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

H&r Block 2011 Tax Software Download

1040nr TurbotaxForm 1040nr InstructionsSelf Employed Tax FormI Need To Amend My TaxesForm 1040 Federal Tax FormIrs 2012 Tax Return FormsFree Amended Tax ReturnIrs State Tax Forms 2013Free Ez FileDownload Form 1040xFederal Tax Extension FormFreefile TaxesHr Block 2011 Tax SoftwareFree Tax Calculator 20112012 Irs Form 1040 EzFree Tax Forms 2012Download 2010 Tax FormsIrs For 1040ezIrs10402009 Turbo Tax1040 Com1040ez Instruction BookHow To File 2011 Tax Return In 20131040 IrsFill Out 1040x Online1040ez For 2012Can You Do State Taxes For FreeFree Turbo Tax 2013Free State Return TurbotaxEfile 1040x FormWho Has Free State Tax FilingWhen Can I File An Amended Tax Return For 2012File Only State TaxesPast Year Tax FormsTurbotax Do Taxes For 2010Irs Forms 1040x DownloadAmending A State Tax Return2040 Ez FormHow To Fill Out A 1040x Tax Amendment FormDownload 2012 Tax Forms

H&r Block 2011 Tax Software Download

H&r block 2011 tax software download 4. H&r block 2011 tax software download   Detailed Examples Table of Contents These examples use actual forms to help you prepare your income tax return. H&r block 2011 tax software download However, the information shown on the filled-in forms is not from any actual person or scenario. H&r block 2011 tax software download Example 1—Mortgage loan modification. H&r block 2011 tax software download    In 2007, Nancy Oak bought a main home for $435,000. H&r block 2011 tax software download Nancy took out a $420,000 mortgage loan to buy the home and made a down payment of $15,000. H&r block 2011 tax software download The loan was secured by the home. H&r block 2011 tax software download The mortgage loan was a recourse debt, meaning that Nancy was personally liable for the debt. H&r block 2011 tax software download In 2008, Nancy took out a second mortgage loan (also a recourse debt) in the amount of $30,000 that was used to substantially improve her kitchen. H&r block 2011 tax software download    In 2011, when the outstanding principal of the first and second mortgage loans was $440,000, Nancy refinanced the two recourse loans into one recourse loan in the amount of $475,000. H&r block 2011 tax software download The FMV of Nancy's home at the time of the refinancing was $500,000. H&r block 2011 tax software download Nancy used the additional $35,000 debt ($475,000 new mortgage loan minus $440,000 outstanding principal of Nancy's first and second mortgage loans immediately before the refinancing) to pay off personal credit cards and to pay college tuition for her son. H&r block 2011 tax software download After the refinancing, Nancy has qualified principal residence indebtedness in the amount of $440,000 because the refinanced debt is qualified principal residence indebtedness only to the extent the amount of debt is not more than the old mortgage principal just before the refinancing. H&r block 2011 tax software download   In 2013, Nancy was unable to make her mortgage loan payments. H&r block 2011 tax software download On August 31, 2013, when the outstanding balance of her refinanced mortgage loan was still $475,000 and the FMV of the property was $425,000, Nancy's bank agreed to a loan modification (a “workout”) that resulted in a $40,000 reduction in the principal balance of her loan. H&r block 2011 tax software download Nancy was neither insolvent nor in bankruptcy at the time of the loan modification. H&r block 2011 tax software download   Nancy received a 2013 Form 1099-C from her bank in January 2014 showing canceled debt of $40,000 in box 2. H&r block 2011 tax software download Identifiable event code "F" appears in box 6. H&r block 2011 tax software download This box shows the reason the creditor has filed Form 1099-C. H&r block 2011 tax software download To determine if she must include the canceled debt in her income, Nancy must determine whether she meets any of the exceptions or exclusions that apply to canceled debts. H&r block 2011 tax software download Nancy determines that the only exception or exclusion that applies to her is the qualified principal residence indebtedness exclusion. H&r block 2011 tax software download   Next, Nancy determines the amount, if any, of the $40,000 of canceled debt that was qualified principal residence indebtedness. H&r block 2011 tax software download Although Nancy has $440,000 of qualified principal residence indebtedness, part of her loan ($35,000) was not qualified principal residence indebtedness because it was used to pay off personal credit cards and college tuition for her son. H&r block 2011 tax software download Applying the ordering rule, the qualified principal residence indebtedness exclusion applies only to the extent the amount canceled is more than the amount of the debt (immediately before the cancellation) that is not qualified principal residence indebtedness. H&r block 2011 tax software download Thus, Nancy can exclude only $5,000 of the canceled debt as qualified principal residence indebtedness ($40,000 amount canceled minus $35,000 nonqualified debt). H&r block 2011 tax software download   Because Nancy does not meet any other exception or exclusion, she checks only the box on line 1e of Form 982 and enters $5,000 on line 2. H&r block 2011 tax software download Nancy must also enter $5,000 on line 10b and reduce the basis of her main home by the $5,000 she excluded from income, bringing the adjusted basis in her home to $460,000 ($435,000 purchase price plus $30,000 substantial improvement minus $5,000). H&r block 2011 tax software download Nancy must also include the $35,000 nonqualified debt portion in income on Form 1040, line 21. H&r block 2011 tax software download You can see Nancy's Form 1099-C and a portion of her Form 1040 below. H&r block 2011 tax software download Nancy's 2013 Form 1099-C, Cancellation of Debt This image is too large to be displayed in the current screen. H&r block 2011 tax software download Please click the link to view the image. H&r block 2011 tax software download Form 1099-C, Cancellation of Debt Nancy's 2013 Form 1040 This image is too large to be displayed in the current screen. H&r block 2011 tax software download Please click the link to view the image. H&r block 2011 tax software download Form 1040, U. H&r block 2011 tax software download S. H&r block 2011 tax software download Individual Income Tax Nancy's Form 982 This image is too large to be displayed in the current screen. H&r block 2011 tax software download Please click the link to view the image. H&r block 2011 tax software download Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)              Example 2—Mortgage loan foreclosure. H&r block 2011 tax software download    In 2005, John and Mary Elm bought a main home for $335,000. H&r block 2011 tax software download John and Mary took out a $320,000 mortgage loan to buy the home and made a down payment of $15,000. H&r block 2011 tax software download The loan was secured by the home and is a recourse debt, meaning John and Mary are personally liable for the debt. H&r block 2011 tax software download   John and Mary became unable to make their mortgage loan payments and on March 1, 2013, when the outstanding balance of the mortgage loan was $315,000 and the FMV of the property was $290,000, the bank foreclosed on the property and simultaneously canceled the remaining mortgage debt. H&r block 2011 tax software download Immediately before the foreclosure, John and Mary's only other assets and liabilities were a checking account with a balance of $6,000, retirement savings of $13,000, and credit card debt of $5,500. H&r block 2011 tax software download   John and Mary received a 2013 Form 1099-C showing canceled debt of $25,000 in box 2 ($315,000 outstanding balance minus $290,000 FMV) and an FMV of $290,000 in box 7. H&r block 2011 tax software download Identifiable event code "D" appears in box 6. H&r block 2011 tax software download This box shows the reason the creditor has filed Form 1099-C. H&r block 2011 tax software download In order to determine if John and Mary must include the canceled debt in income, they must first determine whether they meet any of the exceptions or exclusions that apply to canceled debts. H&r block 2011 tax software download In this example, John and Mary meet both the insolvency and qualified principal residence indebtedness exclusions. H&r block 2011 tax software download Their sample Form 1099-C is shown on this page. H&r block 2011 tax software download   John and Mary complete the insolvency worksheet and determine that they were insolvent immediately before the cancellation because at that time their liabilities exceeded the FMV of their assets by $11,500 ($320,500 total liabilities minus $309,000 FMV of total assets). H&r block 2011 tax software download However, because the entire debt canceled is qualified principal residence indebtedness, the insolvency exclusion only applies if John and Mary elect to apply the insolvency exclusion instead of the qualified principal residence exclusion. H&r block 2011 tax software download   John and Mary do not elect to apply the insolvency exclusion instead of the qualified principal residence exclusion because under the insolvency exclusion their exclusion would be limited to the amount by which they were insolvent ($11,500). H&r block 2011 tax software download Instead, John and Mary check box 1e of Form 982 to exclude the canceled debt under the qualified principal residence exclusion. H&r block 2011 tax software download Under the qualified principal residence exclusion, the amount that John and Mary can exclude is not limited because their qualified principal residence indebtedness is not more than $2 million and no portion of the loan was nonqualified debt. H&r block 2011 tax software download As a result, John and Mary enter the full $25,000 of canceled debt on line 2 of Form 982. H&r block 2011 tax software download Because John and Mary no longer own the home due to the foreclosure, John and Mary have no remaining basis in the home at the time of the debt cancellation. H&r block 2011 tax software download Thus, John and Mary leave line 10b of Form 982 blank. H&r block 2011 tax software download   John and Mary must also determine whether they have a gain or loss from the foreclosure. H&r block 2011 tax software download John and Mary complete Table 1-1 (shown below) and find that they have a $45,000 loss from the foreclosure. H&r block 2011 tax software download Because this loss relates to their home, it is a nondeductible loss. H&r block 2011 tax software download   John and Mary's Form 1099-C, Insolvency Worksheet, and Form 982 follow. H&r block 2011 tax software download John and Mary's 2013 Form 1099-C, Cancellation of Debt This image is too large to be displayed in the current screen. H&r block 2011 tax software download Please click the link to view the image. H&r block 2011 tax software download Form 1099-C, Cancellation of Debt Table 1-1. H&r block 2011 tax software download Worksheet for Foreclosures and Repossessions (for John and Mary Elm) Part 1. H&r block 2011 tax software download Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). H&r block 2011 tax software download Otherwise, go to Part 2. H&r block 2011 tax software download 1. H&r block 2011 tax software download Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property $315,000. H&r block 2011 tax software download 00 2. H&r block 2011 tax software