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Free State Tax E-filing

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Free State Tax E-filing

Free state tax e-filing Publication 596 - Main Content Table of Contents Chapter 1—Rules for EveryoneRule 1—Adjusted Gross Income (AGI) Limits Rule 2—You Must Have a Valid Social Security Number (SSN) Rule 3—Your Filing Status Cannot Be Married Filing Separately Rule 4—You Must Be a U. Free state tax e-filing S. Free state tax e-filing Citizen or Resident Alien All Year Rule 5—You Cannot File Form 2555 or Form 2555-EZ Rule 6—Your Investment Income Must Be $3,300 or Less Rule 7—You Must Have Earned Income Chapter 2—Rules If You Have a Qualifying ChildRule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9—Your Qualifying Child Cannot Be Used by More Than One Person To Claim the EIC Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer Chapter 3—Rules If You Do Not Have a Qualifying ChildRule 11—You Must Be at Least Age 25 but Under Age 65 Rule 12—You Cannot Be the Dependent of Another Person Rule 13—You Cannot Be a Qualifying Child of Another Taxpayer Rule 14—You Must Have Lived in the United States More Than Half of the Year Chapter 4—Figuring and Claiming the EICRule 15—Earned Income Limits IRS Will Figure the EIC for You How To Figure the EIC Yourself Schedule EIC Chapter 5—Disallowance of the EICForm 8862 Are You Prohibited From Claiming the EIC for a Period of Years? Chapter 6—Detailed ExamplesExample 1—Sharon Rose Example 2—Cynthia and Jerry Grey Chapter 1—Rules for Everyone This chapter discusses Rules 1 through 7. Free state tax e-filing You must meet all seven rules to qualify for the earned income credit. Free state tax e-filing If you do not meet all seven rules, you cannot get the credit and you do not need to read the rest of the publication. Free state tax e-filing If you meet all seven rules in this chapter, then read either chapter 2 or chapter 3 (whichever applies) for more rules you must meet. Free state tax e-filing Rule 1—Adjusted Gross Income (AGI) Limits Your adjusted gross income (AGI) must be less than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Free state tax e-filing Adjusted gross income (AGI). Free state tax e-filing   AGI is the amount on line 4 of Form 1040EZ, line 22 of Form 1040A, or line 38 of Form 1040. Free state tax e-filing   If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Free state tax e-filing You do not need to read the rest of this publication. Free state tax e-filing Example—AGI is more than limit. Free state tax e-filing Your AGI is $38,550, you are single, and you have one qualifying child. Free state tax e-filing You cannot claim the EIC because your AGI is not less than $37,870. Free state tax e-filing 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. Free state tax e-filing Community property. Free state tax e-filing   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. Free state tax e-filing This is different from the community property rules that apply under Rule 7. Free state tax e-filing Rule 2—You Must Have a Valid Social Security Number (SSN) To claim the EIC, you (and your spouse, if filing a joint return) must have a valid SSN issued by the Social Security Administration (SSA). Free state tax e-filing Any qualifying child listed on Schedule EIC also must have a valid SSN. Free state tax e-filing (See Rule 8 if you have a qualifying child. Free state tax e-filing ) 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. Free state tax e-filing An example of a federally funded benefit is Medicaid. Free state tax e-filing 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. Free state tax e-filing S. Free state tax e-filing citizen or permanent resident, ask the SSA for a new social security card without the legend. Free state tax e-filing If you get the new card after you have already filed your return, you can file an amended return on Form 1040X, Amended U. Free state tax e-filing S. Free state tax e-filing Individual Income Tax Return, to claim the EIC. Free state tax e-filing U. Free state tax e-filing S. Free state tax e-filing citizen. Free state tax e-filing   If you were a U. Free state tax e-filing S. Free state tax e-filing citizen when you received your SSN, you have a valid SSN. Free state tax e-filing Valid for work only with INS authorization or DHS authorization. Free state tax e-filing   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. Free state tax e-filing SSN missing or incorrect. Free state tax e-filing   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Free state tax e-filing Other taxpayer identification number. Free state tax e-filing   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). Free state tax e-filing ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Free state tax e-filing No SSN. Free state tax e-filing   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). Free state tax e-filing You cannot claim the EIC. Free state tax e-filing Getting an SSN. Free state tax e-filing   If you (or your spouse, if filing a joint return) do not have an SSN, you can apply for one by filing Form SS-5 with the SSA. Free state tax e-filing You can get Form SS-5 online at www. Free state tax e-filing socialsecurity. Free state tax e-filing gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Free state tax e-filing Filing deadline approaching and still no SSN. Free state tax e-filing   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Free state tax e-filing Request an automatic 6-month extension of time to file your return. Free state tax e-filing You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Free state tax e-filing S. Free state tax e-filing Individual Income Tax Return. Free state tax e-filing For more information, see the instructions for Form 4868. Free state tax e-filing File the return on time without claiming the EIC. Free state tax e-filing After receiving the SSN, file an amended return, Form 1040X, claiming the EIC. Free state tax e-filing Attach a filled-in Schedule EIC, Earned Income Credit, if you have a qualifying child. Free state tax e-filing Rule 3—Your Filing Status Cannot Be “Married Filing Separately” If you are married, you usually must file a joint return to claim the EIC. Free state tax e-filing Your filing status cannot be “Married filing separately. Free state tax e-filing ” Spouse did not live with you. Free state tax e-filing   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. Free state tax e-filing In that case, you may be able to claim the EIC. Free state tax e-filing For detailed information about filing as head of household, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Free state tax e-filing Rule 4—You Must Be a U. Free state tax e-filing S. Free state tax e-filing 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. Free state tax e-filing You can use that filing status only if one spouse is a U. Free state tax e-filing S. Free state tax e-filing citizen or resident alien and you choose to treat the nonresident spouse as a U. Free state tax e-filing S. Free state tax e-filing resident. Free state tax e-filing If you make this choice, you and your spouse are taxed on your worldwide income. Free state tax e-filing If you need more information on making this choice, get Publication 519, U. Free state tax e-filing S. Free state tax e-filing Tax Guide for Aliens. Free state tax e-filing 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). Free state tax e-filing Rule 5—You Cannot File Form 2555 or Form 2555-EZ You cannot claim the earned income credit if you file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Free state tax e-filing You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Free state tax e-filing U. Free state tax e-filing S. Free state tax e-filing possessions are not foreign countries. Free state tax e-filing See Publication 54, Tax Guide for U. Free state tax e-filing S. Free state tax e-filing Citizens and Resident Aliens Abroad, for more detailed information. Free state tax e-filing Rule 6—Your Investment Income Must Be $3,300 or Less You cannot claim the earned income credit unless your investment income is $3,300 or less. Free state tax e-filing If your investment income is more than $3,300, you cannot claim the credit. Free state tax e-filing Form 1040EZ. Free state tax e-filing   If you file Form 1040EZ, your investment income is the total of the