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Taxes 2011 Forms

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Taxes 2011 Forms

Taxes 2011 forms 7. Taxes 2011 forms   Filing Information Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: What, When, and Where To FileResident Aliens Nonresident Aliens Amended Returns and Claims for Refund Other Forms You May Have To File PenaltiesCivil Penalties Criminal Penalties Introduction This chapter provides the basic filing information that you may need. Taxes 2011 forms Topics - This chapter discusses: Forms aliens must file, When and where to file, Penalties, and Amended returns and claims for refund. Taxes 2011 forms Useful Items - You may want to see: Forms (and Instructions) 1040 U. Taxes 2011 forms S. Taxes 2011 forms Individual Income Tax Return 1040A U. Taxes 2011 forms S. Taxes 2011 forms Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. Taxes 2011 forms S. Taxes 2011 forms Nonresident Alien Income Tax Return 1040NR-EZ U. Taxes 2011 forms S. Taxes 2011 forms Income Tax Return for Certain Nonresident Aliens With No Dependents See chapter 12 for information about getting these forms. Taxes 2011 forms What, When, and Where To File What return you must file as well as when and where you file that return, depends on your status at the end of the tax year as a resident or a nonresident alien. Taxes 2011 forms Resident Aliens Resident aliens should file Form 1040EZ, 1040A, or 1040 at the address shown in the instructions for that form. Taxes 2011 forms The due date for filing the return and paying any tax due is April 15 of the year following the year for which you are filing a return (but see the Tip, later). Taxes 2011 forms Under U. Taxes 2011 forms S. Taxes 2011 forms immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. Taxes 2011 forms Extensions of time to file. Taxes 2011 forms   You are allowed an automatic extension to June 15 to file if your main place of business and the home you live in are outside the United States and Puerto Rico on April 15. Taxes 2011 forms You can get an extension of time to October 15 to file your return if you get an extension by April 15 (June 15 if you qualify for the June 15 extension). Taxes 2011 forms Use Form 4868 to get the extension to October 15. Taxes 2011 forms In addition to this 6-month extension, taxpayers who are out of the country (as defined in the Form 4868 instructions) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Taxes 2011 forms To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Taxes 2011 forms Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Taxes 2011 forms   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350 (for U. Taxes 2011 forms S. Taxes 2011 forms citizens and resident aliens abroad who expect to qualify for special tax treatment). Taxes 2011 forms    If the due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day which is not a Saturday, Sunday, or legal holiday. Taxes 2011 forms You may be able to file your return electronically. Taxes 2011 forms See IRS e-file in your form instructions. Taxes 2011 forms Nonresident Aliens Nonresident aliens who are required to file an income tax return should use Form 1040NR or, if qualified, Form 1040NR-EZ. Taxes 2011 forms If you are any of the following, you must file a return. Taxes 2011 forms A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during 2013. Taxes 2011 forms (But see Exceptions , later. Taxes 2011 forms ) You must file even if: Your income did not come from a trade or business conducted in the United States, You have no income from U. Taxes 2011 forms S. Taxes 2011 forms sources, or Your income is exempt from income tax. Taxes 2011 forms A nonresident alien individual not engaged in a trade or business in the United States with U. Taxes 2011 forms S. Taxes 2011 forms income on which the tax liability was not satisfied by the withholding of tax at the source. Taxes 2011 forms A representative or agent responsible for filing the return of an individual described in (1) or (2). Taxes 2011 forms A fiduciary for a nonresident alien estate or trust. Taxes 2011 forms You must also file if you want to: Claim a refund of overwithheld or overpaid tax, or Claim the benefit of any deductions or credits. Taxes 2011 forms For example, if you have no U. Taxes 2011 forms S. Taxes 2011 forms business activities but have income from real property that you choose to treat as effectively connected income (discussed in chapter 4), you must timely file a true and accurate return to take any allowable deductions against that income. Taxes 2011 forms For information on what is timely, see When to file for deductions and credits under When To File, later. Taxes 2011 forms Exceptions. Taxes 2011 forms   You do not need to file Form 1040NR or Form 1040NR-EZ if you meet either of the following conditions. Taxes 2011 forms Your only U. Taxes 2011 forms S. Taxes 2011 forms trade or business was the performance of personal services, and Your wages were less than $3,900, and You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty. Taxes 2011 forms You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa and you