download Enter the fair market value of the transferred property $290,000. H&r block 2011 tax software download 00 3. H&r block 2011 tax software download Ordinary income from the cancellation of debt upon foreclosure or repossession. H&r block 2011 tax software download * Subtract line 2 from line 1. H&r block 2011 tax software download If less than zero, enter zero. H&r block 2011 tax software download Next, go to Part 2 $ 25,000. H&r block 2011 tax software download 00 Part 2. H&r block 2011 tax software download Gain or loss from foreclosure or repossession. H&r block 2011 tax software download   4. H&r block 2011 tax software download Enter the smaller of line 1 or line 2. H&r block 2011 tax software download If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property $290,000. H&r block 2011 tax software download 00 5. H&r block 2011 tax software download Enter any proceeds you received from the foreclosure sale   6. H&r block 2011 tax software download Add line 4 and line 5 $290,000. H&r block 2011 tax software download 00 7. H&r block 2011 tax software download Enter the adjusted basis of the transferred property $335,000. H&r block 2011 tax software download 00 8. H&r block 2011 tax software download Gain or loss from foreclosure or repossession. H&r block 2011 tax software download Subtract line 7 from line 6 ($ 45,000. H&r block 2011 tax software download 00) * The income may not be taxable. H&r block 2011 tax software download See chapter 1 for more details. H&r block 2011 tax software download Insolvency Worksheet—John and Mary Elm Date debt was canceled (mm/dd/yy) 03/01/13 Part I. H&r block 2011 tax software download Total liabilities immediately before the cancellation (do not include the same liability in more than one category) Liabilities (debts) Amount Owed Immediately Before the Cancellation 1. H&r block 2011 tax software download Credit card debt $ 5,500 2. H&r block 2011 tax software download Mortgage(s) on real property (including first and second mortgages and home equity loans) (mortgage(s) can be on personal residence, any additional residence, or property held for investment or used in a trade or business) $ 315,000 3. H&r block 2011 tax software download Car and other vehicle loans $ 4. H&r block 2011 tax software download Medical bills owed $ 5. H&r block 2011 tax software download Student loans $ 6. H&r block 2011 tax software download Accrued or past-due mortgage interest $ 7. H&r block 2011 tax software download Accrued or past-due real estate taxes $ 8. H&r block 2011 tax software download Accrued or past-due utilities (water, gas, electric) $ 9. H&r block 2011 tax software download Accrued or past-due child care costs $ 10. H&r block 2011 tax software download Federal or state income taxes remaining due (for prior tax years) $ 11. H&r block 2011 tax software download Judgments $ 12. H&r block 2011 tax software download Business debts (including those owed as a sole proprietor or partner) $ 13. H&r block 2011 tax software download Margin debt on stocks and other debt to purchase or secured by investment assets other than real property $ 14. H&r block 2011 tax software download Other liabilities (debts) not included above $ 15. H&r block 2011 tax software download Total liabilities immediately before the cancellation. H&r block 2011 tax software download Add lines 1 through 14. H&r block 2011 tax software download $ 320,500 Part II. H&r block 2011 tax software download Fair market value (FMV) of assets owned immediately before the cancellation (do not include the FMV of the same asset in more than one category) Assets FMV Immediately Before  the Cancellation 16. H&r block 2011 tax software download Cash and bank account balances $ 6,000 17. H&r block 2011 tax software download Real property, including the value of land (can be main home, any additional home, or property held for investment or used in a trade or business) $ 290,000 18. H&r block 2011 tax software download Cars and other vehicles $ 19. H&r block 2011 tax software download Computers $ 20. H&r block 2011 tax software download Household goods and furnishings (for example, appliances, electronics, furniture, etc. H&r block 2011 tax software download ) $ 21. H&r block 2011 tax software download Tools $ 22. H&r block 2011 tax software download Jewelry $ 23. H&r block 2011 tax software download Clothing $ 24. H&r block 2011 tax software download Books $ 25. H&r block 2011 tax software download Stocks and bonds $ 26. H&r block 2011 tax software download Investments in coins, stamps, paintings, or other collectibles $ 27. H&r block 2011 tax software download Firearms, sports, photographic, and other hobby equipment $ 28. H&r block 2011 tax software download Interest in retirement accounts (IRA accounts, 401(k) accounts, and other retirement accounts) $ 13,000 29. H&r block 2011 tax software download Interest in a pension plan $ 30. H&r block 2011 tax software download Interest in education accounts $ 31. H&r block 2011 tax software download Cash value of life insurance $ 32. H&r block 2011 tax software download Security deposits with landlords, utilities, and others $ 33. H&r block 2011 tax software download Interests in partnerships $ 34. H&r block 2011 tax software download Value of investment in a business $ 35. H&r block 2011 tax software download Other investments (for example, annuity contracts, guaranteed investment contracts, mutual funds, commodity accounts, interests in hedge funds, and options) $ 36. H&r block 2011 tax software download Other assets not included above $ 37. H&r block 2011 tax software download FMV of total assets immediately before the cancellation. H&r block 2011 tax software download Add lines 16 through 36. H&r block 2011 tax software download $ 309,000 Part III. H&r block 2011 tax software download Insolvency 38. H&r block 2011 tax software download Amount of Insolvency. H&r block 2011 tax software download Subtract line 37 from line 15. H&r block 2011 tax software download If zero or less, you are not insolvent. H&r block 2011 tax software download $ 11,500 John and Mary's Form 982 This image is too large to be displayed in the current screen. H&r block 2011 tax software download Please click the link to view the image. H&r block 2011 tax software download Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)          Example 3—Mortgage loan foreclosure with debt exceeding $2 million limit. H&r block 2011 tax software download    In 2011, Kathy and Frank Willow got married and entered into a contract with Hive Construction Corporation to build a house for $3,000,000 to be used as their main home. H&r block 2011 tax software download Kathy and Frank made a $400,000 down payment and took out a $2,600,000 mortgage to finance the remaining cost of the house. H&r block 2011 tax software download Kathy and Frank are personally liable for the mortgage loan, which is secured by the home. H&r block 2011 tax software download   In November 2013, when the outstanding principal balance on the mortgage loan was $2,500,000, the FMV of the property fell to $1,750,000 and Kathy and Frank abandoned the property by permanently moving out. H&r block 2011 tax software download The lender foreclosed on the property and, on December 5, 2013, sold the property to another buyer for $1,750,000. H&r block 2011 tax software download On December 26, 2013, the lender canceled the remaining debt. H&r block 2011 tax software download Kathy and Frank have no tax attributes other than basis of personal-use property. H&r block 2011 tax software download   The lender issued a 2013 Form 1099-C to Kathy and Frank showing canceled debt of $750,000 in box 2 (the remaining balance on the $2,500,000 mortgage debt after application of the foreclosure sale proceeds) and $1,750,000 in box 7 (FMV of the property). H&r block 2011 tax software download Identifiable event code "D" appears in box 6. H&r block 2011 tax software download This box shows the reason the creditor has filed Form 1099-C. H&r block 2011 tax software download Although Kathy and Frank abandoned the property, the lender did not need to also file a Form 1099-A because the lender canceled the debt in connection with the foreclosure in the same calendar year. H&r block 2011 tax software download Kathy and Frank are filing a joint return for 2013. H&r block 2011 tax software download   Because the foreclosure occurred prior to the debt cancellation, Kathy and Frank first calculate their gain or loss from the foreclosure using Table 1-1. H&r block 2011 tax software download Because Kathy and Frank remained personally liable for the $750,000 debt remaining after the foreclosure ($2,500,000 outstanding debt immediately before the foreclosure minus $1,750,000 satisfied through the sale of the home), Kathy and Frank enter $1,750,000 on line 1 of Table 1-1 ($2,500,000 outstanding debt immediately before the foreclosure minus the $750,000 for which they remained liable). H&r block 2011 tax software download Completing Table 1-1, Kathy and Frank find that they have no ordinary income from the cancellation of debt upon foreclosure and that they have a $1,250,000 loss. H&r block 2011 tax software download Because this loss relates to their home, it is a nondeductible loss. H&r block 2011 tax software download   Because the lender later canceled the remaining amount of the debt, Kathy and Frank must also determine whether that canceled debt is taxable. H&r block 2011 tax software download Immediately before the cancellation, Kathy and Frank had $15,000 in a savings account, household furnishings with an FMV of $17,000, a car with an FMV of $10,000, and $18,000 in credit card debt. H&r block 2011 tax software download Kathy and Frank also had the $750,000 remaining balance on the mortgage loan at that time. H&r block 2011 tax software download The household furnishings originally cost $30,000. H&r block 2011 tax software download The car had been fully paid off (so there was no related outstanding debt) and was originally purchased for $16,000. H&r block 2011 tax software download Kathy and Frank had no adjustments to the cost basis of the car. H&r block 2011 tax software download Kathy and Frank had no other assets or liabilities at the time of the cancellation. H&r block 2011 tax software download Kathy and Frank complete the insolvency worksheet to calculate that they were insolvent to the extent of $726,000 immediately before the cancellation ($768,000 of total liabilities minus $42,000 FMV of total assets). H&r block 2011 tax software download   At the beginning of 2014, Kathy and Frank had $9,000 in their savings account and $15,000 in credit card debt. H&r block 2011 tax software download Kathy and Frank also owned the same car at that time (still with an FMV of $10,000 and basis of $16,000) and the same household furnishings (still with an FMV of $17,000 and a basis of $30,000). H&r block 2011 tax software download Kathy and Frank had no other assets or liabilities at that time. H&r block 2011 tax software download Kathy and Frank no longer own the home because the lender foreclosed on it in 2013. H&r block 2011 tax software download   Because the canceled debt is qualified principal residence indebtedness, the insolvency exclusion does not apply unless Kathy and Frank elect to apply the insolvency exclusion instead of the qualified principal residence indebtedness exclusion. H&r block 2011 tax software download The maximum amount that Kathy and Frank can treat as qualified principal residence indebtedness is $2,000,000. H&r block 2011 tax software download The remaining $500,000 ($2,500,000 outstanding mortgage loan minus $2,000,000 limit on qualified principal residence indebtedness) is not qualified principal residence indebtedness. H&r block 2011 tax software download Because only a part of the loan is qualified principal residence indebtedness, Kathy and Frank must apply the ordering rule to the canceled debt. H&r block 2011 tax software download Under the ordering rule, the qualified principal residence indebtedness exclusion applies only to the extent that the amount canceled ($750,000) exceeds the amount of the loan (immediately before the cancellation) that is not qualified principal residence indebtedness ($500,000). H&r block 2011 tax software download This means that Kathy and Frank can only exclude $250,000 ($750,000 amount canceled minus $500,000 nonqualified debt) under the qualified principal residence indebtedness exclusion. H&r block 2011 tax software download   Kathy and Frank do not elect to have the insolvency exclusion apply instead of the qualified principal residence exclusion. H&r block 2011 tax software download Nonetheless, they can still apply the insolvency exclusion to the $500,000 nonqualified debt because it is not qualified principal residence indebtedness. H&r block 2011 tax software download Kathy and Frank can exclude the remaining $500,000 canceled debt under the insolvency exclusion because they were insolvent immediately before the cancellation to the extent of $726,000. H&r block 2011 tax software download Thus, Kathy and Frank check the boxes on lines 1b and 1e of Form 982 and enter $750,000 on line 2 ($250,000 excluded under the qualified principal residence indebtedness exclusion plus $500,000 excluded under the insolvency exclusion). H&r block 2011 tax software download   Next, Kathy and Frank reduce their tax attributes using Part II of Form 982. H&r block 2011 tax software download Because Kathy and Frank no longer own the home due to the foreclosure, Kathy and Frank have no remaining basis in the home at the time of the debt cancellation. H&r block 2011 tax software download Thus, Kathy and Frank leave line 10b of Form 982 blank. H&r block 2011 tax software download However, Kathy and Frank are also excluding nonqualified debt under the insolvency exclusion. H&r block 2011 tax software download As a result, Kathy and Frank must reduce the basis of property they own based on the amount of canceled debt they are excluding from income under the insolvency rules. H&r block 2011 tax software download Because Kathy and Frank have no tax attributes other than basis of personal-use property to reduce, Kathy and Frank figure the amount they must include on line 10a of Form 982 by taking the smallest of: The $46,000 bases of their personal-use property held at the beginning of 2014 ($16,000 basis in the car plus $30,000 basis in household furnishings), The $500,000 of the nonbusiness debt (other than qualified principal residence indebtedness) that they are excluding from income on line 2 of Form 982, or The $43,000 excess of the total bases of the property and the amount of money they held immediately after the cancellation over their total liabilities immediately after the cancellation ($15,000 in savings account plus $30,000 basis in household furnishings plus $16,000 adjusted basis in car minus $18,000 credit card debt). H&r block 2011 tax software download Kathy and Frank enter $43,000 on Form 982, line 10a and reduce their bases in the car and the household furnishings in proportion to the total adjusted bases in all their property. H&r block 2011 tax software download Kathy and Frank reduce the basis in the car by $14,956. H&r block 2011 tax software download 52 ($43,000 x $16,000/$46,000). H&r block 2011 tax software download And they reduce the basis in the household furnishings by $28,043. H&r block 2011 tax software download 48 ($43,000 x $30,000/$46,000). H&r block 2011 tax software download   Following are Kathy and Frank's sample forms and worksheets. H&r block 2011 tax software download Frank and Kathy's 2013 Form 1099-C, Cancellation of Debt This image is too large to be displayed in the current screen. H&r block 2011 tax software download Please click the link to view the image. H&r block 2011 tax software download Form 1099-C, Cancellation of Debt Table 1-1. H&r block 2011 tax software download Worksheet for Foreclosures and Repossessions (for Frank and Kathy Willow) Part 1. H&r block 2011 tax software download Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). H&r block 2011 tax software download Otherwise, go to Part 2. H&r block 2011 tax software download 1. H&r block 2011 tax software download Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property $1,750,000. H&r block 2011 tax software download 00 2. H&r block 2011 tax software download Enter the fair market value of the transferred property $1,750,000. H&r block 2011 tax software download 00 3. H&r block 2011 tax software download Ordinary income from the cancellation of debt upon foreclosure or repossession. H&r block 2011 tax software download * Subtract line 2 from line 1. H&r block 2011 tax software download If less than zero, enter zero. H&r block 2011 tax software download Next, go to Part 2 $0. H&r block 2011 tax software download 00 Part 2. H&r block 2011 tax software download Gain or loss from foreclosure or repossession. H&r block 2011 tax software download   4. H&r block 2011 tax software download Enter the smaller of line 1 or line 2. H&r block 2011 tax software download If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property. H&r block 2011 tax software download $1,750,000. H&r block 2011 tax software download 00 5. H&r block 2011 tax software download Enter any proceeds you received from the foreclosure sale   6. H&r block 2011 tax software download Add line 4 and line 5 $1,750,000. H&r block 2011 tax software download 00 7. H&r block 2011 tax software download Enter the adjusted basis of the transferred property $3,000,000. H&r block 2011 tax software download 00 8. H&r block 2011 tax software download Gain or loss from foreclosure or repossession. H&r block 2011 tax software download Subtract line 7 from line 6 ($1,250,000. H&r block 2011 tax software download 00) * The income may not be taxable. H&r block 2011 tax software download See chapter 1 for more details. H&r block 2011 tax software download    Insolvency Worksheet—Frank and Kathy Willow Date debt was canceled (mm/dd/yy) 12/26/13 Part I. H&r block 2011 tax software download Total liabilities immediately before the cancellation (do not include the same liability in more than one category) Liabilities (debts) Amount Owed Immediately Before the Cancellation 1. H&r block 2011 tax software download Credit card debt $ 18,000 2. H&r block 2011 tax software download Mortgage(s) on real property (including first and second mortgages and home equity loans) (mortgage(s) can be on personal residence, any additional residence, or property held for investment or used in a trade or business) $ 750,000 3. H&r block 2011 tax software download Car and other vehicle loans $ 4. H&r block 2011 tax software download Medical bills owed $ 5. H&r block 2011 tax software download Student loans $ 6. H&r block 2011 tax software download Accrued or past-due mortgage interest $ 7. H&r block 2011 tax software download Accrued or past-due real estate taxes $ 8. H&r block 2011 tax software download Accrued or past-due utilities (water, gas, electric) $ 9. H&r block 2011 tax software download Accrued or past-due child care costs $ 10. H&r block 2011 tax software download Federal or state income taxes remaining due (for prior tax years) $ 11. H&r block 2011 tax software download Judgments $ 12. H&r block 2011 tax software download Business debts (including those owed as a sole proprietor or partner) $ 13. H&r block 2011 tax software download Margin debt on stocks and other debt to purchase or secured by investment assets other than real property $ 14. H&r block 2011 tax software download Other liabilities (debts) not included above $ 15. H&r block 2011 tax software download Total liabilities immediately before the cancellation. H&r block 2011 tax software download Add lines 1 through 14. H&r block 2011 tax software download $ 768,000 Part II. H&r block 2011 tax software download Fair market value (FMV) of assets owned immediately before the cancellation (do not include the FMV of the same asset in more than one category) Assets FMV Immediately Before  the Cancellation 16. H&r block 2011 tax software download Cash and bank account balances $ 15,000 17. H&r block 2011 tax software download Real property, including the value of land (can be main home, any additional home, or property held for investment or used in a trade or business) $ 18. H&r block 2011 tax software download Cars and other vehicles $ 10,000 19. H&r block 2011 tax software download Computers $ 20. H&r block 2011 tax software download Household goods and furnishings (for example, appliances, electronics, furniture, etc. H&r block 2011 tax software download ) $ 17,000 21. H&r block 2011 tax software download Tools $ 22. H&r block 2011 tax software download Jewelry $ 23. H&r block 2011 tax software download Clothing $ 24. H&r block 2011 tax software download Books $ 25. H&r block 2011 tax software download Stocks and bonds $ 26. H&r block 2011 tax software download Investments in coins, stamps, paintings, or other collectibles $ 27. H&r block 2011 tax software download Firearms, sports, photographic, and other hobby equipment $ 28. H&r block 2011 tax software download Interest in retirement accounts (IRA accounts, 401(k) accounts, and other retirement accounts) $ 29. H&r block 2011 tax software download Interest in a pension plan $ 30. H&r block 2011 tax software download Interest in education accounts $ 31. H&r block 2011 tax software download Cash value of life insurance $ 32. H&r block 2011 tax software download Security deposits with landlords, utilities, and others $ 33. H&r block 2011 tax software download Interests in partnerships $ 34. H&r block 2011 tax software download Value of investment in a business $ 35. H&r block 2011 tax software download Other investments (for example, annuity contracts, guaranteed investment contracts, mutual funds, commodity accounts, interests in hedge funds, and options) $ 36. H&r block 2011 tax software download Other assets not included above $ 37. H&r block 2011 tax software download FMV of total assets immediately before the cancellation. H&r block 2011 tax software download Add lines 16 through 36. H&r block 2011 tax software download $ 42,000 Part III. H&r block 2011 tax software download Insolvency 38. H&r block 2011 tax software download Amount of Insolvency. H&r block 2011 tax software download Subtract line 37 from line 15. H&r block 2011 tax software download If zero or less, you are not insolvent. H&r block 2011 tax software download $ 726,000    Frank and Kathy's Form 982 This image is too large to be displayed in the current screen. H&r block 2011 tax software download Please click the link to view the image. H&r block 2011 tax software download Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) Prev  Up  Next   Home   More Online Publications
Español

Community Oriented Policing Services (COPS)

The Office of Community Oriented Policing Services advances the practice of community policing through sharing information and making grants to police departments in the United States.

