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Taxact 2012 Return User

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Taxact 2012 Return User

Taxact 2012 return user 5. Taxact 2012 return user   How To Get Tax Help Table of Contents Low Income Taxpayer Clinics Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Taxact 2012 return user Free help with your tax return. Taxact 2012 return user   You can get free help preparing your return nationwide from IRS-certified volunteers. Taxact 2012 return user The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Taxact 2012 return user The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Taxact 2012 return user Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Taxact 2012 return user In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Taxact 2012 return user To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Taxact 2012 return user gov, download the IRS2Go app, or call 1-800-906-9887. Taxact 2012 return user   As part of the TCE program, AARP offers the Tax-Aide counseling program. Taxact 2012 return user To find the nearest AARP Tax-Aide site, visit AARP's website at www. Taxact 2012 return user aarp. Taxact 2012 return user org/money/taxaide or call 1-888-227-7669. Taxact 2012 return user For more information on these programs, go to IRS. Taxact 2012 return user gov and enter “VITA” in the search box. Taxact 2012 return user Internet. Taxact 2012 return user    IRS. Taxact 2012 return user gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Taxact 2012 return user Download the free IRS2Go app from the iTunes app store or from Google Play. Taxact 2012 return user Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Taxact 2012 return user Check the status of your 2013 refund with the Where's My Refund? application on IRS. Taxact 2012 return user gov or download the IRS2Go app and select the Refund Status option. Taxact 2012 return user The IRS issues more than 9 out of 10 refunds in less than 21 days. Taxact 2012 return user Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Taxact 2012 return user You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Taxact 2012 return user The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Taxact 2012 return user Use the Interactive Tax Assistant (ITA) to research your tax questions. Taxact 2012 return user No need to wait on the phone or stand in line. Taxact 2012 return user The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Taxact 2012 return user When you reach the response screen, you can print the entire interview and the final response for your records. Taxact 2012 return user New subject areas are added on a regular basis. Taxact 2012 return user  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Taxact 2012 return user gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Taxact 2012 return user You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Taxact 2012 return user The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Taxact 2012 return user When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Taxact 2012 return user Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Taxact 2012 return user You can also ask the IRS to mail a return or an account transcript to you. Taxact 2012 return user Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Taxact 2012 return user gov or by calling 1-800-908-9946. Taxact 2012 return user Tax return and tax account transcripts are generally available for the current year and the past three years. Taxact 2012 return user Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Taxact 2012 return user Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Taxact 2012 return user If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Taxact 2012 return user Check the status of your amended return using Where's My Amended Return? Go to IRS. Taxact 2012 return user gov and enter Where's My Amended Return? in the search box. Taxact 2012 return user You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Taxact 2012 return user It can take up to 3 weeks from the date you mailed it to show up in our system. Taxact 2012 return user Make a payment using one of several safe and convenient electronic payment options available on IRS. Taxact 2012 return user gov. Taxact 2012 return user Select the Payment tab on the front page of IRS. Taxact 2012 return user gov for more information. Taxact 2012 return user Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Taxact 2012 return user Figure your income tax withholding with the IRS Withholding Calculator on IRS. Taxact 2012 return user gov. Taxact 2012 return user Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Taxact 2012 return user Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Taxact 2012 return user gov. Taxact 2012 return user Request an Electronic Filing PIN by going to IRS. Taxact 2012 return user gov and entering Electronic Filing PIN in the search box. Taxact 2012 return user Download forms, instructions and publications, including accessible versions for people with disabilities. Taxact 2012 return user Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Taxact 2012 return user gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Taxact 2012 return user An employee can answer questions about your tax account or help you set up a payment plan. Taxact 2012 return user Before you visit, check the Office Locator on IRS. Taxact 2012 return user gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Taxact 2012 return user If you have a special need, such