Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. Irs forms 1040ez instructions A net loss from self-employment reduces earned income. Irs forms 1040ez instructions Earned income also includes strike benefits and any disability pay you report as wages. Irs forms 1040ez instructions   Generally, only taxable compensation is included. Irs forms 1040ez instructions However, you can elect to include nontaxable combat pay in earned income. Irs forms 1040ez instructions If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Irs forms 1040ez instructions (In other words, if one of you makes the election, the other one can also make it but does not have to. Irs forms 1040ez instructions ) Including this income will give you a larger credit only if your (or your spouse's) other earned income is less than the amount entered on line 3 of Form 2441. Irs forms 1040ez instructions You should figure your credit both ways and make the election if it gives you a greater tax benefit. Irs forms 1040ez instructions    You can choose to include your nontaxable combat pay in earned income when figuring your credit for child and dependent care expenses, even if you choose not to include it in earned income for the earned income credit or the exclusion or deduction for dependent care benefits. Irs forms 1040ez instructions Members of certain religious faiths opposed to social security. Irs forms 1040ez instructions   This section is for persons who are members of certain religious faiths that are opposed to participation in Social Security Act programs and have an IRS-approved form that exempts certain income from social security and Medicare taxes. Irs forms 1040ez instructions These forms are: Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, and Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits, for use by members of recognized religious groups. Irs forms 1040ez instructions   Each form is discussed here in terms of what is or is not earned income for purposes of the child and dependent care credit. Irs forms 1040ez instructions For information on the use of these forms, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Irs forms 1040ez instructions Form 4361. Irs forms 1040ez instructions   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee are earned income. Irs forms 1040ez instructions This includes wages, salaries, tips, and other taxable employee compensation. Irs forms 1040ez instructions   However, amounts you received for ministerial duties, but not as an employee, do not count as earned income. Irs forms 1040ez instructions Examples include fees for performing marriages and honoraria for delivering speeches. Irs forms 1040ez instructions   Any amount you received for work that is not related to your ministerial duties is earned income. Irs forms 1040ez instructions Form 4029. Irs forms 1040ez instructions   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation are earned income. Irs forms 1040ez instructions   However, amounts you received as a self-employed individual do not count as earned income. Irs forms 1040ez instructions What is not earned income?   Earned income does not include: Pensions and annuities, Social security and railroad retirement benefits, Workers' compensation, Interest and dividends, Unemployment compensation, Scholarships or fellowship grants, except for those reported on Form W-2 and paid to you for teaching or other services, Nontaxable workfare payments, Child support payments received, Income of a nonresident alien that is not effectively connected with a U. Irs forms 1040ez instructions S. Irs forms 1040ez instructions trade or business, or Any amount received for work while an inmate in a penal institution. Irs forms 1040ez instructions Rule for student-spouse or spouse not able to care for self. Irs forms 1040ez instructions   Your spouse is treated as having earned income for any month that he or she is: A full-time student, or Physically or mentally not able to care for himself or herself. Irs forms 1040ez instructions (Your spouse also must live with you for more than half the year. Irs forms 1040ez instructions )   If you are filing a joint return, this rule also applies to you. Irs forms 1040ez instructions You can be treated as having earned income for any month you are a full-time student or not able to care for yourself. Irs forms 1040ez instructions   Figure the earned income of the nonworking spouse, described under (1) or (2) above, as shown under Earned Income Limit under How To Figure the Credit, later. Irs forms 1040ez instructions   This rule applies to only one spouse for any one month. Irs forms 1040ez instructions If, in the same month, both you and your spouse do not work and are either full-time students or not physically or mentally able to care for yourselves, only one of you can be treated as having earned income in that month. Irs forms 1040ez instructions Full-time student. Irs forms 1040ez instructions    You are a full-time student if you are enrolled at a school for the number of hours or classes that the school considers full time. Irs forms 1040ez instructions You must have been a full-time student for some part of each of 5 calendar months during the year. Irs forms 1040ez instructions (The months need not be consecutive. Irs forms 1040ez instructions ) School. Irs forms 1040ez instructions   The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. Irs forms 1040ez instructions A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Irs forms 1040ez instructions Work-Related Expense Test Child and dependent care expenses must be work-related to qualify for the credit. Irs forms 1040ez instructions Expenses are considered work-related only if both of the following are true. Irs forms 1040ez instructions They allow you (and your spouse if filing jointly) to work or look for work. Irs forms 1040ez instructions They are for a qualifying person's care. Irs forms 1040ez instructions Working or Looking for Work To be work-related, your expenses must allow you to work or look for work. Irs forms 1040ez instructions If you are married, generally both you and your spouse must work or look for work. Irs forms 1040ez instructions One spouse is treated as working during any month he or she is a full-time student or is not physically or mentally able to care for himself or herself. Irs forms 1040ez instructions Your work can be for others or in your own business or partnership. Irs forms 1040ez instructions It can be either full time or part time. Irs forms 1040ez instructions Work also includes actively looking for work. Irs forms 1040ez instructions However, if you do not find a job and have no earned income for the year, you cannot take this credit. Irs forms 1040ez instructions See Earned Income Test, earlier. Irs forms 1040ez instructions An expense is not considered work-related merely because you had it while you were working. Irs forms 1040ez instructions The purpose of the expense must be to allow you to work. Irs forms 1040ez instructions Whether your expenses allow you to work or look for work depends on the facts. Irs forms 1040ez instructions Example 1. Irs forms 1040ez instructions The cost of a babysitter while you and your spouse go out to eat is not normally a work-related expense. Irs forms 1040ez instructions Example 2. Irs forms 1040ez instructions You work during the day. Irs forms 1040ez instructions Your spouse works at night and sleeps during the day. Irs forms 1040ez instructions You pay for care of your 5-year-old child during the hours when you are working and your spouse is sleeping. Irs forms 1040ez instructions Your expenses are considered work-related. Irs forms 1040ez instructions Volunteer work. Irs forms 1040ez instructions   For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary. Irs forms 1040ez instructions Work for part of year. Irs forms 1040ez instructions   If you work or actively look for work during only part of the period covered by the expenses, then you must figure your expenses for each day. Irs forms 1040ez instructions For example, if you work all year and pay care expenses of $250 a month ($3,000 for the year), all the expenses are work related. Irs forms 1040ez instructions However, if you work or look for work for only 2 months and 15 days during the year and pay expenses of $250 a month, your work-related expenses are limited to $625 (2½ months × $250). Irs forms 1040ez instructions Temporary absence from work. Irs forms 1040ez instructions   You do not have to figure your expenses for each day during a short, temporary