have no income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Taxes 2011 forms Even if you have left the United States and filed a Form 1040-C, U. Taxes 2011 forms S. Taxes 2011 forms Departing Alien Income Tax Return, on departure, you still must file an annual U. Taxes 2011 forms S. Taxes 2011 forms income tax return. Taxes 2011 forms If you are married and both you and your spouse are required to file, you must each file a separate return. Taxes 2011 forms Form 1040NR-EZ You can use Form 1040NR-EZ if all of the following conditions are met. Taxes 2011 forms You do not claim any dependents. Taxes 2011 forms You cannot be claimed as a dependent on someone else's U. Taxes 2011 forms S. Taxes 2011 forms tax return. Taxes 2011 forms If you were married, you do not claim an exemption for your spouse. Taxes 2011 forms Your taxable income is less than $100,000. Taxes 2011 forms The only itemized deduction you can claim is for state and local income taxes. Taxes 2011 forms Note. Taxes 2011 forms Residents of India who were students or business apprentices may be able to take the standard deduction instead of the itemized deduction for state and local income taxes. Taxes 2011 forms See chapter 5. Taxes 2011 forms Your only U. Taxes 2011 forms S. Taxes 2011 forms source income is from wages, salaries, tips, taxable refunds of state and local income taxes, scholarship or fellowship grants, and nontaxable interest or dividends. Taxes 2011 forms (If you had taxable interest or dividend income, you cannot use this form. Taxes 2011 forms ) You are not claiming any adjustments to income other than the student loan interest deduction or scholarship and fellowship grants excluded. Taxes 2011 forms You are not claiming any tax credits. Taxes 2011 forms This is not an “expatriation return. Taxes 2011 forms ” See Expatriation Tax in chapter 4. Taxes 2011 forms The only taxes you owe are: The income tax from the Tax Table. Taxes 2011 forms The social security and Medicare tax from Form 4137 or Form 8919. Taxes 2011 forms You are not claiming a credit for excess social security and tier 1 RRTA tax withheld. Taxes 2011 forms You are not filing Form 8959, to figure the amount of Additional Medicare Tax you owe and/or the amount of Additional Medicare Tax withheld by your employer, if any. Taxes 2011 forms If you do not meet all of the above conditions, you must file Form 1040NR. Taxes 2011 forms When To File If you are an employee and you receive wages subject to U. Taxes 2011 forms S. Taxes 2011 forms income tax withholding, you will generally file by the 15th day of the 4th month after your tax year ends. Taxes 2011 forms For the 2013 calendar year, file your return by April 15, 2014. Taxes 2011 forms If you are not an employee who receives wages subject to U. Taxes 2011 forms S. Taxes 2011 forms income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Taxes 2011 forms For the 2013 calendar year, file your return by June 16, 2014 (because June 15 is a Sunday. Taxes 2011 forms ) Extensions of time to file. Taxes 2011 forms   If you cannot file your return by the due date, file Form 4868 or use one of the electronic filing options explained in the Form 4868 instructions. Taxes 2011 forms For the 2013 calendar year, this will extend the due date to October 15, 2014 (December 15, 2014, if the regular due date of your return is June 16, 2014). Taxes 2011 forms You must file the extension by the regular due date of your return. Taxes 2011 forms   In addition to the 6-month extension to October 15, taxpayers whose main place of business is outside the United States and Puerto Rico and who live outside those jurisdictions can request a discretionary 2-month extension of time to file their returns (to December 15 for calendar year taxpayers). Taxes 2011 forms To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Taxes 2011 forms Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Taxes 2011 forms When to file for deductions and credits. Taxes 2011 forms   To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. Taxes 2011 forms For this purpose, a return is timely if it is filed within 16 months of the due date just discussed. Taxes 2011 forms However, if you did not file a 2012 tax return and 2013 is not the first year for which you are required to file one, your 2013 return is timely for this purpose if it is filed by the earlier of: The date that is 16 months after the due date for filing your 2013 return, or The date the IRS notifies you that your 2013 return has not been filed and that you cannot claim certain deductions and credits. Taxes 2011 forms The allowance of the following credits is not affected by this time requirement. Taxes 2011 forms Credit for withheld taxes. Taxes 2011 forms Credit for excise tax on certain uses of gasoline and special fuels. Taxes 2011 forms Credit for tax paid by a mutual fund (or other regulated investment company) or a real estate investment trust on undistributed long-term capital gains. Taxes 2011 forms Protective return. Taxes 2011 forms   If your activities in the United States were limited and you do not believe that you had any gross income effectively connected with a