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Ez 1040 Tax Form

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Ez 1040 Tax Form

Ez 1040 tax form Publication 516 - Main Content Table of Contents U. Ez 1040 tax form S. Ez 1040 tax form Tax ReturnFiling Information Foreign Bank Accounts U. Ez 1040 tax form S. Ez 1040 tax form Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Ez 1040 tax form U. Ez 1040 tax form S. Ez 1040 tax form Tax Return Filing Information If you are a U. Ez 1040 tax form S. Ez 1040 tax form citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. Ez 1040 tax form However, the special rules explained in the following discussions may apply to you. Ez 1040 tax form See also Tax Treaty Benefits, later. Ez 1040 tax form When To File and Pay Most individual tax returns cover a calendar year, January through December. Ez 1040 tax form The regular due date for these tax returns is April 15 of the following year. Ez 1040 tax form If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. Ez 1040 tax form If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. Ez 1040 tax form You must pay interest on any tax not paid by the regular due date. Ez 1040 tax form Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. Ez 1040 tax form See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. Ez 1040 tax form If your return is filed late, the postmark or delivery service date does not determine the date of filing. Ez 1040 tax form In that case, your return is considered filed when it is received by the IRS. Ez 1040 tax form Extensions You may be able to get an extension of time to file your return and pay your tax. Ez 1040 tax form Automatic 2-month extension. Ez 1040 tax form   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. Ez 1040 tax form S. Ez 1040 tax form citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. Ez 1040 tax form To get this extension, you must attach a statement to your return explaining how you qualified. Ez 1040 tax form You will owe interest on any tax not paid by the regular due date of your return. Ez 1040 tax form Married taxpayers. Ez 1040 tax form   If you file a joint return, either you or your spouse can qualify for the automatic extension. Ez 1040 tax form If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. Ez 1040 tax form Additional extension. Ez 1040 tax form   You can apply for an additional extension of time to file your return by filing Form 4868. Ez 1040 tax form You must file Form 4868 by the due date for your income tax return. Ez 1040 tax form   Generally, you must file it by April 15. Ez 1040 tax form However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. Ez 1040 tax form Check the box on line 8 of Form 4868. Ez 1040 tax form Payment of tax. Ez 1040 tax form   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. Ez 1040 tax form The late-payment penalty applies if, through withholding, etc. Ez 1040 tax form , you paid less than 90% of your actual tax liability by the original due date of your income tax return. Ez 1040 tax form Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. Ez 1040 tax form Electronic filing. Ez 1040 tax form   You can file for the additional extension by phone, using your home computer, or through a tax professional. Ez 1040 tax form See Form 4868 for more information. Ez 1040 tax form Limit on additional extensions. Ez 1040 tax form   You generally cannot get a total extension of more than 6 months. Ez 1040 tax form However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. Ez 1040 tax form   For more information, see Publication 54. Ez 1040 tax form Foreign Bank Accounts You must file Form TD F 90-22. Ez 1040 tax form 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. Ez 1040 tax form This applies if the combined assets in the account(s) were more than $10,000. Ez 1040 tax form Do not include accounts in a U. Ez 1040 tax form S. Ez 1040 tax form military banking facility operated by a U. Ez 1040 tax form S. Ez 1040 tax form financial institution. Ez 1040 tax form File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. Ez 1040 tax form Do not attach it to Form 1040. Ez 1040 tax form If you are required to file Form TD F 90-22. Ez 1040 tax form 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). Ez 1040 tax form You also may be required to file Form 8938 with your U. Ez 1040 tax form S. Ez 1040 tax form income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. Ez 1040 tax form For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. Ez 1040 tax form For more information, see Form 8938 and its instructions. Ez 1040 tax form U. Ez 1040 tax form S. Ez 1040 tax form Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. Ez 1040 tax form If you are a U. Ez 1040 tax form S. Ez 1040 tax form citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. Ez 1040 tax form S. Ez 1040 tax form law. Ez 1040 tax form This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). Ez 1040 tax form If you are a nonresident alien, your income from sources outside the United States is not subject to U. Ez 1040 tax form S. Ez 1040 tax form tax. Ez 1040 tax form Foreign Earned Income Exclusion Employees of the U. Ez 1040 tax form S. Ez 1040 tax form Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. Ez 1040 tax form S. Ez 1040 tax form Government as an employee. Ez 1040 tax form But see Other Employment, later. Ez 1040 tax form Special Situations In the following two situations, your pay is from the U. Ez 1040 tax form S. Ez 1040 tax form Government and does not qualify for the foreign earned income exclusion. Ez 1040 tax form U. Ez 1040 tax form S. Ez 1040 tax form agency reimbursed by foreign country. Ez 1040 tax form   If you are a U. Ez 1040 tax form S. Ez 1040 tax form Government employee paid by a U. Ez 1040 tax form S. Ez 1040 tax form agency to perform services in a foreign country, your pay is from the U. Ez 1040 tax form S. Ez 1040 tax form Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. Ez 1040 tax form This is true even if the U. Ez 1040 tax form S. Ez 1040 tax form agency is reimbursed by the foreign government. Ez 1040 tax form Employees of post exchanges, etc. Ez 1040 tax form   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. Ez 1040 tax form S. Ez 1040 tax form Government, the earnings you receive are paid by the U. Ez 1040 tax form S. Ez 1040 tax form Government. Ez 1040 tax form This is true whether they are paid from appropriated or nonappropriated funds. Ez 1040 tax form These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. Ez 1040 tax form Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. Ez 1040 tax form Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. Ez 1040 tax form In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. Ez 1040 