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State Tax Filing

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State Tax Filing

State tax filing 24. State tax filing   Contributions Table of Contents Introduction Useful Items - You may want to see: Organizations That Qualify To Receive Deductible ContributionsTypes of Qualified Organizations Contributions You Can DeductContributions From Which You Benefit Expenses Paid for Student Living With You Out-of-Pocket Expenses in Giving Services Contributions You Cannot DeductContributions to Individuals Contributions to Nonqualified Organizations Contributions From Which You Benefit Value of Time or Services Personal Expenses Appraisal Fees Contributions of PropertyException. State tax filing Household items. State tax filing Deduction more than $500. State tax filing Form 1098-C. State tax filing Filing deadline approaching and still no Form 1098-C. State tax filing Exception 1—vehicle used or improved by organization. State tax filing Exception 2—vehicle given or sold to needy individual. State tax filing Deduction $500 or less. State tax filing Right to use property. State tax filing Tangible personal property. State tax filing Future interest. State tax filing Determining Fair Market Value Giving Property That Has Decreased in Value Giving Property That Has Increased in Value When To DeductChecks. State tax filing Text message. State tax filing Credit card. State tax filing Pay-by-phone account. State tax filing Stock certificate. State tax filing Promissory note. State tax filing Option. State tax filing Borrowed funds. State tax filing Limits on DeductionsCarryovers Records To KeepCash Contributions Noncash Contributions Out-of-Pocket Expenses How To Report Introduction This chapter explains how to claim a deduction for your charitable contributions. State tax filing It discusses the following topics. State tax filing The types of organizations to which you can make deductible charitable contributions. State tax filing The types of contributions you can deduct. State tax filing How much you can deduct. State tax filing What records you must keep. State tax filing How to report your charitable contributions. State tax filing A charitable contribution is a donation or gift to, or for the use of, a qualified organization. State tax filing It is voluntary and is made without getting, or expecting to get, anything of equal value. State tax filing Form 1040 required. State tax filing    To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. State tax filing The amount of your deduction may be limited if certain rules and limits explained in this chapter apply to you. State tax filing The limits are explained in detail in Publication 526. State tax filing Useful Items - You may want to see: Publication 526 Charitable Contributions 561 Determining the Value of Donated Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 8283 Noncash Charitable Contributions Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if you make them to a qualified organization. State tax filing Most organizations other than churches and governments must apply to the IRS to become a qualified organization. State tax filing How to check whether an organization can receive deductible charitable contributions. State tax filing   You can ask any organization whether it is a qualified organization, and most will be able to tell you. State tax filing Or go to IRS. State tax filing gov. State tax filing Click on “Tools” and then on “Exempt Organizations Select Check” (www. State tax filing irs. State tax filing gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). State tax filing This online tool will enable you to search for qualified organizations. State tax filing You can also call the IRS to find out if an organization is qualified. State tax filing Call 1-877-829-5500. State tax filing People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-829-4059. State tax filing Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. State tax filing gsa. State tax filing gov/fedrelay. State tax filing Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. State tax filing A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). State tax filing It must, however, be organized and operated only for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. State tax filing Certain organizations that foster national or international amateur sports competition also qualify. State tax filing War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). State tax filing Domestic fraternal societies, orders, and associations operating under the lodge system. State tax filing (Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. State tax filing ) Certain nonprofit cemetery companies or corporations. State tax filing (Your contribution to this type of organization is not deductible if it can be used for the care of a specific lot or mausoleum crypt. State tax filing ) The United States or any state, the District of Columbia, a U. State tax filing S. State tax filing possession (including Puerto Rico), a political subdivision of a state or U. State tax filing S. State tax filing possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. State tax filing (Your contribution to this type of organization is only deductible if it is to be used solely for public purposes. State tax filing ) Examples. State tax filing    The following list gives some examples of qualified organizations. State tax filing Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. State tax filing Most nonprofit charitable organizations such as the American Red Cross and the United Way. State tax filing Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. State tax filing This also includes nonprofit daycare centers that provide childcare to the general public if substantially all the childcare is provided to enable parents and guardians to be gainfully employed. State tax filing However, if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution, as explained later under Contributions You Cannot Deduct . State tax filing Nonprofit hospitals and medical research organizations. State tax filing Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. State tax filing Nonprofit volunteer fire companies. State tax filing Nonprofit organizations that develop and maintain public parks and recreation facilities. State tax filing Civil defense organizations. State tax filing Certain foreign charitable organizations. State tax filing   Under income tax treaties with Canada, Israel, and Mexico, you may be able to deduct contributions to certain Canadian, Israeli, or Mexican charitable organizations. State tax filing Generally, you must have income from sources in that country. State tax filing For additional information on the deduction of contributions to Canadian charities, see Publication 597, Information on the United States–Canada Income Tax Treaty. State tax filing If you need more information on how to figure your contribution to Mexican and Israeli charities, see Publication 526. State tax filing Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. State tax filing A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement. State tax filing The contributions must be made to a qualified organization and not set aside for use by a specific person. State tax filing If you give property to a qualified organization, you generally can deduct the fair market value of the property at the time of the contribution. State