absence from work, such as for vacation or a minor illness, if you have to pay for care anyway. Irs forms 1040ez instructions Instead, you can figure your credit including the expenses you paid for the period of absence. Irs forms 1040ez instructions   An absence of 2 weeks or less is a short, temporary absence. Irs forms 1040ez instructions An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances. Irs forms 1040ez instructions Example. Irs forms 1040ez instructions You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. Irs forms 1040ez instructions You become ill and miss 4 months of work but receive sick pay. Irs forms 1040ez instructions You continue to pay the nanny to care for the children while you are ill. Irs forms 1040ez instructions Your absence is not a short, temporary absence, and your expenses are not considered work-related. Irs forms 1040ez instructions Part-time work. Irs forms 1040ez instructions   If you work part-time, you generally must figure your expenses for each day. Irs forms 1040ez instructions However, if you have to pay for care weekly, monthly, or in another way that includes both days worked and days not worked, you can figure your credit including the expenses you paid for days you did not work. Irs forms 1040ez instructions Any day when you work at least 1 hour is a day of work. Irs forms 1040ez instructions Example 1. Irs forms 1040ez instructions You work 3 days a week. Irs forms 1040ez instructions While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. Irs forms 1040ez instructions You can pay the center $150 for any 3 days a week or $250 for 5 days a week. Irs forms 1040ez instructions Your child attends the center 5 days a week. Irs forms 1040ez instructions Your work-related expenses are limited to $150 a week. Irs forms 1040ez instructions Example 2. Irs forms 1040ez instructions The facts are the same as in Example 1 except the center does not offer a 3-day option. Irs forms 1040ez instructions The entire $250 weekly fee may be a work-related expense. Irs forms 1040ez instructions Care of a Qualifying Person To be work-related, your expenses must be to provide care for a qualifying person. Irs forms 1040ez instructions You do not have to choose the least expensive way of providing the care. Irs forms 1040ez instructions The cost of a paid care provider may be an expense for the care of a qualifying person even if another care provider is available at no cost. Irs forms 1040ez instructions Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection. Irs forms 1040ez instructions Expenses for household services qualify if part of the services is for the care of qualifying persons. Irs forms 1040ez instructions See Household Services, later. Irs forms 1040ez instructions Expenses not for care. Irs forms 1040ez instructions   Expenses for care do not include amounts you pay for food, lodging, clothing, education, and entertainment. Irs forms 1040ez instructions However, you can include small amounts paid for these items if they are incidental to and cannot be separated from the cost of caring for the qualifying person. Irs forms 1040ez instructions Otherwise, see the discussion of Expenses partly work-related, later. Irs forms 1040ez instructions   Child support payments are not for care and do not qualify for the credit. Irs forms 1040ez instructions Education. Irs forms 1040ez instructions   Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care. Irs forms 1040ez instructions   Expenses to attend kindergarten or a higher grade are not expenses for care. Irs forms 1040ez instructions Do not use these expenses to figure your credit. Irs forms 1040ez instructions   However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care. Irs forms 1040ez instructions   Summer school and tutoring programs are not for care. Irs forms 1040ez instructions Example 1. Irs forms 1040ez instructions You take your 3-year-old child to a nursery school that provides lunch and a few educational activities as part of its preschool childcare service. Irs forms 1040ez instructions The lunch and educational activities are incidental to the childcare, and their cost cannot be separated from the cost of care. Irs forms 1040ez instructions You can count the total cost when you figure the credit. Irs forms 1040ez instructions Example 2. Irs forms 1040ez instructions You place your 10-year-old child in a boarding school so you can work full time. Irs forms 1040ez instructions Only the part of the boarding school expense that is for the care of your child is a work-related expense. Irs forms 1040ez instructions You can count that part of the expense in figuring your credit if it can be separated from the cost of education. Irs forms 1040ez instructions You cannot count any part of the amount you pay the school for your child's education. Irs forms 1040ez instructions Care outside your home. Irs forms 1040ez instructions   You can count the cost of care provided outside your home if the care is for your dependent under age 13 or any other qualifying person who regularly spends at least 8 hours each day in your home. Irs forms 1040ez instructions Dependent care center. Irs forms 1040ez instructions   You can count care provided outside your home by a dependent care center only if the center complies with all state and local regulations that apply to these centers. Irs forms 1040ez instructions   A dependent care center is a place that provides care for more than six persons (other than persons who live there) and receives a fee, payment, or grant for providing services for any of those persons, even if the center is not run for profit. Irs forms 1040ez instructions Camp. Irs forms 1040ez instructions   The cost of sending your child to an overnight camp is not considered a work-related expense. Irs forms 1040ez instructions    The cost of sending your child to a day camp may be a work-related expense, even if the camp specializes in a particular activity, such as computers or soccer. Irs forms 1040ez instructions Transportation. Irs forms 1040ez instructions   If a care provider takes a qualifying person to or from a place where care is provided, that transportation is for the care of the qualifying person. Irs forms 1040ez instructions This includes transportation by bus, subway, taxi, or private car. Irs forms 1040ez instructions However, transportation not provided by a care provider is not for the care of a qualifying person. Irs forms 1040ez instructions Also, if you pay the transportation cost for the care provider to come to your home, that expense is not for care of a qualifying person. Irs forms 1040ez instructions Fees and deposits. Irs forms 1040ez instructions   Fees you paid to an agency to get the services of a care provider, deposits you paid to an agency or preschool, application fees, and other indirect expenses are work-related expenses if you have to pay them to get care, even though they are not directly for care. Irs forms 1040ez instructions However, a forfeited deposit is not for the care of a qualifying person if care is not provided. Irs forms 1040ez instructions Example 1. Irs forms 1040ez instructions You paid a fee to an agency to get the services of the nanny who cares for your 2-year-old daughter while you work. Irs forms 1040ez instructions The fee you paid is a work-related expense. Irs forms 1040ez instructions Example 2. Irs forms 1040ez instructions You placed a deposit with a preschool to reserve a place for your 3-year-old child. Irs forms 1040ez instructions You later sent your child to a different preschool and forfeited the deposit. Irs forms 1040ez instructions The forfeited deposit is not for care and so is not a work-related expense. Irs forms 1040ez instructions Household Services Expenses you pay for household services meet the work-related expense test if they are at least partly for the well-being and protection of a qualifying person. Irs forms 1040ez instructions Definition. Irs forms 1040ez instructions   Household services are ordinary and usual services done in and around your home that are necessary to run your home. Irs forms 1040ez instructions They include the services of a housekeeper, maid, or cook. Irs forms 1040ez instructions However, they do not include the services of a chauffeur, bartender, or gardener. Irs forms 1040ez instructions Housekeeper. Irs forms 1040ez instructions   In this publication, the term housekeeper refers to any household employee whose services include the care of a qualifying person. Irs forms 1040ez instructions Expenses partly work-related. Irs