tax form S. Ez 1040 tax form citizens or green card holders. Ez 1040 tax form Consequently, if you are a U. Ez 1040 tax form S. Ez 1040 tax form citizen or green card holder, you will generally not be entitled to reduce your U. Ez 1040 tax form S. Ez 1040 tax form tax on your government pay. Ez 1040 tax form If you are neither a U. Ez 1040 tax form S. Ez 1040 tax form citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. Ez 1040 tax form Review the treaty text carefully. Ez 1040 tax form U. Ez 1040 tax form S. Ez 1040 tax form citizens must always file Form 1040. Ez 1040 tax form Non-U. Ez 1040 tax form S. Ez 1040 tax form citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. Ez 1040 tax form If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. Ez 1040 tax form Most income tax treaties contain an article providing relief from double taxation. Ez 1040 tax form Many treaties contain special foreign tax credit rules for U. Ez 1040 tax form S. Ez 1040 tax form citizens who are residents of a treaty country. Ez 1040 tax form For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. Ez 1040 tax form Allowances, Differentials, and Special Pay Most payments received by U. Ez 1040 tax form S. Ez 1040 tax form Government civilian employees for working abroad, including pay differentials, are taxable. Ez 1040 tax form However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. Ez 1040 tax form The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. Ez 1040 tax form Pay differentials. Ez 1040 tax form   Pay differentials you receive as financial incentives for employment abroad are taxable. Ez 1040 tax form Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. Ez 1040 tax form   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. Ez 1040 tax form The area does not have to be a qualified hazardous duty area as discussed in Publication 3. Ez 1040 tax form Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. Ez 1040 tax form Foreign areas allowances. Ez 1040 tax form   Certain foreign areas allowances are tax free. Ez 1040 tax form Your employer should not have included these allowances as wages on your Form W-2. Ez 1040 tax form   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. Ez 1040 tax form Title I, chapter 9, of the Foreign Service Act of 1980. Ez 1040 tax form Section 4 of the Central Intelligence Agency Act of 1949, as amended. Ez 1040 tax form Title II of the Overseas Differentials and Allowances Act. Ez 1040 tax form Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. Ez 1040 tax form These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. Ez 1040 tax form Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. Ez 1040 tax form Cost-of-living allowances. Ez 1040 tax form   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. Ez 1040 tax form The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. Ez 1040 tax form Cost-of-living allowances are not included on your Form W-2. Ez 1040 tax form Federal court employees. Ez 1040 tax form   If you are a federal court employee, the preceding paragraph also applies to you. Ez 1040 tax form The cost-of-living allowance must be granted by rules similar to regulations approved by the President. Ez 1040 tax form American Institute in Taiwan. Ez 1040 tax form   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Ez 1040 tax form S. Ez 1040 tax form tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. Ez 1040 tax form S. Ez 1040 tax form Government. Ez 1040 tax form Federal reemployment payments after serving with an international organization. Ez 1040 tax form   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. Ez 1040 tax form These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. Ez 1040 tax form Allowances or reimbursements for travel and transportation expenses. Ez 1040 tax form   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. Ez 1040 tax form Lodging furnished to a principal representative of the United States. Ez 1040 tax form   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. Ez 1040 tax form However, amounts paid by the U. Ez 1040 tax form S. Ez 1040 tax form government for your usual costs of operating and maintaining your household are taxable. Ez 1040 tax form If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. Ez 1040 tax form Peace Corps. Ez 1040 tax form   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. Ez 1040 tax form Taxable allowances. Ez 1040 tax form   The following allowances must be included on your Form W-2 and reported on your return as wages. Ez 1040 tax form If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. Ez 1040 tax form The part of living allowances designated by the Director of the Peace Corps as basic compensation. Ez 1040 tax form This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. Ez 1040 tax form Leave allowances. Ez 1040 tax form Readjustment allowances or “termination payments. Ez 1040 tax form ” Taxable allowances are considered received by you when credited to your account. Ez 1040 tax form Example. Ez 1040 tax form Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. Ez 1040 tax form Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. Ez 1040 tax form Nontaxable allowances. Ez 1040 tax form   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. Ez 1040 tax form These allowances should not be included on your Form W-2. Ez 1040 tax form These allowances are tax free whether paid by the U. Ez 1040 tax form S. Ez 1040 tax form Government or the foreign country in which you are stationed. Ez 1040 tax form Other Income Other employment. Ez 1040 tax form   If, in addition to your U. Ez 1040 tax form S. Ez 1040 tax form government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. Ez 1040 tax form In addition, if your spouse is a U. Ez 1040 tax form S. Ez 1040 tax form citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. Ez 1040 tax form For more information, see Publication 54. Ez 1040 tax form The tax treaty rules relating to income from personal services generally apply to income from private employment. Ez 1040 tax form As discussed above, the saving clause applies to you if you are a U. Ez 1040 tax form S. Ez 1040 tax form citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). Ez 1040 tax form Sale of personal property. Ez 1040 tax form   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. Ez 1040 tax form S. Ez 1040 tax form dollars, the excess of the amount received in U. Ez 1040 tax form S. Ez 1040 tax form dollars over the cost or other basis of the property is a capital gain. Ez 1040 tax form Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. Ez 1040 tax form However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. Ez 1040 tax form Sale of your home. Ez 1040 tax form   