amount on line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. Free state tax e-filing Form 1040A. Free state tax e-filing   If you file Form 1040A, your investment income is the total of the amounts on lines 8a (taxable interest), 8b (tax-exempt interest), 9a (ordinary dividends), and 10 (capital gain distributions) on that form. Free state tax e-filing Form 1040. Free state tax e-filing   If you file Form 1040, use Worksheet 1 in this chapter to figure your investment income. Free state tax e-filing    Worksheet 1. Free state tax e-filing Investment Income If You Are Filing Form 1040 Use this worksheet to figure investment income for the earned income credit when you file Form 1040. Free state tax e-filing Interest and Dividends         1. Free state tax e-filing Enter any amount from Form 1040, line 8a 1. Free state tax e-filing   2. Free state tax e-filing Enter any amount from Form 1040, line 8b, plus any amount on Form 8814, line 1b 2. Free state tax e-filing   3. Free state tax e-filing Enter any amount from Form 1040, line 9a 3. Free state tax e-filing   4. Free state tax e-filing Enter the amount from Form 1040, line 21, that is from Form 8814 if you are filing that form to report your child's interest and dividend income on your return. Free state tax e-filing (If your child received an Alaska Permanent Fund dividend, use Worksheet 2 in this chapter to figure the amount to enter on this line. Free state tax e-filing ) 4. Free state tax e-filing   Capital Gain Net Income         5. Free state tax e-filing Enter the amount from Form 1040, line 13. Free state tax e-filing If the amount on that line is a loss, enter -0- 5. Free state tax e-filing       6. Free state tax e-filing Enter any gain from Form 4797, Sales of Business Property, line 7. Free state tax e-filing If the amount on that line is a loss, enter -0-. Free state tax e-filing (But, if you completed lines 8 and 9 of Form 4797, enter the amount from line 9 instead. Free state tax e-filing ) 6. Free state tax e-filing       7. Free state tax e-filing Substract line 6 of this worksheet from line 5 of this worksheet. Free state tax e-filing (If the result is less than zero, enter -0-. Free state tax e-filing ) 7. Free state tax e-filing   Royalties and Rental Income From Personal Property         8. Free state tax e-filing Enter any royalty income from Schedule E, line 23b, plus any income from the rental of personal property shown on Form 1040, line 21 8. Free state tax e-filing       9. Free state tax e-filing Enter any expenses from Schedule E, line 20, related to royalty income, plus any expenses from the rental of personal property deducted on Form 1040, line 36 9. Free state tax e-filing       10. Free state tax e-filing Subtract the amount on line 9 of this worksheet from the amount on line 8. Free state tax e-filing (If the result is less than zero, enter -0-. Free state tax e-filing ) 10. Free state tax e-filing   Passive Activities         11. Free state tax e-filing Enter the total of any net income from passive activities (such as income included on Schedule E, line 26, 29a (col. Free state tax e-filing (g)), 34a (col. Free state tax e-filing (d)), or 40). Free state tax e-filing (See instructions below for lines 11 and 12. Free state tax e-filing ) 11. Free state tax e-filing       12. Free state tax e-filing Enter the total of any losses from passive activities (such as losses included on Schedule E, line 26, 29b (col. Free state tax e-filing (f)), 34b (col. Free state tax e-filing (c)), or 40). Free state tax e-filing (See instructions below for lines 11 and 12. Free state tax e-filing ) 12. Free state tax e-filing       13. Free state tax e-filing Combine the amounts on lines 11 and 12 of this worksheet. Free state tax e-filing (If the result is less than zero, enter -0-. Free state tax e-filing ) 13. Free state tax e-filing   14. Free state tax e-filing Add the amounts on lines 1, 2, 3, 4, 7, 10, and 13. Free state tax e-filing Enter the total. Free state tax e-filing This is your investment income 14. Free state tax e-filing   15. Free state tax e-filing Is the amount on line 14 more than $3,300? ❑ Yes. Free state tax e-filing You cannot take the credit. Free state tax e-filing  ❑ No. Free state tax e-filing Go to Step 3 of the Form 1040 instructions for lines 64a and 64b to find out if you can take the credit (unless you are using this publication to find out if you can take the credit; in that case, go to Rule 7, next). Free state tax e-filing       Instructions for lines 11 and 12. Free state tax e-filing In figuring the amount to enter on lines 11 and 12, do not take into account any royalty income (or loss) included on line 26 of Schedule E or any amount included in your earned income. Free state tax e-filing To find out if the income on line 26 or line 40 of Schedule E is from a passive activity, see the Schedule E instructions. Free state tax e-filing If any of the rental real estate income (or loss) included on Schedule E, line 26, is not from a passive activity, print “NPA” and the amount of that income (or loss) on the dotted line next to line 26. Free state tax e-filing Worksheet 2. Free state tax e-filing Worksheet for Line 4 of Worksheet 1 Complete this worksheet only if Form 8814 includes an Alaska Permanent Fund dividend. Free state tax e-filing Note. Free state tax e-filing Fill out a separate Worksheet 2 for each Form 8814. Free state tax e-filing     1. Free state tax e-filing Enter the amount from Form 8814, line 2a 1. Free state tax e-filing   2. Free state tax e-filing Enter the amount from Form 8814, line 2b 2. Free state tax e-filing   3. Free state tax e-filing Subtract line 2 from line 1 3. Free state tax e-filing   4. Free state tax e-filing Enter the amount from Form 8814, line 1a 4. Free state tax e-filing   5. Free state tax e-filing Add lines 3 and 4 5. Free state tax e-filing   6. Free state tax e-filing Enter the amount of the child's Alaska Permanent Fund dividend 6. Free state tax e-filing   7. Free state tax e-filing Divide line 6 by line 5. Free state tax e-filing Enter the result as a decimal (rounded to at least three places) 7. Free state tax e-filing   8. Free state tax e-filing Enter the amount from Form 8814, line 12 8. Free state tax e-filing   9. Free state tax e-filing Multiply line 7 by line 8 9. Free state tax e-filing   10. Free state tax e-filing Subtract line 9 from line 8. Free state tax e-filing Enter the result on line 4 of Worksheet 1 10. Free state tax e-filing     (If filing more than one Form 8814, enter on line 4 of Worksheet 1 the total of the amounts on line 10 of all Worksheets 2. Free state tax e-filing )     Example—completing Worksheet 2. Free state tax e-filing Your 10-year-old child has taxable interest income of $400, an Alaska Permanent Fund dividend of $1,000, and ordinary dividends of $1,100, of which $500 are qualified dividends. Free state tax e-filing You choose to report this income on your return. Free state tax e-filing You enter $400 on line 1a of Form 8814, $2,100 ($1,000 + $1,100) on line 2a, and $500 on line 2b. Free state tax e-filing After completing lines 4 through 11, you enter $400 on line 12 of Form 8814 and line 21 of Form 1040. Free state tax e-filing On Worksheet 2, you enter $2,100 on line 1, $500 on line 2, $1,600 on line 3, $400 on line 4, $2,000 on line 5, $1,000 on line 6, 0. Free state tax e-filing 500 on line 7, $400 on line 8, $200 on line 9, and $200 on line 10. Free state tax e-filing You then enter $200 on line 4 of Worksheet 1. Free state tax e-filing Rule 7—You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. Free state tax e-filing If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Free state tax e-filing If you are an employee, earned income includes all the taxable income you get from your employer. Free state tax e-filing Rule 15 has information that will help you figure the amount of your earned income. Free state tax e-filing If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the Form 1040 instructions. Free state tax e-filing Earned Income Earned income includes all of the following types of income. Free state tax e-filing Wages, salaries, tips, and other taxable employee pay. Free state tax e-filing Employee pay is earned income only if it is taxable. Free state tax e-filing Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Free state tax e-filing But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained later in this chapter. Free state tax e-filing Net earnings from self-employment. Free state tax e-filing Gross income received as a statutory employee. Free state tax e-filing Wages, salaries, and tips. Free state tax e-filing    Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Free state tax e-filing You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Free state tax e-filing Nontaxable combat pay election. Free state tax e-filing   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Free state tax e-filing The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q. Free state tax e-filing Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Free state tax e-filing For details, see Nontaxable combat pay in chapter 4. Free state tax e-filing Net earnings from self-employment. Free state tax e-filing   You may have net earnings from self-employment if: You own your own business, or You are a minister or member of a religious order. Free state tax e-filing Minister's housing. Free state tax e-filing   The rental value of a home or a housing allowance provided to a minister as part of the minister's pay generally is not subject to income tax but is included in net earnings from self-employment. Free state tax e-filing For that reason, it is included in earned income for the EIC (except in the cases described in Approved Form 4361 or Form 4029 , below). Free state tax e-filing Statutory employee. Free state tax e-filing   You are a statutory employee if you receive a Form W-2 on which the “Statutory employee” box (box 13) is checked. Free state tax e-filing You report your income and expenses as a statutory employee on Schedule C or C-EZ (Form 1040). Free state tax e-filing Strike benefits. Free state tax e-filing   Strike benefits paid by a union to its members are earned income. Free state tax e-filing 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. Free state tax e-filing Each approved form exempts certain income from social security taxes. Free state tax e-filing Each form is discussed here in terms of what is or is not earned income for the EIC. Free state tax e-filing Form 4361. Free state tax e-filing   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Free state tax e-filing This includes wages, salaries, tips, and other taxable employee compensation. Free state tax e-filing A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Free state tax e-filing Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Free state tax e-filing Examples include fees for performing marriages and honoraria for delivering speeches. Free state tax e-filing Form 4029. Free state tax e-filing   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Free state tax e-filing However, amounts you received as a self-employed individual do not count as earned income. Free state tax e-filing Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Free state tax e-filing 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. Free state tax e-filing Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Free state tax e-filing You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Free state tax e-filing Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Free state tax e-filing Report taxable pension payments on Form 1040, lines 16a and 16b, or Form 1040A, lines 12a and 12b. Free state tax e-filing Disability insurance payments. Free state tax e-filing   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Free state tax e-filing It does not matter whether you have reached minimum retirement age. Free state tax e-filing If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Free state tax e-filing ” 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. Free state tax e-filing Do not include any of these items in your earned income. Free state tax e-filing Earnings while an inmate. Free state tax e-filing   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Free state tax e-filing This includes amounts for work performed while in a work release program or while in a halfway house. Free state tax e-filing Workfare payments. Free state tax e-filing   Nontaxable workfare payments are not earned income for the EIC. Free state tax e-filing These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. Free state tax e-filing Community property. Free state tax e-filing   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. Free state tax e-filing That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Free state tax e-filing 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. Free state tax e-filing Nevada, Washington, and California domestic partners. Free state tax e-filing   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Free state tax e-filing Your earned income for the EIC does not include any amount earned by your partner. Free state tax e-filing Your earned income includes the entire amount you earned. Free state tax e-filing For details, see Publication 555. Free state tax e-filing Conservation Reserve Program (CRP) payments. Free state tax e-filing   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. Free state tax e-filing Nontaxable military pay. Free state tax e-filing   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Free state tax e-filing Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Free state tax e-filing See Publication 3, Armed Forces' Tax Guide, for more information. Free state tax e-filing    Combat pay. Free state tax e-filing You can elect to include your nontaxable combat pay in earned income for the EIC. Free state tax e-filing See Nontaxable combat pay in chapter 4. Free state tax e-filing Chapter 2—Rules If You Have a Qualifying Child If you have met all the rules in chapter 1, use this chapter to see if you have a qualifying child. Free state tax e-filing This chapter discusses Rules 8 through 10. Free state tax e-filing You must meet all three of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit with a qualifying child. Free state tax e-filing You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Free state tax e-filing (You cannot file Form 1040EZ. Free state tax e-filing ) You also must complete Schedule EIC and attach it to your return. Free state tax e-filing If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Free state tax e-filing No qualifying child. Free state tax e-filing   If you do not meet Rule 8, you do not have a qualifying child. Free state tax e-filing Read chapter 3 to find out if you can get the earned income credit without a qualifying child. Free state tax e-filing Rule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. Free state tax e-filing The fours tests are: Relationship, Age, Residency, and Joint return. Free state tax e-filing The four tests are illustrated in Figure 1. Free state tax e-filing The paragraphs that follow contain more information about each test. Free state tax e-filing 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). Free state tax e-filing The following definitions clarify the relationship test. Free state tax e-filing Adopted child. Free state tax e-filing   An adopted child is always treated as your own child. Free state tax e-filing The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Free state tax e-filing Foster child. Free state tax e-filing   For the EIC, a person is your foster child if the child is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Free state tax e-filing (An authorized placement agency includes a state or local government agency. Free state tax e-filing It also includes a tax-exempt organization licensed by a state. Free state tax e-filing In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Free state tax e-filing ) Example. Free state tax e-filing 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. Free state tax e-filing Debbie is your foster child. Free state tax e-filing Figure 1. Free state tax e-filing Tests for Qualifying Child Please click here for the text description of the image. Free state tax e-filing Conditions for Qualifying Child Age Test Your child must be: Under age 19 at the end of 2013 and younger than you (or your spouse, if filing jointly), Under age 24 at the end of 2013, a student, and younger than you (or your spouse, if filing jointly, or Permanently and totally disabled at any time during 2013, regardless of age. Free state tax e-filing The following examples and definitions clarify the age test. Free state tax e-filing Example 