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How To Amend A Prior Year Tax Return

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How To Amend A Prior Year Tax Return

How to amend a prior year tax return 8. How to amend a prior year tax return   Distributions and Rollovers Table of Contents DistributionsMinimum Required Distributions No Special 10-Year Tax Option Transfer of Interest in 403(b) ContractAfter-tax contributions. How to amend a prior year tax return Permissive service credit. How to amend a prior year tax return Tax-Free RolloversHardship exception to rollover rules. How to amend a prior year tax return Eligible retirement plans. How to amend a prior year tax return Nonqualifying distributions. How to amend a prior year tax return Second rollover. How to amend a prior year tax return Gift Tax Distributions Permissible distributions. How to amend a prior year tax return   Generally, a distribution cannot be made from a 403(b) account until the employee: Reaches age 59½, Has a severance from employment, Dies, Becomes disabled, In the case of elective deferrals, encounters financial hardship, or Has a qualified reservist distribution. How to amend a prior year tax return In most cases, the payments you receive or that are made available to you under your 403(b) account are taxable in full as ordinary income. How to amend a prior year tax return In general, the same tax rules apply to distributions from 403(b) plans that apply to distributions from other retirement plans. How to amend a prior year tax return These rules are explained in Publication 575. How to amend a prior year tax return Publication 575 also discusses the additional tax on early distributions from retirement plans. How to amend a prior year tax return Retired public safety officers. How to amend a prior year tax return   If you are an eligible retired public safety officer, distributions of up to $3,000, made directly from your 403(b) plan to pay accident, health, or long-term care insurance, are not included in your taxable income. How to amend a prior year tax return The premiums can be for you, your spouse, or your dependents. How to amend a prior year tax return   A public safety officer is a law enforcement officer, fire fighter, chaplain, or member of a rescue squad or ambulance crew. How to amend a prior year tax return   For additional information, see Publication 575. How to amend a prior year tax return Distribution for active reservist. How to amend a prior year tax return   The 10% penalty for early withdrawals will not apply to a qualified reservist distribution attributable to elective deferrals from a 403(b) plan. How to amend a prior year tax return A qualified reservist distribution is a distribution that is made: To an individual who is a reservist or national guardsman and who was ordered or called to active duty for a period in excess of 179 days or for an indefinite period; and During the period beginning on the date of the order or call to duty and ending at the close of the active duty period. How to amend a prior year tax return Minimum Required Distributions You must receive all, or at least a certain minimum, of your interest accruing after 1986 in the 403(b) plan by April 1 of the calendar year following the later of the calendar year in which you become age 70½, or the calendar year in which you retire. How to amend a prior year tax return Check with your employer, plan administrator, or provider to find out whether this rule also applies to pre-1987 accruals. How to amend a prior year tax return If not, a minimum amount of these accruals must begin to be distributed by the later of the end of the calendar year in which you reach age 75 or April 1 of the calendar year following retirement. How to amend a prior year tax return For each year thereafter, the minimum distribution must be made by the last day of the year. How to amend a prior year tax return If you do not receive the required minimum distribution, you are subject to a nondeductible 50% excise tax on the difference between the required minimum distribution and the amount actually distributed. How to amend a prior year tax return No Special 10-Year Tax Option A distribution from a 403(b) plan does not qualify as a lump-sum distribution. How to amend a prior year tax return This means you cannot use the special 10-year tax option to calculate the taxable portion of a 403(b) distribution. How to amend a prior year tax return For more information, see Publication 575. How to amend a prior year tax return Transfer of Interest in 403(b) Contract Contract exchanges. How to amend a prior year tax return   If you transfer all or part of your interest from a 403(b) contract to another 403(b) contract (held in the same plan), the transfer is tax free, and is referred to as a contract exchange. How to amend a prior year tax return This was previously known as a 90-24 transfer. How to amend a prior year tax return A contract exchange is similar to a 90-24 transfer with one major difference. How to amend a prior year tax return Previously, you were able to accomplish the transfer without your employer’s involvement. How to amend a prior year tax return After September 24, 2007, all such transfers are accomplished through a contract exchange requiring your employer’s involvement. How to amend a prior year tax return In addition, the plan must provide for the exchange and the transferred interest must be subject to the same or stricter distribution restrictions. How to amend a prior year tax return Finally, your accumulated benefit after the exchange must be equal to what it was before the exchange. How to amend a prior year tax