U. Taxes 2011 forms S. Taxes 2011 forms trade or business during the year, you can file a protective return (Form 1040NR) by the deadline explained above. Taxes 2011 forms By filing a protective return, you protect your right to receive the benefit of deductions and credits in the event it is later determined that some or all of your income is effectively connected. Taxes 2011 forms You are not required to report any effectively connected income or any deductions on the protective return, but you must give the reason the return is being filed. Taxes 2011 forms   If you believe some of your activities resulted in effectively connected income, file your return reporting that income and related deductions by the regular due date. Taxes 2011 forms To protect your right to claim deductions or credits resulting from other activities, attach a statement to that return explaining that you wish to protect your right to claim deductions and credits if it is later determined that the other activities produced effectively connected income. Taxes 2011 forms   You can follow the same procedure if you believe you have no U. Taxes 2011 forms S. Taxes 2011 forms tax liability because of a U. Taxes 2011 forms S. Taxes 2011 forms tax treaty. Taxes 2011 forms Be sure to also complete item L on page 5 of Form 1040NR. Taxes 2011 forms Waiver of filing deadline. Taxes 2011 forms   The IRS may waive the filing deadline if you establish that, based on the facts and circumstances, you acted reasonably and in good faith in failing to file a U. Taxes 2011 forms S. Taxes 2011 forms income tax return (including a protective return) and you cooperate with the IRS in determining your U. Taxes 2011 forms S. Taxes 2011 forms income tax liability for the tax year for which you did not file a return. Taxes 2011 forms Where To File If you are not enclosing a payment, file Form 1040NR-EZ and Form 1040NR at the following address. Taxes 2011 forms  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. Taxes 2011 forms O. Taxes 2011 forms Box 1303 Charlotte, NC 28201-1303 Aliens from the U. Taxes 2011 forms S. Taxes 2011 forms Virgin Islands. Taxes 2011 forms    If you are a bona fide resident of the U. Taxes 2011 forms S. Taxes 2011 forms Virgin Islands during your entire tax year and work temporarily in the United States, you must pay your income taxes to the U. Taxes 2011 forms S. Taxes 2011 forms Virgin Islands and file your income tax returns at the following address. Taxes 2011 forms Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Taxes 2011 forms Thomas, VI 00802   Report all income from U. Taxes 2011 forms S. Taxes 2011 forms sources, as well as income from other sources, on your return. Taxes 2011 forms For information on filing U. Taxes 2011 forms S. Taxes 2011 forms Virgin Islands returns, contact the U. Taxes 2011 forms S. Taxes 2011 forms Virgin Islands Bureau of Internal Revenue. Taxes 2011 forms   Chapter 8 discusses withholding from U. Taxes 2011 forms S. Taxes 2011 forms wages of U. Taxes 2011 forms S. Taxes 2011 forms Virgin Islanders. Taxes 2011 forms Aliens from Guam or the Commonwealth of the Northern Mariana Islands. Taxes 2011 forms   If you are a bona fide resident of Guam or the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you must file your return with, and pay any tax due to, Guam or the CNMI. Taxes 2011 forms Report all income, including income from U. Taxes 2011 forms S. Taxes 2011 forms sources, on your return. Taxes 2011 forms It is not necessary to file a separate U. Taxes 2011 forms S. Taxes 2011 forms income tax return. Taxes 2011 forms    Bona fide residents of Guam should file their Guam returns at the following address. Taxes 2011 forms   Department of Revenue and Taxation Government of Guam P. Taxes 2011 forms O. Taxes 2011 forms Box 23607 GMF, GU 96921    Bona fide residents of the CNMI should file their CNMI income tax returns at the following address. Taxes 2011 forms   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Taxes 2011 forms O. Taxes 2011 forms Box 5234 CHRB Saipan, MP 96950   If you are not a bona fide resident of Guam or the CNMI, see Pub. Taxes 2011 forms 570, Tax Guide for Individuals With Income From U. Taxes 2011 forms S. Taxes 2011 forms Possessions, for information on where to file your return. Taxes 2011 forms Amended Returns and Claims for Refund If you find changes in your income, deductions, or credits after you mail your return, file Form 1040X, Amended U. Taxes 2011 forms S. Taxes 2011 forms Individual Income Tax Return. Taxes 2011 forms Also use Form 1040X if you should have filed Form 1040, 1040A, or 1040EZ instead of Form 1040NR or 1040NR-EZ, or vice versa. Taxes 2011 forms If you amend Form 1040NR or Form 1040NR-EZ or file the correct return, attach the corrected return (Form 1040, Form 1040NR, etc. Taxes 2011 forms ) to Form 1040X. Taxes 2011 forms Print “Amended” across the top. Taxes 2011 forms Ordinarily, an amended return claiming a refund must be filed within 3 years from the date your return was filed or within 2 years from the time the tax was paid, whichever is later. Taxes 2011 forms A return filed before the final due date is considered to