forms 1040ez instructions   If part of an expense is work-related (for either household services or the care of a qualifying person) and part is for other purposes, you have to divide the expense. Irs forms 1040ez instructions To figure your credit, count only the part that is work-related. Irs forms 1040ez instructions However, you do not have to divide the expense if only a small part is for other purposes. Irs forms 1040ez instructions Example. Irs forms 1040ez instructions You pay a housekeeper to care for your 9-year-old and 15-year-old children so you can work. Irs forms 1040ez instructions The housekeeper spends most of the time doing normal household work and spends 30 minutes a day driving you to and from work. Irs forms 1040ez instructions You do not have to divide the expenses. Irs forms 1040ez instructions You can treat the entire expense of the housekeeper as work-related because the time spent driving is minimal. Irs forms 1040ez instructions Nor do you have to divide the expenses between the two children, even though the expenses are partly for the 15-year-old child who is not a qualifying person, because the expense is also partly for the care of your 9-year-old child, who is a qualifying person. Irs forms 1040ez instructions However, the dollar limit (discussed later) is based on one qualifying person, not two. Irs forms 1040ez instructions Meals and lodging provided for housekeeper. Irs forms 1040ez instructions   If you have expenses for meals that your housekeeper eats in your home because of his or her employment, count these as work-related expenses. Irs forms 1040ez instructions If you have extra expenses for providing lodging in your home to the housekeeper, count these as work-related expenses also. Irs forms 1040ez instructions Example. Irs forms 1040ez instructions To provide lodging to the housekeeper, you move to an apartment with an extra bedroom. Irs forms 1040ez instructions You can count the extra rent and utility expenses for the housekeeper's bedroom as work-related. Irs forms 1040ez instructions However, if your housekeeper moves into an existing bedroom in your home, you can count only the extra utility expenses as work-related. Irs forms 1040ez instructions Taxes paid on wages. Irs forms 1040ez instructions   The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. Irs forms 1040ez instructions For more information on a household employer's tax responsibilities, see Employment Taxes for Household Employers, later. Irs forms 1040ez instructions Payments to Relatives or Dependents You can count work-related payments you make to relatives who are not your dependents, even if they live in your home. Irs forms 1040ez instructions However, do not count any amounts you pay to: A dependent for whom you (or your spouse if filing jointly) can claim an exemption, Your child who was under age 19 at the end of the year, even if he or she is not your dependent, A person who was your spouse any time during the year, or The parent of your qualifying person if your qualifying person is your child and under age 13. Irs forms 1040ez instructions Joint Return Test Generally, married couples must file a joint return to take the credit. Irs forms 1040ez instructions However, if you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. Irs forms 1040ez instructions Legally separated. Irs forms 1040ez instructions   You are not considered married if you are legally separated from your spouse under a decree of divorce or separate maintenance. Irs forms 1040ez instructions You may be eligible to take the credit on your return using head of household filing status. Irs forms 1040ez instructions Married and living apart. Irs forms 1040ez instructions   You are not considered married and are eligible to take the credit if all the following apply. Irs forms 1040ez instructions You file a return apart from your spouse. Irs forms 1040ez instructions Your home is the home of a qualifying person for more than half the year. Irs forms 1040ez instructions You pay more than half the cost of keeping up your home for the year. Irs forms 1040ez instructions Your spouse does not live in your home for the last 6 months of the year. Irs forms 1040ez instructions Costs of keeping up a home. Irs forms 1040ez instructions   The costs of keeping up a home normally include property taxes, mortgage interest, rent, utility charges, home repairs, insurance on the home, and food eaten at home. Irs forms 1040ez instructions   The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life insurance, transportation, or mortgage principal. Irs forms 1040ez instructions   They also do not include the purchase, permanent improvement, or replacement of property. Irs forms 1040ez instructions For example, you cannot include the cost of replacing a water heater. Irs forms 1040ez instructions However, you can include the cost of repairing a water heater. Irs forms 1040ez instructions Death of spouse. Irs forms 1040ez instructions   If your spouse died during the year and you do not remarry before the end of the year, you generally must file a joint return to take the credit. Irs forms 1040ez instructions If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's own return. Irs forms 1040ez instructions Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. Irs forms 1040ez instructions Use Form 2441, Part I, to show the information. Irs forms 1040ez instructions If you do not have any care providers and you are filing Form 2441 only to report taxable income in Part III, enter “none” in line 1, column (a). Irs forms 1040ez instructions Information needed. Irs forms 1040ez instructions   To identify the care provider, you must give the provider's: Name, Address, and Taxpayer identification number. Irs forms 1040ez instructions    If the care provider is an individual, the taxpayer identification number is his or her social security number or individual taxpayer identification number. Irs forms 1040ez instructions If the care provider is an organization, then it is the employer identification number (EIN). Irs forms 1040ez instructions   You do not have to show the taxpayer identification number if the care provider is a tax-exempt organization (such as a church or school). Irs forms 1040ez instructions In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number. Irs forms 1040ez instructions   If you cannot provide all of the information or the information is incorrect, you must be able to show that you used due diligence (discussed later) in trying to furnish the necessary information. Irs forms 1040ez instructions Getting the information. Irs forms 1040ez instructions    You can use Form W-10, Dependent Care Provider's Identification and Certification, to request the required information from the care provider. Irs forms 1040ez instructions If you do not use Form W-10, you can get the information from one of the other sources listed in the instructions for Form W-10, including: A copy of the provider's social security card, A copy of the provider's completed Form W-4, Employee's Withholding Allowance Certificate, if he or she is your household employee, A copy of the statement furnished by your employer if the provider is your employer's dependent care plan, or A letter or invoice from the provider if it shows the necessary information. Irs forms 1040ez instructions    You should keep this information with your tax records. Irs forms 1040ez instructions Do not send Form W-10 (or other document containing this information) to the Internal Revenue Service. Irs forms 1040ez instructions Due diligence. Irs forms 1040ez instructions   If the care provider information you give is incorrect or incomplete, your credit may not be allowed. Irs forms 1040ez instructions However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. Irs forms 1040ez instructions   You can show due diligence by getting and keeping the provider's completed Form W-10 or one of the other sources of information just listed. Irs forms 1040ez instructions Care providers can be penalized if they do not provide this information to you or if they provide incorrect information. Irs forms 1040ez instructions Provider refusal. Irs forms 1040ez instructions    If the provider refuses to give you the identifying information, you should report on Form 2441 whatever information you have (such as the name and address). Irs forms 1040ez instructions Enter “See Attached Statement” in the columns calling for the information you do not have. Irs forms 1040ez instructions Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. Irs