tax filing See Contributions of Property , later in this chapter. State tax filing Your deduction for charitable contributions generally cannot be more than 50% of your adjusted gross income (AGI), but in some cases 20% and 30% limits may apply. State tax filing See Limits on Deductions , later. State tax filing In addition, the total of your charitable contribution deduction and certain other itemized deductions may be limited. State tax filing See chapter 29. State tax filing Table 24-1 gives examples of contributions you can and cannot deduct. State tax filing Contributions From Which You Benefit If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. State tax filing Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. State tax filing If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. State tax filing For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. State tax filing Example 1. State tax filing You pay $65 for a ticket to a dinner-dance at a church. State tax filing Your entire $65 payment goes to the church. State tax filing The ticket to the dinner-dance has a fair market value of $25. State tax filing When you buy your ticket, you know that its value is less than your payment. State tax filing To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). State tax filing You can deduct $40 as a contribution to the church. State tax filing Example 2. State tax filing At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. State tax filing The amount you pay is no more than the fair rental value. State tax filing You have not made a deductible charitable contribution. State tax filing Athletic events. State tax filing   If you make a payment to, or for the benefit of, a college or university and, as a result, you receive the right to buy tickets to an athletic event in the athletic stadium of the college or university, you can deduct 80% of the payment as a charitable contribution. State tax filing   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. State tax filing Subtract the price of the tickets from your payment. State tax filing You can deduct 80% of the remaining amount as a charitable contribution. State tax filing Example 1. State tax filing You pay $300 a year for membership in a university's athletic scholarship program. State tax filing The only benefit of membership is that you have the right to buy one season ticket for a seat in a designated area of the stadium at the university's home football games. State tax filing You can deduct $240 (80% of $300) as a charitable contribution. State tax filing Table 24-1. State tax filing Examples of Charitable Contributions—A Quick Check Use the following lists for a quick check of whether you can deduct a contribution. State tax filing See the rest of this chapter for more information and additional rules and limits that may apply. State tax filing Deductible As  Charitable Contributions Not Deductible  As Charitable Contributions Money or property you give to:  Churches, synagogues, temples, mosques, and other religious organizations Federal, state, and local governments, if your contribution is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park) Nonprofit schools and hospitals The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc. State tax filing War veterans groups   Expenses paid for a student living with you, sponsored by a qualified organization  Out-of-pocket expenses when you serve a qualified organization as a volunteer Money or property you give to:  Civic leagues, social and sports clubs, labor unions, and chambers of commerce Foreign organizations (except certain Canadian, Israeli, and Mexican charities) Groups that are run for personal profit Groups whose purpose is to lobby for law changes Homeowners' associations Individuals Political groups or candidates for public office   Cost of raffle, bingo, or lottery tickets  Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups  Tuition  Value of your time or services  Value of blood given to a blood bank    Example 2. State tax filing The facts are the same as in Example 1 except your $300 payment includes the purchase of one season ticket for the stated ticket price of $120. State tax filing You must subtract the usual price of a ticket ($120) from your $300 payment. State tax filing The result is $180. State tax filing Your deductible charitable contribution is $144 (80% of $180). State tax filing Charity benefit events. State tax filing   If you pay a qualified organization more than fair market value for the right to attend a charity ball, banquet, show, sporting event, or other benefit event, you can deduct only the amount that is more than the value of the privileges or other benefits you receive. State tax filing   If there is an established charge for the event, that charge is the value of your benefit. State tax filing If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. State tax filing Whether you use the tickets or other privileges has no effect on the amount you can deduct. State tax filing However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. State tax filing    Even if the ticket or other evidence of payment indicates that the payment is a “contribution,” this does not mean you can deduct the entire amount. State tax filing If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. State tax filing Example. State tax filing You pay $40 to see a special showing of a movie for the benefit of a qualified organization. State tax filing Printed on the ticket is “Contribution—$40. State tax filing ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). State tax filing Membership fees or dues. State tax filing    You may be able to deduct membership fees or dues you pay to a qualified organization. State tax filing However, you can deduct only the amount that is more than the value of the benefits you receive. State tax filing    You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. State tax filing They are not qualified organizations. State tax filing Certain membership benefits can be disregarded. State tax filing   Both you and the organization can disregard the following membership benefits if you receive them in return for an annual payment of $75 or less. State tax filing Any rights or privileges, other than those discussed under Athletic events , earlier, that you can use frequently while you are a member, such as: Free or discounted admission to the organization's facilities or events, Free or discounted parking, Preferred access to goods or services, and Discounts on the purchase of goods and services. State tax filing Admission, while you are a member, to events open only to members of the organization, if the organization reasonably projects that the cost per person (excluding any allocated overhead) is not more than $10. State tax filing 20. State tax filing Token items. State tax filing   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. State tax filing You receive only a small item or other benefit of token value. State tax filing The qualified organization correctly determines that the value of the item or benefit you received is not substantial and informs you that you can deduct your payment in full. State tax filing Written statement. State tax filing   A qualified organization must give you a written statement if you make a payment of more than $75 that is partly a contribution and partly for goods or services. State tax filing The statement must say that you can deduct only the amount