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Turbotax 2012 coupon 9. Turbotax 2012 coupon   Tax Treaty Benefits Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Treaty Income Some Typical Tax Treaty BenefitsPersonal Services Teachers, Professors, and Researchers Employees of Foreign Governments Students, Apprentices, and Trainees Capital Gains Resident Aliens Reporting Treaty Benefits Claimed Introduction A nonresident alien (and certain resident aliens) from a country with which the United States has an income tax treaty may qualify for certain benefits. Turbotax 2012 coupon Most treaties require that the nonresident alien be a resident of the treaty country to qualify. Turbotax 2012 coupon However, some treaties require that the nonresident alien be a national or a citizen of the treaty country. Turbotax 2012 coupon See Table 9-1 for a list of tax treaty countries. Turbotax 2012 coupon You can generally arrange to have withholding tax reduced or eliminated on wages and other income that are eligible for tax treaty benefits. Turbotax 2012 coupon See Income Entitled to Tax Treaty Benefits in chapter 8. Turbotax 2012 coupon Topics - This chapter discusses: Typical tax treaty benefits, How to obtain copies of tax treaties, and How to claim tax treaty benefits on your tax return. Turbotax 2012 coupon Useful Items - You may want to see: Publication 901 U. Turbotax 2012 coupon S. Turbotax 2012 coupon Tax Treaties Form (and Instructions) 1040NR U. Turbotax 2012 coupon S. Turbotax 2012 coupon Nonresident Alien Income Tax Return 1040NR-EZ U. Turbotax 2012 coupon S. Turbotax 2012 coupon Income Tax Return for Certain Nonresident Aliens With No Dependents 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) See chapter 12 for information about getting these publications and forms. Turbotax 2012 coupon Treaty Income A nonresident alien's treaty income is the gross income on which the tax is limited by a tax treaty. Turbotax 2012 coupon Treaty income includes, for example, dividends from sources in the United States that are subject to tax at a tax treaty rate not to exceed 15%. Turbotax 2012 coupon Nontreaty income is the gross income of a nonresident alien on which the tax is not limited by a tax treaty. Turbotax 2012 coupon Figure the tax on treaty income on each separate item of income at the reduced rate that applies to that item under the treaty. Turbotax 2012 coupon To determine tax on nontreaty income, figure the tax at either the flat 30% rate or the graduated rate, depending upon whether or not the income is effectively connected with your trade or business in the United States. Turbotax 2012 coupon Your tax liability is the sum of the tax on treaty income plus the tax on nontreaty income, but cannot be more than the tax liability figured as if the tax treaty had not come into effect. Turbotax 2012 coupon Example. Turbotax 2012 coupon Arthur Banks is a nonresident alien who is single and a resident of a foreign country that has a tax treaty with the United States. Turbotax 2012 coupon He received gross income of $25,850 during the tax year from sources within the United States, consisting of the following items: Dividends on which the tax is limited to a 15% rate by the tax treaty $1,400 Compensation for personal services on which the tax is not limited by the tax treaty 24,450 Total gross income $25,850 Arthur was engaged in business in the United States during the tax year. Turbotax 2012 coupon His dividends are not effectively connected with that business. Turbotax 2012 coupon He has no deductions other than his own personal exemption. Turbotax 2012 coupon His tax liability, figured as though the tax treaty had not come into effect, is $3,060 determined as follows: Total compensation $24,450 Less: Personal exemption 3,900 Taxable income $20,550 Tax determined by graduated rate (Tax Table column for single taxpayers) $2,640 Plus: Tax on gross dividends ($1,400 × 30%) 420 Tax determined as though treaty had not come into effect $3,060 Arthur's tax liability, figured by taking into account the reduced rate on dividend income as provided by the tax treaty, is $2,850 determined as follows: Tax determined by graduated rate (same as figured above) $2,640 Plus: Tax on gross dividends ($1,400 × 15%) 210 Tax on compensation and dividends $2,850 His tax