forms 1040ez instructions Be sure to write your name and social security number on this statement. Irs forms 1040ez instructions The statement will show that you used due diligence in trying to furnish the necessary information. Irs forms 1040ez instructions U. Irs forms 1040ez instructions S. Irs forms 1040ez instructions citizens and resident aliens living abroad. Irs forms 1040ez instructions   If you are living abroad, your care provider may not have, and may not be required to get, a U. Irs forms 1040ez instructions S. Irs forms 1040ez instructions taxpayer identification number (for example, an SSN or an EIN). Irs forms 1040ez instructions If so, enter “LAFCP” (Living Abroad Foreign Care Provider) in the space for the care provider's taxpayer identification number. Irs forms 1040ez instructions How To Figure the Credit Your credit is a percentage of your work-related expenses. Irs forms 1040ez instructions Your expenses are subject to the earned income limit and the dollar limit. Irs forms 1040ez instructions The percentage is based on your adjusted gross income. Irs forms 1040ez instructions Figuring Total Work-Related Expenses To figure the credit for 2013 work-related expenses, count only those you paid by December 31, 2013. Irs forms 1040ez instructions Expenses prepaid in an earlier year. Irs forms 1040ez instructions   If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. Irs forms 1040ez instructions Claim the expenses for the later year as if they were actually paid in that later year. Irs forms 1040ez instructions Expenses not paid until the following year. Irs forms 1040ez instructions   Do not count 2012 expenses that you paid in 2013 as work-related expenses for 2013. Irs forms 1040ez instructions You may be able to claim an additional credit for them on your 2013 return, but you must figure it separately. Irs forms 1040ez instructions See Payments for prior year's expenses under Amount of Credit, later. Irs forms 1040ez instructions If you had expenses in 2013 that you did not pay until 2014, you cannot count them when figuring your 2013 credit. Irs forms 1040ez instructions You may be able to claim a credit for them on your 2014 return. Irs forms 1040ez instructions Expenses reimbursed. Irs forms 1040ez instructions   If a state social services agency pays you a nontaxable amount to reimburse you for some of your child and dependent care expenses, you cannot count the expenses that are reimbursed as work-related expenses. Irs forms 1040ez instructions Example. Irs forms 1040ez instructions You paid work-related expenses of $3,000. Irs forms 1040ez instructions You are reimbursed $2,000 by a state social services agency. Irs forms 1040ez instructions You can use only $1,000 to figure your credit. Irs forms 1040ez instructions Medical expenses. Irs forms 1040ez instructions   Some expenses for the care of qualifying persons who are not able to care for themselves may qualify as work-related expenses and also as medical expenses. Irs forms 1040ez instructions You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction. Irs forms 1040ez instructions   If you use these expenses to figure the credit and they are more than the earned income limit or the dollar limit, discussed later, you can add the excess to your medical expenses. Irs forms 1040ez instructions However, if you use your total expenses to figure your medical expense deduction, you cannot use any part of them to figure your credit. Irs forms 1040ez instructions For information on medical expenses, see Publication 502, Medical and Dental Expenses. Irs forms 1040ez instructions    Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense deduction. Irs forms 1040ez instructions Dependent Care Benefits If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. Irs forms 1040ez instructions See Reduced Dollar Limit, later. Irs forms 1040ez instructions But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits. Irs forms 1040ez instructions Dependent care benefits. Irs forms 1040ez instructions    Dependent care benefits include: Amounts your employer paid directly to either you or your care provider for the care of your qualifying person while you work, The fair market value of care in a daycare facility provided or sponsored by your employer, and Pre-tax contributions you made under a dependent care flexible spending arrangement. Irs forms 1040ez instructions Your salary may have been reduced to pay for these benefits. Irs forms 1040ez instructions If you received benefits as an employee, they should be shown in box 10 of your Form W-2, Wage and Tax Statement. Irs forms 1040ez instructions See Statement for employee, later. Irs forms 1040ez instructions Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. Irs forms 1040ez instructions   Enter the amount of these benefits on Form 2441, Part III, line 12. Irs forms 1040ez instructions Exclusion or deduction. Irs forms 1040ez instructions   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Irs forms 1040ez instructions Your employer can tell you whether your benefit plan qualifies. Irs forms 1040ez instructions To claim the exclusion, you must complete Part III of Form 2441. Irs forms 1040ez instructions You cannot use Form 1040EZ. Irs forms 1040ez instructions   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. Irs forms 1040ez instructions Therefore, you would not get an exclusion from wages. Irs forms 1040ez instructions Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. Irs forms 1040ez instructions To claim the deduction, you must use Form 2441. Irs forms 1040ez instructions   The amount you can exclude or deduct is limited to the smallest of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). Irs forms 1040ez instructions   The definition of earned income for the exclusion or deduction is the same as the definition used when figuring the credit except that earned income for the exclusion or deduction does not include any dependent care benefits you receive. Irs forms 1040ez instructions    You can choose to include your nontaxable combat pay in earned income when figuring your exclusion or deduction, even if you choose not to include it in earned income for the earned income credit or the credit for child and dependent care expenses. Irs forms 1040ez instructions Statement for employee. Irs forms 1040ez instructions   Your employer must give you a Form W-2 (or similar statement), showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. Irs forms 1040ez instructions Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. Irs forms 1040ez instructions Effect of exclusion on credit. Irs forms 1040ez instructions   If you exclude dependent care benefits from your income, the amount of the excluded benefits: Is not included in your work-related expenses, and Reduces the dollar limit, discussed later. Irs forms 1040ez instructions Earned Income Limit The amount of work-related expenses you use to figure your credit cannot be more than: Your earned income for the year, if you are single at the end of the year, or The smaller of your or your spouse's earned income for the year if you are married at the end of the year. Irs forms 1040ez instructions Earned income for the purpose of figuring the credit is defined under Earned Income Test, earlier. Irs forms 1040ez instructions For purposes of item (2), use your spouse's earned income for the entire year, even if you were married for only part of the year. Irs forms 1040ez instructions Example. Irs forms 1040ez instructions You remarried on December 3. Irs forms 1040ez instructions Your earned income for the year was $18,000. Irs forms 1040ez instructions Your new spouse's earned income for the year was $2,000. Irs forms 1040ez instructions You paid work-related expenses of $3,000 for the care of your 5-year-old child and qualified to claim the credit. Irs forms 1040ez instructions The amount of expenses you use to figure your credit cannot be more than $2,000 (the smaller of your earned income or that of your spouse). Irs forms 1040ez instructions Separated spouse. Irs forms 1040ez instructions   If you are legally separated or married and living apart from your spouse (as described under Joint Return Test, earlier), you are not considered married for purposes of the earned income limit. Irs forms 1040ez instructions Use only your income in figuring the earned income limit. Irs forms 1040ez instructions Surviving spouse. Irs forms 1040ez instructions   If your spouse died during the year and you file a joint return as a surviving