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States Without Income Tax

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States Without Income Tax

States without income tax Index A Archer MSAs, Archer MSAs, Employment taxes. States without income tax Assistance (see Tax help) C Contributions to FSA, Contributions to an FSA HRA, Contributions to an HRA HSA, Contributions to an HSA MSA, Contributions to an MSA D Death of HSA holder, Death of HSA Holder MSA holder, Death of the Archer MSA Holder Distributions from FSA, Distributions From an FSA HRA, Distributions From an HRA HSA, Distributions From an HSA MSA, Distributions From an MSA E Employer participation FSA, Employer Participation HRA, Employer Participation HSA, Employer Participation MSA, Employer Participation F Flexible Spending Arrangements Grace Period, Health FSA – grace period. States without income tax Flexible spending arrangements, Flexible Spending Arrangements (FSAs), Employer Participation Balance in, Balance in an FSA Contributions to, Contributions to an FSA Distributions from, Distributions From an FSA Qualifying for, Qualifying for an FSA When to contribute, When To Contribute Form 5329, Excess contributions. States without income tax , Excess contributions. States without income tax 5498–SA, Form 8889. States without income tax , Reporting Contributions on Your Return 8853, Additional tax. States without income tax , Filing Form 8853 8889, Form 8889. States without income tax , Additional tax. States without income tax , Filing Form 8889 Free tax services, Free help with your tax return. States without income tax H Health plans, high deductible, High deductible health plan (HDHP). States without income tax , High deductible health plan (HDHP). States without income tax Health reimbursement arrangements, Health Reimbursement Arrangements (HRAs), Employer Participation Balance in, Balance in an HRA Contributions to, Contributions to an HRA Distributions from, Distributions From an HRA Qualifying for, Qualifying for an HRA Health savings accounts, Health Savings Accounts (HSAs), Employment taxes. States without income tax Balance in, Balance in an HSA Contributions to, Contributions to an HSA Deemed distributions, Deemed distributions from HSAs. States without income tax Distributions from, Distributions From an HSA Last-month rule, Last-month rule. States without income tax Partnerships, Reporting Contributions on Your Return Qualifying for, Qualifying for an HSA Rollovers, Rollovers S corporations, Reporting Contributions on Your Return When to contribute, When To Contribute Help (see Tax help) High deductible health plan, High deductible health plan (HDHP). States without income tax , High deductible health plan (HDHP). States without income tax M Medical expenses, qualified, Qualified medical expenses. States without income tax , Qualified medical expenses. States without income tax , Qualified medical expenses. States without income tax , Qualified medical expenses. States without income tax Medical savings accounts, Medical Savings Accounts (MSAs), Medicare Advantage MSAs Balance in, Balance in an Archer MSA Contributions to, Contributions to an MSA Deemed distributions, Deemed distributions from Archer MSAs. States without income tax Distributions from, Distributions From an MSA Medicare Advantage MSAs, Medicare Advantage MSAs Qualifying for, Qualifying for an Archer MSA When to contribute, When To Contribute Medicare Advantage MSAs, Medicare Advantage MSAs P Preventive care, High deductible health plan (HDHP). States without income tax Publications (see Tax help) Q Qualified HSA funding distribution, Qualified HSA funding distribution. States without income tax T Tax help, How To Get Tax Help Testing period Last-month rule, Testing period. States without income tax Qualified HSA funding distribution, Funding distribution – testing period. States without income tax TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications
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Commissioner John Koskinen

John Koskinen is the 48th IRS Commissioner. As Commissioner, he presides over the nation’s tax system, which collects approximately $2.4 trillion in tax revenue each year. This revenue funds most government operations and public services. Mr. Koskinen manages an agency of about 90,000 employees and a budget of approximately $11 billion.

In his role leading the IRS, Mr. Koskinen is working to ensure that the agency maintains an appropriate balance between taxpayer service and tax enforcement and administers the tax code with fairness and integrity.

Prior to his appointment, Mr. Koskinen served as the non-executive chairman of Freddie Mac from 2008 to 2012 and its acting chief executive officer in 2009. Previously, Mr. Koskinen served as President of the U.S. Soccer Foundation, Deputy Mayor and City Administrator of Washington D.C., Assistant to the President and Chair of the President's Council on Year 2000 Conversion and Deputy Director for Management at the Office of Management and Budget. Mr. Koskinen also spent 21 years in the private sector in various leadership positions with the Palmieri Company, including President and Chief Executive Officer, helping to turn around large, troubled organizations. He began his career clerking for Chief Judge David L. Bazelon of the DC Circuit Court of Appeals in 1965, practiced law with the firm of Gibson, Dunn and Crutcher and served as Assistant to the Deputy Executive Director of the National Advisory Commission on Civil Disorders, also known as the Kerner Commission. Mr. Koskinen also served as Legislative Assistant to New York Mayor John Lindsay and Administrative Assistant to Sen. Abraham Ribicoff of Connecticut.

Mr. Koskinen holds a Law Degree from Yale University School of Law and a Bachelor’s Degree from Duke University. He also studied International Law for one year in Cambridge, England. He and his wife Patricia have two grown children and live in Washington, DC.

 

Page Last Reviewed or Updated: 14-Feb-2014

The States Without Income Tax

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