as a disability, you can request an appointment. Taxact 2012 return user Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Taxact 2012 return user Apply for an Employer Identification Number (EIN). Taxact 2012 return user Go to IRS. Taxact 2012 return user gov and enter Apply for an EIN in the search box. Taxact 2012 return user Read the Internal Revenue Code, regulations, or other official guidance. Taxact 2012 return user Read Internal Revenue Bulletins. Taxact 2012 return user Sign up to receive local and national tax news and more by email. Taxact 2012 return user Just click on “subscriptions” above the search box on IRS. Taxact 2012 return user gov and choose from a variety of options. Taxact 2012 return user    Phone. Taxact 2012 return user You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Taxact 2012 return user Download the free IRS2Go app from the iTunes app store or from Google Play. Taxact 2012 return user Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Taxact 2012 return user gov, or download the IRS2Go app. Taxact 2012 return user Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Taxact 2012 return user The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Taxact 2012 return user Most VITA and TCE sites offer free electronic filing. Taxact 2012 return user Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Taxact 2012 return user Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Taxact 2012 return user Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Taxact 2012 return user If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Taxact 2012 return user The IRS issues more than 9 out of 10 refunds in less than 21 days. Taxact 2012 return user Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Taxact 2012 return user Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Taxact 2012 return user The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Taxact 2012 return user Note, the above information is for our automated hotline. Taxact 2012 return user Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Taxact 2012 return user Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Taxact 2012 return user You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Taxact 2012 return user It can take up to 3 weeks from the date you mailed it to show up in our system. Taxact 2012 return user Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Taxact 2012 return user You should receive your order within 10 business days. Taxact 2012 return user Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Taxact 2012 return user If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Taxact 2012 return user Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Taxact 2012 return user The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Taxact 2012 return user These individuals can also contact the IRS through relay services such as the Federal Relay Service. Taxact 2012 return user    Walk-in. Taxact 2012 return user You can find a selection of forms, publications and services — in-person. Taxact 2012 return user Products. Taxact 2012 return user You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Taxact 2012 return user Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Taxact 2012 return user Services. Taxact 2012 return user You can walk in to your local TAC for face-to-face tax help. Taxact 2012 return user An employee can answer questions about your tax account or help you set up a payment plan. Taxact 2012 return user Before visiting, use the Office Locator tool on IRS. Taxact 2012 return user gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Taxact 2012 return user    Mail. Taxact 2012 return user You can send your order for forms, instructions, and publications to the address below. Taxact 2012 return user You should receive a response within 10 business days after your request is received. Taxact 2012 return user Internal Revenue Service 1201 N. Taxact 2012 return user Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Taxact 2012 return user The Taxpayer Advocate Service (TAS) is your voice at the IRS. Taxact 2012 return user Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Taxact 2012 return user   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Taxact 2012 return user We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Taxact 2012 return user You face (or your business is facing) an immediate threat of adverse action. Taxact 2012 return user You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Taxact 2012 return user   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Taxact 2012 return user Here's why we can help: TAS is an independent organization within the IRS. Taxact 2012 return user Our advocates know how to work with the IRS. Taxact 2012 return user Our services are free and tailored to meet your needs. Taxact 2012 return user We have offices in every state, the District of Columbia, and Puerto Rico. Taxact 2012 return user   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Taxact 2012 return user   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Taxact 2012 return user If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Taxact 2012 return user Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Taxact 2012 return user Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Taxact 2012 return user Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Taxact 2012 return user Prev  Up  Next   Home   More Online Publications
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Understanding Your CP291 Notice