spouse, you may, but are not required to, take into account the earned income of your spouse who died during the year. Irs forms 1040ez instructions Community property laws. Irs forms 1040ez instructions   Disregard community property laws when you figure earned income for this credit. Irs forms 1040ez instructions Self-employment earnings. Irs forms 1040ez instructions   If you are self-employed, include your net earnings in earned income. Irs forms 1040ez instructions For purposes of the child and dependent care credit, net earnings from self-employment generally means the amount from Schedule SE (either Section A or Section B), line 3, minus any deduction for self-employment tax on Form 1040 or Form 1040NR, line 27. Irs forms 1040ez instructions Include your self-employment earnings in earned income, even if they are less than $400 and you did not file Schedule SE. Irs forms 1040ez instructions Clergy or church employee. Irs forms 1040ez instructions   If you are a member of the clergy or a church employee, see the Instructions for Form 2441 for details. Irs forms 1040ez instructions Statutory employee. Irs forms 1040ez instructions   If you filed Schedule C (Form 1040) or C-EZ (Form 1040) to report income as a statutory employee, also include as earned income the amount from line 1 of that Schedule C (Form 1040) or C-EZ (Form 1040). Irs forms 1040ez instructions Net loss. Irs forms 1040ez instructions   You must reduce your earned income by any net loss from self-employment. Irs forms 1040ez instructions Optional method if earnings are low or a net loss. Irs forms 1040ez instructions   If your net earnings from self-employment are low or you have a net loss, you may be able to figure your net earnings by using an optional method instead of the regular method. Irs forms 1040ez instructions Get Publication 334, Tax Guide for Small Business, for details. Irs forms 1040ez instructions If you use an optional method to figure net earnings for self-employment tax purposes, include those net earnings in your earned income for this credit. Irs forms 1040ez instructions In this case, subtract any deduction you claimed on Form 1040 or Form 1040NR, line 27, from the total of the amounts on Schedule SE, Section B, lines 3 and 4b, to figure your net earnings. Irs forms 1040ez instructions You or your spouse is a student or not able to care for self. Irs forms 1040ez instructions   Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned income. Irs forms 1040ez instructions His or her earned income for each month is considered to be at least $250 if there is one qualifying person in your home, or at least $500 if there are two or more. Irs forms 1040ez instructions Spouse works. Irs forms 1040ez instructions   If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that month. Irs forms 1040ez instructions Spouse qualifies for part of month. Irs forms 1040ez instructions   If your spouse is a full-time student or not able to care for himself or herself for only part of a month, the full $250 (or $500) still applies for that month. Irs forms 1040ez instructions You are a student or not able to care for self. Irs forms 1040ez instructions   These rules also apply if you are a student or not able to care for yourself and are filing a joint return. Irs forms 1040ez instructions For each month or part of a month you are a student or not able to care for yourself, your earned income is considered to be at least $250 (or $500). Irs forms 1040ez instructions If you also work during that month, use the higher of $250 (or $500) or your actual earned income for that month. Irs forms 1040ez instructions Both spouses qualify. Irs forms 1040ez instructions   If, in the same month, both you and your spouse are either full-time students or not able to care for yourselves, only one spouse can be considered to have this earned income of $250 (or $500) for that month. Irs forms 1040ez instructions Example. Irs forms 1040ez instructions Jim works and keeps up a home for himself and his wife Sharon. Irs forms 1040ez instructions Because of an accident, Sharon is not able to care for herself for 11 months during the tax year. Irs forms 1040ez instructions During the 11 months, Jim pays $3,300 of work-related expenses for Sharon's care. Irs forms 1040ez instructions These expenses also qualify as medical expenses. Irs forms 1040ez instructions Their adjusted gross income is $29,000 and the entire amount is Jim's earned income. Irs forms 1040ez instructions Jim and Sharon's earned income limit is the smallest of the following amounts. Irs forms 1040ez instructions   Jim and Sharon's Earned Income Limit   1) Work-related expenses Jim paid $   3,300   2) Jim's earned income $   29,000   3) Income considered earned by Sharon (11 × $250) $    2,750   Jim and Sharon can use $2,750 to figure the credit and treat the balance of $550 ($3,300 − $2,750) as a medical expense. Irs forms 1040ez instructions However, if they use the $3,300 first as a medical expense, they cannot use any part of that amount to figure the credit. Irs forms 1040ez instructions Dollar Limit There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. Irs forms 1040ez instructions This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons. Irs forms 1040ez instructions If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. Irs forms 1040ez instructions This limit does not need to be divided equally among them. Irs forms 1040ez instructions For example, if your work-related expenses for the care of one qualifying person are $3,200 and your work-related expenses for another qualifying person are $2,800, you can use the total, $6,000, when figuring the credit. Irs forms 1040ez instructions Yearly limit. Irs forms 1040ez instructions   The dollar limit is a yearly limit. Irs forms 1040ez instructions The amount of the dollar limit remains the same no matter how long, during the year, you have a qualifying person in your household. Irs forms 1040ez instructions Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at any time during the year. Irs forms 1040ez instructions Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year. Irs forms 1040ez instructions Example 1. Irs forms 1040ez instructions You pay $500 a month for after-school care for your son. Irs forms 1040ez instructions He turned 13 on May 1 and is no longer a qualifying person. Irs forms 1040ez instructions You can use the $2,000 of expenses for his care January through April to figure your credit because it is not more than the $3,000 yearly limit. Irs forms 1040ez instructions Example 2. Irs forms 1040ez instructions In July of this year, to permit your spouse to begin a new job, you enrolled your 3-year-old daughter in a nursery school that provides preschool childcare. Irs forms 1040ez instructions You paid $300 per month for the childcare. Irs forms 1040ez instructions You can use the full $1,800 you paid ($300 × 6 months) as qualified expenses because it is not more than the $3,000 yearly limit. Irs forms 1040ez instructions Reduced Dollar Limit If you received dependent care benefits that you exclude or deduct from your income, you must subtract that amount from the dollar limit that applies to you. Irs forms 1040ez instructions Your reduced dollar limit is figured on Form 2441, Part III. Irs forms 1040ez instructions See Dependent Care Benefits, earlier, for information on excluding or deducting these benefits. Irs forms 1040ez instructions Example 1. Irs forms 1040ez instructions George is a widower with one child and earns $24,000 a year. Irs forms 1040ez instructions He pays work-related expenses of $2,900 for the care of his 4-year-old child and qualifies to claim the credit for child and dependent care expenses. Irs forms 1040ez instructions His employer pays an additional $1,000 under a qualified dependent care benefit plan. Irs forms 1040ez instructions This $1,000 is excluded from George's income. Irs forms 1040ez instructions Although the dollar limit for his work-related expenses is $3,000 (one qualifying person), George figures his credit on only $2,000 of the $2,900 work-related expenses he paid. Irs forms 1040ez instructions This is because his dollar limit is reduced as shown next. Irs forms 1040ez instructions   George's Reduced Dollar Limit 1) Maximum allowable expenses for one qualifying person $3,000 2) Minus: Dependent care benefits George excludes from income −1,000 3) Reduced dollar limit on expenses George can use for the credit $2,000 Example 2. Irs forms 1040ez instructions Randall is married and both he and his wife are