of your payment that is more than the value of the goods or services you received. State tax filing It must also give you a good faith estimate of the value of those goods or services. State tax filing   The organization can give you the statement either when it solicits or when it receives the payment from you. State tax filing Exception. State tax filing   An organization will not have to give you this statement if one of the following is true. State tax filing The organization is: A governmental organization described in (5) under Types of Qualified Organizations , earlier, or An organization formed only for religious purposes, and the only benefit you receive is an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in commercial transactions outside the donative context. State tax filing You receive only items whose value is not substantial as described under Token items , earlier. State tax filing You receive only membership benefits that can be disregarded, as described earlier. State tax filing Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. State tax filing You can deduct qualifying expenses for a foreign or American student who: Lives in your home under a written agreement between you and a qualified organization as part of a program of the organization to provide educational opportunities for the student, Is not your relative or dependent, and Is a full-time student in the twelfth or any lower grade at a school in the United States. State tax filing You can deduct up to $50 a month for each full calendar month the student lives with you. State tax filing Any month when conditions (1) through (3) are met for 15 days or more counts as a full month. State tax filing For additional information, see Expenses Paid for Student Living With You in Publication 526. State tax filing Mutual exchange program. State tax filing   You cannot deduct the costs of a foreign student living in your home under a mutual exchange program through which your child will live with a family in a foreign country. State tax filing Table 24-2. State tax filing Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. State tax filing All of the rules explained in this chapter also apply. State tax filing See, in particular, Out-of-Pocket Expenses in Giving Services . State tax filing Question Answer I volunteer 6 hours a week in the office of a qualified organization. State tax filing The receptionist is paid $10 an hour for the same work. State tax filing Can I deduct $60 a week for my time?    No, you cannot deduct the value of your time or services. State tax filing The office is 30 miles from my home. State tax filing Can I deduct any of my car expenses for these trips? Yes, you can deduct the costs of gas and oil that are directly related to getting to and from the place where you volunteer. State tax filing If you don't want to figure your actual costs, you can deduct 14 cents for each mile. State tax filing I volunteer as a Red Cross nurse's aide at a hospital. State tax filing Can I deduct the cost of the uniforms I must wear? Yes, you can deduct the cost of buying and cleaning your uniforms if the hospital is a qualified organization, the uniforms are not suitable for everyday use, and you must wear them when volunteering. State tax filing I pay a babysitter to watch my children while I volunteer for a qualified organization. State tax filing Can I deduct these costs? No, you cannot deduct payments for childcare expenses as a charitable contribution, even if you would be unable to volunteer without childcare. State tax filing (If you have childcare expenses so you can work for pay, see chapter 32. State tax filing ) Out-of-Pocket Expenses in Giving Services Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. State tax filing The amounts must be: Unreimbursed, Directly connected with the services, Expenses you had only because of the services you gave, and Not personal, living, or family expenses. State tax filing Table 24-2 contains questions and answers that apply to some individuals who volunteer their services. State tax filing Conventions. State tax filing   If a qualified organization selects you to attend a convention as its representative, you can deduct unreimbursed expenses for travel, including reasonable amounts for meals and lodging, while away from home overnight in connection with the convention. State tax filing However, see Travel , later. State tax filing   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. State tax filing You also cannot deduct transportation, meals and lodging, and other expenses for your spouse or children. State tax filing    You cannot deduct your travel expenses in attending a church convention if you go only as a member of your church rather than as a chosen representative. State tax filing You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. State tax filing Uniforms. State tax filing   You can deduct the cost and upkeep of uniforms that are not suitable for everyday use and that you must wear while performing donated services for a charitable organization. State tax filing Foster parents. State tax filing   You may be able to deduct as a charitable contribution some of the costs of being a foster parent (foster care provider) if you have no profit motive in providing the foster care and are not, in fact, making a profit. State tax filing A qualified organization must select the individuals you take into your home for foster care. State tax filing    You can deduct expenses that meet both of the following requirements. State tax filing They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. State tax filing They are incurred primarily to benefit the qualified organization. State tax filing   Unreimbursed expenses that you cannot deduct as charitable contributions may be considered support provided by you in determining whether you can claim the foster child as a dependent. State tax filing For details, see chapter 3. State tax filing Example. State tax filing You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. State tax filing Your unreimbursed expenses are not deductible as charitable contributions. State tax filing Car expenses. State tax filing   You can deduct as a charitable contribution any unreimbursed out-of-pocket expenses, such as the cost of gas and oil, that are directly related to the use of your car in giving services to a charitable organization. State tax filing You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. State tax filing    If you do not want to deduct your actual expenses, you can use a standard mileage rate of 14 cents a mile to figure your contribution. State tax filing   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. State tax filing   You must keep reliable written records of your car expenses. State tax filing For more information, see Car expenses under Records To Keep, later. State tax filing Travel. State tax filing   Generally, you can claim a charitable contribution deduction for travel expenses necessarily incurred while you are away from home performing services for a charitable organization only if there is no significant element of personal pleasure, recreation, or vacation in the travel. State tax filing This applies whether you pay the expenses directly or indirectly. State tax filing You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. State tax filing   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. State tax filing Even if you enjoy the trip, you can take a charitable