Contact the Agency or Department

Website: Community Oriented Policing Services (COPS)

E-mail:

Address: 145 N Street NE
Washington, DC 20530

Toll-free: (800) 421-6770

The H&r Block 2011 Tax Software Download

H&r block 2011 tax software download Publication 596 - Main Content Table of Contents Chapter 1—Rules for EveryoneRule 1—Adjusted Gross Income (AGI) Limits Rule 2—You Must Have a Valid Social Security Number (SSN) Rule 3—Your Filing Status Cannot Be Married Filing Separately Rule 4—You Must Be a U. H&r block 2011 tax software download S. H&r block 2011 tax software download Citizen or Resident Alien All Year Rule 5—You Cannot File Form 2555 or Form 2555-EZ Rule 6—Your Investment Income Must Be $3,300 or Less Rule 7—You Must Have Earned Income Chapter 2—Rules If You Have a Qualifying ChildRule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9—Your Qualifying Child Cannot Be Used by More Than One Person To Claim the EIC Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer Chapter 3—Rules If You Do Not Have a Qualifying ChildRule 11—You Must Be at Least Age 25 but Under Age 65 Rule 12—You Cannot Be the Dependent of Another Person Rule 13—You Cannot Be a Qualifying Child of Another Taxpayer Rule 14—You Must Have Lived in the United States More Than Half of the Year Chapter 4—Figuring and Claiming the EICRule 15—Earned Income Limits IRS Will Figure the EIC for You How To Figure the EIC Yourself Schedule EIC Chapter 5—Disallowance of the EICForm 8862 Are You Prohibited From Claiming the EIC for a Period of Years? Chapter 6—Detailed ExamplesExample 1—Sharon Rose Example 2—Cynthia and Jerry Grey Chapter 1—Rules for Everyone This chapter discusses Rules 1 through 7. H&r block 2011 tax software download You must meet all seven rules to qualify for the earned income credit. H&r block 2011 tax software download If you do not meet all seven rules, you cannot get the credit and you do not need to read the rest of the publication. H&r block 2011 tax software download If you meet all seven rules in this chapter, then read either chapter 2 or chapter 3 (whichever applies) for more rules you must meet. H&r block 2011 tax software download Rule 1—Adjusted Gross Income (AGI) Limits 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. H&r block 2011 tax software download Adjusted gross income (AGI). H&r block 2011 tax software download   AGI is the amount on line 4 of Form 1040EZ, line 22 of Form 1040A, or line 38 of Form 1040. H&r block 2011 tax software download   If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. H&r block 2011 tax software download You do not need to read the rest of this publication. H&r block 2011 tax software download Example—AGI is more than limit. H&r block 2011 tax software download Your AGI is $38,550, you are single, and you have one qualifying child. H&r block 2011 tax software download You cannot claim the EIC because your AGI is not less than $37,870. H&r block 2011 tax software download 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. H&r block 2011 tax software download Community property. H&r block 2011 tax software download   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. H&r block 2011 tax software download This is different from the community property rules that apply under Rule 7. H&r block 2011 tax software download Rule 2—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). H&r block 2011 tax software download Any qualifying child listed on Schedule EIC also must have a valid SSN. H&r block 2011 tax software download (See Rule 8 if you have a qualifying child. H&r block 2011 tax software download ) 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. H&r block 2011 tax software download An example of a federally funded benefit is Medicaid. H&r block 2011 tax software download 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. H&r block 2011 tax software download S. H&r block 2011 tax software download citizen or permanent resident, ask the SSA for a new social security card without the legend. H&r block 2011 tax software download If you get the new card after you have already filed your return, you can file an amended return on Form 1040X, Amended U. H&r block 2011 tax software download S. H&r block 2011 tax software download Individual Income Tax Return, to claim the EIC. H&r block 2011 tax software download U. H&r block 2011 tax software download S. H&r block 2011 tax software download citizen. H&r block 2011 tax software download   If you were a U. H&r block 2011 tax software download S. H&r block 2011 tax software download citizen when you received your SSN, you have a valid SSN. H&r block 2011 tax software download Valid for work only with INS authorization or DHS authorization. H&r block 2011 tax software download   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. H&r block 2011 tax software download SSN missing or incorrect. H&r block 2011 tax software download   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. H&r block 2011 tax software download Other taxpayer identification number. H&r block 2011 tax software download   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). H&r block 2011 tax software download ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. H&r block 2011 tax software download No SSN. H&r block 2011 tax software download   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). H&r block 2011 tax software download You cannot claim the EIC. H&r block 2011 tax software download Getting an SSN. H&r block 2011 tax software download   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 with the SSA. H&r block 2011 tax software download You can get Form SS-5 online at www. H&r block 2011 tax software download socialsecurity. H&r block 2011 tax software download gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. H&r block 2011 tax software download Filing deadline approaching and still no SSN. H&r block 2011 tax software download   If the filing deadline is approaching and you still do not have an SSN, you have two choices. H&r block 2011 tax software download Request an automatic 6-month extension of time to file your return. H&r block 2011 tax software download You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. H&r block 2011 tax software download S. H&r block 2011 tax software download Individual Income Tax Return. H&r block 2011 tax software download For more information, see the instructions for Form 4868. H&r block 2011 tax software download File the return on time without claiming the EIC. H&r block 2011 tax software download After receiving the SSN, file an amended return, Form 1040X, claiming the EIC. H&r block 2011 tax software download Attach a filled-in Schedule EIC, Earned Income Credit, if you have a qualifying child. H&r block 2011 tax software download Rule 3—Your Filing Status Cannot Be “Married Filing Separately” If you are married, you usually must file a joint return to claim the EIC. H&r block 2011 tax software download Your filing status cannot be “Married filing separately. H&r block 2011 tax software download ” Spouse did not live with you. H&r block 2011 tax software download   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. H&r block 2011 tax software download In that case, you may be able to claim the EIC. H&r block 2011 tax software download For detailed information about filing as head of household, see Publication 501, Exemptions, Standard Deduction, and Filing Information. H&r block 2011 tax software download Rule 4—You Must Be a U. H&r block 2011 tax software download S. H&r block 2011 tax software download 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. H&r block 2011 tax software download You can use that filing status only if one spouse is a U. H&r block 2011 tax software download S. H&r block 2011 tax software download citizen or resident alien and you choose to treat the nonresident spouse as a U. H&r block 2011 tax software download S. H&r block 2011 tax software download resident. H&r block 2011 tax software download If you make this choice, you and your spouse are taxed on your worldwide income. H&r block 2011 tax software download If you need more information on making this choice, get Publication 519, U. H&r block 2011 tax software download S. H&r block 2011 tax software download Tax Guide for Aliens. H&r block 2011 tax software download 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). H&r block 2011 tax software download Rule 5—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. H&r block 2011 tax software download You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. H&r block 2011 tax software download U. H&r block 2011 tax software download S. H&r block 2011 tax software download possessions are not foreign countries. H&r block 2011 tax software download See Publication 54, Tax Guide for U. H&r block 2011 tax software download S. H&r block 2011 tax software download Citizens and Resident Aliens Abroad, for more detailed information. H&r block 2011 tax software download Rule 6—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. H&r block 2011 tax software download If your investment income is more than $3,300, you cannot claim the credit. H&r block 2011 tax software download Form 1040EZ. H&r block 2011 tax software download   If you file Form 1040EZ, your investment income is the total of the amount on line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. H&r block 2011 tax software download Form 1040A. H&r block 2011 tax software download   If you file Form 1040A, your investment income is the total of the amounts on lines 8a (taxable interest), 8b (tax-exempt interest), 9a (ordinary dividends), and 10 (capital gain distributions) on that form. H&r block 2011 tax software download Form 1040. H&r block 2011 tax software download   If you file Form 1040, use Worksheet 1 in this chapter to figure your investment income. H&r block 2011 tax software download    Worksheet 1. H&r block 2011 tax software download Investment Income If You Are Filing Form 1040 Use this worksheet to figure investment income for the earned income credit when you file Form 1040. H&r block 2011 tax software download Interest and Dividends         1. H&r block 2011 tax software download Enter any amount from Form 1040, line 8a 1. H&r block 2011 tax software download   2. H&r block 2011 tax software download Enter any amount from Form 1040, line 8b, plus any amount on Form 8814, line 1b 2. H&r block 2011 tax software download   3. H&r block 2011 tax software download Enter any amount from Form 1040, line 9a 3. H&r block 2011 tax software download   4. H&r block 2011 tax software download Enter the amount from Form 1040, line 21, that is from Form 8814 if you are filing that form to report your child's interest and dividend income on your return. H&r block 2011 tax software download (If your child received an Alaska Permanent Fund dividend, use Worksheet 2 in this chapter to figure the amount to enter on this line. H&r block 2011 tax software download ) 4. H&r block 2011 tax software download   Capital Gain Net Income         5. H&r block 2011 tax software download Enter the amount from Form 1040, line 13. H&r block 2011 tax software download If the amount on that line is a loss, enter -0- 5. H&r block 2011 tax software download       6. H&r block 2011 tax software download Enter any gain from Form 4797, Sales of Business Property, line 7. H&r block 2011 tax software download If the amount on that line is a loss, enter -0-. H&r block 2011 tax software download (But, if you completed lines 8 and 9 of Form 4797, enter the amount from line 9 instead. H&r block 2011 tax software download ) 6. H&r block 2011 tax software download       7. H&r block 2011 tax software download Substract line 6 of this worksheet from line 5 of this worksheet. H&r block 2011 tax software download (If the result is less than zero, enter -0-. H&r block 2011 tax software download ) 7. H&r block 2011 tax software download   Royalties and Rental Income From Personal Property         8. H&r block 2011 tax software download Enter any royalty income from Schedule E, line 23b, plus any income from the rental of personal property shown on Form 1040, line 21 8. H&r block 2011 tax software download       9. H&r block 2011 tax software download Enter any expenses from Schedule E, line 20, related to royalty income, plus any expenses from the rental of personal property deducted on Form 1040, line 36 9. H&r block 2011 tax software download       10. H&r block 2011 tax software download Subtract the amount on line 9 of this worksheet from the amount on line 8. H&r block 2011 tax software download (If the result is less than zero, enter -0-. H&r block 2011 tax software download ) 10. H&r block 2011 tax software download   Passive Activities         11. H&r block 2011 tax software download Enter the total of any net income from passive activities (such as income included on Schedule E, line 26, 29a (col. H&r block 2011 tax software download (g)), 34a (col. H&r block 2011 tax software download (d)), or 40). H&r block 2011 tax software download (See instructions below for lines 11 and 12. H&r block 2011 tax software download ) 11. H&r block 2011 tax software download       12. H&r