We're revoking your Electing Small Business Trust (ESBT) election.


What you need to do

  • Timely file Form 1041
  • Keep this notice in your permanent records.

You may want to

  • Keep this notice in your permanent records.

Understanding your notice

Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP291, Page 1

 

Page Last Reviewed or Updated: 16-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Taxact 2012 Return User

Taxact 2012 return user 5. Taxact 2012 return user   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. Taxact 2012 return user You may be able to reduce your federal income tax by claiming one or more of these credits. Taxact 2012 return user Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. Taxact 2012 return user For more information, see Publication 524, Credit for the Elderly or the Disabled. Taxact 2012 return user You can take the credit only if you file Form 1040 or Form 1040A. Taxact 2012 return user You cannot take the credit if you file Form 1040EZ or Form 1040NR. Taxact 2012 return user Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Taxact 2012 return user You are a qualified individual. Taxact 2012 return user Your income is not more than certain limits. Taxact 2012 return user  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. Taxact 2012 return user   Qualified Individual You are a qualified individual for this credit if you are a U. Taxact 2012 return user S. Taxact 2012 return user citizen or resident alien, and either of the following applies. Taxact 2012 return user You were age 65 or older at the end of 2013. Taxact 2012 return user You were under age 65 at the end of 2013 and all three of the following statements are true. Taxact 2012 return user You retired on permanent and total disability (explained later). Taxact 2012 return user You received taxable disability income for 2013. Taxact 2012 return user On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Taxact 2012 return user Age 65. Taxact 2012 return user You are considered to be age 65 on the day before your 65th birthday. Taxact 2012 return user Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. Taxact 2012 return user Figure 5-A. Taxact 2012 return user Are You a Qualified Individual? This image is too large to be displayed in the current screen. Taxact 2012 return user Please click the link to view the image. Taxact 2012 return user Figure 5-A, Are you a qualified individual? U. Taxact 2012 return user S. Taxact 2012 return user citizen or resident alien. Taxact 2012 return user   You must be a U. Taxact 2012 return user S. Taxact 2012 return user citizen or resident alien (or be treated as a resident alien) to take the credit. Taxact 2012 return user Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Taxact 2012 return user Exceptions. Taxact 2012 return user   You may be able to take the credit if you are a nonresident alien who is married to a U. Taxact 2012 return user S. Taxact 2012 return user citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Taxact 2012 return user S. Taxact 2012 return user resident alien. Taxact 2012 return user If you make that choice, both you and your spouse are taxed on your worldwide income. Taxact 2012 return user   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Taxact 2012 return user S. Taxact 2012 return user citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Taxact 2012 return user S. Taxact 2012 return user resident alien for the entire year. Taxact 2012 return user In that case, you may be allowed to take the credit. Taxact 2012 return user   For information on these choices, see chapter 1 of Publication 519, U. Taxact 2012 return user S. Taxact 2012 return user Tax Guide for Aliens. Taxact 2012 return user Married persons. Taxact 2012 return user   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Taxact 2012 return user However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Taxact 2012 return user Head of household. Taxact 2012 return user   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. Taxact 2012 return user See Publication 524 and Publication 501. Taxact 2012 return user Under age 65. Taxact 2012 return user   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). Taxact 2012 return user You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. Taxact 2012 return user You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. Taxact 2012 return user   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Taxact 2012 return user If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Taxact 2012 return user Permanent and total disability. Taxact 2012 return user   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Taxact 2012 return user A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Taxact 2012 return user See Physician's statement , later. Taxact 2012 return user Substantial gainful activity. Taxact 2012 return user   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Taxact 2012 return user   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Taxact 2012 return user   Substantial gainful activity is not work you do to take care of yourself or your home. Taxact 2012 return user It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Taxact 2012 return user However, doing this kind of work may show that you are able to engage in substantial gainful activity. Taxact 2012 return user    Figure 5-B. Taxact 2012 return user Income Limits IF your filing status is. Taxact 2012 return user . Taxact 2012 return user . Taxact 2012 return user THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. Taxact 2012 return user . Taxact 2012 return user . Taxact 2012 return user OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Taxact 2012 return user . Taxact 2012 return user . Taxact 2012 return user single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Taxact 2012 return user Physician's statement. Taxact 2012 return user   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Taxact 2012 return user   You