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Student Taxes

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Student Taxes

Student taxes Index Symbols 403(b) account, What Is a 403(b) Plan? 403(b) plans Basics, 403(b) Plan Basics Benefits, What Are the Benefits of Contributing to a 403(b) Plan? Participation, Who Can Participate in a 403(b) Plan? Self-employed ministers, Who Can Set Up a 403(b) Account? What is a 403(b) plan?, What Is a 403(b) Plan? Who can set up a 403(b) account?, Who Can Set Up a 403(b) Account? A After-tax contributions, How Can Contributions Be Made to My 403(b) Account? Assistance (see Tax help) B Basics, 403(b) Plan Basics Benefits, What Are the Benefits of Contributing to a 403(b) Plan? C Catch-up contributions, Catch-Up Contributions Chaplain, Ministers. Student taxes Church employees, Ministers and Church Employees Years of service, Changes to Years of Service Comments on publication, Comments and suggestions. Student taxes Contributions, How Can Contributions Be Made to My 403(b) Account? After-tax, How Can Contributions Be Made to My 403(b) Account? Catch-up, Catch-Up Contributions Elective deferrals, How Can Contributions Be Made to My 403(b) Account?, Elective deferrals only. Student taxes Nonelective, How Can Contributions Be Made to My 403(b) Account? Reporting, Do I Report Contributions on My Tax Return? Correcting excess contributions, What Happens If I Have Excess Contributions? Credit, for retirement savings contributions, Retirement Savings Contributions Credit (Saver's Credit) D Distributions, Distributions and Rollovers, Distributions 10-year tax option, No Special 10-Year Tax Option 90-24 transfer, Contract exchanges. Student taxes Deceased employees, Spouses of deceased employees. Student taxes Direct rollover, Direct rollovers of 403(b) plan distributions. Student taxes Eligible retirement plans, Eligible retirement plans. Student taxes Frozen deposit, Frozen deposits. Student taxes Gift tax, Gift Tax Minimum required, Minimum Required Distributions Qualified domestic relations order, Qualified domestic relations order. Student taxes Rollovers, Tax-Free Rollovers, Rollovers to and from 403(b) plans. Student taxes Second rollover, Second rollover. Student taxes Transfers, Transfer of Interest in 403(b) Contract E Elective deferrals, How Can Contributions Be Made to My 403(b) Account?, Elective deferrals only. Student taxes Eligible employees, Eligible employees. Student taxes , Church employee. Student taxes Employer's annual work period, Employer's annual work period. Student taxes Excess contributions, Excess Contributions Correcting, What Happens If I Have Excess Contributions? Determining, How Do I Know If I Have Excess Contributions? Excess amounts, Excess Annual Addition Excess deferrals, Excess Annual Addition Excess elective deferral, Excess Elective Deferral Excise tax, Excise Tax Excise tax Excess contributions, Excise Tax Reporting requirement, Reporting requirement. Student taxes F Free tax services, How To Get Tax Help, Free help with your tax return. Student taxes Full-time or part-time, Years of Service G Gift tax, Gift Tax H Help (see Tax help) I Incidental life insurance, Cost of Incidental Life Insurance Includible compensation, Includible Compensation 403(b) plan, Changes to Includible Compensation Figuring, Figuring Includible Compensation for Your Most Recent Year of Service Foreign missionaries, Changes to Includible Compensation Incidental life insurance, Cost of Incidental Life Insurance Self-employed ministers, Changes to Includible Compensation Includible compensation for your most recent year of service Definition, Definition. Student taxes L Limit on annual additions, Limit on Annual Additions Limit on elective deferrals, Limit on Elective Deferrals 15-year rule, 15-Year Rule Figuring, Figuring the Limit on Elective Deferrals General limit, General Limit M MAC (see Maximum amount contributable) Maximum amount contributable, Maximum Amount Contributable (MAC) Components, Components of Your MAC How to figure MAC, How Do I Figure My MAC? When to figure MAC, When Should I Figure My MAC? Minimum required distributions, Minimum Required Distributions Ministers, Ministers. Student taxes , Ministers and Church Employees Missing children, Reminder More information (see Tax help) Most recent year of service, Most Recent Year of Service Most recent year of service, figuring, Figuring Your Most Recent Year of Service N Nonelective contributions, How Can Contributions Be Made to My 403(b) Account?, Nonelective contributions only. Student taxes P Pre-tax contributions, Includible Compensation, Table 3-4. Student taxes Worksheet B. Student taxes Includible Compensation for Your Most Recent Year of Service1 , Rollovers to and from 403(b) plans. Student taxes , Worksheet B. Student taxes Includible Compensation for Your Most Recent Year of Service1 Publications (see Tax help) Q Qualified domestic relations order, Qualified domestic relations order. Student taxes R Reporting Contributions Self-employed ministers, Self-employed ministers. Student taxes Reporting contributions Chaplains, Chaplains. Student taxes Required distributions, Minimum Required Distributions Retirement savings contributions credit, What's New for 2013, What's New for 2014, Retirement Savings Contributions Credit (Saver's Credit) Rollovers, Distributions and Rollovers, Tax-Free Rollovers Roth contribution program, Roth contribution program. Student taxes S Salary reduction agreement, Limit on Elective Deferrals Self-employed ministers, Ministers. Student taxes , Who Can Set Up a 403(b) Account?, Self-employed minister. Student taxes , Self-employed ministers. Student taxes , Self-employed minister. Student taxes Suggestions for publication, Comments and suggestions. Student taxes T Tax help, How To Get Tax Help Transfers, Transfer of Interest in 403(b) Contract 90-24 transfer, Transfer of Interest in 403(b) Contract Conservatorship, Contract exchanges. Student taxes Direct-trustee-to-trustee, Direct trustee-to-trustee transfer. Student taxes Insolvency, Tax-free transfers for certain cash distributions. Student taxes Permissive service credit, Permissive service credit. Student taxes TTY/TDD information, How To Get Tax Help V Voluntary deductible contributions, Voluntary deductible contributions. Student taxes W What is a 403(b) plan?, What Is a 403(b) Plan? Y Years of service, Years of Service Church employees, Church employee. Student taxes , Changes to Years of Service Definition, Definition Employer's annual work period, Employer's annual work period. Student taxes Full year of service, Full year of service. Student taxes Full-time employee for the full year, Full-Time Employee for the Full Year Full-time for part of the year, Full-time for part of the year. Student taxes Other than full-time for the full year, Other Than Full-Time for the Full Year Part-time for the full year, Part-time for the full year. Student taxes Part-time for the part of the year, Part-time for part of the year. Student taxes Self-employed minister, Changes to Years of Service Total years of service, Total years of service. Student taxes Prev  Up     Home   More Online Publications
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The Student Taxes

