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State Tax Return 2013

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State Tax Return 2013

State tax return 2013 5. State tax return 2013   Taxes Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: When To Deduct Taxes Real Estate TaxesSeparate elections. State tax return 2013 Making the election. State tax return 2013 Form 3115. State tax return 2013 Income TaxesAccrual of contested income taxes. State tax return 2013 Employment Taxes Other TaxesAdditional Medicare Tax. State tax return 2013 What's New Additional Medicare Tax. State tax return 2013  Beginning in 2013, you must withhold a 0. State tax return 2013 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. State tax return 2013 Also, self-employed individuals may be required to pay Additional Medicare Tax on self-employment income. State tax return 2013 See Employment Taxes , and Self-employment tax , later. State tax return 2013 Introduction You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. State tax return 2013 You cannot deduct federal income taxes, estate and gift taxes, or state inheritance, legacy, and succession taxes. State tax return 2013 Topics - This chapter discusses: When to deduct taxes Real estate taxes Income taxes Employment taxes Other taxes Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 510 Excise Taxes 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch SE (Form 1040) Self-Employment Tax 3115 Application for Change in Accounting Method 8959 Additional Medicare Tax See chapter 12 for information about getting publications and forms. State tax return 2013 When To Deduct Taxes Generally, you can only deduct taxes in the year you pay them. State tax return 2013 This applies whether you use the cash method or an accrual method of accounting. State tax return 2013 Under an accrual method, you can deduct a tax before you pay it if you meet the exception for recurring items discussed under Economic Performance in Publication 538. State tax return 2013 You can also elect to ratably accrue real estate taxes as discussed later under Real Estate Taxes . State tax return 2013 Limit on accrual of taxes. State tax return 2013   A taxing jurisdiction can require the use of a date for accruing taxes that is earlier than the date it originally required. State tax return 2013 However, if you use an accrual method, and can deduct the tax before you pay it, use the original accrual date for the year of change and all future years to determine when you can deduct the tax. State tax return 2013 Example. State tax return 2013 Your state imposes a tax on personal property used in a trade or business conducted in the state. State tax return 2013 This tax is assessed and becomes a lien as of July 1 (accrual date). State tax return 2013 In 2013, the state changed the assessment and lien dates from July 1, 2014, to December 31, 2013, for property tax year 2014. State tax return 2013 Use the original accrual date (July 1, 2014) to determine when you can deduct the tax. State tax return 2013 You must also use the July 1 accrual date for all future years to determine when you can deduct the tax. State tax return 2013 Uniform capitalization rules. State tax return 2013   Uniform capitalization rules apply to certain taxpayers who produce real property or tangible personal property for use in a trade or business or for sale to customers. State tax return 2013 They also apply to certain taxpayers who acquire property for resale. State tax return 2013 Under these rules, you either include certain costs in inventory or capitalize certain expenses related to the property, such as taxes. State tax return 2013 For more information, see chapter 1. State tax return 2013 Carrying charges. State tax return 2013   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. State tax return 2013 You can elect to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. State tax return 2013 For more information, see chapter 7. State tax return 2013 Refunds of taxes. State tax return 2013   If you receive a refund for any taxes you deducted in an earlier year, include the refund in income to the extent the deduction reduced your federal income tax in the earlier year. State tax return 2013 For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1. State tax return 2013    You must include in income any interest you receive on tax refunds. State tax return 2013 Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. State tax return 2013 The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. State tax return 2013 Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. State tax return 2013 See Taxes for local benefits , later. State tax return 2013 If you use an accrual method, you generally cannot accrue real estate taxes until you pay them to the government authority. State tax return 2013 However, you can elect to ratably accrue the taxes during the year. State tax return 2013 See Electing to ratably accrue , later. State tax return 2013 Taxes for local benefits. State tax return 2013   Generally, you cannot deduct taxes charged for local benefits and improvements that tend to increase the value of your property. State tax return 2013 These include assessments for streets, sidewalks, water mains, sewer lines, and public parking facilities. State tax return 2013 You should increase the basis of your property by the amount of the assessment. State tax return 2013   You can deduct taxes for these local benefits only if the taxes are for maintenance, repairs, or interest charges related to those benefits. State tax return 2013 If part of the tax is for maintenance, repairs, or interest, you must be able to show how much of the tax is for these expenses to claim a deduction for that part of the tax. State tax return 2013 Example. State tax return 2013 To improve downtown commercial business, Waterfront City converted a downtown business area street into an enclosed pedestrian mall. State tax return 2013 The city assessed the full cost of construction, financed with 10-year bonds, against the affected properties. State tax return 2013 The city is paying the principal and interest with the annual payments made by the property owners. State tax return 2013 The assessments for construction costs are not deductible as taxes or as business expenses, but are depreciable capital expenses. State tax return 2013 The part of the payments used to pay the