1—child not under age 19. Free state tax e-filing Your son turned 19 on December 10. Free state tax e-filing 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. Free state tax e-filing Example 2—child not younger than you or your spouse. Free state tax e-filing Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Free state tax e-filing He is not disabled. Free state tax e-filing Both you and your spouse are 21 years old, and you file a joint return. Free state tax e-filing Your brother is not your qualifying child because he is not younger than you or your spouse. Free state tax e-filing Example 3—child younger than your spouse but not younger than you. Free state tax e-filing The facts are the same as in Example 2 except that your spouse is 25 years old. Free state tax e-filing Because your brother is younger than your spouse, he is your qualifying child, even though he is not younger than you. Free state tax e-filing Student defined. Free state tax e-filing   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. Free state tax e-filing   The 5 calendar months need not be consecutive. Free state tax e-filing   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. Free state tax e-filing School defined. Free state tax e-filing   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Free state tax e-filing However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Free state tax e-filing Vocational high school students. Free state tax e-filing   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. Free state tax e-filing Permanently and totally disabled. Free state tax e-filing   Your child is permanently and totally disabled if both of the following apply. Free state tax e-filing He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Free state tax e-filing A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Free state tax e-filing Residency Test Your child must have lived with you in the United States for more than half of 2013. Free state tax e-filing The following definitions clarify the residency test. Free state tax e-filing United States. Free state tax e-filing   This means the 50 states and the District of Columbia. Free state tax e-filing It does not include Puerto Rico or U. Free state tax e-filing S. Free state tax e-filing possessions such as Guam. Free state tax e-filing Homeless shelter. Free state tax e-filing   Your home can be any location where you regularly live. Free state tax e-filing You do not need a traditional home. Free state tax e-filing 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. Free state tax e-filing Military personnel stationed outside the United States. Free state tax e-filing   U. Free state tax e-filing S. Free state tax e-filing 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. Free state tax e-filing Extended active duty. Free state tax e-filing   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Free state tax e-filing 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. Free state tax e-filing Birth or death of child. Free state tax e-filing    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. Free state tax e-filing Temporary absences. Free state tax e-filing   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. Free state tax e-filing Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Free state tax e-filing Kidnapped child. Free state tax e-filing   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. Free state tax e-filing The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Free state tax e-filing This treatment applies for all years until the child is returned. Free state tax e-filing 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. Free state tax e-filing   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Free state tax e-filing Joint Return Test To meet this test, the child cannot file a joint return for the year. Free state tax e-filing Exception. Free state tax e-filing   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. Free state tax e-filing Example 1—child files joint return. Free state tax e-filing You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Free state tax e-filing He earned $25,000 for the year. Free state tax e-filing The couple files a joint return. Free state tax e-filing Because your daughter and her husband file a joint return, she is not your qualifying child. Free state tax e-filing Example 2—child files joint return to get refund of tax withheld. Free state tax e-filing Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Free state tax e-filing They do not have a child. Free state tax e-filing Neither is required to file a tax return. Free state tax e-filing Taxes were taken out of their pay, so they file a joint return only to get a refund of the withheld taxes. Free state tax e-filing The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Free state tax e-filing Example 3—child files joint return to claim American opportunity credit. Free state tax e-filing The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Free state tax e-filing 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. Free state tax e-filing Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to claim a refund of income tax withheld or estimated tax paid. Free state tax e-filing The exception to the joint return test does not apply, so your son is not your qualifying child. Free state tax e-filing Married child. Free state tax e-filing   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. Free state tax e-filing    Social security number. Free state tax e-filing Your qualifying child must have a valid social security number (SSN), unless the child was born and died in 2013 and you attach to your return a copy of the child's birth certificate, death certificate, or hospital records showing a live birth. Free state tax e-filing You cannot claim the EIC on the basis of a qualifying child if: The qualifying child's SSN is missing from your tax return or is incorrect, The qualifying child's social security card says “Not valid for employment” and was issued for use in getting a federally funded benefit, or Instead of an SSN, the qualifying child has: An individual taxpayer identification number (ITIN), which is issued to a noncitizen who cannot get an SSN, or An adoption taxpayer identification number (ATIN), issued to adopting parents who cannot get an SSN for the child being adopted until the adoption is final. Free state tax e-filing   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. Free state tax e-filing For more information about SSNs, see Rule 2. Free state tax e-filing Rule 9—Your Qualifying Child Cannot Be Used by More Than One Person To Claim the EIC Sometimes a child meets the tests to be a qualifying child of more than one person. Free state tax e-filing However, only one of these persons can actually treat the child as a qualifying child. Free state tax e-filing 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). Free state tax e-filing The exemption for the child. Free state tax e-filing The child tax credit. Free state tax e-filing Head of household filing status. Free state tax e-filing The credit for child and dependent care expenses. Free state tax e-filing The exclusion for dependent care benefits. Free state tax e-filing The EIC. Free state tax e-filing The other person cannot take any of these benefits based on this qualifying child. Free state tax e-filing In other words, you and the other person cannot agree to divide these tax benefits between you. Free state tax e-filing The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Free state tax e-filing The tiebreaker rules, which follow, explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Free state tax e-filing However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Free state tax e-filing Tiebreaker rules. Free state tax e-filing   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. Free state tax e-filing If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing See Example 8. Free state tax e-filing   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. Free state tax e-filing See Examples 1 through 13. Free state tax e-filing   If you cannot claim the EIC because your qualifying child is treated under the tiebreaker rules as the qualifying child of another person for 2013, you may be able to take the EIC using a different qualifying child, but you cannot take the EIC using the rules in chapter 