Student taxes 36. Student taxes   Earned Income Credit (EIC) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Do You Qualify for the Credit?If Improper Claim Made in Prior Year Part A. Student taxes Rules for EveryoneRule 1. Student taxes Your AGI Must Be Less Than: Rule 2. Student taxes You Must Have a Valid Social Security Number (SSN) Rule 3. Student taxes Your Filing Status Cannot Be Married Filing Separately Rule 4. Student taxes You Must Be a U. Student taxes S. Student taxes Citizen or Resident Alien All Year Rule 5. Student taxes You Cannot File Form 2555 or Form 2555-EZ Rule 6. Student taxes Your Investment Income Must Be $3,300 or Less Rule 7. Student taxes You Must Have Earned Income Part B. Student taxes Rules If You Have a Qualifying ChildRule 8. Student taxes Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9. Student taxes Your Qualifying Child Cannot Be Used By More Than One Person To Claim the EIC Rule 10. Student taxes You Cannot Be a Qualifying Child of Another Taxpayer Part C. Student taxes Rules If You Do Not Have a Qualifying ChildRule 11. Student taxes You Must Be at Least Age 25 but Under Age 65 Rule 12. Student taxes You Cannot Be the Dependent of Another Person Rule 13. Student taxes You Cannot Be a Qualifying Child of Another Taxpayer Rule 14. Student taxes You Must Have Lived in the United States More Than Half of the Year Part D. Student taxes Figuring and Claiming the EICRule 15. Student taxes Your Earned Income Must Be Less Than: IRS Will Figure the EIC for You How To Figure the EIC Yourself ExamplesExample 1. Student taxes John and Janet Smith (Form 1040A) Example 2. Student taxes Kelly Green (Form 1040EZ) What's New Earned income amount is more. Student taxes  The maximum amount of income you can earn and still get the credit has increased. Student taxes You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). Student taxes Your adjusted gross income also must be less than the amount in the above list that applies to you. Student taxes For details, see Rules 1 and 15. Student taxes Investment income amount is more. Student taxes  The maximum amount of investment income you can have and still get the credit has increased to $3,300. Student taxes See Rule 6. Student taxes Reminders Increased EIC on certain joint returns. Student taxes  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. Student taxes As a result, the EIC table has different columns for married persons filing jointly than for everyone else. Student taxes When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. Student taxes Online help. Student taxes  You can use the EITC Assistant at www. Student taxes irs. Student taxes gov/eitc to find out if you are eligible for the credit. Student taxes The EITC Assistant is available in English and Spanish. Student taxes EIC questioned by IRS. Student taxes  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. Student taxes We will tell you what documents to send us. Student taxes These may include: birth certificates, school records, medical records, etc. Student taxes The process of establishing your eligibility will delay your refund. Student taxes Introduction The earned income credit (EIC) is a tax credit for certain people who work and have less than $51,567 of earned income. Student taxes A tax credit usually means more money in your pocket. Student taxes It reduces the amount of tax you owe. Student taxes The EIC may also give you a refund. Student taxes How do you get the earned income credit?   To claim the EIC, you must: Qualify by meeting certain rules, and File a tax return, even if you: Do not owe any tax, Did not earn enough money to file a return, or Did not have income taxes withheld from your pay. Student taxes When you complete your return, you can figure your EIC by using a worksheet in the instructions for Form 1040, Form 1040A, or Form 1040EZ. Student taxes Or, if you prefer, you can let the IRS figure the credit for you. Student taxes How will this chapter help you?   This chapter will explain the following. Student taxes The rules you must meet to qualify for the EIC. Student taxes How to figure the EIC. Student taxes Useful Items - You may want to see: Publication 596 Earned Income Credit (EIC) Form (and Instructions) Schedule EIC Earned Income Credit (Qualifying Child Information) 8862 Information To Claim Earned Income Credit After Disallowance Do You Qualify for the Credit? To qualify to claim the EIC, you must first meet all of the rules explained in Part A, Rules for Everyone . Student taxes Then you must meet the rules in Part B, Rules If You Have a Qualifying Child , or Part C, Rules If You Do Not Have a Qualifying Child . Student taxes There is one final rule you must meet in Part D, Figuring and Claiming the EIC . Student taxes You qualify for the credit if you meet all the rules in each part that applies to you. Student taxes If you have a qualifying child, the rules in Parts A, B, and D apply to you. Student taxes If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Student taxes Table 36-1, Earned Income Credit in a Nutshell. Student taxes   Use Table 36–1 as a guide to Parts A, B, C, and D. Student taxes The table is a summary of all the rules in each part. Student taxes Do you have a qualifying child?   You have a qualifying child only if you have a child who meets the four tests described in Rule 8 and illustrated in Figure 36–1. Student taxes If Improper Claim Made in Prior Year If your EIC for any year after 1996 was denied or reduced for any reason other than a math or clerical error, you must attach a completed Form 8862 to your next tax return to claim the EIC. Student taxes You must also qualify to claim the EIC by meeting all the rules described in this chapter. Student taxes However, if your EIC was denied or reduced as a result of a math or clerical error, do not attach Form 8862 to your next tax return. Student taxes For example, if your arithmetic is incorrect, the IRS can correct it. Student taxes If you do not provide a correct social security number, the IRS can deny the EIC. Student taxes These kinds of errors are called math or clerical errors. Student taxes If your EIC for any year after 1996 was denied and it was determined that your error was due to reckless or intentional disregard of the EIC rules, then you cannot claim the EIC for the next 2 years. Student taxes If your error was due to fraud, then you cannot claim the EIC for the next 10 years. Student taxes More information. Student taxes   See chapter 5 in Publication 596 for more detailed information about the disallowance period and Form 8862. Student taxes Part A. Student taxes Rules for Everyone This part of the chapter discusses Rules 1 through 7. Student taxes You must meet all seven rules to qualify for the earned income credit. Student taxes If you do not meet all seven rules, you cannot get the credit and you do not need to read the rest of the chapter. Student taxes If you meet all seven rules in this part, then read either Part B or Part C (whichever applies) for more rules you must meet. Student taxes Rule 1. Student taxes Your AGI Must Be Less Than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Student taxes Adjusted gross income (AGI). Student taxes   AGI is the amount on line 38 (Form 1040), line 22 (Form 1040A), or line 4 (Form 1040EZ). Student taxes