do not have to file this statement with your tax return, but you must keep it for your records. Taxact 2012 return user The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. Taxact 2012 return user Veterans. Taxact 2012 return user   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Taxact 2012 return user VA Form 21-0172 must be signed by a person authorized by the VA to do so. Taxact 2012 return user You can get this form from your local VA regional office. Taxact 2012 return user Physician's statement obtained in earlier year. Taxact 2012 return user   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Taxact 2012 return user For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. Taxact 2012 return user If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. Taxact 2012 return user   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. Taxact 2012 return user Disability income. Taxact 2012 return user   If you are under age 65, you must also have taxable disability income to qualify for the credit. Taxact 2012 return user   Disability income must meet the following two requirements. Taxact 2012 return user It must be paid under your employer's accident or health plan or pension plan. Taxact 2012 return user It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. Taxact 2012 return user Payments that are not disability income. Taxact 2012 return user   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Taxact 2012 return user Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Taxact 2012 return user   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Taxact 2012 return user Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. Taxact 2012 return user Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. Taxact 2012 return user Figuring the credit yourself. Taxact 2012 return user   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). Taxact 2012 return user Next, fill out Schedule R (Form 1040A or 1040), Part III. Taxact 2012 return user Credit figured for you. Taxact 2012 return user   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). Taxact 2012 return user If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. Taxact 2012 return user Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. Taxact 2012 return user The credit can be up to 35% of your expenses. Taxact 2012 return user To qualify, you must pay these expenses so you can work or look for work. Taxact 2012 return user If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. Taxact 2012 return user If the correct information is not shown, the credit may be reduced or disallowed. Taxact 2012 return user You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. Taxact 2012 return user For more information, see Publication 503, Child and Dependent Care Expenses. Taxact 2012 return user Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. Taxact 2012 return user The EIC is available to persons with or without a qualifying child. Taxact 2012 return user Credit has no effect on certain welfare benefits. Taxact 2012 return user   Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. Taxact 2012 return user These programs include the following. Taxact 2012 return user Medicaid and supplemental security income (SSI). Taxact 2012 return user Supplemental Nutrition Assistance Program (food stamps). Taxact 2012 return user Low-income housing. Taxact 2012 return user Temporary Assistance for Needy Families (TANF). Taxact 2012 return user  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Taxact 2012 return user Check with your local benefit coordinator to find out if your refund will affect your benefits. Taxact 2012 return user Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. Taxact 2012 return user The specific rules you must meet depend on whether you have a qualifying child. Taxact 2012 return user If you have a qualifying child, the rules in Parts A, B, and D apply to you. Taxact 2012 return user If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Taxact 2012 return user  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. Taxact 2012 return user You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). Taxact 2012 return user The sections that follow provide additional information for some of the rules. Taxact 2012 return user Adjusted gross income (AGI). Taxact 2012 return user   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. Taxact 2012 return user Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). Taxact 2012 return user Table 5-1. Taxact 2012 return user Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. Taxact 2012 return user Second, you must meet all the rules in one of these columns, whichever applies. Taxact 2012 return user Third, you must meet the rule in this column. Taxact 2012 return user Part A. Taxact 2012 return user  Rules for Everyone Part B. Taxact 2012 return user  Rules If You Have a Qualifying Child Part C. Taxact 2012 return user  Rules If You Do Not Have a Qualifying Child Part D. Taxact 2012 return user  Figuring and Claiming the EIC 1. Taxact 2012 return user 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. Taxact 2012 return user 2. Taxact 2012 return user You must have a valid social security number. Taxact 2012 return user  3. Taxact 2012 return user Your filing status cannot be “Married filing separately. Taxact 2012 return user ” 4. Taxact 2012 return user You must be a U. Taxact 2012 return user S. Taxact 2012 return user citizen or resident alien all year. Taxact 2012 return user  5. Taxact 2012 return user You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Taxact 2012 return user  6. Taxact 2012 return user Your investment income must be $3,300 or less. Taxact 2012 return user  7. Taxact 2012 return user You must have earned income. Taxact 2012 return user 8. Taxact 2012 return user Your child must meet the relationship, age, residency, and joint return tests. Taxact 2012 return user  9. Taxact 2012 return user Your qualifying child cannot be used by more than