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Irs 1040 Ez Form 2012

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Irs 1040 Ez Form 2012

Irs 1040 ez form 2012 4. Irs 1040 ez form 2012   General Business Credits Table of Contents Introduction Useful Items - You may want to see: Business Credits How To Claim the Credit Introduction Your general business credit for the year consists of your carryforward of business credits from prior years plus the total of your current year business credits. Irs 1040 ez form 2012 In addition, your general business credit for the current year may be increased later by the carryback of business credits from later years. Irs 1040 ez form 2012 You subtract this credit directly from your tax. Irs 1040 ez form 2012 Useful Items - You may want to see: Form (and Instructions) 3800 General Business Credit 6251 Alternative Minimum Tax—Individuals See chapter 12 for information about getting publications and forms. Irs 1040 ez form 2012 Business Credits All of the following credits are part of the general business credit. Irs 1040 ez form 2012 The form you use to figure each credit is shown in parentheses. Irs 1040 ez form 2012 You will also have to complete Form 3800. Irs 1040 ez form 2012 Alternative fuel vehicle refueling property credit (Form 8911). Irs 1040 ez form 2012   This credit applies to the cost of any qualified fuel vehicle refueling property you placed in service. Irs 1040 ez form 2012 For more information, see Form 8911. Irs 1040 ez form 2012 Alternative motor vehicle credit (Form 8910). Irs 1040 ez form 2012   For more information, see Form 8910. Irs 1040 ez form 2012 Biodiesel and renewable diesel fuels credit (Form 8864). Irs 1040 ez form 2012   For more information, see Form 8864. Irs 1040 ez form 2012 Biofuel producer credit (Form 6478). Irs 1040 ez form 2012    For more information, see Form 6478. Irs 1040 ez form 2012 Carbon dioxide sequestration credit (Form 8933). Irs 1040 ez form 2012   This credit is for carbon dioxide which is captured at a qualified facility and disposed of in a secure geological storage or used in a qualified enhanced oil or natural gas recovery project. Irs 1040 ez form 2012 For more information, see Form 8933. Irs 1040 ez form 2012 Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). Irs 1040 ez form 2012   This credit is generally equal to your (employer's) portion of social security and Medicare taxes paid on tips received by employees of your food and beverage establishment where tipping is customary. Irs 1040 ez form 2012 The credit applies regardless of whether the food is consumed on or off your business premises. Irs 1040 ez form 2012 For more information, see Form 8846. Irs 1040 ez form 2012 Credit for employer differential wage payments (Form 8932). Irs 1040 ez form 2012   This credit provides certain small businesses with an incentive to continue to pay wages to an employee performing services on active duty in the uniformed services of the United States for a period of more than 30 days. Irs 1040 ez form 2012 For more information, see Form 8932. Irs 1040 ez form 2012 Credit for employer-provided childcare facilities and services (Form 8882). Irs 1040 ez form 2012   This credit applies to the qualified expenses you paid for employee childcare and qualified expenses you paid for childcare resource and referral services. Irs 1040 ez form 2012 For more information, see Form 8882. Irs 1040 ez form 2012 Credit for increasing research activities (Form 6765). Irs 1040 ez form 2012   This credit is designed to encourage businesses to increase the amounts they spend on research and experimental activities, including energy research. Irs 1040 ez form 2012 For more information, see Form 6765. Irs 1040 ez form 2012 Credit for small employer health insurance premiums (Form 8941). Irs 1040 ez form 2012   This credit applies to the cost of certain health insurance coverage you provide to certain employees. Irs 1040 ez form 2012 For more information, see Form 8941. Irs 1040 ez form 2012 Credit for small employer pension plan startup costs (Form 8881). Irs 1040 ez form 2012   This credit applies to pension plan startup costs of a new qualified defined benefit or defined contribution plan (including a 401(k) plan), SIMPLE plan, or simplified employee pension. Irs 1040 ez form 2012 For more information, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Irs 1040 ez form 2012 Disabled access credit (Form 8826). Irs 1040 ez form 2012   This credit is a nonrefundable tax credit for an eligible small business that pays or incurs expenses to provide access to persons who have disabilities. Irs 1040 ez form 2012 You must pay or incur the expenses to enable your business to comply with the Americans with Disabilities Act of 1990. Irs 1040 ez form 2012 For more information, see Form 8826. Irs 1040 ez form 2012 Distilled spirits credit (Form 8906). Irs 1040 ez form 2012   This credit is available to distillers and importers of distilled spirits and eligible wholesalers of distilled spirits. Irs 1040 ez form 2012 For more information, see Form 8906. Irs 1040 ez form 2012 Empowerment zone employment credit (Form 8844). Irs 1040 ez form 2012   You may qualify for this credit if you have employees and are engaged in a business in an empowerment zone for which the credit is available. Irs 1040 ez form 2012 For more information, see Form 8844. Irs 1040 ez form 2012 Energy efficient appliance credit (Form 8909). Irs 1040 ez form 2012   This credit is available for manufacturers of eligible appliances. Irs 1040 ez form 2012 For more information, see Form 8909. Irs 1040 ez form 2012 Energy efficient home credit (Form 8908). Irs 1040 ez form 2012   This credit is available for eligible contractors of certain homes sold for use as a residence. Irs 1040 ez form 2012 For more information, see Form 8908. Irs 1040 ez form 2012 Indian employment credit (Form 8845). Irs 1040 ez form 2012   This credit applies to qualified wages and health insurance costs you paid or incurred for qualified employees. Irs 1040 ez form 2012 For more information, see Form 8845. Irs 1040 ez form 2012 Investment credit (Form 3468). Irs 1040 ez form 2012   The investment credit is the total of the following credits. Irs 1040 ez form 2012 Rehabilitation credit. Irs 1040 ez form 2012 Energy credit. Irs 1040 ez form 2012 Qualifying advanced coal project credit. Irs 1040 ez form 2012 Qualifying gasification project credit. Irs 1040 ez form 2012 Qualifying advanced energy project credit. Irs 1040 ez form 2012   For more information, see Form 3468. Irs 1040 ez form 2012 Low sulfur diesel fuel production credit (Form 8896). Irs 1040 ez form 2012    For more information, see Form 8896. Irs 1040 ez form 2012 Low-income housing credit (Form 8586). Irs 1040 ez form 2012   This credit generally applies to each new qualified low-income building placed in service after 1986. Irs 1040 ez form 2012 For more information, see Form 8586. Irs 1040 ez form 2012 Mine rescue team training credit (Form 8923). Irs 1040 ez form 2012   This credit applies to training program costs you pay or incur for certain mine rescue team employees. Irs 1040 ez form 2012 For more information, see Form 8923. Irs 1040 ez form 2012 New markets credit (Form 8874). Irs 1040 ez form 2012   This credit is for qualified equity investments made in qualified community development entities. Irs 1040 ez form 2012 For more information, see Form 8874. Irs 1040 ez form 2012 Nonconventional source fuel credit (Form 8907). Irs 1040 ez form 2012   This credit is for qualified coke and coke gas you produced and sold to an unrelated person during the tax year. Irs 1040 ez form 2012 For more information, see Form 8907. Irs 1040 ez form 2012 Orphan drug credit (Form 8820). Irs 1040 ez form 2012   This credit applies to qualified expenses incurred in testing certain drugs for rare diseases and conditions. Irs 1040 ez form 2012 For more information, see Form 8820. Irs 1040 ez form 2012 Qualified plug-in electric drive motor vehicle credit (Form 8936). Irs 1040 ez form 2012   This credit is for certain new qualified plug-in electric vehicles placed in service during the tax year. Irs 1040 ez form 2012 For more information, see Form 8936. Irs 1040 ez form 2012 Qualified railroad track maintenance credit (Form 8900). Irs 1040 ez form 2012   This credit applies with respect to qualified railroad track maintenance expenditures paid or incurred during the tax year. Irs 1040 ez form 2012 For more information, see Form 8900. Irs 1040 ez form 2012 Renewable electricity, refined coal, and Indian coal production credit (Form 8835). Irs 1040 ez form 2012   This credit is for the sale of electricity, refined coal, or Indian coal produced in the United States or U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 possessions from qualified energy resources at a qualified facility. Irs 1040 ez form 2012 For more information, see Form 8835. Irs 1040 ez form 2012 Work opportunity credit (Form 5884). Irs 1040 ez form 2012   This credit provides businesses with an incentive to hire individuals from targeted groups that have a particularly high unemployment rate or other special employment needs. Irs 1040 ez form 2012 For more information, see Form 5884. Irs 1040 ez form 2012 How To Claim the Credit To claim a general business credit, you will first have to get the forms you need to claim your current year business credits. Irs 1040 ez form 2012 In addition to the credit form, you also need to file Form 3800. Irs 1040 ez form 2012 Prev  Up  Next   Home   More Online Publications
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Charity and Nonprofit Audits