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. Ez 1040 tax form Losses are not deductible. Ez 1040 tax form   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). Ez 1040 tax form Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. Ez 1040 tax form   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. Ez 1040 tax form   For detailed information on selling your home, see Publication 523. Ez 1040 tax form Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. Ez 1040 tax form Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. Ez 1040 tax form These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. Ez 1040 tax form Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. Ez 1040 tax form Your tax home is not limited to the Embassy, consulate, or duty station. Ez 1040 tax form It includes the entire city or general area in which your principal place of employment is located. Ez 1040 tax form Traveling away from home. Ez 1040 tax form   You are traveling away from home if you meet both of the following requirements. Ez 1040 tax form Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. Ez 1040 tax form You need to get sleep or rest to meet the demands of your work while away from home. Ez 1040 tax form This requirement is not satisfied by merely napping in your car. Ez 1040 tax form You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Ez 1040 tax form Temporary assignment. Ez 1040 tax form   If your assignment or job away from your tax home is temporary, your tax home does not change. Ez 1040 tax form You are considered to be away from home for the whole period, and your travel expenses are deductible. Ez 1040 tax form Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. Ez 1040 tax form   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Ez 1040 tax form An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. Ez 1040 tax form   You must determine whether your assignment is temporary or indefinite when you start work. Ez 1040 tax form If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Ez 1040 tax form Employment that is initially temporary may become indefinite due to changed circumstances. Ez 1040 tax form A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Ez 1040 tax form Exception for federal crime investigations or prosecutions. Ez 1040 tax form   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. Ez 1040 tax form This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. Ez 1040 tax form Limit on meals and entertainment. Ez 1040 tax form   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. Ez 1040 tax form However, the limit does not apply to expenses reimbursed under a U. Ez 1040 tax form S. Ez 1040 tax form Government expense allowance arrangement. Ez 1040 tax form Individuals subject to hours of service limits. Ez 1040 tax form   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. Ez 1040 tax form   Individuals subject to the Department of Transportation's “hours of service” limits include the following. Ez 1040 tax form Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Ez 1040 tax form Interstate truck operators and bus drivers who are under Department of Transportation regulations. Ez 1040 tax form Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Ez 1040 tax form Certain merchant mariners who are under Coast Guard regulations. Ez 1040 tax form Primary purpose of trip must be for business. Ez 1040 tax form   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. Ez 1040 tax form However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. Ez 1040 tax form   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. Ez 1040 tax form This applies even if you engage in business activities while there. Ez 1040 tax form However, you can deduct any expenses while at your destination that are directly related to your business. Ez 1040 tax form Expenses paid for others. Ez 1040 tax form   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. Ez 1040 tax form Home leave. Ez 1040 tax form   The Foreign Service Act requires U. Ez 1040 tax form S. Ez 1040 tax form citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. Ez 1040 tax form This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. Ez 1040 tax form   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. Ez 1040 tax form You must be able to verify these amounts in order to claim them. Ez 1040 tax form Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. Ez 1040 tax form More information. Ez 1040 tax form   See chapter 1 of Publication 463 for more information on travel expenses. Ez 1040 tax form Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. Ez 1040 tax form Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. Ez 1040 tax form They do not include expenses you have when traveling away from home overnight. Ez 1040 tax form Those expenses are deductible as travel expenses and are discussed earlier. Ez 1040 tax form Commuting. Ez 1040 tax form   You cannot deduct your transportation costs of going between your home and your regular business location. Ez 1040 tax form These costs are personal commuting expenses. Ez 1040 tax form   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. Ez 1040 tax form   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. Ez 1040 tax form More information. Ez 1040 tax form   For more information on transportation expenses, see chapter 4 of Publication 463. Ez 1040 tax form Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. Ez 1040 tax form Membership dues. Ez 1040 tax form   You can deduct membership dues you pay to professional societies that relate to your business or profession. Ez 1040 tax form Subscriptions. Ez 1040 tax form   You can deduct subscriptions to professional publications that relate to your business or profession. Ez 1040 tax form Educational expenses. Ez 1040 tax form   Generally, educational expenses are considered to be personal expenses and are not deductible. Ez 1040 tax form However, under some circumstances, educational expenses are deductible as business expenses. Ez 1040 tax form   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. Ez 1040 tax form   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. Ez 1040 tax form These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. Ez 1040 tax form   See Publication 970, Tax Benefits for Education, for more information on educational expenses. Ez 1040 tax form    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. Ez 1040 tax form However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. Ez 1040 tax form These benefits are explained in Publication 970. Ez 1040 tax form Foreign service representation expenses. Ez 1040 tax form   If you are an employee of the U. Ez 1040 tax form S. Ez 1040 tax form Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. Ez 1040 tax form