return   Transfers that do not satisfy this rule are plan distributions and are generally taxable as ordinary income. How to amend a prior year tax return Plan-to-plan transfers. How to amend a prior year tax return   You may also transfer part or all of your interest from a 403(b) plan to another 403(b) plan if you are an employee of (or were formerly employed by) the employer of the plan to which you would like to transfer. How to amend a prior year tax return Both the initial plan and the receiving plan must provide for transfers. How to amend a prior year tax return Your accumulated benefit after the transfer must be at least equal to what it was before the transfer. How to amend a prior year tax return The new plan’s restrictions on distributions must be the same or stricter than those of the original plan. How to amend a prior year tax return Tax-free transfers for certain cash distributions. How to amend a prior year tax return   A tax-free transfer may also apply to a cash distribution of your 403(b) account from an insurance company that is subject to a rehabilitation, conservatorship, insolvency, or similar state proceeding. How to amend a prior year tax return To receive tax-free treatment, you must do all of the following: Withdraw all the cash to which you are entitled in full settlement of your contract rights or, if less, the maximum permitted by the state. How to amend a prior year tax return Reinvest the cash distribution in a single policy or contract issued by another insurance company or in a single custodial account subject to the same or stricter distribution restrictions as the original contract not later than 60 days after you receive the cash distribution. How to amend a prior year tax return Assign all future distribution rights to the new contract or account for investment in that contract or account if you received an amount that is less than what you are entitled to because of state restrictions. How to amend a prior year tax return   In addition to the preceding requirements, you must provide the new insurer with a written statement containing all of the following information: The gross amount of cash distributed under the old contract. How to amend a prior year tax return The amount of cash reinvested in the new contract. How to amend a prior year tax return Your investment in the old contract on the date you receive your first cash distribution. How to amend a prior year tax return   Also, you must attach the following items to your timely filed income tax return in the year you receive the first distribution of cash. How to amend a prior year tax return A copy of the statement you gave the new insurer. How to amend a prior year tax return A statement that includes: The words ELECTION UNDER REV. How to amend a prior year tax return PROC. How to amend a prior year tax return 92-44, The name of the company that issued the new contract, and The new policy number. How to amend a prior year tax return Direct trustee-to-trustee transfer. How to amend a prior year tax return   If you make a direct trustee-to-trustee transfer, from your governmental 403(b) account to a defined benefit governmental plan, it may not be includible in gross income. How to amend a prior year tax return   The transfer amount is not includible in gross income if it is made to: Purchase permissive service credits, or Repay contributions and earnings that were previously refunded under a forfeiture of service credit under the plan, or under another plan maintained by a state or local government employer within the same state. How to amend a prior year tax return After-tax contributions. How to amend a prior year tax return   For distributions beginning after December 31, 2006, after-tax contributions can be rolled over between a 403(b) plan and a defined benefit plan, IRA, or a defined contribution plan. How to amend a prior year tax return If the rollover is to or from a 403(b) plan, it must occur through a direct trustee-to-trustee transfer. How to amend a prior year tax return Permissive service credit. How to amend a prior year tax return   A permissive service credit is credit for a period of service recognized by a defined benefit governmental plan only if you voluntarily contribute to the plan an amount that does not exceed the amount necessary to fund the benefit attributable to the period of service and the amount contributed is in addition to the regular employee contribution, if any, under the plan. How to amend a prior year tax return   A permissive service credit may also include service credit for up to 5 years where there is no performance of service, or service credited to provide an increased benefit for service credit which a participant is receiving under the plan. How to amend a prior year tax return   Check with your plan administrator as to the type and extent of service that may be purchased by this transfer. How to amend a prior year tax return Tax-Free Rollovers You can generally roll over tax free all or any part of a distribution from a 403(b) plan to a traditional IRA or a non-Roth eligible retirement plan, except for any nonqualifying distributions, described later. How to amend a prior year tax return You may also roll over any part of a distribution from a 403(b) plan by converting it through a direct rollover, described below, to a Roth IRA. How to amend a prior year tax return Conversion amounts are generally includible in your taxable income in the year of the distribution from your 403(b) account. How to amend a prior year tax return See Publication 590 for more information about conversion into a Roth IRA. How to amend a prior year tax return Note. How to amend a prior