block 2011 tax software download Enter the total of any losses from passive activities (such as losses included on Schedule E, line 26, 29b (col. H&r block 2011 tax software download (f)), 34b (col. H&r block 2011 tax software download (c)), or 40). H&r block 2011 tax software download (See instructions below for lines 11 and 12. H&r block 2011 tax software download ) 12. H&r block 2011 tax software download       13. H&r block 2011 tax software download Combine the amounts on lines 11 and 12 of this worksheet. H&r block 2011 tax software download (If the result is less than zero, enter -0-. H&r block 2011 tax software download ) 13. H&r block 2011 tax software download   14. H&r block 2011 tax software download Add the amounts on lines 1, 2, 3, 4, 7, 10, and 13. H&r block 2011 tax software download Enter the total. H&r block 2011 tax software download This is your investment income 14. H&r block 2011 tax software download   15. H&r block 2011 tax software download Is the amount on line 14 more than $3,300? ❑ Yes. H&r block 2011 tax software download You cannot take the credit. H&r block 2011 tax software download  ❑ No. H&r block 2011 tax software download Go to Step 3 of the Form 1040 instructions for lines 64a and 64b to find out if you can take the credit (unless you are using this publication to find out if you can take the credit; in that case, go to Rule 7, next). H&r block 2011 tax software download       Instructions for lines 11 and 12. H&r block 2011 tax software download In figuring the amount to enter on lines 11 and 12, do not take into account any royalty income (or loss) included on line 26 of Schedule E or any amount included in your earned income. H&r block 2011 tax software download To find out if the income on line 26 or line 40 of Schedule E is from a passive activity, see the Schedule E instructions. H&r block 2011 tax software download If any of the rental real estate income (or loss) included on Schedule E, line 26, is not from a passive activity, print “NPA” and the amount of that income (or loss) on the dotted line next to line 26. H&r block 2011 tax software download Worksheet 2. H&r block 2011 tax software download Worksheet for Line 4 of Worksheet 1 Complete this worksheet only if Form 8814 includes an Alaska Permanent Fund dividend. H&r block 2011 tax software download Note. H&r block 2011 tax software download Fill out a separate Worksheet 2 for each Form 8814. H&r block 2011 tax software download     1. H&r block 2011 tax software download Enter the amount from Form 8814, line 2a 1. H&r block 2011 tax software download   2. H&r block 2011 tax software download Enter the amount from Form 8814, line 2b 2. H&r block 2011 tax software download   3. H&r block 2011 tax software download Subtract line 2 from line 1 3. H&r block 2011 tax software download   4. H&r block 2011 tax software download Enter the amount from Form 8814, line 1a 4. H&r block 2011 tax software download   5. H&r block 2011 tax software download Add lines 3 and 4 5. H&r block 2011 tax software download   6. H&r block 2011 tax software download Enter the amount of the child's Alaska Permanent Fund dividend 6. H&r block 2011 tax software download   7. H&r block 2011 tax software download Divide line 6 by line 5. H&r block 2011 tax software download Enter the result as a decimal (rounded to at least three places) 7. H&r block 2011 tax software download   8. H&r block 2011 tax software download Enter the amount from Form 8814, line 12 8. H&r block 2011 tax software download   9. H&r block 2011 tax software download Multiply line 7 by line 8 9. H&r block 2011 tax software download   10. H&r block 2011 tax software download Subtract line 9 from line 8. H&r block 2011 tax software download Enter the result on line 4 of Worksheet 1 10. H&r block 2011 tax software download     (If filing more than one Form 8814, enter on line 4 of Worksheet 1 the total of the amounts on line 10 of all Worksheets 2. H&r block 2011 tax software download )     Example—completing Worksheet 2. H&r block 2011 tax software download Your 10-year-old child has taxable interest income of $400, an Alaska Permanent Fund dividend of $1,000, and ordinary dividends of $1,100, of which $500 are qualified dividends. H&r block 2011 tax software download You choose to report this income on your return. H&r block 2011 tax software download You enter $400 on line 1a of Form 8814, $2,100 ($1,000 + $1,100) on line 2a, and $500 on line 2b. H&r block 2011 tax software download After completing lines 4 through 11, you enter $400 on line 12 of Form 8814 and line 21 of Form 1040. H&r block 2011 tax software download On Worksheet 2, you enter $2,100 on line 1, $500 on line 2, $1,600 on line 3, $400 on line 4, $2,000 on line 5, $1,000 on line 6, 0. H&r block 2011 tax software download 500 on line 7, $400 on line 8, $200 on line 9, and $200 on line 10. H&r block 2011 tax software download You then enter $200 on line 4 of Worksheet 1. H&r block 2011 tax software download Rule 7—You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. H&r block 2011 tax software download If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. H&r block 2011 tax software download If you are an employee, earned income includes all the taxable income you get from your employer. H&r block 2011 tax software download Rule 15 has information that will help you figure the amount of your earned income. H&r block 2011 tax software download If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the Form 1040 instructions. H&r block 2011 tax software download Earned Income Earned income includes all of the following types of income. H&r block 2011 tax software download Wages, salaries, tips, and other taxable employee pay. H&r block 2011 tax software download Employee pay is earned income only if it is taxable. H&r block 2011 tax software download Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. H&r block 2011 tax software download But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained later in this chapter. H&r block 2011 tax software download Net earnings from self-employment. H&r block 2011 tax software download Gross income received as a statutory employee. H&r block 2011 tax software download Wages, salaries, and tips. H&r block 2011 tax software download    Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. H&r block 2011 tax software download You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). H&r block 2011 tax software download Nontaxable combat pay election. H&r block 2011 tax software download   You can elect to include your nontaxable combat pay in earned income for the earned income credit. H&r block 2011 tax software download The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q. H&r block 2011 tax software download Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. H&r block 2011 tax software download For details, see Nontaxable combat pay in chapter 4. H&r block 2011 tax software download Net earnings from self-employment. H&r block 2011 tax software download   You may have net earnings from self-employment if: You own your own business, or You are a minister or member of a religious order. H&r block 2011 tax software download Minister's housing. H&r block 2011 tax software download   The rental value of a home or a housing allowance provided to a minister as part of the minister's pay generally is not subject to income tax but is included in net earnings from self-employment. H&r block 2011 tax software download For that reason, it is included in earned income for the EIC (except in the cases described in Approved Form 4361 or Form 4029 , below). H&r block 2011 tax software download Statutory employee. H&r block 2011 tax software download   You are a statutory employee if you receive a Form W-2 on which the “Statutory employee” box (box 13) is checked. H&r block 2011 tax software download You report your income and expenses as a statutory employee on Schedule C or C-EZ (Form 1040). H&r block 2011 tax software download Strike benefits. H&r block 2011 tax software download   Strike benefits paid by a union to its members are earned income. H&r block 2011 tax software download 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. H&r block 2011 tax software download Each approved form exempts certain income from social security taxes. H&r block 2011 tax software download Each form is discussed here in terms of what is or is not earned income for the EIC. H&r block 2011 tax software download Form 4361. H&r block 2011 tax software download   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. H&r block 2011 tax software download This includes wages, salaries, tips, and other taxable employee compensation. H&r block 2011 tax software download A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. H&r block 2011 tax software download Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. H&r block 2011 tax software download Examples include fees for performing marriages and honoraria for delivering speeches. H&r block 2011 tax software download Form 4029. H&r block 2011 tax software download   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. H&r block 2011 tax software download However, amounts you received as a self-employed individual do not count as earned income. H&r block 2011 tax software download Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. H&r block 2011 tax software download 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. H&r block 2011 tax software download Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. H&r block 2011 tax software download You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. H&r block 2011 tax software download Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. H&r block 2011 tax software download Report taxable pension payments on Form 1040, lines 16a and 16b, or Form 1040A, lines 12a and 12b. H&r block 2011 tax software download Disability insurance payments. H&r block 2011 tax software download   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. H&r block 2011 tax software download It does not matter whether you have reached minimum retirement age. H&r block 2011 tax software download If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. H&r block 2011 tax software download ” 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. H&r block 2011 tax software download Do not include any of these items in your earned income. H&r block 2011 tax software download Earnings while an inmate. H&r block 2011 tax software download   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. H&r block 2011 tax software download This includes amounts for work performed while in a work release program or while in a halfway house. H&r block 2011 tax software download Workfare payments. H&r block 2011 tax software download   Nontaxable workfare payments are not earned income for the EIC. H&r block 2011 tax software download These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. H&r block 2011 tax software download Community property. H&r block 2011 tax software download   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. H&r block 2011 tax software download That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. H&r block 2011 tax software download 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. H&r block 2011 tax software download Nevada, Washington, and California domestic partners. H&r block 2011 tax software download   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. H&r block 2011 tax software download Your earned income for the EIC does not include any amount earned by your partner. H&r block 2011 tax software download Your earned income includes the entire amount you earned. H&r block 2011 tax software download For details, see Publication 555. H&r block 2011 tax software download Conservation Reserve Program (CRP) payments. H&r block 2011 tax software download   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. H&r block 2011 tax software download Nontaxable military pay. H&r block 2011 tax software download   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. H&r block 2011 tax software download Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). H&r block 2011 tax software download See Publication 3, Armed Forces' Tax Guide, for more information. H&r block 2011 tax software download    Combat pay. H&r block 2011 tax software download You can elect to include your nontaxable combat pay in earned income for the EIC. H&r block 2011 tax software download See Nontaxable combat pay in chapter 4. H&r block 2011 tax software download Chapter 2—Rules If You Have a Qualifying Child If you have met all the rules in chapter 1, use this chapter to see if you have a qualifying child. H&r block 2011 tax software download This chapter discusses Rules 8 through 10. H&r block 2011 tax software download You must meet all three of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit with a qualifying child. H&r block 2011 tax software download You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. H&r block 2011 tax software download (You cannot file Form 1040EZ. H&r block 2011 tax software download ) You also must complete Schedule EIC and attach it to your