If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. Ez 1040 tax form You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. Ez 1040 tax form The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. Ez 1040 tax form    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. Ez 1040 tax form These rules are explained in Publication 463. Ez 1040 tax form Representation expenses. Ez 1040 tax form   These are expenses that further the interest of the United States abroad. Ez 1040 tax form They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. Ez 1040 tax form They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. Ez 1040 tax form   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. Ez 1040 tax form These regulations are available on the Internet at www. Ez 1040 tax form state. Ez 1040 tax form gov/m/a/als. Ez 1040 tax form Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. Ez 1040 tax form ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. Ez 1040 tax form Impairment-related work expenses. Ez 1040 tax form   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. Ez 1040 tax form Attendant care includes a reader for a blind person and a helper for a person with a physical disability. Ez 1040 tax form These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). Ez 1040 tax form They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. Ez 1040 tax form Loss on conversion of U. Ez 1040 tax form S. Ez 1040 tax form dollars into foreign currency. Ez 1040 tax form   The conversion of U. Ez 1040 tax form S. Ez 1040 tax form dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. Ez 1040 tax form Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. Ez 1040 tax form For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). Ez 1040 tax form The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. Ez 1040 tax form You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. Ez 1040 tax form For each trip away from home, the dates you left and returned and the number of days spent on business. Ez 1040 tax form The destination or area of your travel, described by the name of the city, town, or similar designation. Ez 1040 tax form The business reason for your travel or the business benefit gained or expected to be gained from your travel. Ez 1040 tax form How to record your expenses. Ez 1040 tax form   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. Ez 1040 tax form They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. Ez 1040 tax form You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. Ez 1040 tax form   Each expense should be recorded separately in your records. Ez 1040 tax form However, some items can be totaled in reasonable categories. Ez 1040 tax form You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. Ez 1040 tax form You may record tips separately or with the cost of the service. Ez 1040 tax form    Documentary evidence generally is required to support all lodging expenses while traveling away from home. Ez 1040 tax form It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. Ez 1040 tax form Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. Ez 1040 tax form It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. Ez 1040 tax form    A canceled check by itself does not prove a business cost. Ez 1040 tax form You must have other evidence to show that the check was used for a business purpose. Ez 1040 tax form Your records must be timely. Ez 1040 tax form   Record the elements for the expense in your account book or other record at or near the time of the expense. Ez 1040 tax form A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. Ez 1040 tax form Confidential information. Ez 1040 tax form   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. Ez 1040 tax form However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. Ez 1040 tax form How To Report Business Expenses As a U. Ez 1040 tax form S. Ez 1040 tax form Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. Ez 1040 tax form If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. Ez 1040 tax form However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. Ez 1040 tax form If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. Ez 1040 tax form Form 2106 or Form 2106-EZ. Ez 1040 tax form   You must complete Form 2106 or 2106-EZ to deduct your expenses. Ez 1040 tax form Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. Ez 1040 tax form Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). Ez 1040 tax form Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. Ez 1040 tax form Form 2106-EZ. Ez 1040 tax form   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. Ez 1040 tax form You can use Form 2106-EZ if you meet both of the following conditions. Ez 1040 tax form You are not reimbursed by your employer for any expenses. Ez 1040 tax form (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. Ez 1040 tax form ) If you claim car expenses, you use the standard mileage rate. Ez 1040 tax form Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. Ez 1040 tax form Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. Ez 1040 tax form However, you cannot deduct any expenses for which you received a tax-free allowance as a U. Ez 1040 tax form S. Ez 1040 tax form Government employee. Ez 1040 tax form To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. Ez 1040 tax form Closely related to the start of work. Ez 1040 tax form   The move must be closely related, both in time and in place, to the start of work at the new location. Ez 1040 tax form In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. Ez 1040 tax form   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. Ez 1040 tax form A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. Ez 1040 tax form Distance test. Ez 1040 tax form   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. Ez 1040 tax form If you did not have an old job location, your new job location must be at least 50 miles from your former home. Ez 1040 tax form Time test. Ez 1040 tax form   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. Ez 1040 tax form Deductible moving expenses. Ez 1040 tax form   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). Ez 1040 tax form    The cost of your meals is not a deductible moving expense. Ez 1040 tax form   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. Ez 1040 tax form For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. Ez 1040 tax form Expenses must be reasonable. Ez 1040 tax form   You can deduct only those expenses that are reasonable for the circumstances of your move. Ez 1040 tax form For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. Ez 1040 tax form Members of your household. Ez 1040 tax form   A member of your household includes anyone who has both your former home and new home