year tax return A participant is required to roll over distribution amounts received within 60 days in order for the amount to be treated as nontaxable. How to amend a prior year tax return Distribution amounts that are rolled over within the 60 days are not subject to the 10% early distribution penalty. How to amend a prior year tax return Rollovers to and from 403(b) plans. How to amend a prior year tax return   You can generally roll over tax free all or any part of a distribution from an eligible retirement plan to a 403(b) plan. How to amend a prior year tax return Beginning January 1, 2008, distributions from tax-qualified retirement plans and tax-sheltered annuities can be converted by making a direct rollover into a Roth IRA subject to the restrictions that currently apply to rollovers from a traditional IRA into a Roth IRA. How to amend a prior year tax return Converted amounts are generally includible in your taxable income in the year of the distribution from your 403(b) account. How to amend a prior year tax return See Publication 590 for more information on conversion into a Roth IRA. How to amend a prior year tax return   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). How to amend a prior year tax return 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. How to amend a prior year tax return   For more information on rollovers and eligible retirement plans, see Publication 575. How to amend a prior year tax return If you roll over money or other property from a 403(b) plan to an eligible retirement plan, see Publication 575 for information about possible effects on later distributions from the eligible retirement plan. How to amend a prior year tax return Hardship exception to rollover rules. How to amend a prior year tax return   The IRS may waive the 60-day rollover period if the failure to waive such requirement would be against equity or good conscience, including cases of casualty, disaster, or other events beyond the reasonable control of an individual. How to amend a prior year tax return   To obtain a hardship exception, you must apply to the IRS for a waiver of the 60-day rollover requirement. How to amend a prior year tax return You apply for the waiver by following the general instructions used in requesting a letter ruling. How to amend a prior year tax return These instructions are stated in Revenue Procedure 2013-4, 2013-1 I. How to amend a prior year tax return R. How to amend a prior year tax return B. How to amend a prior year tax return 126 available at www. How to amend a prior year tax return irs. How to amend a prior year tax return gov/irb/2013-01_IRB/ar09. How to amend a prior year tax return html, or see the latest annual update. How to amend a prior year tax return You must also pay a user fee with the application. How to amend a prior year tax return The user fee for a rollover that is less than $50,000 is $500. How to amend a prior year tax return For rollovers that are $50,000 or more, see Revenue Procedure 2013-8, 2013-1 I. How to amend a prior year tax return R. How to amend a prior year tax return B. How to amend a prior year tax return 237 available at www. How to amend a prior year tax return irs. How to amend a prior year tax return gov/irb/2013-01_IRB/ar13. How to amend a prior year tax return html, or see the latest annual update. How to amend a prior year tax return   In determining whether to grant a waiver, the IRS will consider all relevant facts and circumstances, including: Whether errors were made by the financial institution; Whether you were unable to complete the rollover due to death, disability, hospitalization, incarceration, restrictions imposed by a foreign country, or postal error; Whether you used the amount distributed (for example, in the case of payment by check, whether you cashed the check); and How much time has passed since the date of distribution. How to amend a prior year tax return   For additional information on rollovers, see Publication 590. How to amend a prior year tax return Eligible retirement plans. How to amend a prior year tax return   The following are considered eligible retirement plans. How to amend a prior year tax return Individual retirement arrangements. How to amend a prior year tax return Roth IRA. How to amend a prior year tax return 403(b) plans. How to amend a prior year tax return Government eligible 457 plans. How to amend a prior year tax return Qualified retirement plans. How to amend a prior year tax return  If the distribution is from a designated Roth account, then the only eligible retirement plan is another designated Roth account or a Roth IRA. How to amend a prior year tax return Nonqualifying distributions. How to amend a prior year tax return   You cannot roll over tax free: Minimum required distributions (generally required to begin at age 70½), Substantially equal payments over your life or life expectancy, Substantially equal payments over the joint lives or life expectancies of your beneficiary and you, Substantially equal payments for a period of 10 years or more, Hardship distributions, or Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or excess annual additions and any allocable gains. How to amend a prior year tax return Rollover of nontaxable amounts. How to amend a prior year tax return    You may be able to roll over the nontaxable part of a distribution (such as your after-tax contributions) made to another eligible retirement plan, traditional IRA, or Roth IRA. How to amend a prior year tax return The transfer must be made either through a direct rollover to an eligible plan that separately accounts for the taxable and nontaxable parts of the rollover or