contribution deduction for your travel expenses if you are on duty in a genuine and substantial sense throughout the trip. State tax filing However, if you have only nominal duties, or if for significant parts of the trip you do not have any duties, you cannot deduct your travel expenses. State tax filing Example 1. State tax filing You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. State tax filing You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. State tax filing You participate in the activities of the group and enjoy your time with them. State tax filing You oversee the breaking of camp and you transport the group home. State tax filing You can deduct your travel expenses. State tax filing Example 2. State tax filing You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. State tax filing The project is sponsored by a charitable organization. State tax filing In most circumstances, you cannot deduct your expenses. State tax filing Example 3. State tax filing You work for several hours each morning on an archaeological dig sponsored by a charitable organization. State tax filing The rest of the day is free for recreation and sightseeing. State tax filing You cannot take a charitable contribution deduction even though you work very hard during those few hours. State tax filing Example 4. State tax filing You spend the entire day attending a charitable organization's regional meeting as a chosen representative. State tax filing In the evening you go to the theater. State tax filing You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. State tax filing Daily allowance (per diem). State tax filing   If you provide services for a charitable organization and receive a daily allowance to cover reasonable travel expenses, including meals and lodging while away from home overnight, you must include in income any part of the allowance that is more than your deductible travel expenses. State tax filing You may be able to deduct any necessary travel expenses that are more than the allowance. State tax filing Deductible travel expenses. State tax filing   These include: Air, rail, and bus transportation, Out-of-pocket expenses for your car, Taxi fares or other costs of transportation between the airport or station and your hotel, Lodging costs, and The cost of meals. State tax filing Because these travel expenses are not business-related, they are not subject to the same limits as business-related expenses. State tax filing For information on business travel expenses, see Travel Expenses in chapter 26. State tax filing Contributions You Cannot Deduct There are some contributions you cannot deduct, such as those made to specific individuals and those made to nonqualified organizations. State tax filing (See Contributions to Individuals and Contributions to Nonqualified Organizations , next. State tax filing ) There are others you can deduct only part of, as discussed later under Contributions From Which You Benefit . State tax filing Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. State tax filing Contributions to fraternal societies made for the purpose of paying medical or burial expenses of deceased members. State tax filing Contributions to individuals who are needy or worthy. State tax filing You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. State tax filing But you can deduct a contribution to a qualified organization that helps needy or worthy individuals if you do not indicate that your contribution is for a specific person. State tax filing Example. State tax filing You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. State tax filing However, you cannot deduct contributions earmarked for relief of a particular individual or family. State tax filing Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. State tax filing Expenses you paid for another person who provided services to a qualified organization. State tax filing Example. State tax filing Your son does missionary work. State tax filing You pay his expenses. State tax filing You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. State tax filing Payments to a hospital that are for a specific patient's care or for services for a specific patient. State tax filing You cannot deduct these payments even if the hospital is operated by a city, a state, or other qualified organization. State tax filing Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. State tax filing Certain state bar associations if: The bar is not a political subdivision of a state, The bar has private, as well as public, purposes, such as promoting the professional interests of members, and Your contribution is unrestricted and can be used for private purposes. State tax filing Chambers of commerce and other business leagues or organizations (but see chapter 28). State tax filing Civic leagues and associations. State tax filing Communist organizations. State tax filing Country clubs and other social clubs. State tax filing Most foreign organizations (other than certain Canadian, Israeli, or Mexican charitable organizations). State tax filing For details, see Publication 526. State tax filing Homeowners' associations. State tax filing Labor unions (but see chapter 28). State tax filing Political organizations and candidates. State tax filing Contributions From Which You Benefit If you receive or expect to receive a financial or economic benefit as a result of making a contribution to a qualified organization, you cannot deduct the part of the contribution that represents the value of the benefit you receive. State tax filing See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. State tax filing These contributions include the following. State tax filing Contributions for lobbying. State tax filing This includes amounts that you earmark for use in, or in connection with, influencing specific legislation. State tax filing Contributions to a retirement home for room, board, maintenance, or admittance. State tax filing Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. State tax filing Costs of raffles, bingo, lottery, etc. State tax filing You cannot deduct as a charitable contribution amounts you pay to buy raffle or lottery tickets or to play bingo or other games of chance. State tax filing For information on how to report gambling winnings and losses, see Gambling winnings in chapter 12 and Gambling Losses Up to the Amount of Gambling Winnings in chapter 28. State tax filing Dues to fraternal orders and similar groups. State tax filing However, see Membership fees or dues , earlier, under Contributions You Can Deduct. State tax filing Tuition, or amounts you pay instead of tuition. State tax filing You cannot deduct as a charitable contribution amounts you pay as tuition even if you pay them for children to attend parochial schools or qualifying nonprofit daycare centers. State tax filing You also cannot deduct any fixed amount you must pay in addition to, or instead of, tuition to enroll in a private school, even if it is designated as a “donation. State tax filing ” Value of Time or Services You cannot deduct the value of your time or services, including: Blood donations to the American Red Cross or to blood banks, and The value of income lost while you work as an unpaid volunteer for a qualified organization. State tax filing Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. State tax filing The cost of meals you eat while you perform services for a qualified organization unless it is necessary for you