3 for people who do not have a qualifying child. Free state tax e-filing If the other person cannot claim the EIC. Free state tax e-filing   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. Free state tax e-filing See Examples 6 and 7. Free state tax e-filing But you cannot treat the child as a qualifying child to claim the EIC if the other person uses the child to claim any of the other six tax benefits listed earlier in this chapter. Free state tax e-filing Examples. Free state tax e-filing    The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Free state tax e-filing Example 1—child lived with parent and grandparent. Free state tax e-filing You and your 2-year-old son Jimmy lived with your mother all year. Free state tax e-filing You are 25 years old, unmarried, and your AGI is $9,000. Free state tax e-filing Your only income was $9,000 from a part-time job. Free state tax e-filing Your mother's only income was $20,000 from her job, and her AGI is $20,000. Free state tax e-filing Jimmy's father did not live with you or Jimmy. Free state tax e-filing The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Free state tax e-filing 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. Free state tax e-filing However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier in this chapter for which that person qualifies). Free state tax e-filing He is not a qualifying child of anyone else, including his father. Free state tax e-filing 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). Free state tax e-filing Example 2—parent has higher AGI than grandparent. Free state tax e-filing The facts are the same as in Example 1 except your AGI is $25,000. Free state tax e-filing Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Free state tax e-filing Only you can claim him. Free state tax e-filing Example 3—two persons claim same child. Free state tax e-filing The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing Example 4—qualifying children split between two persons. Free state tax e-filing 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. Free state tax e-filing Only one of you can claim each child. Free state tax e-filing However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Free state tax e-filing For example, if you claim one child, your mother can claim the other two. Free state tax e-filing Example 5—taxpayer who is a qualifying child. Free state tax e-filing The facts are the same as in Example 1 except that you are only 18 years old. Free state tax e-filing This means you are a qualifying child of your mother. Free state tax e-filing Because of Rule 10, discussed next, you cannot claim the EIC and cannot claim your son as a qualifying child. Free state tax e-filing Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Free state tax e-filing 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. Free state tax e-filing Example 6—grandparent with too much earned income to claim EIC. Free state tax e-filing The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Free state tax e-filing Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Free state tax e-filing Example 7—parent with too much earned income to claim EIC. Free state tax e-filing The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Free state tax e-filing Your earned income is too high for you to claim the EIC. Free state tax e-filing But your mother cannot claim the EIC either, because her AGI is not higher than yours. Free state tax e-filing Example 8—child lived with both parents and grandparent. Free state tax e-filing The facts are the same as in Example 1 except that you and Jimmy's father are married to each other, live with Jimmy and your mother, and have AGI of $30,000 on a joint return. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing In other words, each parent's AGI can be treated as $15,000. Free state tax e-filing Example 9—separated parents. Free state tax e-filing You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Free state tax e-filing In August and September, Joey lived with you. Free state tax e-filing For the rest of the year, Joey lived with your husband, who is Joey's father. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing You and your husband will file separate returns. Free state tax e-filing Your husband agrees to let you treat Joey as a qualifying child. Free state tax e-filing 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. Free state tax e-filing However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Free state tax e-filing See Rule 3. Free state tax e-filing Example 10—separated parents claim same child. Free state tax e-filing The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Free state tax e-filing In this case, only your husband will be allowed to treat Joey as a qualifying child. Free state tax e-filing This is because, during 2013, the boy lived with him longer than with you. Free state tax e-filing You cannot claim the EIC (either with or without a qualifying child). Free state tax e-filing 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. Free state tax e-filing See Rule 3. Free state tax e-filing Example 11—unmarried parents. Free state tax e-filing You, your 5-year-old son, and your son's father lived together all year. Free state tax e-filing You and your son's father are not married. Free state tax e-filing 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. Free state tax e-filing Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Free state tax e-filing Neither of you had any other income. Free state tax e-filing Your son's father agrees to let you treat the child as a qualifying child. Free state tax e-filing 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. Free state tax e-filing Example 12—unmarried parents claim same child. Free state tax e-filing 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. Free state tax e-filing In this case, only your son's father will be allowed to treat your son as a qualifying child. Free state tax e-filing This is because his AGI, $14,000, is more than your AGI, $12,000. Free state tax e-filing You cannot claim the EIC (either with or without a qualifying child). Free state tax e-filing Example 13—child did not live with a parent. Free state tax e-filing You and your 7-year-old niece, your sister's child, lived with your mother all year. Free state tax e-filing You are 25 years old, and your AGI is $9,300. Free state tax e-filing Your only income was from a part-time job. Free state tax e-filing Your mother's AGI is $15,000. Free state tax e-filing Her only income was from her job. Free state tax e-filing Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Free state tax e-filing 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. Free state tax e-filing However, only your mother can treat her as a qualifying child. Free state tax e-filing This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Free state tax e-filing Special rule for divorced or separated parents (or parents who live apart). Free state tax e-filing   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. Free state tax e-filing The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all time during the last 6 months of 2013, whether or not they are or were married. Free state tax e-filing The child received over half of his or her support for the year from the parents. Free state tax e-filing The child is in the custody of one or both parents for more than half of 2013. Free state tax e-filing Either of the following statements is true. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing For details, see Publication 501. Free state tax e-filing Also see Applying Rule 9 to divorced or separated parents (or parents who live apart), next. Free state tax e-filing Applying Rule 9 to divorced or separated parents (or parents who live apart). Free state tax e-filing   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. Free state tax e-filing 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. Free state tax e-filing 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. Free state tax e-filing Example 1. Free state tax e-filing You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Free state tax e-filing Your AGI is $10,000. Free state tax e-filing Your mother’s AGI is $25,000. Free state tax e-filing Your son's father did not live with you or your son. Free state tax e-filing Under the Special rule for divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for the child. Free state tax e-filing 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. Free state tax e-filing You and your mother did not have any child care expenses or dependent care benefits. Free state tax e-filing 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. Free state tax e-filing Example 2. Free state tax e-filing The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Free state tax e-filing Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Free state tax e-filing Example 3. Free state tax e-filing 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. Free state tax e-filing Your mother also claims him as a qualifying child for head of household filing status. Free state tax e-filing You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Free state tax e-filing The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Free state tax e-filing Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Free state tax e-filing ) if all of the following statements are true. Free state tax e-filing You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Free state tax e-filing Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Free state tax e-filing 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. Free state tax e-filing You lived with that person in the United States for more than half of the year. Free state tax e-filing 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). Free state tax e-filing For more details about the tests to be a qualifying child, see Rule 8. Free state tax e-filing If you are a qualifying child of another taxpayer, you cannot claim the EIC. Free state tax e-filing 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. Free state tax e-filing Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Free state tax e-filing Example. Free state tax e-filing You and your daughter lived with your mother all year. Free state tax e-filing You are 22 years old, unmarried, and attended a trade school full time. Free state tax e-filing You had a part-time job and earned $5,700. Free state tax e-filing You had no other income. Free state tax e-filing Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Free state tax e-filing She can claim the EIC if she meets all the other requirements. Free state tax e-filing Because you are your mother's qualifying child, you cannot claim the EIC. Free state tax e-filing This is so even if your mother cannot or does not claim the EIC. Free state tax e-filing Child of person not required to file a return. Free state tax e-filing   You are not the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you met the relationship, age, residency, and joint return tests is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. Free state tax e-filing Example 1—return not required. Free state tax e-filing 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. Free state tax e-filing As a result, you are not your mother's qualifying child. Free state tax e-filing You can claim the EIC if you meet all the other requirements to do so. Free state tax e-filing Example 2—return filed to get refund of tax withheld. Free state tax e-filing The facts are the same as in Example 1 except your mother had wages of $1,500 and had income tax withheld from her wages. Free state tax e-filing She files a return only to get a refund of the income tax withheld and does not claim the EIC or any other tax credits or deductions. Free state tax e-filing As a result, you are not your mother's qualifying child. Free state tax e-filing You can claim the EIC if you meet all the other requirements to do so. Free state tax e-filing Example 3—return filed to get EIC. Free state tax e-filing The facts are the same as in Example 2 except your mother claimed the EIC on her return. Free state tax e-filing Since she filed the return to get the EIC, she is not filing it only to get a refund of income tax withheld. Free state tax e-filing As a result, you are your mother's qualifying child. Free state tax e-filing You cannot claim the EIC. Free state tax e-filing Chapter 3—Rules If You Do Not Have a Qualifying Child Use this chapter if you do not have a qualifying child and have met all the rules in chapter 1. Free state tax e-filing This chapter discusses Rules 11 through 14. Free state tax e-filing You must meet all four of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit without a qualifying child. Free state tax e-filing You can file Form 1040, Form 1040A, or Form 1040EZ to claim the EIC without a qualifying child. Free state tax e-filing If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Free state tax e-filing If you have a qualifying child. Free state tax e-filing   If you meet Rule 8, you have a qualifying child. Free state tax e-filing If you meet Rule 8 and do not claim the EIC with a qualifying child, you cannot claim the EIC without a qualifying child. Free state tax e-filing Rule 11—You Must Be at Least Age 25 but Under Age 65 You must be at least age 25 but under age 65 at the end of 2013. Free state tax e-filing 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. Free state tax e-filing It does not matter which spouse meets the age test, as long as one of the spouses does. Free state tax e-filing You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Free state tax e-filing 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. Free state tax e-filing If neither you nor your spouse meets the age test, you cannot claim the EIC. Free state tax e-filing Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Free state tax e-filing Death of spouse. Free state tax e-filing   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. Free state tax e-filing Example 1. Free state tax e-filing You are age 28 and unmarried. Free state tax e-filing You meet the age test. Free state tax e-filing Example 2—spouse meets age test. Free state tax e-filing You are married and filing a joint return. Free state tax e-filing You are age 23 and your spouse is age 27. Free state tax e-filing You meet the age test because your spouse is at least age 25 but under age 65. Free state tax e-filing Example 3—spouse dies in 2013. Free state tax e-filing You are married and filing a joint return with your spouse who died in August 2013. Free state tax e-filing You are age 67. Free state tax e-filing Your spouse would have become age 65 in November 2013. Free state tax e-filing Because your spouse was under age 65 when she died, you meet the age test. Free state tax e-filing Rule 12—You Cannot Be the Dependent of Another Person If you are not filing a joint return, you meet this rule if: You checked box 6a on Form 1040 or 1040A, or You did not check the “You” box on line 5 of Form 1040EZ, and you entered $10,000 on that line. Free state tax e-filing 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. Free state tax e-filing If you are not sure whether someone else can claim you as a dependent, get Publication 501 and read the rules for claiming a dependent. Free state tax e-filing If someone else can claim you as a dependent on his or her return, but does not, you still cannot claim the credit. Free state tax e-filing Example 1. Free state tax e-filing In 2013, you were age 25, single, and living at home with your parents. Free state tax e-filing You worked and were not a student. Free state tax e-filing You earned $7,500. Free state tax e-filing Your parents cannot claim you as a dependent. Free state tax e-filing 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. Free state tax e-filing You meet this rule. Free state tax e-filing You can claim the EIC if you meet all the other requirements. Free state tax e-filing Example 2. Free state tax e-filing The facts are the same as in Example 1, except that you earned $2,000. Free state tax e-filing Your parents can claim you as a dependent but decide not to. Free state tax e-filing You do not meet this rule. Free state tax e-filing You cannot claim the credit because your parents could have claimed you as a dependent. Free state tax e-filing Joint returns. Free state tax e-filing   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Free state tax e-filing   However, another person may be able to claim you as a dependent if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. Free state tax e-filing But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Free state tax