employed. Irs forms 1040ez instructions Each has earned income in excess of $6,000. Irs forms 1040ez instructions They have two children, Anne and Andy, ages 2 and 4, who attend a daycare facility licensed and regulated by the state. Irs forms 1040ez instructions Randall's work-related expenses are $6,000 for the year. Irs forms 1040ez instructions Randall's employer has a dependent care assistance program as part of its cafeteria plan, which allows employees to make pre-tax contributions to a dependent care flexible spending arrangement. Irs forms 1040ez instructions Randall has elected to take the maximum $5,000 exclusion from his salary to cover dependent care expenses through this program. Irs forms 1040ez instructions Although the dollar limit for his work-related expenses is $6,000 (two or more qualifying persons), Randall figures his credit on only $1,000 of the $6,000 work-related expense paid. Irs forms 1040ez instructions This is because his dollar limit is reduced as shown next. Irs forms 1040ez instructions   Randall's Reduced Dollar Limit 1) Maximum allowable expenses for two qualifying persons $6,000 2) Minus: Dependent care benefits selected from employer's cafeteria plan and  excluded from Randall's income −5,000 3) Reduced dollar limit on work-related expenses Randall can use for the credit $1,000 Amount of Credit To determine the amount of your credit, multiply your work-related expenses (after applying the earned income and dollar limits) by a percentage. Irs forms 1040ez instructions This percentage depends on your adjusted gross income shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Irs forms 1040ez instructions The following table shows the percentage to use based on adjusted gross income. Irs forms 1040ez instructions   IF your adjusted gross income is: THEN the       Over:       But not over:   percentage is:       $0   —   $15,000   35%       15,000   —   17,000   34%       17,000   —   19,000   33%       19,000   —   21,000   32%       21,000   —   23,000   31%       23,000   —   25,000   30%       25,000   —   27,000   29%       27,000   —   29,000   28%       29,000   —   31,000   27%       31,000   —   33,000   26%       33,000   —   35,000   25%       35,000   —   37,000   24%       37,000   —   39,000   23%       39,000   —   41,000   22%       41,000   —   43,000   21%       43,000   —   No limit   20%   To qualify for the credit, you must have one or more qualifying persons. Irs forms 1040ez instructions You should show the expenses for each person on Form 2441, line 2, column (c). Irs forms 1040ez instructions However, it is possible a qualifying person could have no expenses and a second qualifying person could have expenses exceeding $3,000. Irs forms 1040ez instructions You should list -0- for the one person and the actual amount for the second person. Irs forms 1040ez instructions The $6,000 limit that applies to two or more qualifying persons would still be used to compute your credit unless you already excluded or deducted, in Part III of Form 2441, certain dependent care benefits paid to you (or on your behalf) by your employer. Irs forms 1040ez instructions Example. Irs forms 1040ez instructions Roger and Megan Paris have two qualifying children. Irs forms 1040ez instructions They received $1,000 of dependent care benefits from Megan's employer during 2013, but they incurred a total of $19,500 of child and dependent care expenses. Irs forms 1040ez instructions They complete Part III of Form 2441 to exclude the $1,000 from their taxable income (offsetting $1,000 of their expenses). Irs forms 1040ez instructions Roger and Megan continue to line 27 to figure their credit using the remaining $18,500 of expenses. Irs forms 1040ez instructions Line 30 tells them to complete line 2 without including any dependent care benefits. Irs forms 1040ez instructions They complete line 2 of Form 2441, listing both Susan and James, as shown in the Line 2 example above. Irs forms 1040ez instructions Line 2 Example (a) Qualifying person's name (b) Qualifying person's social security number (c) Qualified expenses you incurred and paid in 2013 for the person listed in column (a) First Last Susan Paris 123-00-6789 -0- James Paris 987-00-4321 18,500. Irs forms 1040ez instructions 00 All of Susan's expenses were covered by the $1,000 of employer-provided dependent care benefits. Irs forms 1040ez instructions However, their son James has special needs and they paid $18,500 for his care. Irs forms 1040ez instructions Line 3 imposes a $5,000 limit for two or more children ($6,000 limit, minus $1,000 already excluded from income = $5,000) and Roger and Megan continue to complete the form. Irs forms 1040ez instructions Even though line 2 indicates one of the Paris children did not have any dependent care expenses, it does not change the fact that they had two qualifying children for the purposes of Form 2441. Irs forms 1040ez instructions Payments for prior year's expenses. Irs forms 1040ez instructions   If you had work-related expenses in 2012 that you paid in 2013, you may be able to increase the credit on your 2013 return. Irs forms 1040ez instructions Attach a statement to your form showing how you figured the additional amount from 2012. Irs forms 1040ez instructions Then enter “CPYE” (Credit for Prior Year Expenses) and the amount of the credit on the dotted line next to line 9 on Form 2441. Irs forms 1040ez instructions Also enter the name and taxpayer identification number of the person for whom you paid the prior year's expenses. Irs forms 1040ez instructions Then add this credit to the amount on line 9, and replace the amount on line 9 with the total. Irs forms 1040ez instructions See Worksheet A. Irs forms 1040ez instructions Example. Irs forms 1040ez instructions In 2012, Sam and Kate had childcare expenses of $2,600 for their 12-year-old child. Irs forms 1040ez instructions Of the $2,600, they paid $2,000 in 2012 and $600 in 2013. Irs forms 1040ez instructions Their adjusted gross income for 2012 was $30,000. Irs forms 1040ez instructions Sam's earned income of $14,000 was less than Kate's earned income. Irs forms 1040ez instructions A credit for their 2012 expenses paid in 2013 is not allowed in 2012. Irs forms 1040ez instructions It is allowed for the 2013 tax year, but they must use their adjusted gross income for 2012 to compute the amount. Irs forms 1040ez instructions The filled-in Worksheet A they used to figure this credit is shown later. Irs forms 1040ez instructions Sam and Kate add the $162 from line 13 of this worksheet to their 2013 credit and enter the total on their Form 2441, line 9. Irs forms 1040ez instructions They enter “CPYE $162” and their child's name and SSN in the space to the left of line 9. Irs forms 1040ez instructions Worksheet A. Irs forms 1040ez instructions Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. Irs forms 1040ez instructions 1. Irs forms 1040ez instructions   Enter your 2012 qualified expenses paid in 2012 1. Irs forms 1040ez instructions     2. Irs forms 1040ez instructions   Enter your 2012 qualified expenses paid in 2013 2. Irs forms 1040ez instructions     3. Irs forms 1040ez instructions   Add the amounts on lines 1 and 2 3. Irs forms 1040ez instructions     4. Irs forms 1040ez instructions   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Irs forms 1040ez instructions     5. Irs forms 1040ez instructions   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Irs forms 1040ez instructions     6. Irs forms 1040ez instructions   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Irs forms 1040ez instructions     7. Irs forms 1040ez instructions   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Irs forms 1040ez instructions     8. Irs forms 1040ez instructions   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Irs forms 1040ez instructions     9. Irs forms 1040ez instructions   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Irs forms 1040ez instructions     10. Irs forms 1040ez instructions   Subtract the amount on line 9 from the amount on line 8 and enter the result. Irs forms 1040ez instructions If zero or less, stop here. Irs forms 1040ez instructions You cannot increase your 2013 credit by any previous year's expenses 10. Irs forms 1040ez instructions     11. Irs forms 1040ez instructions   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Irs forms 1040ez instructions     12. Irs forms 1040ez instructions   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Irs forms 1040ez instructions             IF your 2012 adjusted gross income