to be away from home overnight while performing the services. State tax filing Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final (but see Adoption Credit in chapter 37, and the instructions for Form 8839, Qualified Adoption Expenses). State tax filing You also may be able to claim an exemption for the child. State tax filing See Adopted child in chapter 3. State tax filing Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property (but see chapter 28). State tax filing Contributions of Property If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. State tax filing However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. State tax filing See Giving Property That Has Increased in Value , later. State tax filing For information about the records you must keep and the information you must furnish with your return if you donate property, see Records To Keep and How To Report , later. State tax filing Clothing and household items. State tax filing   You cannot take a deduction for clothing or household items you donate unless the clothing or household items are in good used condition or better. State tax filing Exception. State tax filing   You can take a deduction for a contribution of an item of clothing or household item that is not in good used condition or better if you deduct more than $500 for it and include a qualified appraisal of it with your return. State tax filing Household items. State tax filing   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. State tax filing   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. State tax filing Cars, boats, and airplanes. State tax filing    The following rules apply to any donation of a qualified vehicle. State tax filing A qualified vehicle is: A car or any motor vehicle manufactured mainly for use on public streets, roads, and highways, A boat, or An airplane. State tax filing Deduction more than $500. State tax filing   If you donate a qualified vehicle with a claimed fair market value of more than $500, you can deduct the smaller of: The gross proceeds from the sale of the vehicle by the organization, or The vehicle's fair market value on the date of the contribution. State tax filing If the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to figure the deductible amount, as described under Giving Property That Has Increased in Value , later. State tax filing Form 1098-C. State tax filing   You must attach to your return Copy B of the Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, (or other statement containing the same information as Form 1098-C) you received from the organization. State tax filing The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. State tax filing   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453 and mail the forms to the IRS, or Include Copy B of Form 1098-C as a pdf attachment if your software program allows it. State tax filing   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. State tax filing    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. State tax filing But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. State tax filing Filing deadline approaching and still no Form 1098-C. State tax filing   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. State tax filing Request an automatic 6-month extension of time to file your return. State tax filing You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. State tax filing S. State tax filing Individual Income Tax Return. State tax filing  For more information, see Automatic Extension in chapter 1. State tax filing File the return on time without claiming the deduction for the qualified vehicle. State tax filing After receiving the Form 1098-C, file an amended return, Form 1040X, claiming the deduction. State tax filing Attach Copy B of Form 1098-C (or other statement) to the amended return. State tax filing For more information about amended returns, see Amended Returns and Claims for Refund in chapter 1. State tax filing Exceptions. State tax filing   There are two exceptions to the rules just described for deductions of more than $500. State tax filing Exception 1—vehicle used or improved by organization. State tax filing   If the qualified organization makes a significant intervening use of or material improvement to the vehicle before transferring it, you generally can deduct the vehicle's fair market value at the time of the contribution. State tax filing But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. State tax filing The Form 1098-C (or other statement) will show whether this exception applies. State tax filing Exception 2—vehicle given or sold to needy individual. State tax filing   If the qualified organization will give the vehicle, or sell it for a price well below fair market value, to a needy individual to further the organization's charitable purpose, you generally can deduct the vehicle's fair market value at the time of the contribution. State tax filing But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. State tax filing The Form 1098-C (or other statement) will show whether this exception applies. State tax filing   This exception does not apply if the organization sells the vehicle at auction. State tax filing In that case, you cannot deduct the vehicle's fair market value. State tax filing Example. State tax filing Anita donates a used car to a qualified organization. State tax filing She bought it 3 years ago for $9,000. State tax filing A used car guide shows the fair market value for this type of car is $6,000. State tax filing However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. State tax filing Neither exception 1 nor exception 2 applies. State tax filing If Anita itemizes her deductions, she can deduct $2,900 for her donation. State tax filing She must attach Form 1098-C and Form 8283 to her return. State tax filing Deduction $500 or less. State tax filing   If the qualified organization sells the vehicle for $500 or less and exceptions 1 and 2 do not apply, you can deduct the smaller of: $500, or The vehicle's fair market value on the date of the contribution. State tax filing But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. State tax filing   If the vehicle's fair market value is at least $250 but not more than $500, you must have a written statement from the qualified organization acknowledging your donation. State tax filing The statement must contain the information and meet the tests for an acknowledgment described under Deductions of At Least $250 But Not More Than $500 under Records To Keep, later. State tax filing Partial interest in property. State tax filing   Generally, you cannot deduct a charitable contribution of less than your entire interest in property. State tax filing Right to use property. State tax filing   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. State tax filing For exceptions and more information, see Partial Interest in Property Not in Trust in Publication 561. State tax filing Future interests in tangible personal property. State tax filing   You cannot deduct the value of a charitable contribution of a future interest in tangible personal property until all intervening interests in and rights to the actual possession or enjoyment of the property have either expired or been turned over to someone other than yourself, a related person, or a related organization. State tax filing Tangible personal property. State tax filing   This is any property, other than land or buildings, that can be seen