have been filed on the due date. Taxes 2011 forms Other Forms You May Have To File You may be required to file information returns to report certain foreign income or assets, or monetary transactions. Taxes 2011 forms FinCen Form 105 FinCEN Form 105 (formerly Customs Form 4790), Report of International Transportation of Currency or Monetary Instruments, must be filed by each person who physically transports, mails, or ships, or causes to be physically transported, mailed, or shipped, currency or other monetary instruments in a total amount of more than $10,000 at one time from the United States to any place outside the United States, or into the United States from any place outside the United States. Taxes 2011 forms The filing requirement also applies to each person who receives in the United States currency or monetary instruments totaling more than $10,000 at one time from any place outside of the United States. Taxes 2011 forms The term “monetary instruments” means the following: Coin and currency of the United States or of any other country, Travelers' checks in any form, Investment securities or stock in bearer form or otherwise in such form that title to them passes upon delivery, Negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title to them passes upon delivery, and Checks, promissory notes, and money orders which are signed but on which the name of the payee has been omitted. Taxes 2011 forms However, the term does not include: Checks or money orders made payable to the order of a named person which have not been endorsed or which contain restrictive endorsements, Warehouse receipts, or Bills of lading. Taxes 2011 forms A transfer of funds through normal banking procedures (wire transfer) that does not involve the physical transportation of currency or monetary instruments is not required to be reported on FinCEN Form 105. Taxes 2011 forms Filing requirements. Taxes 2011 forms   FinCEN Form 105 filing requirements follow. Taxes 2011 forms Recipients. Taxes 2011 forms   Each person who receives currency or other monetary instruments in the United States must file FinCEN Form 105 within 15 days after receipt, with the Customs officer in charge at any port of entry or departure, or by mail at the following address. Taxes 2011 forms Commissioner of Customs  Attention: Currency Transportation Reports Washington, DC 20229 Shippers or mailers. Taxes 2011 forms   If the currency or other monetary instrument does not accompany the person entering or departing the United States, FinCEN Form 105 can be filed by mail at the above address on or before the date of entry, departure, mailing, or shipping. Taxes 2011 forms Travelers. Taxes 2011 forms   Travelers must file FinCEN Form 105 with the Customs officer in charge at any Customs port of entry or departure, when entering or departing the United States. Taxes 2011 forms Penalties. Taxes 2011 forms   Civil and criminal penalties are provided for failing to file a report, filing a report containing material omissions or misstatements, or filing a false or fraudulent report. Taxes 2011 forms Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture. Taxes 2011 forms More information. Taxes 2011 forms   More information regarding the filing of FinCEN Form 105 can be found in the instructions on the back of the form. Taxes 2011 forms Form 8938 You may have to file Form 8938, Statement of Specified Foreign Financial Assets, to report the ownership of specified foreign financial asset(s) if you are one of the following individuals. Taxes 2011 forms A resident alien of the United States for any part of the tax year. Taxes 2011 forms A resident alien of the United States who elects to be treated as a resident of a foreign country under the provisions of a U. Taxes 2011 forms S. Taxes 2011 forms income tax treaty. Taxes 2011 forms See Effect of Tax Treaties in chapter 1. Taxes 2011 forms A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return. Taxes 2011 forms See chapter 1 for information about this election. Taxes 2011 forms A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. Taxes 2011 forms See Publication 570, Tax Guide for Individuals With Income From U. Taxes 2011 forms S. Taxes 2011 forms Possessions, for a definition of bona fide resident. Taxes 2011 forms You must file Form 8938 if the total value of those assets exceeds an applicable threshold (the “reporting threshold”). Taxes 2011 forms The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Taxes 2011 forms Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Taxes 2011 forms S. Taxes 2011 forms person. Taxes 2011 forms You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Taxes 2011 forms More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Taxes 2011 forms Penalties The law provides penalties for failure to file returns or pay taxes as required. Taxes 2011 forms Civil Penalties If you do not file your return and pay your tax by the due date, you may have to pay a penalty. Taxes 2011 forms You may also have to pay a penalty if you substantially understate your tax, file a frivolous tax submission, or fail to supply your taxpayer identification number. Taxes 2011 forms If you