liability, therefore, is limited to $2,850, the tax liability figured using the tax treaty rate on the dividends. Turbotax 2012 coupon Some Typical Tax Treaty Benefits The following paragraphs briefly explain the exemptions that are available under tax treaties for personal services income, remittances, scholarships, fellowships, and capital gain income. Turbotax 2012 coupon The conditions for claiming the exemptions vary under each tax treaty. Turbotax 2012 coupon For more information about the conditions under a particular tax treaty, see Publication 901. Turbotax 2012 coupon Or, you may download the complete text of most U. Turbotax 2012 coupon S. Turbotax 2012 coupon tax treaties at IRS. Turbotax 2012 coupon gov. Turbotax 2012 coupon Technical explanations for many of those treaties are also available at that site. Turbotax 2012 coupon Tax treaty benefits also cover income such as dividends, interest, rentals, royalties, pensions, and annuities. Turbotax 2012 coupon These types of income may be exempt from U. Turbotax 2012 coupon S. Turbotax 2012 coupon tax or may be subject to a reduced rate of tax. Turbotax 2012 coupon For more information, see Publication 901 or the applicable tax treaty. Turbotax 2012 coupon Personal Services Nonresident aliens from treaty countries who are in the United States for a short stay and also meet certain other requirements may be exempt from tax on their compensation received for personal services performed in the United States. Turbotax 2012 coupon Many tax treaties require that the nonresident alien claiming this exemption be present in the United States for a total of not more than 183 days during the tax year. Turbotax 2012 coupon Other tax treaties specify different periods of maximum presence in the United States, such as 180 days or 90 days. Turbotax 2012 coupon Spending part of a day in the United States counts as a day of presence. Turbotax 2012 coupon Tax treaties may also require that: The compensation cannot be more than a specific amount (frequently $3,000), and The individual have a foreign employer; that is, an individual, corporation, or entity of a foreign country. Turbotax 2012 coupon Note. Turbotax 2012 coupon Under most treaties, income received as an employee (generally designated as dependent personal services) and income received as a self-employed person (generally designated as independent personal services or business income) are treated differently. Turbotax 2012 coupon Teachers, Professors, and Researchers Under many income tax treaties, nonresident alien teachers or professors who temporarily visit the United States for the primary purpose of teaching at a university or other accredited educational institution are not subject to U. Turbotax 2012 coupon S. Turbotax 2012 coupon income tax on compensation received for teaching for the first 2 or 3 years after their arrival in the United States. Turbotax 2012 coupon Many treaties also provide an exemption for engaging in research. Turbotax 2012 coupon Generally, the teacher or professor must be in the United States primarily to teach, lecture, instruct, or engage in research. Turbotax 2012 coupon A substantial part of that person's time must be devoted to those duties. Turbotax 2012 coupon The normal duties of a teacher or professor include not only formal classroom work involving regularly scheduled lectures, demonstrations, or other student-participation activities, but also the less formal method of presenting ideas in seminars or other informal groups and in joint efforts in the laboratory. Turbotax 2012 coupon If you entered the United States as a nonresident alien, but are now a resident alien, the treaty exemption may still apply. Turbotax 2012 coupon See Students, Apprentices, Trainees, Teachers, Professors, and Researchers Who Became Resident Aliens later under Resident Aliens. Turbotax 2012 coupon Employees of Foreign Governments All treaties have provisions for the exemption of income earned by certain employees of foreign governments. Turbotax 2012 coupon However, a difference exists among treaties as to who qualifies for this benefit. Turbotax 2012 coupon Under many treaties, aliens admitted to the United States for permanent residence do not qualify. Turbotax 2012 coupon Under most treaties, aliens who are not nationals or subjects of the foreign