or touched. State tax filing It includes furniture, books, jewelry, paintings, and cars. State tax filing Future interest. State tax filing   This is any interest that is to begin at some future time, regardless of whether it is designated as a future interest under state law. State tax filing Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. State tax filing Publication 561 contains a more complete discussion. State tax filing Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts. State tax filing Used clothing and household items. State tax filing   The fair market value of used clothing and household goods is usually far less than what you paid for them when they were new. State tax filing   For used clothing, you should claim as the value the price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops. State tax filing See Household Goods in Publication 561 for information on the valuation of household goods, such as furniture, appliances, and linens. State tax filing Example. State tax filing Dawn Greene donated a coat to a thrift store operated by her church. State tax filing She paid $300 for the coat 3 years ago. State tax filing Similar coats in the thrift store sell for $50. State tax filing The fair market value of the coat is $50. State tax filing Dawn's donation is limited to $50. State tax filing Cars, boats, and airplanes. State tax filing   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. State tax filing Certain commercial firms and trade organizations publish used car pricing guides, commonly called “blue books,” containing complete dealer sale prices or dealer average prices for recent model years. State tax filing The guides may be published monthly or seasonally and for different regions of the country. State tax filing These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. State tax filing The prices are not “official” and these publications are not considered an appraisal of any specific donated property. State tax filing But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. State tax filing   You can also find used car pricing information on the Internet. State tax filing Example. State tax filing You donate a used car in poor condition to a local high school for use by students studying car repair. State tax filing A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. State tax filing However, the guide shows the price for a private party sale of the car is only $750. State tax filing The fair market value of the car is considered to be $750. State tax filing Large quantities. State tax filing   If you contribute a large number of the same item, fair market value is the price at which comparable numbers of the item are being sold. State tax filing Giving Property That Has Decreased in Value If you contribute property with a fair market value that is less than your basis in it, your deduction is limited to its fair market value. State tax filing You cannot claim a deduction for the difference between the property's basis and its fair market value. State tax filing Giving Property That Has Increased in Value If you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. State tax filing Your basis in property is generally what you paid for it. State tax filing See chapter 13 if you need more information about basis. State tax filing Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. State tax filing Ordinary income property. State tax filing   Property is ordinary income property if you would have recognized ordinary income or short-term capital gain had you sold it at fair market value on the date it was contributed. State tax filing Examples of ordinary income property are inventory, works of art created by the donor, manuscripts prepared by the donor, and capital assets (defined in chapter 14) held 1 year or less. State tax filing Amount of deduction. State tax filing   The amount you can deduct for a contribution of ordinary income property is its fair market value minus the amount that would be ordinary income or short-term capital gain if you sold the property for its fair market value. State tax filing Generally, this rule limits the deduction to your basis in the property. State tax filing Example. State tax filing You donate stock you held for 5 months to your church. State tax filing The fair market value of the stock on the day you donate it is $1,000, but you paid only $800 (your basis). State tax filing Because the $200 of appreciation would be short-term capital gain if you sold the stock, your deduction is limited to $800 (fair market value minus the appreciation). State tax filing Capital gain property. State tax filing   Property is capital gain property if you would have recognized long-term capital gain had you sold it at fair market value on the date of the contribution. State tax filing It includes capital assets held more than 1 year, as well as certain real property and depreciable property used in your trade or business and, generally, held more than 1 year. State tax filing Amount of deduction — general rule. State tax filing   When figuring your deduction for a contribution of capital gain property, you generally can use the fair market value of the property. State tax filing Exceptions. State tax filing   In certain situations, you must reduce the fair market value by any amount that would have been long-term capital gain if you had sold the property for its fair market value. State tax filing Generally, this means reducing the fair market value to the property's cost or other basis. State tax filing Bargain sales. State tax filing   A bargain sale of property is a sale or exchange for less than the property's fair market value. State tax filing A bargain sale to a qualified organization is partly a charitable contribution and partly a sale or exchange. State tax filing A bargain sale may result in a taxable gain. State tax filing More information. State tax filing   For more information on donating appreciated property, see Giving Property That Has Increased in Value in Publication 526. State tax filing When To Deduct You can deduct your contributions only in the year you actually make them in cash or other property (or in a later carryover year, as explained later under Carryovers ). State tax filing This applies whether you use the cash or an accrual method of accounting. State tax filing Time of making contribution. State tax filing   Usually, you make a contribution at the time of its unconditional delivery. State tax filing Checks. State tax filing   A check you mail to a charity is considered delivered on the date you mail it. State tax filing Text message. State tax filing   Contributions made by text message are deductible in the year you send the text message if the contribution is charged to your telephone or wireless account. State tax filing Credit card. State tax filing    Contributions charged on your credit card are deductible in the year you make the charge. State tax filing Pay-by-phone account. State tax filing    Contributions made through a pay-by-phone account are considered delivered on the date the financial institution pays the amount. State tax filing Stock certificate. State tax filing   A properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity or to the charity's agent. State tax filing However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the charity, your contribution is not delivered until the date the stock is transferred on the books of the corporation. State tax