If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Student taxes Example. Student taxes Your AGI is $38,550, you are single, and you have one qualifying child. Student taxes You cannot claim the EIC because your AGI is not less than $37,870. Student taxes 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. Student taxes Community property. Student taxes   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. Student taxes This is different from the community property rules that apply under Rule 7 . Student taxes Rule 2. Student taxes 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). Student taxes Any qualifying child listed on Schedule EIC also must have a valid SSN. Student taxes (See Rule 8 if you have a qualifying child. Student taxes ) 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. Student taxes An example of a federally funded benefit is Medicaid. Student taxes 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. Student taxes S. Student taxes citizen or permanent resident, ask the SSA for a new social security card without the legend. Student taxes U. Student taxes S. Student taxes citizen. Student taxes   If you were a U. Student taxes S. Student taxes citizen when you received your SSN, you have a valid SSN. Student taxes Valid for work only with INS or DHS authorization. Student taxes   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. Student taxes SSN missing or incorrect. Student taxes   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Student taxes Other taxpayer identification number. Student taxes   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). Student taxes ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Student taxes No SSN. Student taxes   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). Student taxes You cannot claim the EIC. Student taxes Getting an SSN. Student taxes   If you (or your spouse, if filing a joint return) do not have an SSN, you can apply for one by filing Form SS-5, Application for a Social Security Card, with the SSA. Student taxes You can get Form SS-5 online at www. Student taxes socialsecurity. Student taxes gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Student taxes Filing deadline approaching and still no SSN. Student taxes   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Student taxes Request an automatic 6-month extension of time to file your return. Student taxes You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Student taxes S. Student taxes Individual Income Tax Return. Student taxes For more information, see chapter 1 . Student taxes File the return on time without claiming the EIC. Student taxes After receiving the SSN, file an amended return (Form 1040X, Amended U. Student taxes S. Student taxes Individual Income Tax Return) claiming the EIC. Student taxes Attach a filled-in Schedule EIC if you have a qualifying child. Student taxes Table 36-1. Student taxes Earned Income Credit in a Nutshell First, you must meet all the rules in this column. Student taxes Second, you must meet all the rules in one of these columns, whichever applies. Student taxes Third, you must meet the rule in this column. Student taxes Part A. Student taxes  Rules for Everyone Part B. Student taxes  Rules If You Have a Qualifying Child Part C. Student taxes  Rules If You Do Not Have a Qualifying Child Part D. Student taxes  Figuring and Claiming the EIC 1. Student taxes 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. Student taxes 2. Student taxes You must have a valid social security number. Student taxes  3. Student taxes Your filing status cannot be “Married filing separately. Student taxes ” 4. Student taxes You must be a U. Student taxes S. Student taxes citizen or resident alien all year. Student taxes  5. Student taxes You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Student taxes  6. Student taxes Your investment income must be $3,300 or less. Student taxes  7. Student taxes You must have earned income. Student taxes 8. Student taxes Your child must meet the relationship, age, residency, and joint return tests. Student taxes  9. Student taxes Your qualifying child cannot be used by more than one person to claim the EIC. Student taxes  10. Student taxes You cannot be a qualifying child of another person. Student taxes 11. Student taxes You must be at least age 25 but under age 65. Student taxes  12. Student taxes You cannot be the dependent of another person. Student taxes  13. Student taxes You cannot be a qualifying child of another person. Student taxes  14. Student taxes You must have lived in the United States more than half of the year. Student taxes 15. Student taxes 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. Student taxes Rule 3. Student taxes Your Filing Status Cannot Be Married Filing Separately If you are married, you usually must file a joint return to claim the EIC. Student taxes Your filing status cannot be “Married filing separately. Student taxes ” Spouse did not live with you. Student taxes   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. Student taxes In that case, you may be able to claim the EIC. Student taxes For detailed information about filing as head of household, see chapter 2 . Student taxes Rule 4. Student taxes You Must Be a U. Student taxes S. Student taxes 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. Student taxes You can use that filing status only if one spouse is a U. Student taxes S. Student taxes citizen or resident alien and you choose to treat the nonresident spouse as a U. Student taxes S. Student taxes resident. Student taxes If you make this choice, you and your spouse are taxed on your worldwide income. Student taxes 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). Student taxes If you need more information on making this choice, get Publication 519, U. Student taxes S. Student taxes Tax Guide for Aliens. Student taxes Rule 5. Student taxes 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. Student taxes You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Student taxes U. Student taxes S. Student taxes possessions are not foreign countries. Student taxes See Publication 54, Tax Guide for U. Student taxes S. Student taxes Citizens and Resident Aliens Abroad, for more detailed information. Student taxes Rule 6. Student taxes 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. Student taxes If your investment income is more than $3,300, you cannot claim the credit. Student taxes For most people, investment income is the total of the following amounts. Student taxes Taxable interest (line 8a of Form 1040 or 1040A). Student taxes Tax-exempt interest (line 8b of Form 1040 or 1040A). Student taxes Dividend income (line 9a of Form 1040 or 1040A). Student taxes Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Student taxes If you file Form 1040EZ, your investment income is the total of the amount of line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. Student taxes However, see Rule 6 in chapter 1 of Publication 596 if: You are filing Schedule E (Form 1040), Form 4797, or Form 8814, or You are reporting income from the rental of personal property on Form 1040, line 21. Student taxes Rule 7. Student taxes You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. Student taxes If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Student