through a rollover to a traditional IRA or Roth IRA. How to amend a prior year tax return   If you roll over only part of a distribution that includes both taxable and nontaxable amounts, the amount you roll over is treated as coming first from the taxable part of the distribution. How to amend a prior year tax return Direct rollovers of 403(b) plan distributions. How to amend a prior year tax return   You have the option of having your 403(b) plan make the rollover directly to a traditional IRA, Roth IRA, or new plan. How to amend a prior year tax return Before you receive a distribution, your plan will give you information on this. How to amend a prior year tax return It is generally to your advantage to choose this option because your plan will not withhold tax on the distribution if you choose it. How to amend a prior year tax return Distribution received by you. How to amend a prior year tax return   If you receive a distribution that qualifies to be rolled over, you can roll over all or any part of the distribution. How to amend a prior year tax return Generally, you will receive only 80% of the distribution because 20% must be withheld. How to amend a prior year tax return If you roll over only the 80% you receive, you must pay tax on the 20% you did not roll over. How to amend a prior year tax return You can replace the 20% that was withheld with other money within the 60-day period to make a 100% rollover. How to amend a prior year tax return Voluntary deductible contributions. How to amend a prior year tax return   For tax years 1982 through 1986, employees could make deductible contributions to a 403(b) plan under the individual retirement arrangement (IRA) rules instead of deducting contributions to a traditional IRA. How to amend a prior year tax return   If you made voluntary deductible contributions to a 403(b) plan under these traditional IRA rules, the distribution of all or part of the accumulated deductible contributions may be rolled over if it otherwise qualifies as a distribution you can roll over. How to amend a prior year tax return Accumulated deductible contributions are the deductible contributions: Plus Income allocable to the contributions, Gain allocable to the contributions, and Minus Expenses and losses allocable to the contributions, and Distributions from the contributions, income, or gain. How to amend a prior year tax return Excess employer contributions. How to amend a prior year tax return   The portion of a distribution from a 403(b) plan transferred to a traditional IRA that was previously included in income as excess employer contributions (discussed earlier) is not an eligible rollover distribution. How to amend a prior year tax return   Its transfer does not affect the rollover treatment of the eligible portion of the transferred amounts. How to amend a prior year tax return However, the ineligible portion is subject to the traditional IRA contribution limits and may create an excess IRA contribution subject to a 6% excise tax (see chapter 1 of Publication 590). How to amend a prior year tax return Qualified domestic relations order. How to amend a prior year tax return   You may be able to roll over tax free all or any part of an eligible rollover distribution from a 403(b) plan that you receive under a qualified domestic relations order (QDRO). How to amend a prior year tax return If you receive the interest in the 403(b) plan as an employee's spouse or former spouse under a QDRO, all of the rollover rules apply to you as if you were the employee. How to amend a prior year tax return You can roll over your interest in the plan to a traditional IRA or another 403(b) plan. How to amend a prior year tax return For more information on the treatment of an interest received under a QDRO, see Publication 575. How to amend a prior year tax return Spouses of deceased employees. How to amend a prior year tax return   If you are the spouse of a deceased employee, you can roll over the qualifying distribution attributable to the employee. How to amend a prior year tax return You can make the rollover to any eligible retirement plan. How to amend a prior year tax return   After you roll money and other property over from a 403(b) plan to an eligible retirement plan, and you take a distribution from that plan, you will not be eligible to receive the capital gain treatment or the special averaging treatment for the distribution. How to amend a prior year tax return Second rollover. How to amend a prior year tax return   If you roll over a qualifying distribution to a traditional IRA, you can, if certain conditions are satisfied, later roll the distribution into another 403(b) plan. How to amend a prior year tax return For more information, see IRA as a holding account (conduit IRA) for rollovers to other eligible plans in chapter 1 of Publication 590. How to amend a prior year tax return Nonspouse beneficiary. How to amend a prior year tax return   A nonspouse beneficiary may make a direct rollover of a distribution from a 403(b) plan of a deceased participant if the rollover is a direct transfer to an inherited IRA established to receive the distribution. How to amend a prior year tax return If the rollover is a direct trustee-to-trustee transfer to an IRA established to receive the distribution: The transfer will be treated as an eligible rollover distribution. How to amend a prior year tax return The IRA will be considered an inherited account. How to amend a prior year tax return The required minimum distribution rules that apply in instances where the participant dies before the entire interest is distributed will apply to the transferred IRA. How to amend a