filing Promissory note. State tax filing   If you issue and deliver a promissory note to a charity as a contribution, it is not a contribution until you make the note payments. State tax filing Option. State tax filing    If you grant a charity an option to buy real property at a bargain price, it is not a contribution until the organization exercises the option. State tax filing Borrowed funds. State tax filing   If you contribute borrowed funds, you can deduct the contribution in the year you deliver the funds to the charity, regardless of when you repay the loan. State tax filing Limits on Deductions The amount you can deduct for charitable contributions cannot be more than 50% of your adjusted gross income (AGI). State tax filing Your deduction may be further limited to 30% or 20% of your AGI, depending on the type of property you give and the type of organization you give it to. State tax filing If your total contributions for the year are 20% or less of your AGI, these limits do not apply to you. State tax filing The limits are discussed in detail under Limits on Deductions in Publication 526. State tax filing A higher limit applies to certain qualified conservation contributions. State tax filing See Publication 526 for details. State tax filing Carryovers You can carry over any contributions you cannot deduct in the current year because they exceed your adjusted-gross-income limits. State tax filing You can deduct the excess in each of the next 5 years until it is used up, but not beyond that time. State tax filing For more information, see Carryovers in Publication 526. State tax filing Records To Keep You must keep records to prove the amount of the contributions you make during the year. State tax filing The kind of records you must keep depends on the amount of your contributions and whether they are: Cash contributions, Noncash contributions, or Out-of-pocket expenses when donating your services. State tax filing Note. State tax filing An organization generally must give you a written statement if it receives a payment from you that is more than $75 and is partly a contribution and partly for goods or services. State tax filing (See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. State tax filing ) Keep the statement for your records. State tax filing It may satisfy all or part of the recordkeeping requirements explained in the following discussions. State tax filing Cash Contributions Cash contributions include those paid by cash, check, electronic funds transfer, debit card, credit card, or payroll deduction. State tax filing You cannot deduct a cash contribution, regardless of the amount, unless you keep one of the following. State tax filing A bank record that shows the name of the qualified organization, the date of the contribution, and the amount of the contribution. State tax filing Bank records may include: A canceled check, A bank or credit union statement, or A credit card statement. State tax filing A receipt (or a letter or other written communication) from the qualified organization showing the name of the organization, the date of the contribution, and the amount of the contribution. State tax filing The payroll deduction records described next. State tax filing Payroll deductions. State tax filing   If you make a contribution by payroll deduction, you must keep: A pay stub, Form W-2, or other document furnished by your employer that shows the date and amount of the contribution, and A pledge card or other document prepared by or for the qualified organization that shows the name of the organization. State tax filing If your employer withheld $250 or more from a single paycheck, see Contributions of $250 or More , next. State tax filing Contributions of $250 or More You can claim a deduction for a contribution of $250 or more only if you have an acknowledgment of your contribution from the qualified organization or certain payroll deduction records. State tax filing If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that lists each contribution and the date of each contribution and shows your total contributions. State tax filing Amount of contribution. State tax filing   In figuring whether your contribution is $250 or more, do not combine separate contributions. State tax filing For example, if you gave your church $25 each week, your weekly payments do not have to be combined. State tax filing Each payment is a separate contribution. State tax filing   If contributions are made by payroll deduction, the deduction from each paycheck is treated as a separate contribution. State tax filing   If you made a payment that is partly for goods and services, as described earlier under Contributions From Which You Benefit , your contribution is the amount of the payment that is more than the value of the goods and services. State tax filing Acknowledgment. State tax filing   The acknowledgment must meet these tests. State tax filing It must be written. State tax filing It must include: The amount of cash you contributed, Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), A description and good faith estimate of the value of any goods or services described in (b) (other than intangible religious benefits), and A statement that the only benefit you received was an intangible religious benefit, if that was the case. State tax filing The acknowledgment does not need to describe or estimate the value of an intangible religious benefit. State tax filing An intangible religious benefit is a benefit that generally is not sold in commercial transactions outside a donative (gift) context. State tax filing An example is admission to a religious ceremony. State tax filing You must get it on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. State tax filing   If the acknowledgment does not show the date of the contribution, you must also have a bank record or receipt, as described earlier, that does show the date of the contribution. State tax filing If the acknowledgment shows the date of the contribution and meets the other tests just described, you do not need any other records. State tax filing Payroll deductions. State tax filing   If you make a contribution by payroll deduction and your employer withholds $250 or more from a single paycheck, you must keep: A pay stub, Form W-2, or other document furnished by your employer that shows the amount withheld as a contribution, and A pledge card or other document prepared by or for the qualified organization that shows the name of the organization and states the organization does not provide goods or services in return for any contribution made to it by payroll deduction. State tax filing A single pledge card may be kept for all contributions made by payroll deduction regardless of amount as long as it contains all the required information. State tax filing   If the pay stub, Form W-2, pledge card, or other document does not show the date of the contribution, you must have another document that does show the date of the contribution. State tax filing If the pay stub, Form W-2, pledge card, or other document shows the date of the contribution, you do not need any other records except those just described in (1) and (2). State tax filing Noncash Contributions For a contribution not made in cash, the records you must keep depend on whether your deduction for the contribution is: Less than $250, At least $250 but not more than $500, Over $500 but not more than $5,000, or Over $5,000. State tax filing Amount of deduction. State