taxes If you are an employee, earned income includes all the taxable income you get from your employer. Student taxes If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the instructions for Form 1040. Student taxes Earned Income Earned income includes all of the following types of income. Student taxes Wages, salaries, tips, and other taxable employee pay. Student taxes Employee pay is earned income only if it is taxable. Student taxes Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Student taxes But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained below. Student taxes Net earnings from self-employment. Student taxes Gross income received as a statutory employee. Student taxes Wages, salaries, and tips. Student taxes   Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Student taxes You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Student taxes Nontaxable combat pay election. Student taxes   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Student taxes Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Student taxes Figure the credit with and without your nontaxable combat pay before making the election. Student taxes   If you make the election, you must include in earned income all nontaxable combat pay you received. Student taxes If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Student taxes In other words, if one of you makes the election, the other one can also make it but does not have to. Student taxes   The amount of your nontaxable combat pay should be shown in box 12 of your Form W-2 with code “Q. Student taxes ” Self-employed persons and statutory employees. Student taxes   If you are self-employed or received income as a statutory employee, you must use the Form 1040 instructions to see if you qualify to get the EIC. Student taxes 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. Student taxes Each approved form exempts certain income from social security taxes. Student taxes Each form is discussed here in terms of what is or is not earned income for the EIC. Student taxes Form 4361. Student taxes   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Student taxes This includes wages, salaries, tips, and other taxable employee compensation. Student taxes A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Student taxes Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Student taxes Examples include fees for performing marriages and honoraria for delivering speeches. Student taxes Form 4029. Student taxes   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Student taxes However, amounts you received as a self-employed individual do not count as earned income. Student taxes Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Student taxes 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. Student taxes Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Student taxes You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Student taxes Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Student taxes Report taxable pension payments on Form 1040, lines 16a and 16b (or Form 1040A, lines 12a and 12b). Student taxes Disability insurance payments. Student taxes   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Student taxes It does not matter whether you have reached minimum retirement age. Student taxes If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Student taxes ” 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. Student taxes Do not include any of these items in your earned income. Student taxes Earnings while an inmate. Student taxes   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Student taxes This includes amounts for work performed while in a work release program or while in a halfway house. Student taxes Workfare payments. Student taxes   Nontaxable workfare payments are not earned income for the EIC. Student taxes These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if private sector employment is not available, or (2) community service program activities. Student taxes Community property. Student taxes   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. Student taxes That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Student taxes 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. Student taxes Nevada, Washington, and California domestic partners. Student taxes   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Student taxes Your earned income for the EIC does not include any amount earned by your partner. Student taxes Your earned income includes the entire amount you earned. Student taxes For details, see Publication 555. Student taxes Conservation Reserve Program (CRP) payments. Student taxes   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. Student taxes Nontaxable military pay. Student taxes   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Student taxes Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Student taxes See Publication 3, Armed Forces' Tax Guide, for more information. Student taxes    Combat pay. Student taxes You can elect to include your nontaxable combat pay in earned income for the EIC. Student taxes See Nontaxable combat pay election, earlier. Student taxes Part B. Student taxes Rules If You Have a Qualifying Child If you have met all of the rules in Part A , read Part B to see if you have a qualifying child. Student taxes Part B discusses Rules 8 through 10. Student taxes You must meet all three of these rules, in addition to the rules in Parts A and D , to qualify for the earned income credit with a qualifying child. Student taxes You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Student taxes (You cannot file Form 1040EZ. Student taxes ) You also must complete Schedule EIC and attach it to your return. Student taxes If you meet all the rules in Part A and this part, read Part D to find out what to do next. Student taxes If you do not meet Rule 8, you do not have a qualifying child. Student taxes Read Part C to find out if you can get the earned income credit without a qualifying child. Student taxes Rule 8. Student taxes Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. Student taxes The four tests are: Relationship, Age, Residency, and Joint return. Student taxes The four tests are illustrated in Figure 36–1. Student taxes The paragraphs that follow contain more information about each test. Student taxes 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). Student taxes The following definitions clarify the relationship test. Student taxes Adopted child. Student taxes   An adopted child is always treated as your own child. Student taxes The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Student taxes Foster child. Student taxes   For the EIC, a person is your foster child if the child is placed with you by an authorized placement agency or by judgement, decree, or other order of any court of competent jurisdiction. Student taxes An authorized placement agency includes a state or local government agency. Student taxes It also includes a tax-exempt organization licensed by a state. Student taxes In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Student taxes Example. Student taxes 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. Student taxes Debbie is your foster child. Student taxes 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. Student