country do not qualify. Turbotax 2012 coupon Employees of foreign governments should read the pertinent treaty carefully to determine whether they qualify for benefits. Turbotax 2012 coupon Chapter 10 of this publication also has information for employees of foreign governments. Turbotax 2012 coupon Students, Apprentices, and Trainees Under some income tax treaties, students, apprentices, and trainees are exempt from tax on remittances received from abroad for study and maintenance. Turbotax 2012 coupon Also, under some treaties, scholarship and fellowship grants, and a limited amount of compensation received by students, apprentices, and trainees may be exempt from tax. Turbotax 2012 coupon If you entered the United States as a nonresident alien, but are now a resident alien, the treaty exemption may still apply. Turbotax 2012 coupon See Students, Apprentices, Trainees, Teachers, Professors, and Researchers Who Became Resident Aliens , later, under Resident Aliens. Turbotax 2012 coupon Capital Gains Most treaties provide for the exemption of gains from the sale or exchange of personal property. Turbotax 2012 coupon Generally, gains from the sale or exchange of real property located in the United States are taxable. Turbotax 2012 coupon Resident Aliens Resident aliens may qualify for tax treaty benefits in the situations discussed below. Turbotax 2012 coupon U. Turbotax 2012 coupon S. Turbotax 2012 coupon Residency Under Tax Treaty “Tie-Breaker” Rule In certain circumstances, individuals who are treated as residents of the United States under an income tax treaty (after application of the so-called “tie-breaker” rule) will be entitled to treaty benefits. Turbotax 2012 coupon (The “tie-breaker” rule is explained in chapter 1 under Effect of Tax Treaties. Turbotax 2012 coupon ) If this applies to you, you generally will not need to file a Form 8833 for the income for which treaty benefits are claimed. Turbotax 2012 coupon This is because the income will typically be of a category for which disclosure on a Form 8833 is waived. Turbotax 2012 coupon See Reporting Treaty Benefits Claimed . Turbotax 2012 coupon In most cases, you also will not need to report the income on your Form 1040 because the income will be exempt from U. Turbotax 2012 coupon S. Turbotax 2012 coupon tax under the treaty. Turbotax 2012 coupon However, if the income has been reported as taxable income on a Form W-2, Form 1042-S, Form 1099, or other information return, you should report it on the appropriate line of Form 1040 (for example, line 7 in the case of wages or salaries). Turbotax 2012 coupon Enter the amount for which treaty benefits are claimed in parentheses on Form 1040, line 21. Turbotax 2012 coupon Next to the amount write “Exempt income,” the name of the treaty country, and the treaty article that provides the exemption. Turbotax 2012 coupon On Form 1040, subtract this amount from your income to arrive at total income on Form 1040, line 22. Turbotax 2012 coupon Also follow the above procedure for income that is subject to a reduced rate of tax, instead of an exemption, under the treaty. Turbotax 2012 coupon Attach a statement to Form 1040 showing a computation of the tax at the reduced rate, the name of the treaty country, and the treaty article that provides for the reduced tax rate. Turbotax 2012 coupon Include this tax on Form 1040, line 61. Turbotax 2012 coupon On the dotted line next to line 61, write “Tax from attached statement” and the amount of the tax. Turbotax 2012 coupon Example. Turbotax 2012 coupon Jacques Dubois, who is a resident of the United States under Article 4 of the U. Turbotax 2012 coupon S. Turbotax 2012 coupon -France income tax treaty, receives French social security benefits. Turbotax 2012 coupon Under Article 18(1) of the treaty, French social security benefits are not taxable by the United States. Turbotax 2012 coupon Mr. Turbotax 2012 coupon Dubois is not required to file a Form 8833 for his French social security benefits or report the benefits on Form 1040. Turbotax 2012 coupon Special Rule for Canadian and German Social Security Benefits Under income tax treaties with Canada and Germany, if a U. Turbotax 2012 coupon S. Turbotax 2012 coupon resident receives social security benefits from Canada or Germany, those benefits are treated for U. Turbotax 2012 