interest charges on the bonds is deductible as taxes. State tax return 2013 Charges for services. State tax return 2013   Water bills, sewerage, and other service charges assessed against your business property are not real estate taxes, but are deductible as business expenses. State tax return 2013 Purchase or sale of real estate. State tax return 2013   If real estate is sold, the real estate taxes must be allocated between the buyer and the seller. State tax return 2013   The buyer and seller must allocate the real estate taxes according to the number of days in the real property tax year (the period to which the tax imposed relates) that each owned the property. State tax return 2013 Treat the seller as paying the taxes up to but not including the date of sale. State tax return 2013 Treat the buyer as paying the taxes beginning with the date of sale. State tax return 2013 You can usually find this information on the settlement statement you received at closing. State tax return 2013   If you (the seller) use an accrual method and have not elected to ratably accrue real estate taxes, you are considered to have accrued your part of the tax on the date you sell the property. State tax return 2013 Example. State tax return 2013 Alberto Verde, a calendar year accrual method taxpayer, owns real estate in Olmo County. State tax return 2013 He has not elected to ratably accrue property taxes. State tax return 2013 November 30 of each year is the assessment and lien date for the current real property tax year, which is the calendar year. State tax return 2013 He sold the property on June 30, 2013. State tax return 2013 Under his accounting method he would not be able to claim a deduction for the taxes because the sale occurred before November 30. State tax return 2013 He is treated as having accrued his part of the tax, 181/366  (January 1–June 29), on June 30, and he can deduct it for 2013. State tax return 2013 Electing to ratably accrue. State tax return 2013   If you use an accrual method, you can elect to accrue real estate tax related to a definite period ratably over that period. State tax return 2013 Example. State tax return 2013 Juan Sanchez is a calendar year taxpayer who uses an accrual method. State tax return 2013 His real estate taxes for the real property tax year, July 1, 2013, to June 30, 2014, are $1,200. State tax return 2013 July 1 is the assessment and lien date. State tax return 2013 If Juan elects to ratably accrue the taxes, $600 will accrue in 2013 ($1,200 × 6/12, July 1–December 31) and the balance will accrue in 2014. State tax return 2013 Separate elections. State tax return 2013   You can elect to ratably accrue the taxes for each separate trade or business and for nonbusiness activities if you account for them separately. State tax return 2013 Once you elect to ratably accrue real estate taxes, you must use that method unless you get permission from the IRS to change. State tax return 2013 See Form 3115 , later. State tax return 2013 Making the election. State tax return 2013   If you elect to ratably accrue the taxes for the first year in which you incur real estate taxes, attach a statement to your income tax return for that year. State tax return 2013 The statement should show all the following items. State tax return 2013 The trades or businesses to which the election applies and the accounting method or methods used. State tax return 2013 The period to which the taxes relate. State tax return 2013 The computation of the real estate tax deduction for that first year. State tax return 2013   Generally, you must file your return by the due date (including extensions). State tax return 2013 However, if you timely filed your return for the year without electing to ratably accrue, you can still make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). State tax return 2013 Attach the statement to the amended return and write “Filed pursuant to section 301. State tax return 2013 9100-2” on the statement. State tax return 2013 File the amended return at the same address where you filed the original return. State tax return 2013 Form 3115. State tax return 2013    If you elect to ratably accrue real estate taxes for a year after the first year in which you incur real estate taxes, or if you want to revoke your election to ratably accrue real estate taxes, file Form 3115. State tax return 2013 For more information, including applicable time frames for filing, see the Instructions for Form 3115. State tax return 2013 Note. State tax return 2013 If you are filing an application for a change in accounting method filed after January 9, 2011, for a year of change ending after April 29, 2010, see Revenue Procedure 2011-14, 2011-4 I. State tax return 2013 R. State tax return 2013 B. State tax return 2013 330, as modified and clarified by Revenue Procedure 2012-19, 2012-14 I. State tax return 2013 R. State tax return 2013 B. State tax return 2013 689, and Revenue Procedure 2012-20, 2012-14 I. State tax return 2013 R. State tax return 2013 B. State tax return 2013 700, or any successor. State tax return 2013 Revenue Procedure 2011-14 is available at  www. State tax return 2013 irs. State tax return 2013 gov/irb/2011-04IRB/ar08. State tax return 2013 html. State tax return 2013 Income Taxes This section discusses federal, state, local, and foreign income taxes. State tax return 2013 Federal income taxes. State tax return 2013   You cannot deduct federal income taxes. State tax return 2013 State and local income taxes. State tax return 2013   A corporation or partnership can deduct state and local income taxes imposed on the corporation or partnership as business expenses. State tax return 2013 An individual can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). State tax return 2013   However, an individual can deduct a state tax on gross income (as distinguished from net income) directly attributable to a trade or business as a business expense. State tax return 2013 Accrual of contested income taxes. State tax return 2013   If you use an accrual method, and you contest a state or local income tax liability, you must accrue and deduct any contested amount in the tax year in which the liability is finally determined. State tax return 2013   If additional state or local income taxes for a prior year are assessed in a later year, you can deduct the taxes in the year in which they were originally imposed (the prior year) if the tax