prior year tax return    For more information on IRAs, see Publication 590. How to amend a prior year tax return Frozen deposits. How to amend a prior year tax return   The 60-day period usually allowed for completing a rollover is extended for any time that the amount distributed is a frozen deposit in a financial institution. How to amend a prior year tax return The 60-day period cannot end earlier than 10 days after the deposit ceases to be a frozen deposit. How to amend a prior year tax return   A frozen deposit is any deposit that on any day during the 60-day period cannot be withdrawn because: The financial institution is bankrupt or insolvent, or The state where the institution is located has placed limits on withdrawals because one or more banks in the state are (or are about to be) bankrupt or insolvent. How to amend a prior year tax return Gift Tax If, by choosing or not choosing an election, or option, you provide an annuity for your beneficiary at or after your death, you may have made a taxable gift equal to the value of the annuity. How to amend a prior year tax return Joint and survivor annuity. How to amend a prior year tax return   If the gift is an interest in a joint and survivor annuity where only you and your spouse have the right to receive payments, the gift will generally be treated as qualifying for the unlimited marital deduction. How to amend a prior year tax return More information. How to amend a prior year tax return   For information on the gift tax, see Publication 559, Survivors, Executors, and Administrators. How to amend a prior year tax return Prev  Up  Next   Home   More Online Publications
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The How To Amend A Prior Year Tax Return

How to amend a prior year tax return 5. How to amend a prior year tax return   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. How to amend a prior year tax return You may be able to reduce your federal income tax by claiming one or more of these credits. How to amend a prior year tax return Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. How to amend a prior year tax return For more information, see Publication 524, Credit for the Elderly or the Disabled. How to amend a prior year tax return You can take the credit only if you file Form 1040 or Form 1040A. How to amend a prior year tax return You cannot take the credit if you file Form 1040EZ or Form 1040NR. How to amend a prior year tax return Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. How to amend a prior year tax return You are a qualified individual. How to amend a prior year tax return Your income is not more than certain limits. How to amend a prior year tax return  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. How to amend a prior year tax return   Qualified Individual You are a qualified individual for this credit if you are a U. How to amend a prior year tax return S. How to amend a prior year tax return citizen or resident alien, and either of the following applies. How to amend a prior year tax return You were age 65 or older at the end of 2013. How to amend a prior year tax return You were under age 65 at the end of 2013 and all three of the following statements are true. How to amend a prior year tax return You retired on permanent and total disability (explained later). How to amend a prior year tax return You received taxable disability income for 2013. How to amend a prior year tax return On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). How to amend a prior year tax return Age 65. How to amend a prior year tax return You are considered to be age 65 on the day before your 65th birthday. How to amend a prior year tax return Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. How to amend a prior year tax return Figure 5-A. How to amend a prior year tax return Are You a Qualified Individual? This image is too large to be displayed in the current screen. How to amend a prior year tax return Please click the link to view the image. How to amend a prior year tax return Figure 5-A, Are you a qualified individual? U. How to amend a prior year tax return S. How to amend a prior year tax return citizen or resident alien. How to amend a prior year tax return   You must be a U. How to amend a prior year tax return S. How to amend a prior year tax return citizen or resident alien (or be treated as a resident alien) to take the credit. How to amend a prior year tax return Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. How to amend a prior year tax return Exceptions. How to amend a prior year tax return   You may be able to take the credit if you are a nonresident alien who is married to a U. How to amend a prior year tax return S. How to amend a prior year tax return citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. How to amend a prior year tax return S. How to amend a prior year tax return resident alien. How to amend a prior year tax return If you make that choice, both you and your spouse are taxed on your worldwide income. How to amend a prior year tax return   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. How to amend a prior year tax return S. How to amend a prior year tax return citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. How to amend a prior year tax return S. How to amend a prior year tax return resident alien for the entire year. How to amend a prior year tax return In that case, you may be allowed to take the credit. How to amend a prior year tax return   For information on these choices, see chapter 1 of Publication 519, U. How to amend a prior year tax return S. How to amend a prior year tax return Tax Guide for Aliens. How to amend a