This web page will explain the IRS audit process for charities and other nonprofit organizations. IRS Exempt Organizations is continuously exploring how to improve our service to charities and other nonprofit organizations, and we hope you will find the information on this page useful.

You’ve probably reached this page because your charity or other nonprofit organization received a letter or phone call from IRS Exempt Organizations (EO) Examinations saying it had been selected for a review of its returns. The type of review is one of the following:

  • Audits: The IRS conducts two types of audits--

  • Non-audits: If the letter indicates the IRS is conducting a compliance check, then you're not being audited.

    Note: The IRS also sometimes asks organizations to complete questionnaires to help us better understand how organizations satisfy federal tax law requirements. Neither compliance checks nor compliance check questionnaires are audits.

Organizations are selected for reviews for a variety of reasons, and the scope of the audit or compliance check will vary based on the type of review.

An audit starts with the initial contact and continues until a closing letter is issued. A compliance check or compliance check questionnaire starts with the initial contact. The IRS may contact the organization again if the IRS needs further information, or if the organization does not respond to the compliance check or questionnaire. The IRS typically issues a closing letter at the end of a compliance check, but not at the end of a compliance check questionnaire.

Taxpayer rights:

Additional information - charity and nonprofit audits

Additional information - IRS Exempt Organizations

Other IRS-wide considerations:

Page Last Reviewed or Updated: 26-Nov-2013

The Irs 1040 Ez Form 2012

Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You must meet all seven rules to qualify for the earned income credit. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Adjusted gross income (AGI). Irs 1040 ez form 2012   AGI is the amount on line 4 of Form 1040EZ, line 22 of Form 1040A, or line 38 of Form 1040. Irs 1040 ez form 2012   If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Irs 1040 ez form 2012 You do not need to read the rest of this publication. Irs 1040 ez form 2012 Example—AGI is more than limit. Irs 1040 ez form 2012 Your AGI is $38,550, you are single, and you have one qualifying child. Irs 1040 ez form 2012 You cannot claim the EIC because your AGI is not less than $37,870. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Community property. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 This is different from the community property rules that apply under Rule 7. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 Any qualifying child listed on Schedule EIC also must have a valid SSN. Irs 1040 ez form 2012 (See Rule 8 if you have a qualifying child. Irs 1040 ez form 2012 ) 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. Irs 1040 ez form 2012 An example of a federally funded benefit is Medicaid. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 citizen or permanent resident, ask the SSA for a new social security card without the legend. Irs 1040 ez form 2012 If you get the new card after you have already filed your return, you can file an amended return on Form 1040X, Amended U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 Individual Income Tax Return, to claim the EIC. Irs 1040 ez form 2012 U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 citizen. Irs 1040 ez form 2012   If you were a U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 citizen when you received your SSN, you have a valid SSN. Irs 1040 ez form 2012 Valid for work only with INS authorization or DHS authorization. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 SSN missing or incorrect. Irs 1040 ez form 2012   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Irs 1040 ez form 2012 Other taxpayer identification number. Irs 1040 ez form 2012   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). Irs 1040 ez form 2012 ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Irs 1040 ez form 2012 No SSN. Irs 1040 ez form 2012   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). Irs 1040 ez form 2012 You cannot claim the EIC. Irs 1040 ez form 2012 Getting an SSN. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 You can get Form SS-5 online at www. Irs 1040 ez form 2012 socialsecurity. Irs 1040 ez form 2012 gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Irs 1040 ez form 2012 Filing deadline approaching and still no SSN. Irs 1040 ez form 2012   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Irs 1040 ez form 2012 Request an automatic 6-month extension of time to file your return. Irs 1040 ez form 2012 You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 Individual Income Tax Return. Irs 1040 ez form 2012 For more information, see the instructions for Form 4868. Irs 1040 ez form 2012 File the return on time without claiming the EIC. Irs 1040 ez form 2012 After receiving the SSN, file an amended return, Form 1040X, claiming the EIC. Irs 1040 ez form 2012 Attach a filled-in Schedule EIC, Earned Income Credit, if you have a qualifying child. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Your filing status cannot be “Married filing separately. Irs 1040 ez form 2012 ” Spouse did not live with you. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 In that case, you may be able to claim the EIC. Irs 1040 ez form 2012 For detailed information about filing as head of household, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Irs 1040 ez form 2012 Rule 4—You Must Be a U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You can use that filing status only if one spouse is a U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 citizen or resident alien and you choose to treat the nonresident spouse as a U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 resident. Irs 1040 ez form 2012 If you make this choice, you and your spouse are taxed on your worldwide income. Irs 1040 ez form 2012 If you need more information on making this choice, get Publication 519, U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 Tax Guide for Aliens. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Irs 1040 ez form 2012 U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 possessions are not foreign countries. Irs 1040 ez form 2012 See Publication 54, Tax Guide for U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 Citizens and Resident Aliens Abroad, for more detailed information. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 If your investment income is more than $3,300, you cannot claim the credit. Irs 1040 ez form 2012 Form 1040EZ. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 Form 1040A. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 Form 1040. Irs 1040 ez form 2012   If you file Form 1040, use Worksheet 1 in this chapter to figure your investment income. Irs 1040 ez form 2012    Worksheet 1. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Interest and Dividends         1. Irs 1040 ez form 2012 Enter any amount from Form 1040, line 8a 1. Irs 1040 ez form 2012   2. Irs 1040 ez form 2012 Enter any amount from Form 1040, line 8b, plus any amount on Form 8814, line 1b 2. Irs 1040 ez form 2012   3. Irs 1040 ez form 2012 Enter any amount from Form 1040, line 9a 3. Irs 1040 ez form 2012   4. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 (If your child received an Alaska Permanent Fund dividend, use Worksheet 2 in this chapter to figure the amount to enter on this line. Irs 1040 ez form 2012 ) 4. Irs 1040 ez form 2012   Capital Gain Net Income         5. Irs 1040 ez form 2012 Enter the amount from Form 1040, line 13. Irs 1040 ez form 2012 If the amount on that line is a loss, enter -0- 5. Irs 1040 ez form 2012       6. Irs 1040 ez form 2012 Enter any gain from Form 4797, Sales of Business Property, line 7. Irs 1040 ez form 2012 If the amount on that line is a loss, enter -0-. Irs 1040 ez form 2012 (But, if you completed lines 8 and 9 of Form 4797, enter the amount from line 9 instead. Irs 1040 ez form 2012 ) 6. Irs 1040 ez form 2012       7. Irs 1040 ez form 2012 Substract line 6 of this worksheet from line 5 of this worksheet. Irs 1040 ez form 2012 (If the result is less than zero, enter -0-. Irs 1040 ez form 2012 ) 7. Irs 1040 ez form 2012   Royalties and Rental Income From Personal Property         8. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012       9. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012       10. Irs 1040 ez form 2012 Subtract the amount on line 9 of this worksheet from the amount on line 8. Irs 1040 ez form 2012 (If the result is less than zero, enter -0-. Irs 1040 ez form 2012 ) 10. Irs 1040 ez form 2012   Passive Activities         11. Irs 1040 ez form 2012 Enter the total of any net income from passive activities (such as income included on Schedule E, line 26, 29a (col. Irs 1040 ez form 2012 (g)), 34a (col. Irs 1040 ez form 2012 (d)), or 40). Irs 1040 ez form 2012 (See instructions below for lines 11 and 12. Irs 1040 ez form 2012 ) 11. Irs 1040 ez form 2012       12. Irs 1040 ez form 2012 Enter the total of any losses from passive activities (such as losses included on Schedule E, line 26, 29b (col. Irs 1040 ez form 2012 (f)), 34b (col. Irs 1040 ez form 2012 (c)), or 40). Irs 1040 ez form 2012 (See instructions below for lines 11 and 12. Irs 1040 ez form 2012 ) 12. Irs 1040 ez form 2012       13. Irs 1040 ez form 2012 Combine the amounts on lines 11 and 12 of this worksheet. Irs 1040 ez form 2012 (If the result is less than zero, enter -0-. Irs 1040 ez form 2012 ) 13. Irs 1040 ez form 2012   14. Irs 1040 ez form 2012 Add the amounts on lines 1, 2, 3, 4, 7, 10, and 13. Irs 1040 ez form 2012 Enter the total. Irs 1040 ez form 2012 This is your investment income 14. Irs 1040 ez form 2012   15. Irs 1040 ez form 2012 Is the amount on line 14 more than $3,300? ❑ Yes. Irs 1040 ez form 2012 You cannot take the credit. Irs 1040 ez form 2012  ❑ No. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012       Instructions for lines 11 and 12. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Worksheet 2. Irs 1040 ez form 2012 Worksheet for Line 4 of Worksheet 1 Complete this worksheet only if Form 8814 includes an Alaska Permanent Fund dividend. Irs 1040 ez form 2012 Note. Irs 1040 ez form 2012 Fill out a separate Worksheet 2 for each Form 8814. Irs 1040 ez form 2012     1. Irs 1040 ez form 2012 Enter the amount from Form 8814, line 2a 1. Irs 1040 ez form 2012   2. Irs 1040 ez form 2012 Enter the amount from Form 8814, line 2b 2. Irs 1040 ez form 2012   3. Irs 1040 ez form 2012 Subtract line 2 from line 1 3. Irs 1040 ez form 2012   4. Irs 1040 ez form 2012 Enter the amount from Form 8814, line 1a 4. Irs 1040 ez form 2012   5. Irs 1040 ez form 2012 Add lines 3 and 4 5. Irs 1040 ez form 2012   6. Irs 1040 ez form 2012 Enter the amount of the child's Alaska Permanent Fund dividend 6. Irs 1040 ez form 2012   7. Irs 1040 ez form 2012 Divide line 6 by line 5. Irs 1040 ez form 2012 Enter the result as a decimal (rounded to at least three places) 7. Irs 1040 ez form 2012   8. Irs 1040 ez form 2012 Enter the amount from Form 8814, line 12 8. Irs 1040 ez form 2012   9. Irs 1040 ez form 2012 Multiply line 7 by line 8 9. Irs 1040 ez form 2012   10. Irs 1040 ez form 2012 Subtract line 9 from line 8. Irs 1040 ez form 2012 Enter the result on line 4 of Worksheet 1 10. Irs 1040 ez form 2012     (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. Irs 1040 ez form 2012 )     Example—completing Worksheet 2. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You choose to report this income on your return. Irs 1040 ez form 2012 You enter $400 on line 1a of Form 8814, $2,100 ($1,000 + $1,100) on line 2a, and $500 on line 2b. Irs 1040 ez form 2012 After completing lines 4 through 11, you enter $400 on line 12 of Form 8814 and line 21 of Form 1040. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 500 on line 7, $400 on line 8, $200 on line 9, and $200 on line 10. Irs 1040 ez form 2012 You then enter $200 on line 4 of Worksheet 1. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Irs 1040 ez form 2012 If you are an employee, earned income includes all the taxable income you get from your employer. Irs 1040 ez form 2012 Rule 15 has information that will help you figure the amount of your earned income. Irs 1040 ez form 2012 If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the Form 1040 instructions. Irs 1040 ez form 2012 Earned Income Earned income includes all of the following types of income. Irs 1040 ez form 2012 Wages, salaries, tips, and other taxable employee pay. Irs 1040 ez form 2012 Employee pay is earned income only if it is taxable. Irs 1040 ez form 2012 Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Irs 1040 ez form 2012 But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained later in this chapter. Irs 1040 ez form 2012 Net earnings from self-employment. Irs 1040 ez form 2012 Gross income received as a statutory employee. Irs 1040 ez form 2012 Wages, salaries, and tips. Irs 1040 ez form 2012    Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Irs 1040 ez form 2012 You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Irs 1040 ez form 2012 Nontaxable combat pay election. Irs 1040 ez form 2012   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Irs 1040 ez form 2012 The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q. Irs 1040 ez form 2012 Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Irs 1040 ez form 2012 For details, see Nontaxable combat pay in chapter 4. Irs 1040 ez form 2012 Net earnings from self-employment. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 Minister's housing. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 Statutory employee. Irs 1040 ez form 2012   You are a statutory employee if you receive a Form W-2 on which the “Statutory employee” box (box 13) is checked. Irs 1040 ez form 2012 You report your income and expenses as a statutory employee on Schedule C or C-EZ (Form 1040). Irs 1040 ez form 2012 Strike benefits. Irs 1040 ez form 2012   Strike benefits paid by a union to its members are earned income. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Each approved form exempts certain income from social security taxes. Irs 1040 ez form 2012 Each form is discussed here in terms of what is or is not earned income for the EIC. Irs 1040 ez form 2012 Form 4361. Irs 1040 ez form 2012   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Irs 1040 ez form 2012 This includes wages, salaries, tips, and other taxable employee compensation. Irs 1040 ez form 2012 A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Irs 1040 ez form 2012 Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Irs 1040 ez form 2012 Examples include fees for performing marriages and honoraria for delivering speeches. Irs 1040 ez form 2012 Form 4029. Irs 1040 ez form 2012   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Irs 1040 ez form 2012 However, amounts you received as a self-employed individual do not count as earned income. Irs 1040 ez form 2012 Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Irs 1040 ez form 2012 You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Irs 1040 ez form 2012 Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Irs 1040 ez form 2012 Report taxable pension payments on Form 1040, lines 16a and 16b, or Form 1040A, lines 12a and 12b. Irs 1040 ez form 2012 Disability insurance payments. Irs 1040 ez form 2012   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Irs 1040 ez form 2012 It does not matter whether you have reached minimum retirement age. Irs 1040 ez form 2012 If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Irs 1040 ez form 2012 ” 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. Irs 1040 ez form 2012 Do not include any of these items in your earned income. Irs 1040 ez form 2012 Earnings while an inmate. Irs 1040 ez form 2012   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Irs 1040 ez form 2012 This includes amounts for work performed while in a work release program or while in a halfway house. Irs 1040 ez form 2012 Workfare payments. Irs 1040 ez form 2012   Nontaxable workfare payments are not earned income for the EIC. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Community property. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Nevada, Washington, and California domestic partners. Irs 1040 ez form 2012   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Irs 1040 ez form 2012 Your earned income for the EIC does not include any amount earned by your partner. Irs 1040 ez form 2012 Your earned income includes the entire amount you earned. Irs 1040 ez form 2012 For details, see Publication 555. Irs 1040 ez form 2012 Conservation Reserve Program (CRP) payments. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 Nontaxable military pay. Irs 1040 ez form 2012   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Irs 1040 ez form 2012 Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Irs 1040 ez form 2012 See Publication 3, Armed Forces' Tax Guide, for more information. Irs 1040 ez form 2012    Combat pay. Irs 1040 ez form 2012 You can elect to include your nontaxable combat pay in earned income for the EIC. Irs 1040 ez form 2012 See Nontaxable combat pay in chapter 4. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 This chapter discusses Rules 8 through 10. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Irs 1040 ez form 2012 (You cannot file Form 1040EZ. Irs 1040 ez form 2012 ) You also must complete Schedule EIC and attach it to your return. Irs 1040 ez form 2012 If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Irs 1040 ez form 2012 No qualifying child. Irs 1040 ez form 2012   If you do not meet Rule 8, you do not have a qualifying child. Irs 1040 ez form 2012 Read chapter 3 to find out if you can get the earned income credit without a qualifying child. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 The fours tests are: Relationship, Age, Residency, and Joint return. Irs 1040 ez form 2012 The four tests are illustrated in Figure 1. Irs 1040 ez form 2012 The paragraphs that follow contain more information about each test. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 The following definitions clarify the relationship test. Irs 1040 ez form 2012 Adopted child. Irs 1040 ez form 2012   An adopted child is always treated as your own child. Irs 1040 ez form 2012 The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Irs 1040 ez form 2012 Foster child. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 (An authorized placement agency includes a state or local government agency. Irs 1040 ez form 2012 It also includes a tax-exempt organization licensed by a state. Irs 1040 ez form 2012 In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Irs 1040 ez form 2012 ) Example. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Debbie is your foster child. Irs 1040 ez form 2012 Figure 1. Irs 1040 ez form 2012 Tests for Qualifying Child Please click here for the text description of the image. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 The following examples and definitions clarify the age test. Irs 1040 ez form 2012 Example 1—child not under age 19. Irs 1040 ez form 2012 Your son turned 19 on December 10. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Example 2—child not younger than you or your spouse. Irs 1040 ez form 2012 Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Irs 1040 ez form 2012 He is not disabled. Irs 1040 ez form 2012 Both you and your spouse are 21 years old, and you file a joint return. Irs 1040 ez form 2012 Your brother is not your qualifying child because he is not younger than you or your spouse. Irs 1040 ez form 2012 Example 3—child younger than your spouse but not younger than you. Irs 1040 ez form 2012 The facts are the same as in Example 2 except that your spouse is 25 years old. Irs 1040 ez form 2012 Because your brother is younger than your spouse, he is your qualifying child, even though he is not younger than you. Irs 1040 ez form 2012 Student defined. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012   The 5 calendar months need not be consecutive. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 School defined. Irs 1040 ez form 2012   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Irs 1040 ez form 2012 However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Irs 1040 ez form 2012 Vocational high school students. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 Permanently and totally disabled. Irs 1040 ez form 2012   Your child is permanently and totally disabled if both of the following apply. Irs 1040 ez form 2012 He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Irs 1040 ez form 2012 A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Irs 1040 ez form 2012 Residency Test Your child must have lived with you in the United States for more than half of 2013. Irs 1040 ez form 2012 The following definitions clarify the residency test. Irs 1040 ez form 2012 United States. Irs 1040 ez form 2012   This means the 50 states and the District of Columbia. Irs 1040 ez form 2012 It does not include Puerto Rico or U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 possessions such as Guam. Irs 1040 ez form 2012 Homeless shelter. Irs 1040 ez form 2012   Your home can be any location where you regularly live. Irs 1040 ez form 2012 You do not need a traditional home. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Military personnel stationed outside the United States. Irs 1040 ez form 2012   U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Extended active duty. Irs 1040 ez form 2012   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Birth or death of child. Irs 1040 ez form 2012    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. Irs 1040 ez form 2012 Temporary absences. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Irs 1040 ez form 2012 Kidnapped child. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 This treatment applies for all years until the child is returned. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Irs 1040 ez form 2012 Joint Return Test To meet this test, the child cannot file a joint return for the year. Irs 1040 ez form 2012 Exception. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 Example 1—child files joint return. Irs 1040 ez form 2012 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Irs 1040 ez form 2012 He earned $25,000 for the year. Irs 1040 ez form 2012 The couple files a joint return. Irs 1040 ez form 2012 Because your daughter and her husband file a joint return, she is not your qualifying child. Irs 1040 ez form 2012 Example 2—child files joint return to get refund of tax withheld. Irs 1040 ez form 2012 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Irs 1040 ez form 2012 They do not have a child. Irs 1040 ez form 2012 Neither is required to file a tax return. Irs 1040 ez form 2012 Taxes were taken out of their pay, so they file a joint return only to get a refund of the withheld taxes. Irs 1040 ez form 2012 The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Irs 1040 ez form 2012 Example 3—child files joint return to claim American opportunity credit. Irs 1040 ez form 2012 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 The exception to the joint return test does not apply, so your son is not your qualifying child. Irs 1040 ez form 2012 Married child. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012    Social security number. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 For more information about SSNs, see Rule 2. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 However, only one of these persons can actually treat the child as a qualifying child. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 The exemption for the child. Irs 1040 ez form 2012 The child tax credit. Irs 1040 ez form 2012 Head of household filing status. Irs 1040 ez form 2012 The credit for child and dependent care expenses. Irs 1040 ez form 2012 The exclusion for dependent care benefits. Irs 1040 ez form 2012 The EIC. Irs 1040 ez form 2012 The other person cannot take any of these benefits based on this qualifying child. Irs 1040 ez form 2012 In other words, you and the other person cannot agree to divide these tax benefits between you. Irs 1040 ez form 2012 The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Irs 1040 ez form 2012 The tiebreaker rules, which follow, explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Irs 1040 ez form 2012 However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Irs 1040 ez form 2012 Tiebreaker rules. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 See Example 8. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 See Examples 1 through 13. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 If the other person cannot claim the EIC. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 See Examples 6 and 7. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Examples. Irs 1040 ez form 2012    The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Irs 1040 ez form 2012 Example 1—child lived with parent and grandparent. Irs 1040 ez form 2012 You and your 2-year-old son Jimmy lived with your mother all year. Irs 1040 ez form 2012 You are 25 years old, unmarried, and your AGI is $9,000. Irs 1040 ez form 2012 Your only income was $9,000 from a part-time job. Irs 1040 ez form 2012 Your mother's only income was $20,000 from her job, and her AGI is $20,000. Irs 1040 ez form 2012 Jimmy's father did not live with you or Jimmy. Irs 1040 ez form 2012 The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 He is not a qualifying child of anyone else, including his father. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 Example 2—parent has higher AGI than grandparent. Irs 1040 ez form 2012 The facts are the same as in Example 1 except your AGI is $25,000. Irs 1040 ez form 2012 Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Irs 1040 ez form 2012 Only you can claim him. Irs 1040 ez form 2012 Example 3—two persons claim same child. Irs 1040 ez form 2012 The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Example 4—qualifying children split between two persons. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Only one of you can claim each child. Irs 1040 ez form 2012 However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Irs 1040 ez form 2012 For example, if you claim one child, your mother can claim the other two. Irs 1040 ez form 2012 Example 5—taxpayer who is a qualifying child. Irs 1040 ez form 2012 The facts are the same as in Example 1 except that you are only 18 years old. Irs 1040 ez form 2012 This means you are a qualifying child of your mother. Irs 1040 ez form 2012 Because of Rule 10, discussed next, you cannot claim the EIC and cannot claim your son as a qualifying child. Irs 1040 ez form 2012 Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Example 6—grandparent with too much earned income to claim EIC. Irs 1040 ez form 2012 The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Irs 1040 ez form 2012 Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Irs 1040 ez form 2012 Example 7—parent with too much earned income to claim EIC. Irs 1040 ez form 2012 The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Irs 1040 ez form 2012 Your earned income is too high for you to claim the EIC. Irs 1040 ez form 2012 But your mother cannot claim the EIC either, because her AGI is not higher than yours. Irs 1040 ez form 2012 Example 8—child lived with both parents and grandparent. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 In other words, each parent's AGI can be treated as $15,000. Irs 1040 ez form 2012 Example 9—separated parents. Irs 1040 ez form 2012 You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Irs 1040 ez form 2012 In August and September, Joey lived with you. Irs 1040 ez form 2012 For the rest of the year, Joey lived with your husband, who is Joey's father. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You and your husband will file separate returns. Irs 1040 ez form 2012 Your husband agrees to let you treat Joey as a qualifying child. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Irs 1040 ez form 2012 See Rule 3. Irs 1040 ez form 2012 Example 10—separated parents claim same child. Irs 1040 ez form 2012 The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Irs 1040 ez form 2012 In this case, only your husband will be allowed to treat Joey as a qualifying child. Irs 1040 ez form 2012 This is because, during 2013, the boy lived with him longer than with you. Irs 1040 ez form 2012 You cannot claim the EIC (either with or without a qualifying child). Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 See Rule 3. Irs 1040 ez form 2012 Example 11—unmarried parents. Irs 1040 ez form 2012 You, your 5-year-old son, and your son's father lived together all year. Irs 1040 ez form 2012 You and your son's father are not married. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Irs 1040 ez form 2012 Neither of you had any other income. Irs 1040 ez form 2012 Your son's father agrees to let you treat the child as a qualifying child. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Example 12—unmarried parents claim same child. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 In this case, only your son's father will be allowed to treat your son as a qualifying child. Irs 1040 ez form 2012 This is because his AGI, $14,000, is more than your AGI, $12,000. Irs 1040 ez form 2012 You cannot claim the EIC (either with or without a qualifying child). Irs 1040 ez form 2012 Example 13—child did not live with a parent. Irs 1040 ez form 2012 You and your 7-year-old niece, your sister's child, lived with your mother all year. Irs 1040 ez form 2012 You are 25 years old, and your AGI is $9,300. Irs 1040 ez form 2012 Your only income was from a part-time job. Irs 1040 ez form 2012 Your mother's AGI is $15,000. Irs 1040 ez form 2012 Her only income was from her job. Irs 1040 ez form 2012 Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 However, only your mother can treat her as a qualifying child. Irs 1040 ez form 2012 This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Irs 1040 ez form 2012 Special rule for divorced or separated parents (or parents who live apart). Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 The child received over half of his or her support for the year from the parents. Irs 1040 ez form 2012 The child is in the custody of one or both parents for more than half of 2013. Irs 1040 ez form 2012 Either of the following statements is true. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 For details, see Publication 501. Irs 1040 ez form 2012 Also see Applying Rule 9 to divorced or separated parents (or parents who live apart), next. Irs 1040 ez form 2012 Applying Rule 9 to divorced or separated parents (or parents who live apart). Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Example 1. Irs 1040 ez form 2012 You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Irs 1040 ez form 2012 Your AGI is $10,000. Irs 1040 ez form 2012 Your mother’s AGI is $25,000. Irs 1040 ez form 2012 Your son's father did not live with you or your son. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You and your mother did not have any child care expenses or dependent care benefits. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Example 2. Irs 1040 ez form 2012 The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Irs 1040 ez form 2012 Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Irs 1040 ez form 2012 Example 3. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Your mother also claims him as a qualifying child for head of household filing status. Irs 1040 ez form 2012 You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Irs 1040 ez form 2012 The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 ) if all of the following statements are true. Irs 1040 ez form 2012 You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Irs 1040 ez form 2012 Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You lived with that person in the United States for more than half of the year. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 For more details about the tests to be a qualifying child, see Rule 8. Irs 1040 ez form 2012 If you are a qualifying child of another taxpayer, you cannot claim the EIC. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Irs 1040 ez form 2012 Example. Irs 1040 ez form 2012 You and your daughter lived with your mother all year. Irs 1040 ez form 2012 You are 22 years old, unmarried, and attended a trade school full time. Irs 1040 ez form 2012 You had a part-time job and earned $5,700. Irs 1040 ez form 2012 You had no other income. Irs 1040 ez form 2012 Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Irs 1040 ez form 2012 She can claim the EIC if she meets all the other requirements. Irs 1040 ez form 2012 Because you are your mother's qualifying child, you cannot claim the EIC. Irs 1040 ez form 2012 This is so even if your mother cannot or does not claim the EIC. Irs 1040 ez form 2012 Child of person not required to file a return. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 Example 1—return not required. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 As a result, you are not your mother's qualifying child. Irs 1040 ez form 2012 You can claim the EIC if you meet all the other requirements to do so. Irs 1040 ez form 2012 Example 2—return filed to get refund of tax withheld. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 As a result, you are not your mother's qualifying child. Irs 1040 ez form 2012 You can claim the EIC if you meet all the other requirements to do so. Irs 1040 ez form 2012 Example 3—return filed to get EIC. Irs 1040 ez form 2012 The facts are the same as in Example 2 except your mother claimed the EIC on her return. Irs 1040 ez form 2012 Since she filed the return to get the EIC, she is not filing it only to get a refund of income tax withheld. Irs 1040 ez form 2012 As a result, you are your mother's qualifying child. Irs 1040 ez form 2012 You cannot claim the EIC. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 This chapter discusses Rules 11 through 14. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You can file Form 1040, Form 1040A, or Form 1040EZ to claim the EIC without a qualifying child. Irs 1040 ez form 2012 If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Irs 1040 ez form 2012 If you have a qualifying child. Irs 1040 ez form 2012   If you meet Rule 8, you have a qualifying child. Irs 1040 ez form 2012 If you meet Rule 8 and do not claim the EIC with a qualifying child, you cannot claim the EIC without a qualifying child. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 It does not matter which spouse meets the age test, as long as one of the spouses does. Irs 1040 ez form 2012 You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 If neither you nor your spouse meets the age test, you cannot claim the EIC. Irs 1040 ez form 2012 Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Irs 1040 ez form 2012 Death of spouse. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 Example 1. Irs 1040 ez form 2012 You are age 28 and unmarried. Irs 1040 ez form 2012 You meet the age test. Irs 1040 ez form 2012 Example 2—spouse meets age test. Irs 1040 ez form 2012 You are married and filing a joint return. Irs 1040 ez form 2012 You are age 23 and your spouse is age 27. Irs 1040 ez form 2012 You meet the age test because your spouse is at least age 25 but under age 65. Irs 1040 ez form 2012 Example 3—spouse dies in 2013. Irs 1040 ez form 2012 You are married and filing a joint return with your spouse who died in August 2013. Irs 1040 ez form 2012 You are age 67. Irs 1040 ez form 2012 Your spouse would have become age 65 in November 2013. Irs 1040 ez form 2012 Because your spouse was under age 65 when she died, you meet the age test. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 If someone else can claim you as a dependent on his or her return, but does not, you still cannot claim the credit. Irs 1040 ez form 2012 Example 1. Irs 1040 ez form 2012 In 2013, you were age 25, single, and living at home with your parents. Irs 1040 ez form 2012 You worked and were not a student. Irs 1040 ez form 2012 You earned $7,500. Irs 1040 ez form 2012 Your parents cannot claim you as a dependent. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You meet this rule. Irs 1040 ez form 2012 You can claim the EIC if you meet all the other requirements. Irs 1040 ez form 2012 Example 2. Irs 1040 ez form 2012 The facts are the same as in Example 1, except that you earned $2,000. Irs 1040 ez form 2012 Your parents can claim you as a dependent but decide not to. Irs 1040 ez form 2012 You do not meet this rule. Irs 1040 ez form 2012 You cannot claim the credit because your parents could have claimed you as a dependent. Irs 1040 ez form 2012 Joint returns. Irs 1040 ez form 2012   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Irs 1040 ez form 2012 Example 1—return filed to get refund of tax withheld. Irs 1040 ez form 2012 You are 26 years old. Irs 1040 ez form 2012 You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Irs 1040 ez form 2012 Neither you nor your wife is required to file a tax return. Irs 1040 ez form 2012 You do not have a child. Irs 1040 ez form 2012 Taxes were taken out of your pay so you file a joint return only to get a refund of the withheld taxes. Irs 1040 ez form 2012 Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Irs 1040 ez form 2012 They can claim exemptions for you and your wife if all the other tests to do so are met. Irs 1040 ez form 2012 Example 2—return filed to get EIC. Irs 1040 ez form 2012 The facts are the same as in Example 1except no taxes were taken out of your pay. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Your parents cannot claim an exemption for either you or your wife. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 ) if all of the following statements are true. Irs 1040 ez form 2012 You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Irs 1040 ez form 2012 Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 You lived with that person in the United States for more than half of the year. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 For more details about the tests to be a qualifying child, see Rule 8. Irs 1040 ez form 2012 If you are a qualifying child of another taxpayer, you cannot claim the EIC. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Irs 1040 ez form 2012 Example. Irs 1040 ez form 2012 You lived with your mother all year. Irs 1040 ez form 2012 You are age 26, unmarried, and permanently and totally disabled. Irs 1040 ez form 2012 Your only income was from a community center where you went three days a week to answer telephones. Irs 1040 ez form 2012 You earned $5,000 for the year and provided more than half of your own support. Irs 1040 ez form 2012 Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Irs 1040 ez form 2012 She can claim the EIC if she meets all the other requirements. Irs 1040 ez form 2012 Because you are a qualifying child of your mother, you cannot claim the EIC. Irs 1040 ez form 2012 This is so even if your mother cannot or does not claim the EIC. Irs 1040 ez form 2012 Joint returns. Irs 1040 ez form 2012   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Irs 1040 ez form 2012 Child of person not required to file a return. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012 Example 1—return not required. Irs 1040 ez form 2012 You lived all year with your father. Irs 1040 ez form 2012 You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Irs 1040 ez form 2012 You have no other income, no children, and provided more than half of your own support. Irs 1040 ez form 2012 Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Irs 1040 ez form 2012 As a result, you are not your father's qualifying child. Irs 1040 ez form 2012 You can claim the EIC if you meet all the other requirements to do so. Irs 1040 ez form 2012 Example 2—return filed to get refund of tax withheld. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 As a result, you are not your father's qualifying child. Irs 1040 ez form 2012 You can claim the EIC if you meet all the other requirements to do so. Irs 1040 ez form 2012 Example 3—return filed to get EIC. Irs 1040 ez form 2012 The facts are the same as in Example 2 except your father claimed the EIC on his return. Irs 1040 ez form 2012 Since he filed the return to get the EIC, he is not filing it only to get a refund of income tax withheld. Irs 1040 ez form 2012 As a result, you are your father's qualifying child. Irs 1040 ez form 2012 You cannot claim the EIC. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Irs 1040 ez form 2012 United States. Irs 1040 ez form 2012   This means the 50 states and the District of Columbia. Irs 1040 ez form 2012 It does not include Puerto Rico or U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 possessions such as Guam. Irs 1040 ez form 2012 Homeless shelter. Irs 1040 ez form 2012   Your home can be any location where you regularly live. Irs 1040 ez form 2012 You do not need a traditional home. Irs 1040 ez form 2012 If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Irs 1040 ez form 2012 Military personnel stationed outside the United States. Irs 1040 ez form 2012   U. Irs 1040 ez form 2012 S. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Chapter 4—Figuring and Claiming the EIC You must meet one more rule to claim the EIC. Irs 1040 ez form 2012 You need to know the amount of your earned income to see if you meet the rule in this chapter. Irs 1040 ez form 2012 You also need to know that amount to figure your EIC. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Earned Income Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Irs 1040 ez form 2012 Employee pay is earned income only if it is taxable. Irs 1040 ez form 2012 Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Irs 1040 ez form 2012 But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Irs 1040 ez form 2012 Earned income is explained in detail in Rule 7 in chapter 1. Irs 1040 ez form 2012 Figuring earned income. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012   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. Irs 1040 ez form 2012   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). Irs 1040 ez form 2012 You will then reduce that amount by any amount included on that line and described in the following list. Irs 1040 ez form 2012 Scholarship or fellowship grants not reported on a Form W-2. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 Inmate's income. Irs 1040 ez form 2012 Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Irs 1040 ez form 2012 This includes amounts received for work performed while in a work release program or while in a halfway house. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 Pension or annuity from deferred compensation plans. Irs 1040 ez form 2012 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. Irs 1040 ez form 2012 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). Irs 1040 ez form 2012 This amount may be reported in box 11 of your Form W-2. Irs 1040 ez form 2012 If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or an annuity. Irs 1040 ez form 2012 Clergy. Irs 1040 ez form 2012   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