as his or her home. Ez 1040 tax form It does not include a tenant or employee unless you can claim that person as a dependent. Ez 1040 tax form Retirees. Ez 1040 tax form   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. Ez 1040 tax form You do not have to meet the time test described earlier. Ez 1040 tax form Survivors. Ez 1040 tax form   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. Ez 1040 tax form The move must begin within 6 months after the decedent's death. Ez 1040 tax form It must be from the decedent's former home outside the United States, and that home must also have been your home. Ez 1040 tax form You do not have to meet the time test described earlier. Ez 1040 tax form How to report moving expenses. Ez 1040 tax form   Use Form 3903 to report your moving expenses and figure your allowable deduction. Ez 1040 tax form Claim the deduction as an adjustment to income on Form 1040. Ez 1040 tax form (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. Ez 1040 tax form ) Reimbursements. Ez 1040 tax form   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. Ez 1040 tax form You also must include in gross income reimbursements paid to you under a nonaccountable plan. Ez 1040 tax form However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. Ez 1040 tax form Additional information. Ez 1040 tax form   For additional information about moving expenses, see Publication 521. Ez 1040 tax form Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. Ez 1040 tax form Contributions. Ez 1040 tax form   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. Ez 1040 tax form You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. Ez 1040 tax form For more information, see Publication 526, Charitable Contributions. Ez 1040 tax form Real estate tax and home mortgage interest. Ez 1040 tax form   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. Ez 1040 tax form You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. Ez 1040 tax form Example. Ez 1040 tax form Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. Ez 1040 tax form During the year, Adam used the allowance, with other funds, to provide a home for himself. Ez 1040 tax form His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). Ez 1040 tax form Adam did not have any other expenses related to providing a home for himself. Ez 1040 tax form Adam must reduce his deductions for home mortgage interest and real estate taxes. Ez 1040 tax form He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). Ez 1040 tax form The result is 3/4. Ez 1040 tax form Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). Ez 1040 tax form He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. Ez 1040 tax form Exception to the reduction. Ez 1040 tax form   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. Ez 1040 tax form Required statement. Ez 1040 tax form   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. Ez 1040 tax form The statement must contain all of the following information. Ez 1040 tax form The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. Ez 1040 tax form The amount of otherwise deductible expenses attributable to each type of tax-free income. Ez 1040 tax form The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. Ez 1040 tax form An explanation of how you determined the amounts not directly attributable to each type of tax-free income. Ez 1040 tax form   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. Ez 1040 tax form Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. Ez 1040 tax form S. Ez 1040 tax form income tax liability or deduct them as an itemized deduction when figuring your taxable income. Ez 1040 tax form Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. Ez 1040 tax form Foreign tax credit. Ez 1040 tax form   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. Ez 1040 tax form If you choose to figure a credit against your U. Ez 1040 tax form S. Ez 1040 tax form tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. Ez 1040 tax form S. Ez 1040 tax form income tax return. Ez 1040 tax form    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. Ez 1040 tax form If all your foreign income is exempt from U. Ez 1040 tax form S. Ez 1040 tax form tax, you will not be able to claim a foreign tax credit. Ez 1040 tax form   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. Ez 1040 tax form Exemption from limit. Ez 1040 tax form   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. Ez 1040 tax form Your only foreign income is passive income, such as interest, dividends, and royalties. Ez 1040 tax form The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). Ez 1040 tax form The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. Ez 1040 tax form If you make the election, you can claim a foreign tax credit without filing Form 1116. Ez 1040 tax form However, you cannot carry back or carry over any unused foreign tax to or from this year. Ez 1040 tax form See the instructions for the appropriate line in the Tax and Credits section of Form 1040. Ez 1040 tax form Foreign tax deduction. Ez 1040 tax form   If you choose to deduct all foreign income taxes on your U. Ez 1040 tax form S. Ez 1040 tax form income tax return, itemize the deduction on Schedule A (Form 1040). Ez 1040 tax form You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. Ez 1040 tax form Example. Ez 1040 tax form Dennis and Christina are married and live and work in Country X. Ez 1040 tax form Dennis works for the U. Ez 1040 tax form S. Ez 1040 tax form Government and Christina is employed by a private company. Ez 1040 tax form They pay income tax to Country X on Christina's income only. Ez 1040 tax form Dennis and Christina file a joint tax return and exclude all of Christina's income. Ez 1040 tax form They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. Ez 1040 tax form Deduction for other foreign taxes. Ez 1040 tax form   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. Ez 1040 tax form You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. Ez 1040 tax form   You can deduct real property taxes you pay that are imposed on you by a foreign country. Ez 1040 tax form You take this deduction on Schedule A (Form 1040). Ez 1040 tax form You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. Ez 1040 tax form More information. Ez 1040 tax form   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. Ez 1040 tax form Local (Foreign) Tax Return As a U. Ez 1040 tax form S. Ez 1040 tax form Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. Ez 1040 tax form Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. Ez 1040 tax form Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. Ez 1040 tax form Review the treaty text carefully to determine whether your U. Ez 1040 tax form S. Ez 1040 