prior year tax return Married persons. How to amend a prior year tax return   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. How to amend a prior year tax return However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. How to amend a prior year tax return Head of household. How to amend a prior year tax return   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. How to amend a prior year tax return See Publication 524 and Publication 501. How to amend a prior year tax return Under age 65. How to amend a prior year tax return   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). How to amend a prior year tax return You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. How to amend a prior year tax return You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. How to amend a prior year tax return   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. How to amend a prior year tax return If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. How to amend a prior year tax return Permanent and total disability. How to amend a prior year tax return   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. How to amend a prior year tax return A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. How to amend a prior year tax return See Physician's statement , later. How to amend a prior year tax return Substantial gainful activity. How to amend a prior year tax return   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. How to amend a prior year tax return   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. How to amend a prior year tax return   Substantial gainful activity is not work you do to take care of yourself or your home. How to amend a prior year tax return It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. How to amend a prior year tax return However, doing this kind of work may show that you are able to engage in substantial gainful activity. How to amend a prior year tax return    Figure 5-B. How to amend a prior year tax return Income Limits IF your filing status is. How to amend a prior year tax return . How to amend a prior year tax return . How to amend a prior year tax return THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. How to amend a prior year tax return . How to amend a prior year tax return . How to amend a prior year tax return OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. How to amend a prior year tax return . How to amend a prior year tax return . How to amend a prior year tax return single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. How to amend a prior year tax return Physician's statement. How to amend a prior year tax return   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. How to amend a prior year tax return   You do not have to file this statement with your tax return, but you must keep it for your records. How to amend a prior year tax return The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. How to amend a prior year tax return Veterans. How to amend a prior year tax return   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. How to amend a prior year tax return VA Form 21-0172 must be signed by a person authorized by the VA to do so. How to amend a prior year tax return You can get this form from your local VA regional office. How to amend a prior year tax return Physician's statement obtained in earlier year. How to amend a prior year tax return   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. How to amend a prior year tax return For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. How to amend a prior year tax return If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. How to amend a prior year tax return   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. How to amend a prior year tax return Disability income. How to amend a prior year tax return   If you are under age 65, you must also have taxable disability income to qualify for the credit. How to amend a prior year tax return   Disability income must meet the following two requirements. How to amend a prior year tax return It must be paid under your employer's accident or health plan or pension plan. How to amend a prior year tax return It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. How to amend a prior year tax return Payments that are not disability income. How to amend a prior year tax return   Any payment you receive from a plan that does not provide for disability retirement is not disability income. How to amend a prior year tax return Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. How to amend a prior year tax return   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. How to amend a prior year tax return Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. How to amend a prior year tax return Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. How to amend a prior year tax return Figuring the credit yourself. How to amend a prior year tax return   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). How to amend a prior year tax return Next, fill out Schedule R (Form 1040A or 1040), Part III. How to amend a prior year tax return Credit figured for you. How to amend a prior year tax return   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). How to amend a prior year tax return If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. How to amend a prior year tax return Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. How to amend a prior year tax return The credit can be up to 35% of your expenses. How to amend a prior year tax return To qualify, you must pay these expenses so you can work or look for work. How to amend a prior year tax return