provide fraudulent information on your return, you may have to pay a civil fraud penalty. Taxes 2011 forms Filing late. Taxes 2011 forms   If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. Taxes 2011 forms The penalty is based on the tax not paid by the due date (without regard to extensions). Taxes 2011 forms The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. Taxes 2011 forms Fraud. Taxes 2011 forms   If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is late, up to a maximum of 75%. Taxes 2011 forms Return over 60 days late. Taxes 2011 forms   If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Taxes 2011 forms Exception. Taxes 2011 forms   You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not because of willful neglect. Taxes 2011 forms Paying tax late. Taxes 2011 forms   You will have to pay a failure-to-pay penalty of ½ of 1% (. Taxes 2011 forms 50%) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid. Taxes 2011 forms This penalty does not apply during the automatic 6-month extension of time to file period, if you paid at least 90% of your actual tax liability on or before the due date of your return and pay the balance when you file the return. Taxes 2011 forms   The monthly rate of the failure-to-pay penalty is half the usual rate (. Taxes 2011 forms 25% instead of . Taxes 2011 forms 50%) if an installment agreement is in effect for that month. Taxes 2011 forms You must have filed your return by the due date (including extensions) to qualify for this reduced penalty. Taxes 2011 forms   If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at least 10 days after the day that the notice is issued. Taxes 2011 forms If a notice and demand for immediate payment is issued, the rate will increase to 1% at the start of the first month beginning after the day that the notice and demand is issued. Taxes 2011 forms   This penalty cannot be more than 25% of your unpaid tax. Taxes 2011 forms You will not have to pay the penalty if you can show that you had a good reason for not paying your tax on time. Taxes 2011 forms Combined penalties. Taxes 2011 forms   If both the failure-to-file penalty and the failure-to-pay penalty (discussed earlier) apply in any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. Taxes 2011 forms However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Taxes 2011 forms Accuracy-related penalty. Taxes 2011 forms   You may have to pay an accuracy-related penalty if you underpay your tax because: You show negligence or disregard of rules or regulations, You substantially understate your income tax, You claim tax benefits for a transaction that lacks economic substance, or You fail to disclose a foreign financial asset. Taxes 2011 forms The penalty is equal to 20% of the underpayment. Taxes 2011 forms The penalty is 40% of any portion of the underpayment that is attributable to an undisclosed noneconomic substance transaction or an undisclosed foreign financial asset transaction. Taxes 2011 forms The penalty will not be figured on any part of an underpayment on which the fraud penalty (discussed later) is charged. Taxes 2011 forms Negligence or disregard. Taxes 2011 forms   The term “negligence” includes a failure to make a reasonable attempt to comply with the tax law or to exercise ordinary and reasonable care in preparing a return. Taxes 2011 forms Negligence also includes failure to keep adequate books and records. Taxes 2011 forms You will not have to pay a negligence penalty if you have a reasonable basis for a position you took. Taxes 2011 forms   The term “disregard” includes any careless, reckless, or intentional disregard. Taxes 2011 forms Adequate disclosure. Taxes 2011 forms   You can avoid the penalty for disregard of rules or regulations if you adequately disclose on your return a position that has at least a reasonable basis. Taxes 2011 forms See Disclosure statement , later. Taxes 2011 forms   This exception will not apply to an item that is attributable to a tax shelter. Taxes 2011 forms In addition, it will not apply if you fail to keep adequate books and records, or substantiate items properly. Taxes 2011 forms Substantial understatement of income tax. Taxes 2011 forms   You understate your tax if the tax shown on your return is less than the correct tax. Taxes 2011 forms The understatement is substantial if it is more than the larger of 10% of the correct tax or $5,000. Taxes 2011 forms However, the amount of the understatement is reduced to the extent the understatement is due to: Substantial authority, or Adequate disclosure and a reasonable basis. Taxes 2011 forms   If an item on your return is attributable to a tax shelter, there is no reduction for an adequate disclosure. Taxes 2011 forms However, there is a reduction for a position with substantial authority, but only if you reasonably believed that your tax treatment was more likely than not the proper treatment. Taxes 2011 forms Substantial authority. Taxes 2011 forms   Whether there is or was substantial authority for the tax treatment of an item depends on the facts and circumstances. Taxes 2011 forms Consideration will be given to court opinions, Treasury