one person to claim the EIC. Taxact 2012 return user  10. Taxact 2012 return user You generally cannot be a qualifying child of another person. Taxact 2012 return user 11. Taxact 2012 return user You must be at least age 25 but under age 65. Taxact 2012 return user  12. Taxact 2012 return user You cannot be the dependent of another person. Taxact 2012 return user  13. Taxact 2012 return user You generally cannot be a qualifying child of another person. Taxact 2012 return user  14. Taxact 2012 return user You must have lived in the United States more than half of the year. Taxact 2012 return user 15. Taxact 2012 return user 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. Taxact 2012 return user Social security number. Taxact 2012 return user   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). Taxact 2012 return user Any qualifying child listed on Schedule EIC also must have a valid SSN. Taxact 2012 return user (See Qualifying child , later, if you have a qualifying child. Taxact 2012 return user )   If your social security card (or your spouse's if you are married filing jointly) 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. Taxact 2012 return user An example of a federally funded benefit is Medicaid. Taxact 2012 return user Investment income. Taxact 2012 return user   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. Taxact 2012 return user If your investment income is more than $3,300, you cannot claim the credit. Taxact 2012 return user For most people, investment income is the total of the following amounts. Taxact 2012 return user Taxable interest (line 8a of Form 1040 or 1040A). Taxact 2012 return user Tax-exempt interest (line 8b of Form 1040 or 1040A). Taxact 2012 return user Dividend income (line 9a of Form 1040 or 1040A). Taxact 2012 return user Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Taxact 2012 return user  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. Taxact 2012 return user   For more information about investment income, see Publication 596, Earned Income Credit. Taxact 2012 return user Earned income. Taxact 2012 return user   Under Rule 7, you must have earned income to claim the EIC. Taxact 2012 return user Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. Taxact 2012 return user Earned income includes all of the following types of income. Taxact 2012 return user Wages, salaries, tips, and other taxable employee pay. Taxact 2012 return user Employee pay is earned income only if it is taxable. Taxact 2012 return user Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Taxact 2012 return user But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Taxact 2012 return user Net earnings from self-employment. Taxact 2012 return user Gross income received as a statutory employee. Taxact 2012 return user Gross income defined. Taxact 2012 return user   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Taxact 2012 return user Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Taxact 2012 return user If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. Taxact 2012 return user Self-employed persons. Taxact 2012 return user   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. Taxact 2012 return user If you do not, you may not get all the credit to which you are entitled. Taxact 2012 return user Disability benefits. Taxact 2012 return user   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. Taxact 2012 return user Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Taxact 2012 return user Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Taxact 2012 return user   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Taxact 2012 return user It does not matter whether you have reached minimum retirement age. Taxact 2012 return user If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. Taxact 2012 return user Income that is not earned income. Taxact 2012 return user   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Taxact 2012 return user Do not include any of these items in your earned income. Taxact 2012 return user Workfare payments. Taxact 2012 return user   Nontaxable workfare payments are not earned income for the EIC. Taxact 2012 return user These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. Taxact 2012 return user Qualifying child. Taxact 2012 return user   Under Rule 8, your child is a qualifying child if your child meets four tests. Taxact 2012 return user The four tests are: Relationship, Age, Residency, and Joint return. Taxact 2012 return user   The four tests are illustrated in Figure 5-C. Taxact 2012 return user See Publication 596 for more information about each test. Taxact 2012 return user Figure 5-C. Taxact 2012 return user Tests for Qualifying Child A qualifying child for the EIC is a child who is your. Taxact 2012 return user . Taxact 2012 return user . Taxact 2012 return user 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) was . Taxact 2012 return user . Taxact 2012 return user . Taxact 2012 return user Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR 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 the year, regardless of age who. Taxact 2012 return user . Taxact 2012 return user . Taxact 2012 return user Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. Taxact 2012 return user . Taxact 2012 return user . Taxact 2012 return user Lived with you in the United States for more than half of 2013. Taxact 2012 return user  If the child did not live with you for the required time, see Publication 596 for more information. Taxact 2012 return user Figuring the EIC To figure the amount of your credit, you have two choices. Taxact 2012 return user Have the IRS figure the EIC for you. Taxact 2012 return user If you want to do this, see IRS Will Figure the EIC for You in Publication 596. Taxact 2012 return user Figure the EIC yourself. Taxact 2012 return user If you want to do this, see How To Figure the EIC Yourself in Publication 596. Taxact 2012 return user Prev  Up  Next   Home   More Online Publications