taxes    The following examples and definitions clarify the age test. Student taxes Example 1—child not under age 19. Student taxes Your son turned 19 on December 10. Student taxes 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. Student taxes Example 2—child not younger than you or your spouse. Student taxes Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Student taxes He is not disabled. Student taxes Both you and your spouse are 21 years old and you file a joint return. Student taxes Your brother is not your qualifying child because he is not younger than you or your spouse. Student taxes Example 3—child younger than your spouse but not younger than you. Student taxes The facts are the same as in Example 2 except that your spouse is 25 years old. Student taxes Because your brother is younger than your spouse, he is your qualifying child even though he is not younger than you. Student taxes Student defined. Student taxes   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. Student taxes The 5 calendar months need not be consecutive. Student taxes   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. Student taxes School defined. Student taxes   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Student taxes However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Student taxes Vocational high school students. Student taxes   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. Student taxes Permanently and totally disabled. Student taxes   Your child is permanently and totally disabled if both of the following apply. Student taxes He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Student taxes A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Student taxes Residency Test Your child must have lived with you in the United States for more than half of 2013. Student taxes The following definitions clarify the residency test. Student taxes United States. Student taxes   This means the 50 states and the District of Columbia. Student taxes It does not include Puerto Rico or U. Student taxes S. Student taxes possessions such as Guam. Student taxes Homeless shelter. Student taxes   Your home can be any location where you regularly live. Student taxes You do not need a traditional home. Student taxes 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. Student taxes Military personnel stationed outside the United States. Student taxes    U. Student taxes S. Student taxes 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. Student taxes Figure 36-1. Student taxes Tests for Qualifying Child Please click here for the text description of the image. Student taxes Qualifying child Extended active duty. Student taxes   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Student taxes 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. Student taxes Birth or death of a child. Student taxes   A child who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the child's home for more than half the time he or she was alive in 2013. Student taxes Temporary absences. Student taxes   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. Student taxes Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Student taxes Kidnapped child. Student taxes    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. Student taxes The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or your child's family. Student taxes This treatment applies for all years until the child is returned. Student taxes 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. Student taxes   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Student taxes Joint Return Test To meet this test, the child cannot file a joint return for the year. Student taxes Exception. Student taxes   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. Student taxes Example 1—child files joint return. Student taxes You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Student taxes He earned $25,000 for the year. Student taxes The couple files a joint return. Student taxes Because your daughter and her husband filed a joint return, she is not your qualifying child. Student taxes Example 2—child files joint return only to claim a refund of withheld tax. Student taxes Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Student taxes They do not have a child. Student taxes Neither is required to file a tax return. Student taxes Taxes were taken out of their pay, so they filed a joint return only to get a refund of the withheld taxes. Student taxes The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Student taxes Example 3—child files joint return to claim American opportunity credit. Student taxes The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Student taxes 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. Student taxes Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. Student taxes The exception to the joint return test does not apply, so your son is not your qualifying child. Student taxes Married child. Student taxes   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. Student taxes Social security number. Student taxes   The qualifying child must have a valid social security number (SSN) unless the child was born and died in 2013 and you attach to your return a copy of the child's birth certificate, death certificate, or hospital records showing a live birth. Student taxes You cannot claim the EIC on the basis of a qualifying child if: The qualifying child's SSN is missing from your tax return or is incorrect, The qualifying child's social security card says “Not valid for employment” and was issued for use in getting a federally funded benefit, or Instead of an SSN, the qualifying child has: An individual taxpayer identification number (ITIN), which is issued to a noncitizen who cannot get an SSN, or An adoption taxpayer identification number (ATIN), which is issued to adopting parents who cannot get an SSN for the child being adopted until the adoption is final. Student taxes   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. Student taxes For more information about SSNs, see Rule 2 . Student taxes Rule 9. Student taxes 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. Student taxes However, only one of these persons can actually treat the child as a qualifying child. Student taxes 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). Student taxes The exemption for the child. Student taxes The child tax credit. Student taxes Head of household filing status. Student taxes The credit for child and dependent care expenses. Student taxes The exclusion for dependent care benefits. Student taxes The EIC. Student taxes The other person cannot take any of these benefits based on this qualifying child. Student taxes In other words, you and the other person cannot agree to divide these tax benefits between you. Student taxes The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Student taxes The tiebreaker rules explained next explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Student taxes However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Student taxes Tiebreaker rules. Student taxes   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. Student taxes If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Student taxes 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. Student