e-filing Example 1—return filed to get refund of tax withheld. Free state tax e-filing You are 26 years old. Free state tax e-filing You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Free state tax e-filing Neither you nor your wife is required to file a tax return. Free state tax e-filing You do not have a child. Free state tax e-filing Taxes were taken out of your pay so you file a joint return only to get a refund of the withheld taxes. Free state tax e-filing Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Free state tax e-filing They can claim exemptions for you and your wife if all the other tests to do so are met. Free state tax e-filing Example 2—return filed to get EIC. Free state tax e-filing The facts are the same as in Example 1except no taxes were taken out of your pay. Free state tax e-filing 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. Free state tax e-filing Because claiming the EIC is your reason for filing the return, you are not filing it only to claim a refund of income tax withheld or estimated tax paid. Free state tax e-filing Your parents cannot claim an exemption for either you or your wife. Free state tax e-filing Rule 13—You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Free state tax e-filing ) if all of the following statements are true. Free state tax e-filing You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Free state tax e-filing Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Free state tax e-filing 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. Free state tax e-filing You lived with that person in the United States for more than half of the year. Free state tax e-filing 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). Free state tax e-filing For more details about the tests to be a qualifying child, see Rule 8. Free state tax e-filing If you are a qualifying child of another taxpayer, you cannot claim the EIC. Free state tax e-filing 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. Free state tax e-filing Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Free state tax e-filing Example. Free state tax e-filing You lived with your mother all year. Free state tax e-filing You are age 26, unmarried, and permanently and totally disabled. Free state tax e-filing Your only income was from a community center where you went three days a week to answer telephones. Free state tax e-filing You earned $5,000 for the year and provided more than half of your own support. Free state tax e-filing Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Free state tax e-filing She can claim the EIC if she meets all the other requirements. Free state tax e-filing Because you are a qualifying child of your mother, you cannot claim the EIC. Free state tax e-filing This is so even if your mother cannot or does not claim the EIC. Free state tax e-filing Joint returns. Free state tax e-filing   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Free state tax e-filing   However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. Free state tax e-filing But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Free state tax e-filing Child of person not required to file a return. Free state tax e-filing   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. Free state tax e-filing Example 1—return not required. Free state tax e-filing You lived all year with your father. Free state tax e-filing You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Free state tax e-filing You have no other income, no children, and provided more than half of your own support. Free state tax e-filing Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Free state tax e-filing As a result, you are not your father's qualifying child. Free state tax e-filing You can claim the EIC if you meet all the other requirements to do so. Free state tax e-filing Example 2—return filed to get refund of tax withheld. Free state tax e-filing The facts are the same as in Example 1 except your father had wages of $1,500 and had income tax withheld from his wages. Free state tax e-filing He files a return only to get a refund of the income tax withheld and does not claim the EIC or any other tax credits or deductions. Free state tax e-filing As a result, you are not your father's qualifying child. Free state tax e-filing You can claim the EIC if you meet all the other requirements to do so. Free state tax e-filing Example 3—return filed to get EIC. Free state tax e-filing The facts are the same as in Example 2 except your father claimed the EIC on his return. Free state tax e-filing Since he filed the return to get the EIC, he is not filing it only to get a refund of income tax withheld. Free state tax e-filing As a result, you are your father's qualifying child. Free state tax e-filing You cannot claim the EIC. Free state tax e-filing Rule 14—You Must Have Lived in the United States More Than Half of the Year Your home (and your spouse's, if filing a joint return) must have been in the United States for more than half the year. Free state tax e-filing If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Free state tax e-filing United States. Free state tax e-filing   This means the 50 states and the District of Columbia. Free state tax e-filing It does not include Puerto Rico or U. Free state tax e-filing S. Free state tax e-filing possessions such as Guam. Free state tax e-filing Homeless shelter. Free state tax e-filing   Your home can be any location where you regularly live. Free state tax e-filing You do not need a traditional home. Free state tax e-filing If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Free state tax e-filing Military personnel stationed outside the United States. Free state tax e-filing   U. Free state tax e-filing S. Free state tax e-filing military personnel stationed outside the United States on extended active duty (defined in chapter 2) are considered to live in the United States during that duty period for purposes of the EIC. Free state tax e-filing Chapter 4—Figuring and Claiming the EIC You must meet one more rule to claim the EIC. Free state tax e-filing You need to know the amount of your earned income to see if you meet the rule in this chapter. Free state tax e-filing You also need to know that amount to figure your EIC. Free state tax e-filing Rule 15—Earned Income Limits Your earned income must be less than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Free state tax e-filing Earned Income Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Free state tax e-filing Employee pay is earned income only if it is taxable. Free state tax e-filing Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Free state tax e-filing But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Free state tax e-filing Earned income is explained in detail in Rule 7 in chapter 1. Free state tax e-filing Figuring earned income. Free state tax e-filing   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. Free state tax e-filing   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. Free state tax e-filing   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). Free state tax e-filing You will then reduce that amount by any amount included on that line and described in the following list. Free state tax e-filing Scholarship or fellowship grants not reported on a Form W-2. Free state tax e-filing 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. Free state tax e-filing Inmate's income. Free state tax e-filing Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Free state tax e-filing This includes amounts received for work performed while in a work release program or while in a halfway house. Free state tax e-filing 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). Free state tax e-filing Pension or annuity from deferred compensation plans. Free state tax e-filing 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. Free state tax e-filing 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). Free state tax e-filing This amount may be reported in box 11 of your Form W-2. Free state tax e-filing If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or an annuity. Free state tax e-filing Clergy. Free state tax e-filing   If you are a member of the clergy who files Schedule SE and the amount on line 2 of that schedule includes an amount that was also re
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Office of Attorney General