liability is not contested. State tax return 2013 You cannot deduct them in the year in which the liability is finally determined. State tax return 2013    The filing of an income tax return is not considered a contest and, in the absence of an overt act of protest, you can deduct the tax in the prior year. State tax return 2013 Also, you can deduct any additional taxes in the prior year if you do not show some affirmative evidence of denial of the liability. State tax return 2013   However, if you consistently deduct additional assessments in the year they are paid or finally determined (including those for which there was no contest), you must continue to do so. State tax return 2013 You cannot take a deduction in the earlier year unless you receive permission to change your method of accounting. State tax return 2013 For more information on accounting methods, see When Can I Deduct an Expense in chapter 1. State tax return 2013 Foreign income taxes. State tax return 2013   Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. State tax return 2013 S. State tax return 2013 possession. State tax return 2013 However, an individual cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. State tax return 2013 S. State tax return 2013 tax under the foreign earned income exclusion or the foreign housing exclusion. State tax return 2013 For information on these exclusions, see Publication 54, Tax Guide for U. State tax return 2013 S. State tax return 2013 Citizens and Resident Aliens Abroad. State tax return 2013 For information on the foreign tax credit, see Publication 514, Foreign Tax Credit for Individuals. State tax return 2013 Employment Taxes If you have employees, you must withhold various taxes from your employees' pay. State tax return 2013 Most employers must withhold their employees' share of social security, Medicare taxes, and Additional Medicare Tax (if applicable) along with state and federal income taxes. State tax return 2013 You may also need to pay certain employment taxes from your own funds. State tax return 2013 These include your share of social security and Medicare taxes as an employer, along with unemployment taxes. State tax return 2013 Note. State tax return 2013 Additional Medicare Tax is only imposed on the employee. State tax return 2013 There is no employer share of Additional Medicare Tax. State tax return 2013 Your deduction for wages paid is not reduced by the social security and Medicare taxes, Additional Medicare Tax, and income taxes you withhold from your employees. State tax return 2013 You can deduct the employment taxes you must pay from your own funds as taxes. State tax return 2013 Example. State tax return 2013 You pay your employee $18,000 a year. State tax return 2013 However, after you withhold various taxes, your employee receives $14,500. State tax return 2013 You also pay an additional $1,500 in employment taxes. State tax return 2013 You should deduct the full $18,000 as wages. State tax return 2013 You can deduct the $1,500 you pay from your own funds as taxes. State tax return 2013 For more information on employment taxes, see Publication 15 (Circular E). State tax return 2013 Unemployment fund taxes. State tax return 2013   As an employer, you may have to make payments to a state unemployment compensation fund or to a state disability benefit fund. State tax return 2013 Deduct these payments as taxes. State tax return 2013 Other Taxes The following are other taxes you can deduct if you incur them in the ordinary course of your trade or business. State tax return 2013 Excise taxes. State tax return 2013   Generally, you can deduct as a business expense all excise taxes that are ordinary and necessary expenses of carrying on your trade or business. State tax return 2013 However, see Fuel taxes , later. State tax return 2013   For more information on excise taxes, see Publication 510. State tax return 2013 Franchise taxes. State tax return 2013   You can deduct corporate franchise taxes as a business expense. State tax return 2013 Fuel taxes. State tax return 2013   Generally, taxes on gasoline, diesel fuel, and other motor fuels that you use in your business are included as part of the cost of the fuel. State tax return 2013 Do not deduct these taxes as a separate item. State tax return 2013   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. State tax return 2013 For more information, see Publication 510. State tax return 2013 Occupational taxes. State tax return 2013   You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. State tax return 2013 Personal property tax. State tax return 2013   You can deduct any tax imposed by a state or local government on personal property used in your trade or business. State tax return 2013 Sales tax. State tax return 2013   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. State tax return 2013 If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. State tax return 2013 If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. State tax return 2013 If the property is depreciable, add the sales tax to the basis for depreciation. State tax return 2013 For more information on basis, see Publication 551. State tax return 2013    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. State tax return 2013 Also, do not include these taxes in gross receipts or sales. State tax return 2013 Self-employment tax. State tax return 2013   You can deduct part of your self-employment tax as a business expense in figuring your adjusted gross income. State tax return 2013 This deduction only affects your income tax. State tax return 2013 It does not affect your net earnings from self-employment or your self-employment tax. State tax return 2013   To deduct the tax, enter on Form 1040, line 27, the amount shown on the Deduction for one-half of self-employment tax line of Schedule SE (Form 1040). State tax return 2013   For more information on self-employment tax, see Publication 334. State tax return 2013 Additional Medicare Tax. State tax return 2013   Beginning in 2013, you may be required to pay Additional Medicare Tax on self-employment income. State tax return 2013 See Form 8959 and the Instructions for Form 8959 for more information on the Additional Medicare Tax. State tax return 2013 Prev  Up  Next   Home   More Online Publications
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The State Tax Return 2013

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