If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. How to amend a prior year tax return If the correct information is not shown, the credit may be reduced or disallowed. How to amend a prior year tax return You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. How to amend a prior year tax return For more information, see Publication 503, Child and Dependent Care Expenses. How to amend a prior year tax return Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. How to amend a prior year tax return The EIC is available to persons with or without a qualifying child. How to amend a prior year tax return Credit has no effect on certain welfare benefits. How to amend a prior year tax return   Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. How to amend a prior year tax return These programs include the following. How to amend a prior year tax return Medicaid and supplemental security income (SSI). How to amend a prior year tax return Supplemental Nutrition Assistance Program (food stamps). How to amend a prior year tax return Low-income housing. How to amend a prior year tax return Temporary Assistance for Needy Families (TANF). How to amend a prior year tax return  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. How to amend a prior year tax return Check with your local benefit coordinator to find out if your refund will affect your benefits. How to amend a prior year tax return Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. How to amend a prior year tax return The specific rules you must meet depend on whether you have a qualifying child. How to amend a prior year tax return If you have a qualifying child, the rules in Parts A, B, and D apply to you. How to amend a prior year tax return If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. How to amend a prior year tax return  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. How to amend a prior year tax return You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). How to amend a prior year tax return The sections that follow provide additional information for some of the rules. How to amend a prior year tax return Adjusted gross income (AGI). How to amend a prior year tax return   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. How to amend a prior year tax return Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). How to amend a prior year tax return Table 5-1. How to amend a prior year tax return Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. How to amend a prior year tax return Second, you must meet all the rules in one of these columns, whichever applies. How to amend a prior year tax return Third, you must meet the rule in this column. How to amend a prior year tax return Part A. How to amend a prior year tax return  Rules for Everyone Part B. How to amend a prior year tax return  Rules If You Have a Qualifying Child Part C. How to amend a prior year tax return  Rules If You Do Not Have a Qualifying Child Part D. How to amend a prior year tax return  Figuring and Claiming the EIC 1. How to amend a prior year tax return 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. How to amend a prior year tax return 2. How to amend a prior year tax return You must have a valid social security number. How to amend a prior year tax return  3. How to amend a prior year tax return Your filing status cannot be “Married filing separately. How to amend a prior year tax return ” 4. How to amend a prior year tax return You must be a U. How to amend a prior year tax return S. How to amend a prior year tax return citizen or resident alien all year. How to amend a prior year tax return  5. How to amend a prior year tax return You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). How to amend a prior year tax return  6. How to amend a prior year tax return Your investment income must be $3,300 or less. How to amend a prior year tax return  7. How to amend a prior year tax return You must have earned income. How to amend a prior year tax return 8. How to amend a prior year tax return Your child must meet the relationship, age, residency, and joint return tests. How to amend a prior year tax return  9. How to amend a prior year tax return Your qualifying child cannot be used by more than one person to claim the EIC. How to amend a prior year tax return  10. How to amend a prior year tax return You generally cannot be a qualifying child of another person. How to amend a prior year tax return 11. How to amend a prior year tax return You must be at least age 25 but under age 65. How to amend a prior year tax return  12. How to amend a prior year tax return You cannot be the dependent of another person. How to amend a prior year tax return  13. How to amend a prior year tax return You generally cannot be a qualifying child of another person. How to amend a prior year tax return  14. How to amend a prior year tax return You must have lived in the United States more than half of the year. How to amend a prior year tax return 15. How to amend a prior year tax return 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. How to amend a prior year tax return Social security number. How to amend a prior year tax return   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). How to amend a prior year tax return Any qualifying child listed on Schedule EIC also must have a valid SSN. How to amend a prior year tax return (See Qualifying child , later, if you have a qualifying child. How to amend a prior year tax return )   If your social security card (or your spouse's if you are married filing jointly) 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. How to amend a prior year tax return An example of a federally