Website: Office of Attorney General

Address: Office of Attorney General
Consumer Protection Division
PO Drawer 1508
Santa Fe, NM 87504-1508

Phone Number: 505-827-6009 (Santa Fe) 505-222-9100 (Albuquerque) 575-526-2280(Las Cruces) (Albuquerque)

Toll-free: 1-800-678-1508

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Regulation and Licensing Department

Website: Regulation and Licensing Department

Address: Regulation and Licensing Department
Financial Institutions Division
2550 Cerrillos Rd., 3rd Floor
Santa Fe, NM 87505

Phone Number: 505-476-4885

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Public Regulation Commission

Website: Public Regulation Commission

Address: Public Regulation Commission
Insurance Division
PO Box 1269
1120 Paseo de Peralta
Santa Fe, NM 87504

Toll-free: 1-888-427-5772 (NM)

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Regulation and Licensing Department

Website: Regulation and Licensing Department

Address: Regulation and Licensing Department
Securities Division
2550 Cerrillos Rd., 3rd Floor
Santa Fe, NM 87505

Phone Number: 505-476-4580

Toll-free: 1-800-704-5533 (NM)

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Regulation Commission

Website: Public Regulation Commission

Address: Public Regulation Commission
Consumer Relations Division
1120 Paseo de Peralta
PO Box 1269
Santa Fe, NM 87501

Phone Number: 505-827-4592

Toll-free: 1-888-427-5772

TTY: 505-827-6911

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The Free State Tax E-filing

Free state tax e-filing IRAs and Other Retirement Plans Table of Contents 2002 ChangesSimplified Employee Pensions (SEPs) 403(b) Plans Later ChangeDeemed IRAs 2002 Changes Simplified Employee Pensions (SEPs) Contribution limit increased. Free state tax e-filing   For plan years beginning after December 31, 2001, the annual limit on the amount of employer contributions to a SEP increases to the lesser of the following amounts. Free state tax e-filing 25% of an eligible employee's compensation. Free state tax e-filing $40,000 (subject to cost-of-living adjustments after 2002). Free state tax e-filing Deduction limit. Free state tax e-filing   For years beginning after 2001, the following changes apply to the SEP deduction limit. Free state tax e-filing Elective deferrals (SARSEPs). Free state tax e-filing   Elective deferrals under a SARSEP are not subject to the deduction limit that applies to employer contributions. Free state tax e-filing Also, elective deferrals are not taken into account when figuring the amount you can deduct for employer contributions that are not elective deferrals. Free state tax e-filing Definition of compensation. Free state tax e-filing    Compensation for figuring the deduction for employer contributions includes elective deferrals under a SARSEP. Free state tax e-filing More information. Free state tax e-filing   For more information about SEPs, see Publication 560, Retirement Plans for Small Business. Free state tax e-filing 403(b) Plans Figuring catch-up contributions. Free state tax e-filing   When figuring allowable catch-up contributions, combine all contributions made by your employer on your behalf to the following plans. Free state tax e-filing Qualified retirement plans. Free state tax e-filing 403(b) plans. Free state tax e-filing Simplified employee pensions (SEP). Free state tax e-filing SIMPLE plans. Free state tax e-filing   The total amount of the catch-up contributions to all plans maintained by your employer cannot exceed the annual limit. Free state tax e-filing For 2002, the limit is $1,000. Free state tax e-filing Rollovers to and from 403(b) plans. Free state tax e-filing   If a distribution includes both pre-tax contributions and after-tax contributions, the portion of the distribution that is rolled over is treated as consisting first of pre-tax amounts (contributions and earnings that would be includible in income if no rollover occurred). Free state tax e-filing This means that if you roll over an amount that is at least as much as the pre-tax portion of the distribution, you do not have to include any of the distribution in income. Free state tax e-filing Years of service for church employees and ministers. Free state tax e-filing   If you are a minister or church employee, treat all of your years of service as an employee of a church or a convention or association of churches as years of service with one employer. Free state tax e-filing Prior law required church employees and ministers to figure years of service separately for each employer. Free state tax e-filing   As a minister or church employee, all contributions made to 403(b) plans on your behalf, as an employee of a church or a convention or association of churches, are considered made by one employer. Free state tax e-filing Foreign missionaries. Free state tax e-filing   If you are a foreign missionary, contributions to your 403(b) account will not be treated as exceeding the limit on annual additions if the contributions are not more than the greater of: $3,000, or Your includible compensation. Free state tax e-filing More information. Free state tax e-filing   For more information about 403(b) plans, see Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). Free state tax e-filing Later Change Deemed IRAs For plan years beginning after 2002, a qualified employer plan can provide for voluntary employee contributions to a separate account or annuity that is deemed to be an IRA. Free state tax e-filing For this purpose, a qualified employer plan includes a deferred compensation plan (section 457(b) plan) maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state. Free state tax e-filing The term qualified employer plan also includes: A qualified pension, profit-sharing, or stock bonus plan (section 401(a) plan), A qualified employee annuity plan (section 403(a) plan), and A tax-sheltered annuity plan (section 403(b) plan). Free state tax e-filing More information about IRAs can be found in Publication 590, Individual Retirement Arrangements (IRAs). Free state tax e-filing Prev  Up  Next   Home   More Online Publications