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Https www freefilefillableforms com ffa freefileforms htm 5. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm You may be able to reduce your federal income tax by claiming one or more of these credits. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm For more information, see Publication 524, Credit for the Elderly or the Disabled. Https www freefilefillableforms com ffa freefileforms htm You can take the credit only if you file Form 1040 or Form 1040A. Https www freefilefillableforms com ffa freefileforms htm You cannot take the credit if you file Form 1040EZ or Form 1040NR. Https www freefilefillableforms com ffa freefileforms htm Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Https www freefilefillableforms com ffa freefileforms htm You are a qualified individual. Https www freefilefillableforms com ffa freefileforms htm Your income is not more than certain limits. Https www freefilefillableforms com ffa freefileforms htm  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. Https www freefilefillableforms com ffa freefileforms htm   Qualified Individual You are a qualified individual for this credit if you are a U. Https www freefilefillableforms com ffa freefileforms htm S. Https www freefilefillableforms com ffa freefileforms htm citizen or resident alien, and either of the following applies. Https www freefilefillableforms com ffa freefileforms htm You were age 65 or older at the end of 2013. Https www freefilefillableforms com ffa freefileforms htm You were under age 65 at the end of 2013 and all three of the following statements are true. Https www freefilefillableforms com ffa freefileforms htm You retired on permanent and total disability (explained later). Https www freefilefillableforms com ffa freefileforms htm You received taxable disability income for 2013. Https www freefilefillableforms com ffa freefileforms htm On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Https www freefilefillableforms com ffa freefileforms htm Age 65. Https www freefilefillableforms com ffa freefileforms htm You are considered to be age 65 on the day before your 65th birthday. Https www freefilefillableforms com ffa freefileforms htm Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. Https www freefilefillableforms com ffa freefileforms htm Figure 5-A. Https www freefilefillableforms com ffa freefileforms htm Are You a Qualified Individual? This image is too large to be displayed in the current screen. Https www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Https www freefilefillableforms com ffa freefileforms htm Figure 5-A, Are you a qualified individual? U. Https www freefilefillableforms com ffa freefileforms htm S. Https www freefilefillableforms com ffa freefileforms htm citizen or resident alien. Https www freefilefillableforms com ffa freefileforms htm   You must be a U. Https www freefilefillableforms com ffa freefileforms htm S. Https www freefilefillableforms com ffa freefileforms htm citizen or resident alien (or be treated as a resident alien) to take the credit. Https www freefilefillableforms com ffa freefileforms htm Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Https www freefilefillableforms com ffa freefileforms htm Exceptions. Https www freefilefillableforms com ffa freefileforms htm   You may be able to take the credit if you are a nonresident alien who is married to a U. Https www freefilefillableforms com ffa freefileforms htm S. Https www freefilefillableforms com ffa freefileforms htm citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Https www freefilefillableforms com ffa freefileforms htm S. Https www freefilefillableforms com ffa freefileforms htm resident alien. Https www freefilefillableforms com ffa freefileforms htm If you make that choice, both you and your spouse are taxed on your worldwide income. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm S. Https www freefilefillableforms com ffa freefileforms htm citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Https www freefilefillableforms com ffa freefileforms htm S. Https www freefilefillableforms com ffa freefileforms htm resident alien for the entire year. Https www freefilefillableforms com ffa freefileforms htm In that case, you may be allowed to take the credit. Https www freefilefillableforms com ffa freefileforms htm   For information on these choices, see chapter 1 of Publication 519, U. Https www freefilefillableforms com ffa freefileforms htm S. Https www freefilefillableforms com ffa freefileforms htm Tax Guide for Aliens. Https www freefilefillableforms com ffa freefileforms htm Married persons. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm Head of household. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm See Publication 524 and Publication 501. Https www freefilefillableforms com ffa freefileforms htm Under age 65. Https www freefilefillableforms com ffa freefileforms htm   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 ). Https www freefilefillableforms com ffa freefileforms htm You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm Permanent and total disability. Https www freefilefillableforms com ffa freefileforms htm   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm See Physician's statement , later. Https www freefilefillableforms com ffa freefileforms htm Substantial gainful activity. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm   Substantial gainful activity is not work you do to take care of yourself or your home. Https www freefilefillableforms com ffa freefileforms htm It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Https www freefilefillableforms com ffa freefileforms htm However, doing this kind of work may show that you are able to engage in substantial gainful activity. Https www freefilefillableforms com ffa freefileforms htm    Figure 5-B. Https www freefilefillableforms com ffa freefileforms htm Income Limits IF your filing status is. Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm Physician's statement. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm   You do not have to file this statement with your tax return, but you must keep it for your records. Https www freefilefillableforms com ffa freefileforms htm The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. Https www freefilefillableforms com ffa freefileforms htm Veterans. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm VA Form 21-0172 must be signed by a person authorized by the VA to do so. Https www freefilefillableforms com ffa freefileforms htm You can get this form from your local VA regional office. Https www freefilefillableforms com ffa freefileforms htm Physician's statement obtained in earlier year. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. Https www freefilefillableforms com ffa freefileforms htm If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm Disability income. Https www freefilefillableforms com ffa freefileforms htm   If you are under age 65, you must also have taxable disability income to qualify for the credit. Https www freefilefillableforms com ffa freefileforms htm   Disability income must meet the following two requirements. Https www freefilefillableforms com ffa freefileforms htm It must be paid under your employer's accident or health plan or pension plan. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm Payments that are not disability income. Https www freefilefillableforms com ffa freefileforms htm   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. Https www freefilefillableforms com ffa freefileforms htm Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. Https www freefilefillableforms com ffa freefileforms htm Figuring the credit yourself. Https www freefilefillableforms com ffa freefileforms htm   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). Https www freefilefillableforms com ffa freefileforms htm Next, fill out Schedule R (Form 1040A or 1040), Part III. Https www freefilefillableforms com ffa freefileforms htm Credit figured for you. Https www freefilefillableforms com ffa freefileforms htm   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). Https www freefilefillableforms com ffa freefileforms htm If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm The credit can be up to 35% of your expenses. Https www freefilefillableforms com ffa freefileforms htm To qualify, you must pay these expenses so you can work or look for work. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm If the correct information is not shown, the credit may be reduced or disallowed. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm For more information, see Publication 503, Child and Dependent Care Expenses. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm The EIC is available to persons with or without a qualifying child. Https www freefilefillableforms com ffa freefileforms htm Credit has no effect on certain welfare benefits. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm These programs include the following. Https www freefilefillableforms com ffa freefileforms htm Medicaid and supplemental security income (SSI). Https www freefilefillableforms com ffa freefileforms htm Supplemental Nutrition Assistance Program (food stamps). Https www freefilefillableforms com ffa freefileforms htm Low-income housing. Https www freefilefillableforms com ffa freefileforms htm Temporary Assistance for Needy Families (TANF). Https www freefilefillableforms com ffa freefileforms htm  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Https www freefilefillableforms com ffa freefileforms htm Check with your local benefit coordinator to find out if your refund will affect your benefits. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm The specific rules you must meet depend on whether you have a qualifying child. Https www freefilefillableforms com ffa freefileforms htm If you have a qualifying child, the rules in Parts A, B, and D apply to you. Https www freefilefillableforms com ffa freefileforms htm If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Https www freefilefillableforms com ffa freefileforms htm  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. Https www freefilefillableforms com ffa freefileforms htm 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). Https www freefilefillableforms com ffa freefileforms htm The sections that follow provide additional information for some of the rules. Https www freefilefillableforms com ffa freefileforms htm Adjusted gross income (AGI). Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). Https www freefilefillableforms com ffa freefileforms htm Table 5-1. Https www freefilefillableforms com ffa freefileforms htm Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. Https www freefilefillableforms com ffa freefileforms htm Second, you must meet all the rules in one of these columns, whichever applies. Https www freefilefillableforms com ffa freefileforms htm Third, you must meet the rule in this column. Https www freefilefillableforms com ffa freefileforms htm Part A. Https www freefilefillableforms com ffa freefileforms htm  Rules for Everyone Part B. Https www freefilefillableforms com ffa freefileforms htm  Rules If You Have a Qualifying Child Part C. Https www freefilefillableforms com ffa freefileforms htm  Rules If You Do Not Have a Qualifying Child Part D. Https www freefilefillableforms com ffa freefileforms htm  Figuring and Claiming the EIC 1. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm 2. Https www freefilefillableforms com ffa freefileforms htm You must have a valid social security number. Https www freefilefillableforms com ffa freefileforms htm  3. Https www freefilefillableforms com ffa freefileforms htm Your filing status cannot be “Married filing separately. Https www freefilefillableforms com ffa freefileforms htm ” 4. Https www freefilefillableforms com ffa freefileforms htm You must be a U. Https www freefilefillableforms com ffa freefileforms htm S. Https www freefilefillableforms com ffa freefileforms htm citizen or resident alien all year. Https www freefilefillableforms com ffa freefileforms htm  5. Https www freefilefillableforms com ffa freefileforms htm You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Https www freefilefillableforms com ffa freefileforms htm  6. Https www freefilefillableforms com ffa freefileforms htm Your investment income must be $3,300 or less. Https www freefilefillableforms com ffa freefileforms htm  7. Https www freefilefillableforms com ffa freefileforms htm You must have earned income. Https www freefilefillableforms com ffa freefileforms htm 8. Https www freefilefillableforms com ffa freefileforms htm Your child must meet the relationship, age, residency, and joint return tests. Https www freefilefillableforms com ffa freefileforms htm  9. Https www freefilefillableforms com ffa freefileforms htm Your qualifying child cannot be used by more than one person to claim the EIC. Https www freefilefillableforms com ffa freefileforms htm  10. Https www freefilefillableforms com ffa freefileforms htm You generally cannot be a qualifying child of another person. Https www freefilefillableforms com ffa freefileforms htm 11. Https www freefilefillableforms com ffa freefileforms htm You must be at least age 25 but under age 65. Https www freefilefillableforms com ffa freefileforms htm  12. Https www freefilefillableforms com ffa freefileforms htm You cannot be the dependent of another person. Https www freefilefillableforms com ffa freefileforms htm  13. Https www freefilefillableforms com ffa freefileforms htm You generally cannot be a qualifying child of another person. Https www freefilefillableforms com ffa freefileforms htm  14. Https www freefilefillableforms com ffa freefileforms htm You must have lived in the United States more than half of the year. Https www freefilefillableforms com ffa freefileforms htm 15. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm Social security number. Https www freefilefillableforms com ffa freefileforms htm   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). Https www freefilefillableforms com ffa freefileforms htm Any qualifying child listed on Schedule EIC also must have a valid SSN. Https www freefilefillableforms com ffa freefileforms htm (See Qualifying child , later, if you have a qualifying child. Https www freefilefillableforms com ffa freefileforms htm )   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. Https www freefilefillableforms com ffa freefileforms htm An example of a federally funded benefit is Medicaid. Https www freefilefillableforms com ffa freefileforms htm Investment income. Https www freefilefillableforms com ffa freefileforms htm   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. Https www freefilefillableforms com ffa freefileforms htm If your investment income is more than $3,300, you cannot claim the credit. Https www freefilefillableforms com ffa freefileforms htm For most people, investment income is the total of the following amounts. Https www freefilefillableforms com ffa freefileforms htm Taxable interest (line 8a of Form 1040 or 1040A). Https www freefilefillableforms com ffa freefileforms htm Tax-exempt interest (line 8b of Form 1040 or 1040A). Https www freefilefillableforms com ffa freefileforms htm Dividend income (line 9a of Form 1040 or 1040A). Https www freefilefillableforms com ffa freefileforms htm Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Https www freefilefillableforms com ffa freefileforms htm  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. Https www freefilefillableforms com ffa freefileforms htm   For more information about investment income, see Publication 596, Earned Income Credit. Https www freefilefillableforms com ffa freefileforms htm Earned income. Https www freefilefillableforms com ffa freefileforms htm   Under Rule 7, you must have earned income to claim the EIC. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm Earned income includes all of the following types of income. Https www freefilefillableforms com ffa freefileforms htm Wages, salaries, tips, and other taxable employee pay. Https www freefilefillableforms com ffa freefileforms htm Employee pay is earned income only if it is taxable. Https www freefilefillableforms com ffa freefileforms htm Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Https www freefilefillableforms com ffa freefileforms htm But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Https www freefilefillableforms com ffa freefileforms htm Net earnings from self-employment. Https www freefilefillableforms com ffa freefileforms htm Gross income received as a statutory employee. Https www freefilefillableforms com ffa freefileforms htm Gross income defined. Https www freefilefillableforms com ffa freefileforms htm   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). Https www freefilefillableforms com ffa freefileforms htm 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). Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm Self-employed persons. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm If you do not, you may not get all the credit to which you are entitled. Https www freefilefillableforms com ffa freefileforms htm Disability benefits. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Https www freefilefillableforms com ffa freefileforms htm Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Https www freefilefillableforms com ffa freefileforms htm   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Https www freefilefillableforms com ffa freefileforms htm It does not matter whether you have reached minimum retirement age. Https www freefilefillableforms com ffa freefileforms htm If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. Https www freefilefillableforms com ffa freefileforms htm Income that is not earned income. Https www freefilefillableforms com ffa freefileforms htm   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. Https www freefilefillableforms com ffa freefileforms htm Do not include any of these items in your earned income. Https www freefilefillableforms com ffa freefileforms htm Workfare payments. Https www freefilefillableforms com ffa freefileforms htm   Nontaxable workfare payments are not earned income for the EIC. Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm Qualifying child. Https www freefilefillableforms com ffa freefileforms htm   Under Rule 8, your child is a qualifying child if your child meets four tests. Https www freefilefillableforms com ffa freefileforms htm The four tests are: Relationship, Age, Residency, and Joint return. Https www freefilefillableforms com ffa freefileforms htm   The four tests are illustrated in Figure 5-C. Https www freefilefillableforms com ffa freefileforms htm See Publication 596 for more information about each test. Https www freefilefillableforms com ffa freefileforms htm Figure 5-C. Https www freefilefillableforms com ffa freefileforms htm Tests for Qualifying Child A qualifying child for the EIC is a child who is your. Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm 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 . Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm 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. Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm . Https www freefilefillableforms com ffa freefileforms htm Lived with you in the United States for more than half of 2013. Https www freefilefillableforms com ffa freefileforms htm  If the child did not live with you for the required time, see Publication 596 for more information. Https www freefilefillableforms com ffa freefileforms htm Figuring the EIC To figure the amount of your credit, you have two choices. Https www freefilefillableforms com ffa freefileforms htm Have the IRS figure the EIC for you. Https www freefilefillableforms com ffa freefileforms htm If you want to do this, see IRS Will Figure the EIC for You in Publication 596. Https www freefilefillableforms com ffa freefileforms htm Figure the EIC yourself. Https www freefilefillableforms com ffa freefileforms htm If you want to do this, see How To Figure the EIC Yourself in Publication 596. Https www freefilefillableforms com ffa freefileforms htm Prev  Up  Next   Home   More Online Publications