taxes 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. Student taxes 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. Student taxes 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. Student taxes 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. Student taxes 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. Student taxes See Example 8 . Student taxes   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. Student taxes See Examples 1 through 13 . Student taxes   If you cannot claim the EIC because your qualifying child is treated under the tiebreaker rules as the qualifying child of another person for 2013, you may be able to take the EIC using a different qualifying child, but you cannot take the EIC using the rules in Part C for people who do not have a qualifying child. Student taxes If the other person cannot claim the EIC. Student taxes   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. Student taxes See Examples 6 and 7 . Student taxes 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. Student taxes Examples. Student taxes The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Student taxes Example 1. Student taxes You and your 2-year-old son Jimmy lived with your mother all year. Student taxes You are 25 years old, unmarried, and your AGI is $9,000. Student taxes Your only income was $9,000 from a part-time job. Student taxes Your mother's only income was $20,000 from her job, and her AGI is $20,000. Student taxes Jimmy's father did not live with you or Jimmy. Student taxes The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Student taxes 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. Student taxes However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier for which that person qualifies). Student taxes He is not a qualifying child of anyone else, including his father. Student taxes 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). Student taxes Example 2. Student taxes The facts are the same as in Example 1 except your AGI is $25,000. Student taxes Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Student taxes Only you can claim him. Student taxes Example 3. Student taxes The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Student taxes 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. Student taxes 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. Student taxes Example 4. Student taxes 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. Student taxes Only one of you can claim each child. Student taxes However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Student taxes For example, if you claim one child, your mother can claim the other two. Student taxes Example 5. Student taxes The facts are the same as in Example 1 except that you are only 18 years old. Student taxes This means you are a qualifying child of your mother. Student taxes Because of Rule 10 , discussed next, you cannot claim the EIC and cannot claim Jimmy as a qualifying child. Student taxes Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Student taxes 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. Student taxes Example 6. Student taxes The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Student taxes Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Student taxes Example 7. Student taxes The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Student taxes Your earned income is too high for you to claim the EIC. Student taxes But your mother cannot claim the EIC either, because her AGI is not higher than yours. Student taxes Example 8. Student taxes The facts are the same as in Example 1 except that you and Jimmy's father are married to each other, live with Jimmy and your mother, and have an AGI of $30,000 on a joint return. Student taxes 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. Student taxes 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. Student taxes In other words, each parent's AGI can be treated as $15,000. Student taxes Example 9. Student taxes You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Student taxes In August and September, Joey lived with you. Student taxes For the rest of the year, Joey lived with your husband, who is Joey's father. Student taxes 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. Student taxes 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. Student taxes You and your husband will file separate returns. Student taxes Your husband agrees to let you treat Joey as a qualifying child. Student taxes 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. Student taxes However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Student taxes See Rule 3 . Student taxes Example 10. Student taxes The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Student taxes In this case, only your husband will be allowed to treat Joey as a qualifying child. Student taxes This is because, during 2013, the boy lived with him longer than with you. Student taxes You cannot claim the EIC (either with or without a qualifying child). Student taxes 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. Student taxes See Rule 3 . Student taxes Example 11. Student taxes You, your 5-year-old son and your son's father lived together all year. Student taxes You and your son's father are not married. Student taxes 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. Student taxes Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Student taxes Neither of you had any other income. Student taxes Your son's father agrees to let you treat the child as a qualifying child. Student taxes 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. Student taxes Example 12. Student taxes 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. Student taxes In this case, only your son's father will be allowed to treat your son as a qualifying child. Student taxes This is because his AGI, $14,000, is more than your AGI, $12,000. Student taxes You cannot claim the EIC (either with or without a qualifying child). Student taxes Example 13. Student taxes You and your 7-year-old niece, your sister's child, lived with your mother all year. Student taxes You are 25 years old, and your AGI is $9,300. Student taxes Your only income was from a part-time job. Student taxes Your mother's AGI is $15,000. Student taxes Her only income was from her job. Student taxes Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Student taxes 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. Student taxes However, only your mother can treat her as a qualifying child. Student taxes This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Student taxes Special rule for divorced or separated parents (or parents who live apart). Student taxes   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. Student taxes The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of 2013, whether or not they are or were married. Student taxes The child received over half of his or her support for the year from the parents. Student taxes The child is in the custody of one or both parents for more than half of 2013. Student taxes Either of the following statements is true. Student taxes 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. Student taxes 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. Student taxes 