tax form Government remuneration is taxable in the host country. Ez 1040 tax form You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). Ez 1040 tax form If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. Ez 1040 tax form If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. Ez 1040 tax form Most income tax treaties contain an article providing relief from double taxation. Ez 1040 tax form Many treaties contain special foreign tax credit rules for U. Ez 1040 tax form S. Ez 1040 tax form citizens who are residents of a treaty country. Ez 1040 tax form For more information about the foreign tax credit, see Foreign Taxes, earlier. Ez 1040 tax form Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. Ez 1040 tax form For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. Ez 1040 tax form Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. Ez 1040 tax form Check with the appropriate U. Ez 1040 tax form S. Ez 1040 tax form Embassy for more information. Ez 1040 tax form Double Withholding If your U. Ez 1040 tax form S. Ez 1040 tax form government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. Ez 1040 tax form S. Ez 1040 tax form tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. Ez 1040 tax form S. Ez 1040 tax form income tax return on this income. Ez 1040 tax form Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. Ez 1040 tax form How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Ez 1040 tax form By selecting the method that is best for you, you will have quick and easy access to tax help. Ez 1040 tax form Free help with your tax return. Ez 1040 tax form   Free help in preparing your return is available nationwide from IRS-certified volunteers. Ez 1040 tax form The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. Ez 1040 tax form The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Ez 1040 tax form Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Ez 1040 tax form Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Ez 1040 tax form To find the nearest VITA or TCE site, visit IRS. Ez 1040 tax form gov or call 1-800-906-9887 or 1-800-829-1040. Ez 1040 tax form   As part of the TCE program, AARP offers the Tax-Aide counseling program. Ez 1040 tax form To find the nearest AARP Tax-Aide site, visit AARP's website at www. Ez 1040 tax form aarp. Ez 1040 tax form org/money/taxaide or call 1-888-227-7669. Ez 1040 tax form   For more information on these programs, go to IRS. Ez 1040 tax form gov and enter “VITA” in the search box. Ez 1040 tax form Internet. Ez 1040 tax form You can access the IRS website at IRS. Ez 1040 tax form gov 24 hours a day, 7 days a week to: E-file your return. Ez 1040 tax form Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Ez 1040 tax form Check the status of your 2012 refund. Ez 1040 tax form Go to IRS. Ez 1040 tax form gov and click on Where’s My Refund. Ez 1040 tax form Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Ez 1040 tax form If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Ez 1040 tax form Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Ez 1040 tax form Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. Ez 1040 tax form Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Ez 1040 tax form So in a change from previous filing seasons, you won't get an estimated refund date right away. Ez 1040 tax form Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Ez 1040 tax form You can obtain a free transcript online at IRS. Ez 1040 tax form gov by clicking on Order a Return or Account Transcript under “Tools. Ez 1040 tax form ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. Ez 1040 tax form You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. Ez 1040 tax form Download forms, including talking tax forms, instructions, and publications. Ez 1040 tax form Order IRS products. Ez 1040 tax form Research your tax questions. Ez 1040 tax form Search publications by topic or keyword. Ez 1040 tax form Use the Internal Revenue Code, regulations, or other official guidance. Ez 1040 tax form View Internal Revenue Bulletins (IRBs) published in the last few years. Ez 1040 tax form Figure your withholding allowances using the IRS Withholding Calculator at www. Ez 1040 tax form irs. Ez 1040 tax form gov/individuals. Ez 1040 tax form Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. Ez 1040 tax form gov by typing Alternative Minimum Tax Assistant in the search box. Ez 1040 tax form Sign up to receive local and national tax news by email. Ez 1040 tax form Get information on starting and operating a small business. Ez 1040 tax form Phone. Ez 1040 tax form Many services are available by phone. Ez 1040 tax form   Ordering forms, instructions, and publications. Ez 1040 tax form Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). Ez 1040 tax form You should receive your order within 10 days. Ez 1040 tax form Asking tax questions. Ez 1040 tax form Call the IRS with your tax questions at 1-800-829-1040. Ez 1040 tax form Solving problems. Ez 1040 tax form You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). Ez 1040 tax form An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Ez 1040 tax form Call your local Taxpayer Assistance Center for an appointment. Ez 1040 tax form To find the number, go to www. Ez 1040 tax form irs. Ez 1040 tax form gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Ez 1040 tax form TTY/TDD equipment. Ez 1040 tax form If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Ez 1040 tax form The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. Ez 1040 tax form These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Ez 1040 tax form gsa. Ez 1040 tax form gov/fedrelay. Ez 1040 tax form TeleTax topics. Ez 1040 tax form Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Ez 1040 tax form Checking the status of your 2012 refund. Ez 1040 tax form To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). Ez 1040 tax form Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Ez 1040 tax form If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Ez 1040 tax form Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Ez 1040 tax form Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Ez 1040 tax form Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Ez 1040 tax form Outside the U. Ez 1040 tax form S. Ez 1040 tax form If you are outside the United States, taxpayer assistance is available at the following U. Ez 1040 tax form S Embassies or consulate. Ez 1040 tax form Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. Ez 1040 tax form If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). Ez 1040 tax form If you are in a U. Ez 1040 tax form S. Ez 1040 tax form territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. Ez 1040 tax form S. Ez 1040 tax form Virgin Islands) and have a