coupon S. Turbotax 2012 coupon income tax purposes as if they were received under the social security legislation of the United States. Turbotax 2012 coupon If you receive social security benefits from Canada or Germany, include them on line 1 of your Social Security Benefits Worksheet for purposes of determining the taxable amount to be reported on Form 1040, line 20b or Form 1040A, line 14b. Turbotax 2012 coupon You are not required to file a Form 8833 for those benefits. Turbotax 2012 coupon Students, Apprentices, Trainees, Teachers, Professors, and Researchers Who Became Resident Aliens Generally, you must be a nonresident alien student, apprentice, trainee, teacher, professor, or researcher in order to claim a tax treaty exemption for remittances from abroad for study and maintenance in the United States, for scholarship, fellowship, and research grants, and for wages or other personal service compensation. Turbotax 2012 coupon Once you become a resident alien, you generally can no longer claim a tax treaty exemption for this income. Turbotax 2012 coupon However, if you entered the United States as a nonresident alien, but you are now a resident alien for U. Turbotax 2012 coupon S. Turbotax 2012 coupon tax purposes, the treaty exemption will continue to apply if the tax treaty's saving clause (explained later) provides an exception for it and you otherwise meet the requirements for the treaty exemption (including any time limit, explained later). Turbotax 2012 coupon This is true even if you are a nonresident alien electing to file a joint return as explained in chapter 1. Turbotax 2012 coupon Some exceptions to the saving clause apply to all resident aliens (for example, under the U. Turbotax 2012 coupon S. Turbotax 2012 coupon -People's Republic of China treaty); others apply only to resident aliens who are not lawful permanent residents of the United States (green card holders). Turbotax 2012 coupon If you qualify under an exception to the treaty's saving clause, you can avoid income tax withholding by giving the payor a Form W-9 with the statement required by the Form W-9 instructions. Turbotax 2012 coupon Saving clause. Turbotax 2012 coupon   Most tax treaties have a saving clause. Turbotax 2012 coupon A saving clause preserves or “saves” the right of each country to tax its own residents as if no tax treaty were in effect. Turbotax 2012 coupon Thus, once you become a resident alien of the United States, you generally lose any tax treaty benefits that relate to your income. Turbotax 2012 coupon However, many tax treaties have exceptions to the saving clause, which may allow you to continue to claim certain treaty benefits when you become a resident alien. Turbotax 2012 coupon Read the treaty to find out if it has a saving clause and an exception to it. Turbotax 2012 coupon Time limit for claiming treaty exemptions. Turbotax 2012 coupon   Many treaties limit the number of years you can claim a treaty exemption. Turbotax 2012 coupon For students, apprentices, and trainees, the limit is usually 4–5 years; for teachers, professors, and researchers, the limit is usually 2–3 years. Turbotax 2012 coupon Once you reach this limit, you can no longer claim the treaty exemption. Turbotax 2012 coupon See the treaty or Publication 901 for the time limits that apply. Turbotax 2012 coupon How to report income on your tax return. Turbotax 2012 coupon   In most cases, you also will not need to report the income on your Form 1040 because the income will be exempt from U. Turbotax 2012 coupon S. Turbotax 2012 coupon tax under the treaty. Turbotax 2012 coupon However, if the income has been reported as taxable income on a Form W-2, Form 1042-S, Form 1099, or other information return, you should report it on the appropriate line of Form 1040 (for example, line 7 in the case of wages, salaries, scholarships, or fellowships). Turbotax 2012 coupon Enter the amount for which treaty benefits are claimed in parentheses on Form 1040, line 21. Turbotax 2012 coupon Next to the amount write “Exempt income,” the name of the treaty country, and the treaty article that provides the exemption. Turbotax 2012 coupon On Form 1040, subtract this amount from your income to arrive at total income on Form 1040, line 22. Turbotax 2012 coupon Example. Turbotax 2012 coupon Mr. Turbotax 2012 coupon