File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

1040 Online

Tax Act 2012 Free Download2008 Tax FormsWww Irs Gov Form 1040x InstructionsMilitary Free Turbo TaxHow Can I File My 2012 Taxes OnlineH&r Block Military TaxesIrs Online 1040ezAmending Federal Tax ReturnsForm 1040x FillableIrs 1040ez InstructionsForm1040ezCan I File My 2012 Taxes With My 2013 TaxesState Tax Return FreeHr Block Online TaxesFiling Amended Tax ReturnFile 1040ez OnlineFree H&r Block Taxes760 State Tax Form 2013Utahtaxhelp OrgHr Block Free Tax2011 Federal Tax Forms 1040ez1040ez Printable FormWhere To Report State Income Tax On 1040H & R Block Free File 2012Unemployed And TaxesFilelateTax Software 2011Where To File 2011 Tax ReturnFree Federal And State Tax Filing 2014Turbotax For MilitaryTurbo Tax Free State EfileTax Deductions For College StudentsFreefile ComHow To Amend TaxesFile 1040x1040ez Tax Form2008 Taxes Online For Free2011 Irs Form 5329Form 1040ez More:label_form_201040ez More:taxesWww Hrblock Com

1040 Online

1040 online 20. 1040 online   Standard Deduction Table of Contents What's New Introduction Standard Deduction Amount Standard Deduction for Dependents Who Should ItemizeWhen to itemize. 1040 online Married persons who filed separate returns. 1040 online What's New Standard deduction increased. 1040 online  The standard deduction for some taxpayers who do not itemize their deductions on Schedule A (Form 1040) is higher for 2013 than it was for 2012. 1040 online The amount depends on your filing status. 1040 online You can use the 2013 Standard Deduction Tables in this chapter to figure your standard deduction. 1040 online Introduction This chapter discusses the following topics. 1040 online How to figure the amount of your standard deduction. 1040 online The standard deduction for dependents. 1040 online Who should itemize deductions. 1040 online Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. 1040 online If you have a choice, you can use the method that gives you the lower tax. 1040 online The standard deduction is a dollar amount that reduces your taxable income. 1040 online It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on Schedule A (Form 1040). 1040 online The standard deduction is higher for taxpayers who: Are 65 or older, or Are blind. 1040 online You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. 1040 online Persons not eligible for the standard deduction. 1040 online   Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or her return, You are filing a tax return for a short tax year because of a change in your annual accounting period, or You are a nonresident or dual-status alien during the year. 1040 online You are considered a dual-status alien if you were both a nonresident and resident alien during the year. 1040 online Note. 1040 online If you are a nonresident alien who is married to a U. 1040 online S. 1040 online citizen or resident alien at the end of the year, you can choose to be treated as a U. 1040 online S. 1040 online resident. 1040 online (See Publication 519, U. 1040 online S. 1040 online Tax Guide for Aliens. 1040 online ) If you make this choice, you can take the standard deduction. 1040 online If an exemption for you can be claimed on another person's return (such as your parents' return), your standard deduction may be limited. 1040 online See Standard Deduction for Dependents, later. 1040 online Standard Deduction Amount The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. 1040 online Generally, the standard deduction amounts are adjusted each year for inflation. 1040 online The standard deduction amounts for most people are shown in Table 20-1. 1040 online Decedent's final return. 1040 online   The standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. 1040 online However, if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed. 1040 online Higher Standard Deduction for Age (65 or Older) If you are age 65 or older on the last day of the year and do not itemize deductions, you are entitled to a higher standard deduction. 1040 online You are considered 65 on the day before your 65th birthday. 1040 online Therefore, you can take a higher standard deduction for 2013 if you were born before January 2, 1949. 1040 online Use Table 20-2 to figure the standard deduction amount. 1040 online Higher Standard Deduction for Blindness If you are blind on the last day of the year and you do not itemize deductions, you are entitled to a higher standard deduction. 1040 online Not totally blind. 1040 online   If you are not totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that: You cannot see better than 20/200 in the better eye with glasses or contact lenses, or Your field of vision is 20 degrees or less. 1040 online   If your eye condition is not likely to improve beyond these limits, the statement should include this fact. 1040 online You must keep the statement in your records. 1040 online   If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify. 1040 online Spouse 65 or Older or Blind You can take the higher standard deduction if your spouse is age 65 or older or blind and: You file a joint return, or You file a separate return and can claim an exemption for your spouse because your spouse had no gross income and cannot be claimed as a dependent by another taxpayer. 1040 online You cannot claim the higher standard deduction for an individual other than yourself and your spouse. 1040 online Examples The following examples illustrate how to determine your standard deduction using Tables 20-1 and 20-2. 1040 online Example 1. 1040 online Larry, 46, and Donna, 33, are filing a joint return for 2013. 1040 online Neither is blind, and neither can be claimed as a dependent. 1040 online They decide not to itemize their deductions. 