tax question, you can call 1-800-829-1040. Ez 1040 tax form Evaluating the quality of our telephone services. Ez 1040 tax form To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Ez 1040 tax form One method is for a second IRS representative to listen in on or record random telephone calls. Ez 1040 tax form Another is to ask some callers to complete a short survey at the end of the call. Ez 1040 tax form Walk-in. Ez 1040 tax form Some products and services are available on a walk-in basis. Ez 1040 tax form   Products. Ez 1040 tax form You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Ez 1040 tax form Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Ez 1040 tax form Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Ez 1040 tax form Services. Ez 1040 tax form You can walk in to your local TAC most business days for personal, face-to-face tax help. Ez 1040 tax form An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Ez 1040 tax form If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Ez 1040 tax form No appointment is necessary—just walk in. Ez 1040 tax form Before visiting, check www. Ez 1040 tax form irs. Ez 1040 tax form gov/localcontacts for hours of operation and services provided. Ez 1040 tax form If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. Ez 1040 tax form You can leave a message and a representative will call you back within 2 business days. Ez 1040 tax form All other issues will be handled without an appointment. Ez 1040 tax form To call your local TAC, go to  www. Ez 1040 tax form irs. Ez 1040 tax form gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Ez 1040 tax form Outside the U. Ez 1040 tax form S. Ez 1040 tax form If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. Ez 1040 tax form S. Ez 1040 tax form Embassies and consulates. Ez 1040 tax form Mail. Ez 1040 tax form You can send your order for forms, instructions, and publications to the address below. Ez 1040 tax form You should receive a response within 10 days after your request is received. Ez 1040 tax form  Internal Revenue Service 1201 N. Ez 1040 tax form Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. Ez 1040 tax form S. Ez 1040 tax form If you are outside the United States, you can get tax assistance by writing to the address below. Ez 1040 tax form  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. Ez 1040 tax form   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Ez 1040 tax form Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Ez 1040 tax form TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Ez 1040 tax form Remember, the worst thing you can do is nothing at all. Ez 1040 tax form   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Ez 1040 tax form You face (or your business is facing) an immediate threat of adverse action. Ez 1040 tax form You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Ez 1040 tax form   If you qualify for help, they will do everything they can to get your problem resolved. Ez 1040 tax form You will be assigned to one advocate who will be with you at every turn. Ez 1040 tax form TAS has offices in every state, the District of Columbia, and Puerto Rico. Ez 1040 tax form Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. Ez 1040 tax form And its services are always free. Ez 1040 tax form   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Ez 1040 tax form The TAS tax toolkit at www. Ez 1040 tax form TaxpayerAdvocate. Ez 1040 tax form irs. Ez 1040 tax form gov can help you understand these rights. Ez 1040 tax form   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Ez 1040 tax form irs. Ez 1040 tax form gov/advocate. Ez 1040 tax form You can also call the toll-free number at 1-877-777-4778. Ez 1040 tax form Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. Ez 1040 tax form These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Ez 1040 tax form gsa. Ez 1040 tax form gov/fedrelay. Ez 1040 tax form   TAS also handles large-scale or systemic problems that affect many taxpayers. Ez 1040 tax form If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. Ez 1040 tax form irs. Ez 1040 tax form gov/advocate. Ez 1040 tax form    Outside the U. Ez 1040 tax form S. Ez 1040 tax form If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. Ez 1040 tax form You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. Ez 1040 tax form R. Ez 1040 tax form 00968-8000 Low Income Taxpayer Clinics (LITCs). Ez 1040 tax form   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Ez 1040 tax form Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Ez 1040 tax form These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Ez 1040 tax form Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Ez 1040 tax form For more information and to find a clinic near you, see the LITC page on www. Ez 1040 tax form irs. Ez 1040 tax form gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Ez 1040 tax form This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. Ez 1040 tax form Free tax services. Ez 1040 tax form   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Ez 1040 tax form Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Ez 1040 tax form The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Ez 1040 tax form The majority of the information and services listed in this publication are available to you free of charge. Ez 1040 tax form If there is a fee associated with a resource or service, it is listed in the publication. Ez 1040 tax form   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Ez 1040 tax form DVD for tax products. Ez 1040 tax form You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Ez 1040 tax form Prior-year forms, instructions, and publications. Ez 1040 tax form Tax Map: an electronic research tool and finding aid. Ez 1040 tax form Tax law frequently asked questions. Ez 1040 tax form Tax Topics from the IRS telephone response system. Ez 1040 tax form Internal Revenue Code—Title 26 of the U. Ez 1040 tax form S. Ez 1040 tax form Code. Ez 1040 tax form Links to other Internet-based tax research materials. Ez 1040 tax form Fill-in, print, and save features for most tax forms. Ez 1040 tax form Internal Revenue Bulletins. Ez 1040 tax form Toll-free and email technical support. Ez 1040 tax form Two releases during the year. Ez 1040 tax form  – The first release will ship the beginning of January 2013. Ez 1040 tax form  – The final release will ship the beginning of March 2013. Ez 1040 tax form Purchase the DVD from National Technical Information Service (NTIS) at www. Ez 1040 tax form irs. Ez 1040 tax form gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Ez 1040 tax form Prev  Up  Next   Home   More Online Publications
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Frequently Asked Questions on Gift Taxes