is:   THEN the decimal                 Over:   But not over:     amount is:                 $0 — $15,000     . Irs forms 1040ez instructions 35                 15,000 — 17,000     . Irs forms 1040ez instructions 34                 17,000 — 19,000     . Irs forms 1040ez instructions 33                 19,000 — 21,000     . Irs forms 1040ez instructions 32                 21,000 — 23,000     . Irs forms 1040ez instructions 31                 23,000 — 25,000     . Irs forms 1040ez instructions 30                 25,000 — 27,000     . Irs forms 1040ez instructions 29                 27,000 — 29,000     . Irs forms 1040ez instructions 28                 29,000 — 31,000     . Irs forms 1040ez instructions 27                 31,000 — 33,000     . Irs forms 1040ez instructions 26                 33,000 — 35,000     . Irs forms 1040ez instructions 25                 35,000 — 37,000     . Irs forms 1040ez instructions 24                 37,000 — 39,000     . Irs forms 1040ez instructions 23                 39,000 — 41,000     . Irs forms 1040ez instructions 22                 41,000 — 43,000     . Irs forms 1040ez instructions 21                 43,000 — No limit     . Irs forms 1040ez instructions 20           13. Irs forms 1040ez instructions   Multiply line 10 by line 12. Irs forms 1040ez instructions Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Irs forms 1040ez instructions Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses           Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. Irs forms 1040ez instructions       Worksheet A. Irs forms 1040ez instructions Filled-in Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. Irs forms 1040ez instructions 1. Irs forms 1040ez instructions   Enter your 2012 qualified expenses paid in 2012 1. Irs forms 1040ez instructions   $2,000 2. Irs forms 1040ez instructions   Enter your 2012 qualified expenses paid in 2013 2. Irs forms 1040ez instructions   600 3. Irs forms 1040ez instructions   Add the amounts on lines 1 and 2 3. Irs forms 1040ez instructions   2,600 4. Irs forms 1040ez instructions   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Irs forms 1040ez instructions   3,000 5. Irs forms 1040ez instructions   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Irs forms 1040ez instructions   0 6. Irs forms 1040ez instructions   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Irs forms 1040ez instructions   3,000 7. Irs forms 1040ez instructions   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Irs forms 1040ez instructions   14,000 8. Irs forms 1040ez instructions   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Irs forms 1040ez instructions   2,600 9. Irs forms 1040ez instructions   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Irs forms 1040ez instructions   2,000 10. Irs forms 1040ez instructions   Subtract the amount on line 9 from the amount on line 8 and enter the result. Irs forms 1040ez instructions If zero or less, stop here. Irs forms 1040ez instructions You cannot increase your 2013 credit by any previous year's expenses 10. Irs forms 1040ez instructions   600 11. Irs forms 1040ez instructions   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Irs forms 1040ez instructions   30,000 12. Irs forms 1040ez instructions   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Irs forms 1040ez instructions   . Irs forms 1040ez instructions 27         IF your 2012 adjusted gross income is:   THEN the decimal                 Over   But not over     amount is:                 $0 — $15,000     . Irs forms 1040ez instructions 35                 15,000 — 17,000     . Irs forms 1040ez instructions 34                 17,000 — 19,000     . Irs forms 1040ez instructions 33                 19,000 — 21,000     . Irs forms 1040ez instructions 32                 21,000 — 23,000     . Irs forms 1040ez instructions 31                 23,000 — 25,000     . Irs forms 1040ez instructions 30                 25,000 — 27,000     . Irs forms 1040ez instructions 29                 27,000 — 29,000     . Irs forms 1040ez instructions 28                 29,000 — 31,000     . Irs forms 1040ez instructions 27                 31,000 — 33,000     . Irs forms 1040ez instructions 26                 33,000 — 35,000     . Irs forms 1040ez instructions 25                 35,000 — 37,000     . Irs forms 1040ez instructions 24                 37,000 — 39,000     . Irs forms 1040ez instructions 23                 39,000 — 41,000     . Irs forms 1040ez instructions 22                 41,000 — 43,000     . Irs forms 1040ez instructions 21                 43,000 — No limit     . Irs forms 1040ez instructions 20           13. Irs forms 1040ez instructions   Multiply line 10 by line 12. Irs forms 1040ez instructions Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Irs forms 1040ez instructions Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses             Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. Irs forms 1040ez instructions   $162   How To Claim the Credit To claim the credit, you can file Form 1040, Form 1040A, or Form 1040NR. Irs forms 1040ez instructions You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. Irs forms 1040ez instructions Form 1040, Form 1040A, or Form 1040NR. Irs forms 1040ez instructions    You must complete Form 2441 and attach it to your Form 1040, Form 1040A, or Form 1040NR. Irs forms 1040ez instructions Enter the credit on your Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46. Irs forms 1040ez instructions Limit on credit. Irs forms 1040ez instructions    The amount of credit you can claim is limited to your tax. Irs forms 1040ez instructions For more information, see the Instructions for Form 2441. Irs forms 1040ez instructions Tax credit not refundable. Irs forms 1040ez instructions   You cannot get a refund for any part of the credit that is more than this limit. Irs forms 1040ez instructions Recordkeeping. Irs forms 1040ez instructions You should keep records of your work-related expenses. Irs forms 1040ez instructions Also, if your dependent or spouse is not able to care for himself or herself, your records should show both the nature and length of the disability. Irs forms 1040ez instructions Other records you should keep to support your claim for the credit are described under Provider Identification Test, earlier. Irs forms 1040ez instructions Employment Taxes for Household Employers If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer. Irs forms 1040ez instructions If you are a household employer, you will need an employer identification number (EIN) and you may have to pay employment taxes. Irs forms 1040ez instructions If the individuals who work in your home are self-employed, you are not liable for any of the taxes discussed in this section. Irs forms 1040ez instructions Self-employed persons who are in business for themselves are not household employees. Irs forms 1040ez instructions Usually, you are not a household employer if the person who cares for your dependent or spouse does so at his or her home or place of business. Irs forms 1040ez instructions If you use a placement agency that exercises control over what work is done and how it will be done by a babysitter or companion who works in your home, the worker is not your employee. Irs forms 1040ez instructions This control could include providing rules of conduct and appearance and requiring regular reports. Irs forms 1040ez instructions In this case, you do not have to pay employment taxes. Irs forms 1040ez instructions But, if an agency merely gives you a list of sitters and you hire one from that list, and pay the sitter directly, the sitter may be your employee. Irs forms 1040ez instructions If you have a household employee, you may be subject to: Social security and Medicare taxes, Federal unemployment tax, and Federal income tax withholding. Irs forms 1040ez instructions Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. Irs forms 1040ez instructions Federal unemployment (FUTA) tax is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. Irs forms 1040ez instructions Federal income tax is withheld from the employee's total pay if the employee asks you to do so and you agree. Irs forms 1040ez instructions For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its instructions. Irs forms 1040ez instructions State employment tax. Irs forms 1040ez instructions   You may also have to pay state unemployment tax. Irs forms 1040ez instructions Contact your state unemployment tax office for information. Irs forms 1040ez instructions You should also find out