regulations, revenue rulings, revenue procedures, and notices and announcements issued by the IRS and published in the Internal Revenue Bulletin that involve the same or similar circumstances as yours. Taxes 2011 forms Disclosure statement. Taxes 2011 forms   To adequately disclose the relevant facts about your tax treatment of an item, use Form 8275, Disclosure Statement. Taxes 2011 forms You must also have a reasonable basis for treating the item the way you did. Taxes 2011 forms   In cases of substantial understatement only, items that meet the requirements of Revenue Procedure 2012-51, 2012-51 IRB 719 (or later update) are considered adequately disclosed on your return without filing Form 8275. Taxes 2011 forms   Use Form 8275-R, Regulation Disclosure Statement, to disclose items or positions contrary to regulations. Taxes 2011 forms Transaction lacking economic substance. Taxes 2011 forms   For more information on economic substance, see section 7701(o). Taxes 2011 forms Foreign financial asset. Taxes 2011 forms   For more information on undisclosed foreign financial assets, see section 6662(j) or the Instructions for Form 8938. Taxes 2011 forms Reasonable cause. Taxes 2011 forms   You will not have to pay a penalty if you show a good reason (reasonable cause) for the way you treated an item. Taxes 2011 forms You must also show that you acted in good faith. Taxes 2011 forms This does not apply to a transaction that lacks economic substance. Taxes 2011 forms Filing erroneous claim for refund or credit. Taxes 2011 forms   You may have to pay a penalty if you file an erroneous claim for refund or credit. Taxes 2011 forms The penalty is equal to 20% of the disallowed amount of the claim, unless you can show a reasonable basis for the way you treated an item. Taxes 2011 forms However, any disallowed amount due to a transaction that lacks economic substance will not be treated as having a reasonable basis. Taxes 2011 forms The penalty will not be figured on any part of the disallowed amount of the claim that relates to the earned income credit or on which the accuracy-related or fraud penalties are charged. Taxes 2011 forms Frivolous tax submission. Taxes 2011 forms   You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. Taxes 2011 forms A frivolous tax return is one that does not include enough information to figure the correct tax or that contains information clearly showing that the tax you reported is substantially incorrect. Taxes 2011 forms For more information on frivolous returns, frivolous submissions, and a list of positions that are identified as frivolous, see Notice 2010-33, 2010-17 IRB 609 available at www. Taxes 2011 forms irs. Taxes 2011 forms gov/irb/2010-17_irb/ar13. Taxes 2011 forms html. Taxes 2011 forms   You will have to pay the penalty if you filed this kind of return or submission based on a frivolous position or a desire to delay or interfere with the administration of federal tax laws. Taxes 2011 forms This includes altering or striking out the preprinted language above the space provided for your signature. Taxes 2011 forms   This penalty is added to any other penalty provided by law. Taxes 2011 forms Fraud. Taxes 2011 forms   If there is any underpayment of tax on your return due to fraud, a penalty of 75% of the underpayment due to fraud will be added to your tax. Taxes 2011 forms Failure to supply taxpayer identification number. Taxes 2011 forms   If you do not include your social security number (SSN) or individual taxpayer identification number (ITIN) or the SSN or ITIN of another person where required on a return, statement, or other document, you will be subject to a penalty of $50 for each failure. Taxes 2011 forms You will also be subject to a penalty of $50 if you do not give your SSN or ITIN to another person when it is required on a return, statement, or other document. Taxes 2011 forms   For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. Taxes 2011 forms The number must be shown on the Form 1099-INT or other statement the bank sends you. Taxes 2011 forms If you do not give the bank your SSN or ITIN, you will be subject to the $50 penalty. Taxes 2011 forms (You also may be subject to “backup” withholding of income tax. Taxes 2011 forms )   You will not have to pay the penalty if you are able to show that the failure was due to reasonable cause and not willful neglect. Taxes 2011 forms Criminal Penalties You may be subject to criminal prosecution (brought to trial) for actions such as: Tax evasion, Willful failure to file a return, supply information, or pay any tax due, Fraud and false statements, or Preparing and filing a fraudulent return. Taxes 2011 forms Prev  Up  Next   Home   More Online Publications
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Citizens' Stamp Advisory Committee

The Citizens' Stamp Advisory Committee evaluates all stamp proposals. The Committee's primary goal is to select subjects of broad national interest for recommendation to the Postmaster General that are both interesting and educational.

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The Taxes 2011 Forms

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