Below are some of the more common questions and answers about Gift Tax issues. You may also find additional information in Publication 950 or some of the other forms and publications offered on our Forms Page. Included in this area are the instructions to Forms 706 and 709. Within these instructions, you will find the tax rate schedules to the related returns. If the answers to your questions can not be found in these resources, we strongly recommend visiting with a tax practitioner.


Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.

What is considered a gift?
Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return.

What can be excluded from gifts?
The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts.

  1. Gifts that are not more than the annual exclusion for the calendar year.
  2. Tuition or medical expenses you pay for someone (the educational and medical exclusions).
  3. Gifts to your spouse.
  4. Gifts to a political organization for its use.

In addition to this, gifts to qualifying charities are deductible from the value of the gift(s) made.

May I deduct gifts on my income tax return?
Making a gift or leaving your estate to your heirs does not ordinarily affect your federal income tax. You cannot deduct the value of gifts you make (other than gifts that are deductible charitable contributions). If you are not sure whether the gift tax or the estate tax applies to your situation, refer to Publication 950, Introduction to Estate and Gift Taxes.

How many annual exclusions are available?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift.

What if my spouse and I want to give away property that we own together?
You are each entitled to the annual exclusion amount on the gift. Together, you can give $22,000 to each donee (2002-2005) or $24,000 (2006-2008), $26,000 (2009-2012) and $28,000 on or after January 1, 2013.

What other information do I need to include with the return?
Refer to Form 709 (PDF), 709 Instructions and Publication 950. Among other items listed:

  1. Copies of appraisals.
  2. Copies of relevant documents regarding the transfer.
  3. Documentation of any unusual items shown on the return (partially-gifted assets, other items relevant to the transfer(s)).

What is "Fair Market Value?"
Fair Market Value is defined as: "The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. The fair market value of a particular item of property includible in the decedent's gross estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be determined by the sale price of the item in a market other than that in which such item is most commonly sold to the public, taking into account the location of the item wherever appropriate." Regulation §20.2031-1.

Who should I hire to represent me and prepare and file the return?
The Internal Revenue Service cannot make recommendations about specific individuals, but there are several factors to consider:

  1. How complex is the transfer?
  2. How large is the transfer?
  3. Do I need an attorney, CPA, Enrolled Agent (EA) or other professional(s)?

For most simple, small transfers (less than the annual exclusion amount) you may not need the services of a professional.

However, if the transfer is large or complicated or both, then these actions should be considered; It is a good idea to discuss the matter with several attorneys and CPAs or EAs. Ask about how much experience they have had and ask for referrals. This process should be similar to locating a good physician. Locate other individuals that have had similar experiences and ask for recommendations. Finally, after the individual(s) are employed and begin to work on transfer matters, make sure the lines of communication remain open so that there are no surprises.

Finally, people who make gifts as a part of their overall estate and financial plan often engage the services of both attorneys and CPAs, EAs and other professionals. The attorney usually handles wills, trusts and transfer documents that are involved and reviews the impact of documents on the gift tax return and overall plan. The CPA or EA often handles the actual return preparation and some representation of the donor in matters with the IRS. However, some attorneys handle all of the work. CPAs or EAs may also handle most of the work, but cannot take care of wills, trusts, deeds and other matters where a law license is required. In addition, other professionals (such as appraisers, surveyors, financial advisors and others) may need to be engaged during this time

Do I have to talk to the IRS during an examination?
You do not have to be present during an examination unless IRS representatives need to ask specific questions. Although you may represent yourself during an examination, most donors prefer that the professional(s) they have employed handle this phase of the examination. You may delegate authority for this by executing Form 2848 "Power of Attorney."

What if I disagree with the examination proposals?
You have many rights and avenues of appeal if you disagree with any proposals made by the IRS.  See Publications 1 and 5 (PDF) for an explanation of these options.

What if I sell property that has been given to me?
The general rule is that your basis in the property is the same as the basis of the donor. For example, if you were given stock that the donor had purchased for $10 per share (and that was his/her basis), and you later sold it for $100 per share, you would pay income tax on a gain of $90 per share. (Note: The rules are different for property acquired from an estate).

Most information for this page came from the Internal Revenue Code: Chapter 12--Gift Tax (generally Internal Revenue Code §2501 and following, related regulations and other sources)

Can a married same sex donor claim the gift tax marital deduction for a transfer to his or her spouse?
For federal tax purposes, the terms “spouse,” “husband,” and “wife” includes individuals of the same sex who were lawfully married under the laws of a state whose laws authorize the marriage of two individuals of the same sex and who remain married.  Also, the Service will recognize a marriage of individuals of the same sex that was validly created under the laws of the state of celebration even if the married couple resides in a state that does not recognize the validity of same-sex marriages.

However, the terms “spouse,” “husband and wife,” “husband,” and “wife” do not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship recognized under state law that is not denominated as a marriage under the laws of that state, and the term “marriage” does not include such formal relationships.

Gifts to your spouse are eligible for the marital deduction.

For further information, including the timeframes regarding filing claims or amended returns, see Revenue Ruling 2013-17.

Revenue Ruling 2013-17, along with updated Frequently Asked Questions for same-sex couples and updated FAQs for registered domestic partners and individuals in civil unions, are available today on IRS.gov. See also Publication 555, Community Property.


If you have suggestions or comments (or suggested FAQs) for the Estate and Gift Tax web site, please contact us: CONTACT ESTATE AND GIFT TAX.  We will not be able to respond to your email, but will consider it when making improvements or additions to this site.

Page Last Reviewed or Updated: 20-Feb-2014

The Ez 1040 Tax Form

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