return. H&r block 2011 tax software download If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. H&r block 2011 tax software download No qualifying child. H&r block 2011 tax software download   If you do not meet Rule 8, you do not have a qualifying child. H&r block 2011 tax software download Read chapter 3 to find out if you can get the earned income credit without a qualifying child. H&r block 2011 tax software download Rule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. H&r block 2011 tax software download The fours tests are: Relationship, Age, Residency, and Joint return. H&r block 2011 tax software download The four tests are illustrated in Figure 1. H&r block 2011 tax software download The paragraphs that follow contain more information about each test. H&r block 2011 tax software download 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). H&r block 2011 tax software download The following definitions clarify the relationship test. H&r block 2011 tax software download Adopted child. H&r block 2011 tax software download   An adopted child is always treated as your own child. H&r block 2011 tax software download The term “adopted child” includes a child who was lawfully placed with you for legal adoption. H&r block 2011 tax software download Foster child. H&r block 2011 tax software download   For the EIC, a person is your foster child if the child is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. H&r block 2011 tax software download (An authorized placement agency includes a state or local government agency. H&r block 2011 tax software download It also includes a tax-exempt organization licensed by a state. H&r block 2011 tax software download In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. H&r block 2011 tax software download ) Example. H&r block 2011 tax software download 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. H&r block 2011 tax software download Debbie is your foster child. H&r block 2011 tax software download Figure 1. H&r block 2011 tax software download Tests for Qualifying Child Please click here for the text description of the image. H&r block 2011 tax software download Conditions for Qualifying Child 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. H&r block 2011 tax software download The following examples and definitions clarify the age test. H&r block 2011 tax software download Example 1—child not under age 19. H&r block 2011 tax software download Your son turned 19 on December 10. H&r block 2011 tax software download 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. H&r block 2011 tax software download Example 2—child not younger than you or your spouse. H&r block 2011 tax software download Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. H&r block 2011 tax software download He is not disabled. H&r block 2011 tax software download Both you and your spouse are 21 years old, and you file a joint return. H&r block 2011 tax software download Your brother is not your qualifying child because he is not younger than you or your spouse. H&r block 2011 tax software download Example 3—child younger than your spouse but not younger than you. H&r block 2011 tax software download The facts are the same as in Example 2 except that your spouse is 25 years old. H&r block 2011 tax software download Because your brother is younger than your spouse, he is your qualifying child, even though he is not younger than you. H&r block 2011 tax software download Student defined. H&r block 2011 tax software download   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. H&r block 2011 tax software download   The 5 calendar months need not be consecutive. H&r block 2011 tax software download   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. H&r block 2011 tax software download School defined. H&r block 2011 tax software download   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. H&r block 2011 tax software download However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. H&r block 2011 tax software download Vocational high school students. H&r block 2011 tax software download   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. H&r block 2011 tax software download Permanently and totally disabled. H&r block 2011 tax software download   Your child is permanently and totally disabled if both of the following apply. H&r block 2011 tax software download He or she cannot engage in any substantial gainful activity because of a physical or mental condition. H&r block 2011 tax software download A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. H&r block 2011 tax software download Residency Test Your child must have lived with you in the United States for more than half of 2013. H&r block 2011 tax software download The following definitions clarify the residency test. H&r block 2011 tax software download United States. H&r block 2011 tax software download   This means the 50 states and the District of Columbia. H&r block 2011 tax software download It does not include Puerto Rico or U. H&r block 2011 tax software download S. H&r block 2011 tax software download possessions such as Guam. H&r block 2011 tax software download Homeless shelter. H&r block 2011 tax software download   Your home can be any location where you regularly live. H&r block 2011 tax software download You do not need a traditional home. H&r block 2011 tax software download 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. H&r block 2011 tax software download Military personnel stationed outside the United States. H&r block 2011 tax software download   U. H&r block 2011 tax software download S. H&r block 2011 tax software download 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. H&r block 2011 tax software download Extended active duty. H&r block 2011 tax software download   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. H&r block 2011 tax software download 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. H&r block 2011 tax software download Birth or death of child. H&r block 2011 tax software download    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. H&r block 2011 tax software download Temporary absences. H&r block 2011 tax software download   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. H&r block 2011 tax software download Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. H&r block 2011 tax software download Kidnapped child. H&r block 2011 tax software download   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. H&r block 2011 tax software download The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. H&r block 2011 tax software download This treatment applies for all years until the child is returned. H&r block 2011 tax software download 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. H&r block 2011 tax software download   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. H&r block 2011 tax software download Joint Return Test To meet this test, the child cannot file a joint return for the year. H&r block 2011 tax software download Exception. H&r block 2011 tax software download   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. H&r block 2011 tax software download Example 1—child files joint return. H&r block 2011 tax software download You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. H&r block 2011 tax software download He earned $25,000 for the year. H&r block 2011 tax software download The couple files a joint return. H&r block 2011 tax software download Because your daughter and her husband file a joint return, she is not your qualifying child. H&r block 2011 tax software download Example 2—child files joint return to get refund of tax withheld. H&r block 2011 tax software download Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. H&r block 2011 tax software download They do not have a child. H&r block 2011 tax software download Neither is required to file a tax return. H&r block 2011 tax software download Taxes were taken out of their pay, so they file a joint return only to get a refund of the withheld taxes. H&r block 2011 tax software download The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. H&r block 2011 tax software download Example 3—child files joint return to claim American opportunity credit. H&r block 2011 tax software download The facts are the same as in Example 2 except no taxes were taken out of your son's pay. H&r block 2011 tax software download 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. H&r block 2011 tax software download Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to claim a refund of income tax withheld or estimated tax paid. H&r block 2011 tax software download The exception to the joint return test does not apply, so your son is not your qualifying child. H&r block 2011 tax software download Married child. H&r block 2011 tax software download   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. H&r block 2011 tax software download    Social security number. H&r block 2011 tax software download Your 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. H&r block 2011 tax software download 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), issued to adopting parents who cannot get an SSN for the child being adopted until the adoption is final. H&r block 2011 tax software download   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. H&r block 2011 tax software download For more information about SSNs, see Rule 2. H&r block 2011 tax software download Rule 9—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. H&r block 2011 tax software download However, only one of these persons can actually treat the child as a qualifying child. H&r block 2011 tax software download 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). H&r block 2011 tax software download The exemption for the child. H&r block 2011 tax software download The child tax credit. H&r block 2011 tax software download Head of household filing status. H&r block 2011 tax software download The credit for child and dependent care expenses. H&r block 2011 tax software download The exclusion for dependent care benefits. H&r block 2011 tax software download The EIC. H&r block 2011 tax software download The other person cannot take any of these benefits based on this qualifying child. H&r block 2011 tax software download In other words, you and the other person cannot agree to divide these tax benefits between you. H&r block 2011 tax software download The other person cannot take any of these tax benefits unless he or she has a different qualifying child. H&r block 2011 tax software download The tiebreaker rules, which follow, explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. H&r block 2011 tax software download However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. H&r block 2011 tax software download Tiebreaker rules. H&r block 2011 tax software download   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. H&r block 2011 tax software download If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download See Example 8. H&r block 2011 tax software download   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. H&r block 2011 tax software download See Examples 1 through 13. H&r block 2011 tax software download   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 chapter 3 for people who do not have a qualifying child. H&r block 2011 tax software download If the other person cannot claim the EIC. H&r block 2011 tax software download   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. H&r block 2011 tax software download See Examples 6 and 7. H&r block 2011 tax software download 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 in this chapter. H&r block 2011 tax software download Examples. H&r block 2011 tax software download    The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. H&r block 2011 tax software download Example 1—child lived with parent and grandparent. H&r block 2011 tax software download You and your 2-year-old son Jimmy lived with your mother all year. H&r block 2011 tax software download You are 25 years old, unmarried, and your AGI is $9,000. H&r block 2011 tax software download Your only income was $9,000 from a part-time job. H&r block 2011 tax software download Your mother's only income was $20,000 from her job, and her AGI is $20,000. H&r block 2011 tax software download Jimmy's father did not live with you or Jimmy. H&r block 2011 tax software download The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. H&r block 2011 tax software download 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. H&r block 2011 tax software download However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier in this chapter for which that person qualifies). H&r block 2011 tax software download He is not a qualifying child of anyone else, including his father. H&r block 2011 tax software download 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). H&r block 2011 tax software download Example 2—parent has higher AGI than grandparent. H&r block 2011 tax software download The facts are the same as in Example 1 except your AGI is $25,000. H&r block 2011 tax software download Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. H&r