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. Student taxes  For details, see chapter 3. Student taxes Also see Applying Rule 9 to divorced or separated parents (or parents who live apart) , next. Student taxes Applying Rule 9 to divorced or separated parents (or parents who live apart). Student taxes   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. Student taxes 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. Student taxes 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. Student taxes Example 1. Student taxes You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Student taxes Your AGI is $10,000. Student taxes Your mother’s AGI is $25,000. Student taxes Your son's father did not live with you or your son. Student taxes Under the special rule for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for the child. Student taxes 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. Student taxes You and your mother did not have any child care expenses or dependent care benefits. Student taxes 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. Student taxes Example 2. Student taxes The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Student taxes Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Student taxes Example 3. Student taxes 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. Student taxes Your mother also claims him as a qualifying child for head of household filing status. Student taxes You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Student taxes The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Student taxes Rule 10. Student taxes You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Student taxes ) if all of the following statements are true. Student taxes You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Student taxes Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). Student taxes 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. Student taxes You lived with that person in the United States for more than half of the year. Student taxes 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). Student taxes For more details about the tests to be a qualifying child, see Rule 8 . Student taxes If you are a qualifying child of another taxpayer, you cannot claim the EIC. Student taxes 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. Student taxes Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Student taxes Example. Student taxes You and your daughter lived with your mother all year. Student taxes You are 22 years old, unmarried, and attended a trade school full time. Student taxes You had a part-time job and earned $5,700. Student taxes You had no other income. Student taxes Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Student taxes She can claim the EIC if she meets all the other requirements. Student taxes Because you are your mother's qualifying child, you cannot claim the EIC. Student taxes This is so even if your mother cannot or does not claim the EIC. Student taxes Child of person not required to file a return. Student taxes   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. Student taxes Example. Student taxes 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. Student taxes As a result, you are not your mother's qualifying child. Student taxes You can claim the EIC if you meet all the other requirements to do so. Student taxes   See Rule 10 in Publication 596 for additional examples. Student taxes Part C. Student taxes Rules If You Do Not Have a Qualifying Child Read this part if you: Do not have a qualifying child, and Have met all the rules in Part A . Student taxes  Part C discusses Rules 11 through 14. Student taxes You must meet all four of these rules, in addition to the rules in Parts A and D , to qualify for the earned income credit without a qualifying child. Student taxes If you have a qualifying child, the rules in this part do not apply to you. Student taxes You can claim the credit only if you meet all the rules in Parts A, B, and D. Student taxes See Rule 8 to find out if you have a qualifying child. Student taxes Rule 11. Student taxes 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. Student taxes 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. Student taxes It does not matter which spouse meets the age test, as long as one of the spouses does. Student taxes You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Student taxes 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. Student taxes If neither you nor your spouse meets the age test, you cannot claim the EIC. Student taxes Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Student taxes Death of spouse. Student taxes   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. Student taxes Example 1. Student taxes You are age 28 and unmarried. Student taxes You meet the age test. Student taxes Example 2—spouse meets age test. Student taxes You are married and filing a joint return. Student taxes You are age 23 and your spouse is age 27. Student taxes You meet the age test because your spouse is at least age 25 but under age 65. Student taxes Example 3—spouse dies in 2013. Student taxes You are married and filing a joint return with your spouse who died in August 2013. Student taxes You are age 67. Student taxes Your spouse would have become age 65 in November 2013. Student taxes Because your spouse was under age 65 when she died, you meet the age test. Student taxes Rule 12. Student taxes 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. Student taxes 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. Student taxes If you are not sure whether someone else can claim you (or your spouse, if filing a joint return) as a dependent, read the rules for claiming a dependent in chapter 3. Student taxes If someone else can claim you (or your spouse, if filing a joint return) as a dependent on his or her return, but does not, you still cannot claim the credit. Student taxes Example 1. Student taxes In 2013, you were age 25, single, and living at home with your parents. Student taxes You worked and were not a student. Student taxes You earned $7,500. Student taxes Your parents cannot claim you as a dependent. Student taxes 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. Student taxes You meet this rule. Student taxes You can claim the EIC if you meet all the other requirements. Student taxes Example 2. Student taxes The facts are the same as in Example 1 , except that you earned $2,000. Student taxes Your parents can claim you as a dependent but decide not to. Student taxes You do not meet this rule. Student taxes You cannot claim the credit because your parents could have claimed you as a dependent. Student taxes Joint returns. Student taxes   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Student taxes   However, another person may be able to claim you as a dependent if you and your spouse file a joint return only to get a refund of income tax withheld or estimated tax paid. Student taxes But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Student taxes Example 1. Student taxes You are 26 years old. Student taxes You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Student taxes Neither you nor your wife is required to file a tax return. Student taxes You do not have a child. Student taxes Taxes were