tax filing   In figuring whether your deduction is $500 or more, combine your claimed deductions for all similar items of property donated to any charitable organization during the year. State tax filing   If you received goods or services in return, as described earlier in Contributions From Which You Benefit , reduce your contribution by the value of those goods or services. State tax filing If you figure your deduction by reducing the fair market value of the donated property by its appreciation, as described earlier in Giving Property That Has Increased in Value , your contribution is the reduced amount. State tax filing Deductions of Less Than $250 If you make any noncash contribution, you must get and keep a receipt from the charitable organization showing: The name of the charitable organization, The date and location of the charitable contribution, and A reasonably detailed description of the property. State tax filing A letter or other written communication from the charitable organization acknowledging receipt of the contribution and containing the information in (1), (2), and (3) will serve as a receipt. State tax filing You are not required to have a receipt where it is impractical to get one (for example, if you leave property at a charity's unattended drop site). State tax filing Additional records. State tax filing   You must also keep reliable written records for each item of contributed property. State tax filing Your written records must include the following information. State tax filing The name and address of the organization to which you contributed. State tax filing The date and location of the contribution. State tax filing A description of the property in detail reasonable under the circumstances. State tax filing For a security, keep the name of the issuer, the type of security, and whether it is regularly traded on a stock exchange or in an over-the-counter market. State tax filing The fair market value of the property at the time of the contribution and how you figured the fair market value. State tax filing If it was determined by appraisal, keep a signed copy of the appraisal. State tax filing The cost or other basis of the property, if you must reduce its fair market value by appreciation. State tax filing Your records should also include the amount of the reduction and how you figured it. State tax filing The amount you claim as a deduction for the tax year as a result of the contribution, if you contribute less than your entire interest in the property during the tax year. State tax filing Your records must include the amount you claimed as a deduction in any earlier years for contributions of other interests in this property. State tax filing They must also include the name and address of each organization to which you contributed the other interests, the place where any such tangible property is located or kept, and the name of any person in possession of the property, other than the organization to which you contributed it. State tax filing The terms of any conditions attached to the contribution of property. State tax filing Deductions of At Least $250 But Not More Than $500 If you claim a deduction of at least $250 but not more than $500 for a noncash charitable contribution, you must get and keep an acknowledgment of your contribution from the qualified organization. State tax filing If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that shows your total contributions. State tax filing The acknowledgment must contain the information in items (1) through (3) under Deductions of Less Than $250 , earlier, and your written records must include the information listed in that discussion under Additional records . State tax filing The acknowledgment must also meet these tests. State tax filing It must be written. State tax filing It must include: A description (but not necessarily the value) of any property you contributed, Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), and A description and good faith estimate of the value of any goods or services described in (b). State tax filing If the only benefit you received was an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in a commercial transaction outside the donative context, the acknowledgment must say so and does not need to describe or estimate the value of the benefit. State tax filing You must get it on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. State tax filing Deductions Over $500 You are required to give additional information if you claim a deduction over $500 for noncash charitable contributions. State tax filing See Records To Keep in Publication 526 for more information. State tax filing Out-of-Pocket Expenses If you give services to a qualified organization and have unreimbursed out-of-pocket expenses related to those services, the following two rules apply. State tax filing You must have adequate records to prove the amount of the expenses. State tax filing If any of your unreimbursed out-of-pocket expenses, considered separately, are $250 or more (for example, you pay $250 or more for an airline ticket to attend a convention of a qualified organization as a chosen representative), you must get an acknowledgment from the qualified organization that contains: A description of the services you provided, A statement of whether or not the organization provided you any goods or services to reimburse you for the expenses you incurred, A description and a good faith estimate of the value of any goods or services (other than intangible religious benefits) provided to reimburse you, and A statement that the only benefit you received was an intangible religious benefit, if that was the case. State tax filing The acknowledgment does not need to describe or estimate the value of an intangible religious benefit (defined earlier under Acknowledgment ). State tax filing You must get the acknowledgment on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. State tax filing Car expenses. State tax filing   If you claim expenses directly related to use of your car in giving services to a qualified organization, you must keep reliable written records of your expenses. State tax filing Whether your records are considered reliable depends on all the facts and circumstances. State tax filing Generally, they may be considered reliable if you made them regularly and at or near the time you had the expenses. State tax filing   For example, your records might show the name of the organization you were serving and the dates you used your car for a charitable purpose. State tax filing If you use the standard mileage rate of 14 cents a mile, your records must show the miles you drove your car for the charitable purpose. State tax filing If you deduct your actual expenses, your records must show the costs of operating the car that are directly related to a charitable purpose. State tax filing   See Car expenses under Out-of-Pocket Expenses in Giving Services, earlier, for the expenses you can deduct. State tax filing How To Report Report your charitable contributions on Schedule A (Form 1040). State tax filing If your total deduction for all noncash contributions for the year is over $500, you must also file Form 8283. State tax filing See How To Report in Publication 526 for more information. State tax filing Prev  Up  Next   Home   More Online Publications
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The State Tax Filing

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