block 2011 tax software download Only you can claim him. H&r block 2011 tax software download Example 3—two persons claim same child. H&r block 2011 tax software download The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download Example 4—qualifying children split between two persons. H&r block 2011 tax software download 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. H&r block 2011 tax software download Only one of you can claim each child. H&r block 2011 tax software download However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. H&r block 2011 tax software download For example, if you claim one child, your mother can claim the other two. H&r block 2011 tax software download Example 5—taxpayer who is a qualifying child. H&r block 2011 tax software download The facts are the same as in Example 1 except that you are only 18 years old. H&r block 2011 tax software download This means you are a qualifying child of your mother. H&r block 2011 tax software download Because of Rule 10, discussed next, you cannot claim the EIC and cannot claim your son as a qualifying child. H&r block 2011 tax software download Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. H&r block 2011 tax software download 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. H&r block 2011 tax software download Example 6—grandparent with too much earned income to claim EIC. H&r block 2011 tax software download The facts are the same as in Example 1 except that your mother earned $50,000 from her job. H&r block 2011 tax software download Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. H&r block 2011 tax software download Example 7—parent with too much earned income to claim EIC. H&r block 2011 tax software download The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. H&r block 2011 tax software download Your earned income is too high for you to claim the EIC. H&r block 2011 tax software download But your mother cannot claim the EIC either, because her AGI is not higher than yours. H&r block 2011 tax software download Example 8—child lived with both parents and grandparent. H&r block 2011 tax software download 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 AGI of $30,000 on a joint return. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download In other words, each parent's AGI can be treated as $15,000. H&r block 2011 tax software download Example 9—separated parents. H&r block 2011 tax software download You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. H&r block 2011 tax software download In August and September, Joey lived with you. H&r block 2011 tax software download For the rest of the year, Joey lived with your husband, who is Joey's father. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download You and your husband will file separate returns. H&r block 2011 tax software download Your husband agrees to let you treat Joey as a qualifying child. H&r block 2011 tax software download 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. H&r block 2011 tax software download However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. H&r block 2011 tax software download See Rule 3. H&r block 2011 tax software download Example 10—separated parents claim same child. H&r block 2011 tax software download The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. H&r block 2011 tax software download In this case, only your husband will be allowed to treat Joey as a qualifying child. H&r block 2011 tax software download This is because, during 2013, the boy lived with him longer than with you. H&r block 2011 tax software download You cannot claim the EIC (either with or without a qualifying child). H&r block 2011 tax software download 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. H&r block 2011 tax software download See Rule 3. H&r block 2011 tax software download Example 11—unmarried parents. H&r block 2011 tax software download You, your 5-year-old son, and your son's father lived together all year. H&r block 2011 tax software download You and your son's father are not married. H&r block 2011 tax software download 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. H&r block 2011 tax software download Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. H&r block 2011 tax software download Neither of you had any other income. H&r block 2011 tax software download Your son's father agrees to let you treat the child as a qualifying child. H&r block 2011 tax software download 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. H&r block 2011 tax software download Example 12—unmarried parents claim same child. H&r block 2011 tax software download 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. H&r block 2011 tax software download In this case, only your son's father will be allowed to treat your son as a qualifying child. H&r block 2011 tax software download This is because his AGI, $14,000, is more than your AGI, $12,000. H&r block 2011 tax software download You cannot claim the EIC (either with or without a qualifying child). H&r block 2011 tax software download Example 13—child did not live with a parent. H&r block 2011 tax software download You and your 7-year-old niece, your sister's child, lived with your mother all year. H&r block 2011 tax software download You are 25 years old, and your AGI is $9,300. H&r block 2011 tax software download Your only income was from a part-time job. H&r block 2011 tax software download Your mother's AGI is $15,000. H&r block 2011 tax software download Her only income was from her job. H&r block 2011 tax software download Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. H&r block 2011 tax software download 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. H&r block 2011 tax software download However, only your mother can treat her as a qualifying child. H&r block 2011 tax software download This is because your mother's AGI, $15,000, is more than your AGI, $9,300. H&r block 2011 tax software download Special rule for divorced or separated parents (or parents who live apart). H&r block 2011 tax software download   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. H&r block 2011 tax software download 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 time during the last 6 months of 2013, whether or not they are or were married. H&r block 2011 tax software download The child received over half of his or her support for the year from the parents. H&r block 2011 tax software download The child is in the custody of one or both parents for more than half of 2013. H&r block 2011 tax software download Either of the following statements is true. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download For details, see Publication 501. H&r block 2011 tax software download Also see Applying Rule 9 to divorced or separated parents (or parents who live apart), next. H&r block 2011 tax software download Applying Rule 9 to divorced or separated parents (or parents who live apart). H&r block 2011 tax software download   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. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download Example 1. H&r block 2011 tax software download You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. H&r block 2011 tax software download Your AGI is $10,000. H&r block 2011 tax software download Your mother’s AGI is $25,000. H&r block 2011 tax software download Your son's father did not live with you or your son. H&r block 2011 tax software download Under the Special rule for 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. H&r block 2011 tax software download 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. H&r block 2011 tax software download You and your mother did not have any child care expenses or dependent care benefits. H&r block 2011 tax software download 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. H&r block 2011 tax software download Example 2. H&r block 2011 tax software download The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. H&r block 2011 tax software download Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. H&r block 2011 tax software download Example 3. H&r block 2011 tax software download 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. H&r block 2011 tax software download Your mother also claims him as a qualifying child for head of household filing status. H&r block 2011 tax software download You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. H&r block 2011 tax software download The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. H&r block 2011 tax software download Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. H&r block 2011 tax software download ) if all of the following statements are true. H&r block 2011 tax software download You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. H&r block 2011 tax software download Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. H&r block 2011 tax software download 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. H&r block 2011 tax software download You lived with that person in the United States for more than half of the year. H&r block 2011 tax software download 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). H&r block 2011 tax software download For more details about the tests to be a qualifying child, see Rule 8. H&r block 2011 tax software download If you are a qualifying child of another taxpayer, you cannot claim the EIC. H&r block 2011 tax software download 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. H&r block 2011 tax software download Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). H&r block 2011 tax software download Example. H&r block 2011 tax software download You and your daughter lived with your mother all year. H&r block 2011 tax software download You are 22 years old, unmarried, and attended a trade school full time. H&r block 2011 tax software download You had a part-time job and earned $5,700. H&r block 2011 tax software download You had no other income. H&r block 2011 tax software download Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. H&r block 2011 tax software download She can claim the EIC if she meets all the other requirements. H&r block 2011 tax software download Because you are your mother's qualifying child, you cannot claim the EIC. H&r block 2011 tax software download This is so even if your mother cannot or does not claim the EIC. H&r block 2011 tax software download Child of person not required to file a return. H&r block 2011 tax software download   You are not the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you met 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. H&r block 2011 tax software download Example 1—return not required. H&r block 2011 tax software download 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. H&r block 2011 tax software download As a result, you are not your mother's qualifying child. H&r block 2011 tax software download You can claim the EIC if you meet all the other requirements to do so. H&r block 2011 tax software download Example 2—return filed to get refund of tax withheld. H&r block 2011 tax software download The facts are the same as in Example 1 except your mother had wages of $1,500 and had income tax withheld from her wages. H&r block 2011 tax software download She files a return only to get a refund of the income tax withheld and does not claim the EIC or any other tax credits or deductions. H&r block 2011 tax software download As a result, you are not your mother's qualifying child. H&r block 2011 tax software download You can claim the EIC if you meet all the other requirements to do so. H&r block 2011 tax software download Example 3—return filed to get EIC. H&r block 2011 tax software download The facts are the same as in Example 2 except your mother claimed the EIC on her return. H&r block 2011 tax software download Since she filed the return to get the EIC, she is not filing it only to get a refund of income tax withheld. H&r block 2011 tax software download As a result, you are your mother's qualifying child. H&r block 2011 tax software download You cannot claim the EIC. H&r block 2011 tax software download Chapter 3—Rules If You Do Not Have a Qualifying Child Use this chapter if you do not have a qualifying child and have met all the rules in chapter 1. H&r block 2011 tax software download This chapter discusses Rules 11 through 14. H&r block 2011 tax software download You must meet all four of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit without a qualifying child. H&r block 2011 tax software download You can file Form 1040, Form 1040A, or Form 1040EZ to claim the EIC without a qualifying child. H&r block 2011 tax software download If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. H&r block 2011 tax software download If you have a qualifying child. H&r block 2011 tax software download   If you meet Rule 8, you have a qualifying child. H&r block 2011 tax software download If you meet Rule 8 and do not claim the EIC with a qualifying child, you cannot claim the EIC without a qualifying child. H&r block 2011 tax software download Rule 11—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. H&r