Yu, a citizen of the People's Republic of China, entered the United States as a nonresident alien student on January 1, 2009. Turbotax 2012 coupon He remained a nonresident alien through 2013 and was able to exclude his scholarship from U. Turbotax 2012 coupon S. Turbotax 2012 coupon tax in those years under Article 20 of the U. Turbotax 2012 coupon S. Turbotax 2012 coupon -People's Republic of China income tax treaty. Turbotax 2012 coupon On January 1, 2014, he became a resident alien under the substantial presence test because his stay in the United States exceeded 5 years. Turbotax 2012 coupon Even though Mr. Turbotax 2012 coupon Yu is now a resident alien, the provisions of Article 20 still apply because of the exception to the saving clause in paragraph 2 of the Protocol to the U. Turbotax 2012 coupon S. Turbotax 2012 coupon -People's Republic of China treaty dated April 30, 1984. Turbotax 2012 coupon Mr. Turbotax 2012 coupon Yu should submit Form W-9 and the required statement to the payor. Turbotax 2012 coupon Reporting Treaty Benefits Claimed If you claim treaty benefits that override or modify any provision of the Internal Revenue Code, and by claiming these benefits your tax is, or might be, reduced, you must attach a fully completed Form 8833 to your tax return. Turbotax 2012 coupon See below, for the situations where you are not required to file Form 8833. Turbotax 2012 coupon You must file a U. Turbotax 2012 coupon S. Turbotax 2012 coupon tax return and Form 8833 if you claim the following treaty benefits. Turbotax 2012 coupon You claim a reduction or modification in the taxation of gain or loss from the disposition of a U. Turbotax 2012 coupon S. Turbotax 2012 coupon real property interest based on a treaty. Turbotax 2012 coupon You claim a credit for a specific foreign tax for which foreign tax credit would not be allowed by the Internal Revenue Code. Turbotax 2012 coupon You receive payments or income items totaling more than $100,000 and you determine your country of residence under a treaty and not under the rules for residency discussed in chapter 1. Turbotax 2012 coupon These are the more common situations for which Form 8833 is required. Turbotax 2012 coupon Exceptions. Turbotax 2012 coupon   You do not have to file Form 8833 for any of the following situations. Turbotax 2012 coupon You claim a reduced rate of withholding tax under a treaty on interest, dividends, rent, royalties, or other fixed or determinable annual or periodic income ordinarily subject to the 30% rate. Turbotax 2012 coupon You claim a treaty reduces or modifies the taxation of income from dependent personal services, pensions, annuities, social security and other public pensions, or income of artists, athletes, students, trainees, or teachers. Turbotax 2012 coupon This includes taxable scholarship and fellowship grants. Turbotax 2012 coupon You claim a reduction or modification of taxation of income under an International Social Security Agreement or a Diplomatic or Consular Agreement. Turbotax 2012 coupon You are a partner in a partnership or a beneficiary of an estate or trust and the partnership, estate, or trust reports the required information on its return. Turbotax 2012 coupon The payments or items of income that are otherwise required to be disclosed total no more than $10,000. Turbotax 2012 coupon You are claiming treaty benefits for amounts that are: Reported to you on Form 1042-S and Received by you: As a related party from a reporting corporation within the meaning of Internal Revenue Code section 6038A (relating to information returns on Form 5472 filed by U. Turbotax 2012 coupon S. Turbotax 2012 coupon corporations that are 25-percent owned by a foreign person), or As a beneficial owner that is a direct account holder of a U. Turbotax 2012 coupon S. Turbotax 2012 coupon financial institution or qualified intermediary, or a direct partner, beneficiary, or owner of a withholding foreign partnership or trust, from that U. Turbotax 2012 coupon S. Turbotax 2012 coupon financial institution, qualified intermediary, or withholding foreign partnership or trust. Turbotax 2012 coupon The exception described in (6) above does not apply to any amounts for which a treaty-based return disclosure is specifically required by the Form 8833 instructions. Turbotax 2012 coupon