1040 online They use Table 20-1. 1040 online Their standard deduction is $12,200. 1040 online Example 2. 1040 online The facts are the same as in Example 1 except that Larry is blind at the end of 2013. 1040 online Larry and Donna use Table 20-2. 1040 online Their standard deduction is $13,400. 1040 online Example 3. 1040 online Bill and Lisa are filing a joint return for 2013. 1040 online Both are over age 65. 1040 online Neither is blind, and neither can be claimed as a dependent. 1040 online If they do not itemize deductions, they use Table 20-2. 1040 online Their standard deduction is $14,600. 1040 online Standard Deduction for Dependents The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the greater of: $1,000, or The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $6,100). 1040 online However, if the individual is 65 or older or blind, the standard deduction may be higher. 1040 online If you (or your spouse, if filing jointly) can be claimed as a dependent on someone else's return, use Table 20-3 to determine your standard deduction. 1040 online Earned income defined. 1040 online   Earned income is salaries, wages, tips, professional fees, and other amounts received as pay for work you actually perform. 1040 online    For purposes of the standard deduction, earned income also includes any part of a scholarship or fellowship grant that you must include in your gross income. 1040 online See Scholarships and fellowships in chapter 12 for more information on what qualifies as a scholarship or fellowship grant. 1040 online Example 1. 1040 online Michael is single. 1040 online His parents can claim an exemption for him on their 2013 tax return. 1040 online He has interest income of $780 and wages of $150. 1040 online He has no itemized deductions. 1040 online Michael uses Table 20-3 to find his standard deduction. 1040 online He enters $150 (his earned income) on line 1, $500 ($150 + $350) on line 3, $1,000 (the larger of $500 and $1,000) on line 5, and $6,100 on line 6. 1040 online His standard deduction, on line 7a, is $1,000 (the smaller of $1,000 and $6,100). 1040 online Example 2. 1040 online Joe, a 22-year-old full-time college student, can be claimed as a dependent on his parents' 2013 tax return. 1040 online Joe is married and files a separate return. 1040 online His wife does not itemize deductions on her separate return. 1040 online Joe has $1,500 in interest income and wages of $3,800. 1040 online He has no itemized deductions. 1040 online Joe finds his standard deduction by using Table 20-3. 1040 online He enters his earned income, $3,800 on line 1. 1040 online He adds lines 1 and 2 and enters $4,150 on line 3. 1040 online On line 5, he enters $4,150, the larger of lines 3 and 4. 1040 online Because Joe is married filing a separate return, he enters $6,100 on line 6. 1040 online On line 7a he enters $4,150 as his standard deduction because it is smaller than $6,100, the amount on line 6. 1040 online Example 3. 1040 online Amy, who is single, can be claimed as a dependent on her parents' 2013 tax return. 1040 online She is 18 years old and blind. 1040 online She has interest income of $1,300 and wages of $2,900. 1040 online She has no itemized deductions. 1040 online Amy uses Table 20-3 to find her standard deduction. 1040 online She enters her wages of $2,900 on line 1. 1040 online She adds lines 1 and 2 and enters $3,250 on line 3. 1040 online On line 5, she enters $3,250, the larger of lines 3 and 4. 1040 online Because she is single, Amy enters $6,100 on line 6. 1040 online She enters $3,250 on line 7a. 1040 online This is the smaller of the amounts on lines 5 and 6. 1040 online Because she checked one box in the top part of the worksheet, she enters $1,500 on line 7b. 1040 online She then adds the amounts on lines 7a and 7b and enters her standard deduction of $4,750 on line 7c. 1040 online Example 4. 1040 online Ed is single. 1040 online His parents can claim an exemption for him on their 2013 tax return. 1040 online He has wages of $7,000, interest income of $500, and a business loss of $3,000. 1040 online He has no itemized deductions. 1040 online Ed uses Table 20-3 to figure his standard deduction. 1040 online He enters $4,000 ($7,000 - $3,000) on line 1. 1040 online He adds lines 1 and 2 and enters $4,350 on line 3. 1040 online On line 5 he enters $4,350, the larger of lines 3 and 4. 1040 online Because he is single, Ed enters $6,100 on line 6. 1040 online On line 7a he enters $4,350 as his standard deduction because it is smaller than $6,100, the amount on line 6. 1040 online Who Should Itemize You should itemize deductions if your total deductions are more than the standard deduction amount. 1040 online Also, you should itemize if you do not qualify for the standard deduction, as discussed earlier under Persons not eligible for the standard deduction . 1040 online You should first figure your itemized deductions and compare that amount to your standard deduction to make sure you are using the method that gives you the greater benefit. 1040 online You may be subject to a limit on some of your itemized deductions if your adjusted gross income is more than: $250,000 if single ($275,000 if head of household, $300,000 if married filing jointly or qualifying widow(er); or $150,000 if married filing separately). 1040 online See chapter 29 or the instructions for Schedule A (Form 1040) for more information on figuring the correct amount of your itemized deductions. 1040 online When to itemize. 