block 2011 tax software download 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. H&r block 2011 tax software download It does not matter which spouse meets the age test, as long as one of the spouses does. H&r block 2011 tax software download You meet the age test if you were born after December 31, 1948, and before January 2, 1989. H&r block 2011 tax software download 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. H&r block 2011 tax software download If neither you nor your spouse meets the age test, you cannot claim the EIC. H&r block 2011 tax software download Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). H&r block 2011 tax software download Death of spouse. H&r block 2011 tax software download   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. H&r block 2011 tax software download Example 1. H&r block 2011 tax software download You are age 28 and unmarried. H&r block 2011 tax software download You meet the age test. H&r block 2011 tax software download Example 2—spouse meets age test. H&r block 2011 tax software download You are married and filing a joint return. H&r block 2011 tax software download You are age 23 and your spouse is age 27. H&r block 2011 tax software download You meet the age test because your spouse is at least age 25 but under age 65. H&r block 2011 tax software download Example 3—spouse dies in 2013. H&r block 2011 tax software download You are married and filing a joint return with your spouse who died in August 2013. H&r block 2011 tax software download You are age 67. H&r block 2011 tax software download Your spouse would have become age 65 in November 2013. H&r block 2011 tax software download Because your spouse was under age 65 when she died, you meet the age test. H&r block 2011 tax software download Rule 12—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. H&r block 2011 tax software download 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. H&r block 2011 tax software download If you are not sure whether someone else can claim you as a dependent, get Publication 501 and read the rules for claiming a dependent. H&r block 2011 tax software download If someone else can claim you as a dependent on his or her return, but does not, you still cannot claim the credit. H&r block 2011 tax software download Example 1. H&r block 2011 tax software download In 2013, you were age 25, single, and living at home with your parents. H&r block 2011 tax software download You worked and were not a student. H&r block 2011 tax software download You earned $7,500. H&r block 2011 tax software download Your parents cannot claim you as a dependent. H&r block 2011 tax software download 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. H&r block 2011 tax software download You meet this rule. H&r block 2011 tax software download You can claim the EIC if you meet all the other requirements. H&r block 2011 tax software download Example 2. H&r block 2011 tax software download The facts are the same as in Example 1, except that you earned $2,000. H&r block 2011 tax software download Your parents can claim you as a dependent but decide not to. H&r block 2011 tax software download You do not meet this rule. H&r block 2011 tax software download You cannot claim the credit because your parents could have claimed you as a dependent. H&r block 2011 tax software download Joint returns. H&r block 2011 tax software download   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. H&r block 2011 tax software download   However, another person may be able to claim you as a dependent if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. H&r block 2011 tax software download But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. H&r block 2011 tax software download Example 1—return filed to get refund of tax withheld. H&r block 2011 tax software download You are 26 years old. H&r block 2011 tax software download You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. H&r block 2011 tax software download Neither you nor your wife is required to file a tax return. H&r block 2011 tax software download You do not have a child. H&r block 2011 tax software download Taxes were taken out of your pay so you file a joint return only to get a refund of the withheld taxes. H&r block 2011 tax software download Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. H&r block 2011 tax software download They can claim exemptions for you and your wife if all the other tests to do so are met. H&r block 2011 tax software download Example 2—return filed to get EIC. H&r block 2011 tax software download The facts are the same as in Example 1except no taxes were taken out of your pay. H&r block 2011 tax software download 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. H&r block 2011 tax software download Because claiming the EIC is your reason for filing the return, you are not filing it only to claim a refund of income tax withheld or estimated tax paid. H&r block 2011 tax software download Your parents cannot claim an exemption for either you or your wife. H&r block 2011 tax software download Rule 13—You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. H&r block 2011 tax software download ) if all of the following statements are true. H&r block 2011 tax software download You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. H&r block 2011 tax software download Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. H&r block 2011 tax software download 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. H&r block 2011 tax software download You lived with that person in the United States for more than half of the year. H&r block 2011 tax software download 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). H&r block 2011 tax software download For more details about the tests to be a qualifying child, see Rule 8. H&r block 2011 tax software download If you are a qualifying child of another taxpayer, you cannot claim the EIC. H&r block 2011 tax software download 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. H&r block 2011 tax software download Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). H&r block 2011 tax software download Example. H&r block 2011 tax software download You lived with your mother all year. H&r block 2011 tax software download You are age 26, unmarried, and permanently and totally disabled. H&r block 2011 tax software download Your only income was from a community center where you went three days a week to answer telephones. H&r block 2011 tax software download You earned $5,000 for the year and provided more than half of your own support. H&r block 2011 tax software download Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. H&r block 2011 tax software download She can claim the EIC if she meets all the other requirements. H&r block 2011 tax software download Because you are a qualifying child of your mother, you cannot claim the EIC. H&r block 2011 tax software download This is so even if your mother cannot or does not claim the EIC. H&r block 2011 tax software download Joint returns. H&r block 2011 tax software download   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. H&r block 2011 tax software download   However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. H&r block 2011 tax software download But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. H&r block 2011 tax software download Child of person not required to file a return. H&r block 2011 tax software download   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. H&r block 2011 tax software download Example 1—return not required. H&r block 2011 tax software download You lived all year with your father. H&r block 2011 tax software download You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. H&r block 2011 tax software download You have no other income, no children, and provided more than half of your own support. H&r block 2011 tax software download Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. H&r block 2011 tax software download As a result, you are not your father's qualifying child. H&r block 2011 tax software download You can claim the EIC if you meet all the other requirements to do so. H&r block 2011 tax software download Example 2—return filed to get refund of tax withheld. H&r block 2011 tax software download The facts are the same as in Example 1 except your father had wages of $1,500 and had income tax withheld from his wages. H&r block 2011 tax software download He files a return only to get a refund of the income tax withheld and does not claim the EIC or any other tax credits or deductions. H&r block 2011 tax software download As a result, you are not your father's qualifying child. H&r block 2011 tax software download You can claim the EIC if you meet all the other requirements to do so. H&r block 2011 tax software download Example 3—return filed to get EIC. H&r block 2011 tax software download The facts are the same as in Example 2 except your father claimed the EIC on his return. H&r block 2011 tax software download Since he filed the return to get the EIC, he is not filing it only to get a refund of income tax withheld. H&r block 2011 tax software download As a result, you are your father's qualifying child. H&r block 2011 tax software download You cannot claim the EIC. H&r block 2011 tax software download Rule 14—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. H&r block 2011 tax software download If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). H&r block 2011 tax software download United States. H&r block 2011 tax software download   This means the 50 states and the District of Columbia. H&r block 2011 tax software download It does not include Puerto Rico or U. H&r block 2011 tax software download S. H&r block 2011 tax software download possessions such as Guam. H&r block 2011 tax software download Homeless shelter. H&r block 2011 tax software download   Your home can be any location where you regularly live. H&r block 2011 tax software download You do not need a traditional home. H&r block 2011 tax software download If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. H&r block 2011 tax software download Military personnel stationed outside the United States. H&r block 2011 tax software download   U. H&r block 2011 tax software download S. H&r block 2011 tax software download military personnel stationed outside the United States on extended active duty (defined in chapter 2) are considered to live in the United States during that duty period for purposes of the EIC. H&r block 2011 tax software download Chapter 4—Figuring and Claiming the EIC You must meet one more rule to claim the EIC. H&r block 2011 tax software download You need to know the amount of your earned income to see if you meet the rule in this chapter. H&r block 2011 tax software download You also need to know that amount to figure your EIC. H&r block 2011 tax software download Rule 15—Earned Income Limits 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. H&r block 2011 tax software download Earned Income Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. H&r block 2011 tax software download Employee pay is earned income only if it is taxable. H&r block 2011 tax software download Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. H&r block 2011 tax software download But there is an exception for nontaxable combat pay, which you can choose to include in earned income. H&r block 2011 tax software download Earned income is explained in detail in Rule 7 in chapter 1. H&r block 2011 tax software download Figuring earned income. H&r block 2011 tax software download   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. H&r block 2011 tax software download   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. H&r block 2011 tax software download   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). H&r block 2011 tax software download You will then reduce that amount by any amount included on that line and described in the following list. H&r block 2011 tax software download Scholarship or fellowship grants not reported on a Form W-2. H&r block 2011 tax software download 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. H&r block 2011 tax software download Inmate's income. H&r block 2011 tax software download Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. H&r block 2011 tax software download This includes amounts received for work performed while in a work release program or while in a halfway house. H&r block 2011 tax software download 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). H&r block 2011 tax software download Pension or annuity from deferred compensation plans. H&r block 2011 tax software download 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. H&r block 2011 tax software download 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). H&r block 2011 tax software download This amount may be reported in box 11 of your Form W-2. H&r block 2011 tax software download If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or an annuity. H&r block 2011 tax software download Clergy. H&r block 2011 tax software download   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 re