taken out of your pay, so you file a joint return only to get a refund of the withheld taxes. Student taxes Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Student taxes They can claim exemptions for you and your wife if all the other tests to do so are met. Student taxes Example 2. Student taxes The facts are the same as in Example 1 except no taxes were taken out of your pay. Student taxes 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. Student taxes Because claiming the EIC is your reason for filing the return, you are not filing it only to get a refund of income tax withheld or estimated tax paid. Student taxes Your parents cannot claim an exemption for either you or your wife. Student taxes Rule 13. Student taxes You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Student taxes ) if all of the following statements are true. Student taxes You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Student taxes Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). Student taxes You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student (as defined in Rule 8 ), and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. Student taxes You lived with that person in the United States for more than half of the year. Student taxes 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). Student taxes For more details about the tests to be a qualifying child, see Rule 8 . Student taxes If you are a qualifying child of another taxpayer, you cannot claim the EIC. Student taxes 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. Student taxes Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Student taxes Example. Student taxes You lived with your mother all year. Student taxes You are age 26, unmarried, and permanently and totally disabled. Student taxes Your only income was from a community center where you went three days a week to answer telephones. Student taxes You earned $5,000 for the year and provided more than half of your own support. Student taxes Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Student taxes She can claim the EIC if she meets all the other requirements. Student taxes Because you are a qualifying child of your mother, you cannot claim the EIC. Student taxes This is so even if your mother cannot or does not claim the EIC. Student taxes Joint returns. Student taxes   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Student taxes   However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return for the year only to get a refund of income tax withheld or estimated tax paid. Student taxes But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Student taxes Child of person not required to file a return. Student taxes   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. Student taxes Example. Student taxes You lived all year with your father. Student taxes You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Student taxes You have no other income, no children, and provided more than half of your own support. Student taxes Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Student taxes As a result, you are not your father's qualifying child. Student taxes You can claim the EIC if you meet all the other requirements to do so. Student taxes   See Rule 13 in Publication 596 for additional examples. Student taxes Rule 14. Student taxes 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. Student taxes If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Student taxes United States. Student taxes   This means the 50 states and the District of Columbia. Student taxes It does not include Puerto Rico or U. Student taxes S. Student taxes possessions such as Guam. Student taxes Homeless shelter. Student taxes   Your home can be any location where you regularly live. Student taxes You do not need a traditional home. Student taxes If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Student taxes Military personnel stationed outside the United States. Student taxes   U. Student taxes S. Student taxes military personnel stationed outside the United States on extended active duty (defined in Rule 8 ) are considered to live in the United States during that duty period for purposes of the EIC. Student taxes Part D. Student taxes Figuring and Claiming the EIC Read this part if you have met all the rules in Parts A and B, or all the rules in Parts A and C. Student taxes Part D discusses Rule 15 . Student taxes You must meet this rule, in addition to the rules in Parts A and B , or Parts A and C , to qualify for the earned income credit. Student taxes This part of the chapter also explains how to figure the amount of your credit. Student taxes You have two choices. Student taxes Have the IRS figure the EIC for you. Student taxes If you want to do this, see IRS Will Figure the EIC for You . Student taxes Figure the EIC yourself. Student taxes If you want to do this, see How To Figure the EIC Yourself . Student taxes Rule 15. Student taxes 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. Student taxes Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Student taxes Employee pay is earned income only if it is taxable. Student taxes Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Student taxes But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Student taxes Earned income is explained in detail in Rule 7 . Student taxes Figuring earned income. Student taxes   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. Student taxes   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. Student taxes   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). Student taxes You will then reduce that amount by any amount included on that line and described in the following list: Scholarship or fellowship grants not reported on a Form W-2, Inmate's income, and Pension or annuity from deferred compensation plans. Student taxes Scholarship or fellowship grants not reported on a Form W-2. Student taxes   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. Student taxes Inmate's income. Student taxes   Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Student taxes This includes amounts received for work performed while in a work release program or while in a halfway house. Student taxes 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). Student taxes Pension or annuity from deferred compensation plans. Student taxes   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. Student taxes 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). Student taxes This amount may be reported in box 11 of your Form W-2. Student taxes If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity. Student taxes Clergy. Student taxes   If you are a member of the clergy who files Schedule SE and the amount on line 2 of that schedule includes an amount that was also reported on line 7 (Form 1040), subtract that amount from the amount on line 7 (Form 1040) and enter the result in the first space of the worksheet in Step 5 of the Form 1040 instructions for lines 64a and 64b. Student taxes Put “Clergy” on the dotted line next to line 64a (Form 1040). Student taxes Church employees. Student taxes    A church employee means an employee (other than a minister or member of a religious order) of a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Student taxes If you received wages as a