whether you need to pay or collect other state employment taxes or carry worker's compensation insurance. Irs forms 1040ez instructions For a list of state unemployment tax agencies, visit the U. Irs forms 1040ez instructions S. Irs forms 1040ez instructions Department of Labor's website. Irs forms 1040ez instructions To find that website, use the link in Publication 926 or search online. Irs forms 1040ez instructions How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Irs forms 1040ez instructions Free help with your tax return. Irs forms 1040ez instructions   You can get free help preparing your return nationwide from IRS-certified volunteers. Irs forms 1040ez instructions The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Irs forms 1040ez instructions The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs forms 1040ez instructions Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs forms 1040ez instructions In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Irs forms 1040ez instructions To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Irs forms 1040ez instructions gov, download the IRS2Go app, or call 1-800-906-9887. Irs forms 1040ez instructions   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs forms 1040ez instructions To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs forms 1040ez instructions aarp. Irs forms 1040ez instructions org/money/taxaide or call 1-888-227-7669. Irs forms 1040ez instructions For more information on these programs, go to IRS. Irs forms 1040ez instructions gov and enter “VITA” in the search box. Irs forms 1040ez instructions Internet. Irs forms 1040ez instructions    IRS. Irs forms 1040ez instructions gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Irs forms 1040ez instructions Download the free IRS2Go app from the iTunes app store or from Google Play. Irs forms 1040ez instructions Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Irs forms 1040ez instructions Check the status of your 2013 refund with the Where's My Refund? application on IRS. Irs forms 1040ez instructions gov or download the IRS2Go app and select the Refund Status option. Irs forms 1040ez instructions The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs forms 1040ez instructions Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Irs forms 1040ez instructions You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs forms 1040ez instructions The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs forms 1040ez instructions Use the Interactive Tax Assistant (ITA) to research your tax questions. Irs forms 1040ez instructions No need to wait on the phone or stand in line. Irs forms 1040ez instructions The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Irs forms 1040ez instructions When you reach the response screen, you can print the entire interview and the final response for your records. Irs forms 1040ez instructions New subject areas are added on a regular basis. Irs forms 1040ez instructions  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Irs forms 1040ez instructions gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Irs forms 1040ez instructions You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Irs forms 1040ez instructions The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Irs forms 1040ez instructions When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Irs forms 1040ez instructions Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Irs forms 1040ez instructions You can also ask the IRS to mail a return or an account transcript to you. Irs forms 1040ez instructions Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Irs forms 1040ez instructions gov or by calling 1-800-908-9946. Irs forms 1040ez instructions Tax return and tax account transcripts are generally available for the current year and the past three years. Irs forms 1040ez instructions Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Irs forms 1040ez instructions Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Irs forms 1040ez instructions If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Irs forms 1040ez instructions Check the status of your amended return using Where's My Amended Return? Go to IRS. Irs forms 1040ez instructions gov and enter Where's My Amended Return? in the search box. Irs forms 1040ez instructions You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs forms 1040ez instructions It can take up to 3 weeks from the date you mailed it to show up in our system. Irs forms 1040ez instructions Make a payment using one of several safe and convenient electronic payment options available on IRS. Irs forms 1040ez instructions gov. Irs forms 1040ez instructions Select the Payment tab on the front page of IRS. Irs forms 1040ez instructions gov for more information. Irs forms 1040ez instructions Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Irs forms 1040ez instructions Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs forms 1040ez instructions gov. Irs forms 1040ez instructions Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Irs forms 1040ez instructions Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs forms 1040ez instructions gov. Irs forms 1040ez instructions Request an Electronic Filing PIN by going to IRS. Irs forms 1040ez instructions gov and entering Electronic Filing PIN in the search box. Irs forms 1040ez instructions Download forms, instructions and publications, including accessible versions for people with disabilities. Irs forms 1040ez instructions Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Irs forms 1040ez instructions gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Irs forms 1040ez instructions An employee can answer questions about your tax account or help you set up a payment plan. Irs forms 1040ez instructions Before you visit, check the Office Locator on IRS. Irs forms 1040ez instructions gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Irs forms 1040ez instructions If you have a special need, such as a disability, you can request an appointment. Irs forms 1040ez instructions Call the local number listed in the Office Locator, or look in the phone book under Unit
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HCTC: Information for Health Plan Administrators (HPAs)

Important Update: The legislation that authorizes the Health Coverage Tax Credit (HCTC) has expired. The tax credit will no longer be available for tax years after 2013. 

Health Plan Administrators (HPAs) are vital to the success of the HCTC program. Your role as an HPA can vary, depending on your level of involvement in helping eligible individuals receive the tax credit.  Below you will find information about how you can help individuals receive this important tax credit.

Complete Ongoing Responsibilities
When individuals claim the Yearly HCTC on their federal tax return, they must submit supporting documents (such as a health insurance bill, COBRA Election Letter, or substitute letter that has the same information that a health insurance bill contains) to show they have the insurance they are claiming.  As an HPA, you can help these individuals if they request information or documentation from you concerning their health coverage.

Returning Funds to the HCTC Program
An HPA can return funds to the HCTC Program for many reasons, including: a member's coverage ended or was cancelled, their premium amount changed, the member changed HPA or Third Party Administrator (TPA), the member is no longer eligible for the HCTC, the member is receiving Medicare benefits, or because an incorrect HPA or TPA was paid.

Prior to returning funds to the HCTC Program, you should:
1.    Contact your HCTC HPA Analyst to inform them of the pending return.
2.    Fill out the Return of Funds Form in its entirety.
3.    Fax copies of the completed Return of Funds Form to your HCTC HPA Analyst with the returned funds. 
4.    Reference the Return of Funds Form to determine the correct mailing address for the type of funds you are returning. Include a copy of the Returned Funds Form with the check, and send to the appropriate address.
 

Please note: An updated Return of Funds Form with new contact information and instructions will be provided in early 2014 for use beginning in April 2014.

Return to the HCTC Program home page
Go to the HCTC Quick References page to view a glossary of terms, frequently asked questions (FAQs) and additional resources.

Page Last Reviewed or Updated: 01-Jan-2014

The Irs Forms 1040ez Instructions

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