1040 online   You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Do not qualify for the standard deduction, or the amount you can claim is limited, Had large uninsured medical and dental expenses during the year, Paid interest and taxes on your home, Had large unreimbursed employee business expenses or other miscellaneous deductions, Had large uninsured casualty or theft losses, Made large contributions to qualified charities, or Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled. 1040 online These deductions are explained in chapters 21–28. 1040 online    If you decide to itemize your deductions, complete Schedule A and attach it to your Form 1040. 1040 online Enter the amount from Schedule A, line 29, on Form 1040, line 40. 1040 online Electing to itemize for state tax or other purposes. 1040 online   Even if your itemized deductions are less than your standard deduction, you can elect to itemize deductions on your federal return rather than take the standard deduction. 1040 online You may want to do this if, for example, the tax benefit of itemizing your deductions on your state tax return is greater than the tax benefit you lose on your federal return by not taking the standard deduction. 1040 online To make this election, you must check the box on line 30 of Schedule A. 1040 online Changing your mind. 1040 online   If you do not itemize your deductions and later find that you should have itemized — or if you itemize your deductions and later find you should not have — you can change your return by filing Form 1040X, Amended U. 1040 online S. 1040 online Individual Income Tax Return. 1040 online See Amended Returns and Claims for Refund in chapter 1 for more information on amended returns. 1040 online Married persons who filed separate returns. 1040 online   You can change methods of taking deductions only if you and your spouse both make the same changes. 1040 online Both of you must file a consent to assessment for any additional tax either one may owe as a result of the change. 1040 online    You and your spouse can use the method that gives you the lower total tax, even though one of you may pay more tax than you would have paid by using the other method. 1040 online You both must use the same method of claiming deductions. 1040 online If one itemizes deductions, the other should itemize because he or she will not qualify for the standard deduction. 1040 online See Persons not eligible for the standard deduction , earlier. 1040 online 2013 Standard Deduction Tables If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you cannot take the standard deduction even if you were born before January 2, 1949, or are blind. 1040 online Table 20-1. 1040 online Standard Deduction Chart for Most People* If your filing status is. 1040 online . 1040 online . 1040 online Your standard deduction is: Single or Married filing separately $6,100 Married filing jointly or Qualifying widow(er) with dependent child 12,200 Head of household 8,950 *Do not use this chart if you were born before January 2, 1949, are blind, or if someone else can claim you (or your spouse if filing jointly) as a dependent. 1040 online Use Table 20-2 or 20-3 instead. 1040 online Table 20-2. 1040 online Standard Deduction Chart for People Born Before January 2, 1949, or Who are Blind Check the correct number of boxes below. 1040 online Then go to the chart. 1040 online You: Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked   IF  your filing status is. 1040 online . 1040 online . 1040 online AND the number in the box above is. 1040 online . 1040 online . 1040 online THEN your standard deduction is. 1040 online . 1040 online . 1040 online Single 1 $7,600   2 9,100 Married filing jointly 1 $13,400 or Qualifying 2 14,600 widow(er) with 3 15,800 dependent child 4 17,000 Married filing 1 $7,300 separately 2 8,500   3 9,700   4 10,900 Head of household 1 $10,450   2 11,950 *If someone else can claim you (or your spouse if filing jointly) as a dependent, use Table 20-3 instead. 1040 online Table 20-3. 1040 online Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse if filing jointly) as a dependent. 1040 online Check the correct number of boxes below. 1040 online Then go to the worksheet. 1040 online You:   Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked 1. 1040 online Enter your earned income (defined below). 1040 online If none, enter -0-. 1040 online 1. 1040 online   2. 1040 online Additional amount. 1040 online 2. 1040 online $350 3. 1040 online Add lines 1 and 2. 1040 online 3. 1040 online   4. 1040 online Minimum standard deduction. 1040 online 4. 1040 online $1,000 5. 1040 online Enter the larger of line 3 or line 4. 1040 online 5. 1040 online   6. 1040 online Enter the amount shown below for your filing status. 1040 online Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 6. 1040 online   7. 1040 online Standard deduction. 1040 online         a. 1040 online Enter the smaller of line 5 or line 6. 1040 online If born after January 1, 1949, and not blind, stop here. 1040 online This is your standard deduction. 1040 online Otherwise, go on to line 7b. 1040 online 7a. 1040 online     b. 1040 online If born before January 2, 1949, or blind, multiply $1,500 ($1,200 if married) by the number in the box above. 1040 online 7b. 1040 online     c. 1040 online Add lines 7a and 7b. 1040 online This is your standard deduction for 2013. 1040 online 7c. 1040 online   Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. 1040 online It also includes any amount received as a scholarship that you must include in your income. 1040 online Prev  Up  Next   Home   More Online Publications
Español

U.S. Department of the Treasury

The Department of the Treasury manages Federal finances by collecting taxes and paying bills and by managing currency, government accounts and public debt. The Department of the Treasury also enforces finance and tax laws.

The 1040 Online

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