funded benefit is Medicaid. How to amend a prior year tax return Investment income. How to amend a prior year tax return   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. How to amend a prior year tax return If your investment income is more than $3,300, you cannot claim the credit. How to amend a prior year tax return For most people, investment income is the total of the following amounts. How to amend a prior year tax return Taxable interest (line 8a of Form 1040 or 1040A). How to amend a prior year tax return Tax-exempt interest (line 8b of Form 1040 or 1040A). How to amend a prior year tax return Dividend income (line 9a of Form 1040 or 1040A). How to amend a prior year tax return Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). How to amend a prior year tax return  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. How to amend a prior year tax return   For more information about investment income, see Publication 596, Earned Income Credit. How to amend a prior year tax return Earned income. How to amend a prior year tax return   Under Rule 7, you must have earned income to claim the EIC. How to amend a prior year tax return Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. How to amend a prior year tax return Earned income includes all of the following types of income. How to amend a prior year tax return Wages, salaries, tips, and other taxable employee pay. How to amend a prior year tax return Employee pay is earned income only if it is taxable. How to amend a prior year tax return Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. How to amend a prior year tax return But there is an exception for nontaxable combat pay, which you can choose to include in earned income. How to amend a prior year tax return Net earnings from self-employment. How to amend a prior year tax return Gross income received as a statutory employee. How to amend a prior year tax return Gross income defined. How to amend a prior year tax return   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). How to amend a prior year tax return Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). How to amend a prior year tax return If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. How to amend a prior year tax return Self-employed persons. How to amend a prior year tax return   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. How to amend a prior year tax return If you do not, you may not get all the credit to which you are entitled. How to amend a prior year tax return Disability benefits. How to amend a prior year tax return   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. How to amend a prior year tax return Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. How to amend a prior year tax return Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. How to amend a prior year tax return   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. How to amend a prior year tax return It does not matter whether you have reached minimum retirement age. How to amend a prior year tax return If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. How to amend a prior year tax return Income that is not earned income. How to amend a prior year tax return   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. How to amend a prior year tax return Do not include any of these items in your earned income. How to amend a prior year tax return Workfare payments. How to amend a prior year tax return   Nontaxable workfare payments are not earned income for the EIC. How to amend a prior year tax return 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. How to amend a prior year tax return Qualifying child. How to amend a prior year tax return   Under Rule 8, your child is a qualifying child if your child meets four tests. How to amend a prior year tax return The four tests are: Relationship, Age, Residency, and Joint return. How to amend a prior year tax return   The four tests are illustrated in Figure 5-C. How to amend a prior year tax return See Publication 596 for more information about each test. How to amend a prior year tax return Figure 5-C. How to amend a prior year tax return Tests for Qualifying Child A qualifying child for the EIC is a child who is your. How to amend a prior year tax return . How to amend a prior year tax return . How to amend a prior year tax return 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) was . How to amend a prior year tax return . How to amend a prior year tax return . How to amend a prior year tax return Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR 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 the year, regardless of age who. How to amend a prior year tax return . How to amend a prior year tax return . How to amend a prior year tax return Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. How to amend a prior year tax return . How to amend a prior year tax return . How to amend a prior year tax return Lived with you in the United States for more than half of 2013. How to amend a prior year tax return  If the child did not live with you for the required time, see Publication 596 for more information. How to amend a prior year tax return Figuring the EIC To figure the amount of your credit, you have two choices. How to amend a prior year tax return Have the IRS figure the EIC for you. How to amend a prior year tax return If you want to do this, see IRS Will Figure the EIC for You in Publication 596. How to amend a prior year tax return Figure the EIC yourself. How to amend a prior year tax return If you want to do this, see How To Figure the EIC Yourself in Publication 596. 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