Penalty for failure to provide required information on Form 8833. Turbotax 2012 coupon   If you are required to report the treaty benefits but do not, you may be subject to a penalty of $1,000 for each failure. Turbotax 2012 coupon Additional information. Turbotax 2012 coupon   For additional information, see section 301. Turbotax 2012 coupon 6114-1(c) of the Income Tax Regulations. Turbotax 2012 coupon Table 9-1. Turbotax 2012 coupon Table of Tax Treaties (Updated through December 31, 2013) Country Official Text  Symbol1 General  Effective Date Citation Applicable Treasury Explanations  or Treasury Decision (T. Turbotax 2012 coupon D. Turbotax 2012 coupon ) Australia TIAS 10773 Dec. Turbotax 2012 coupon 1, 1983 1986-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 220 1986-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 246 Protocol TIAS Jan. Turbotax 2012 coupon 1, 2004     Austria TIAS Jan. Turbotax 2012 coupon 1, 1999     Bangladesh TIAS Jan. Turbotax 2012 coupon 1, 2007     Barbados TIAS 11090 Jan. Turbotax 2012 coupon 1, 1984 1991-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 436 1991-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 466 Protocol TIAS Jan. Turbotax 2012 coupon 1, 1994     Protocol TIAS Jan. Turbotax 2012 coupon 1, 2005     Belgium TIAS Jan. Turbotax 2012 coupon 1, 2008     Bulgaria TIAS Jan. Turbotax 2012 coupon 1, 2009     Canada2 TIAS 11087 Jan. Turbotax 2012 coupon 1, 1985 1986-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 258 1987-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 298 Protocol TIAS Jan. Turbotax 2012 coupon 1, 1996     Protocol TIAS Dec. Turbotax 2012 coupon 16, 1997     Protocol TIAS Jan. Turbotax 2012 coupon 1, 2009     China, People's Republic of TIAS 12065 Jan. Turbotax 2012 coupon 1, 1987 1988-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 414 1988-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 447 Commonwealth of Independent States3 TIAS 8225 Jan. Turbotax 2012 coupon 1, 1976 1976-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 463 1976-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 475 Cyprus TIAS 10965 Jan. Turbotax 2012 coupon 1, 1986 1989-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 280 1989-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 314 Czech Republic TIAS Jan. Turbotax 2012 coupon 1, 1993     Denmark TIAS Jan. Turbotax 2012 coupon 1, 2001     Protocol TIAS Jan. Turbotax 2012 coupon 1, 2008     Egypt TIAS 10149 Jan. Turbotax 2012 coupon 1, 1982 1982-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 219 1982-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 243 Estonia TIAS Jan. Turbotax 2012 coupon 1, 2000     Finland TIAS 12101 Jan. Turbotax 2012 coupon 1, 1991     Protocol TIAS Jan. Turbotax 2012 coupon 1, 2008     France TIAS Jan. Turbotax 2012 coupon 1, 1996     Protocol TIAS Jan. Turbotax 2012 coupon 1, 2007     Protocol TIAS Jan. Turbotax 2012 coupon 1, 2010     Germany TIAS Jan. Turbotax 2012 coupon 1, 1990     Protocol TIAS Jan. Turbotax 2012 coupon 1, 2008     Greece TIAS 2902 Jan. Turbotax 2012 coupon 1, 1953 1958-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 1054 T. Turbotax 2012 coupon D. Turbotax 2012 coupon 6109, 1954-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 638 Hungary TIAS 9560 Jan. Turbotax 2012 coupon 1, 1980 1980-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 333 1980-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 354 Iceland TIAS Jan. Turbotax 2012 coupon 1, 2009     India TIAS Jan. Turbotax 2012 coupon 1, 1991     Indonesia TIAS 11593 Jan. Turbotax 2012 coupon 1, 1990     Ireland TIAS Jan. Turbotax 2012 coupon 1, 1998     Israel TIAS Jan. Turbotax 2012 coupon 1, 1995     Italy TIAS Jan. Turbotax 2012 coupon 1, 2010     Jamaica TIAS 10207 Jan. Turbotax 2012 coupon 1, 1982 1982-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 257 1982-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 291 Japan TIAS Jan. Turbotax 2012 coupon 1, 2005     Kazakhstan TIAS Jan. Turbotax 2012 coupon 1, 1996     Korea, South TIAS 9506 Jan. Turbotax 2012 coupon 1, 1980 1979-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 435 1979-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 458 Latvia TIAS Jan. Turbotax 2012 coupon 1, 2000     Lithuania TIAS Jan. Turbotax 2012 coupon 1, 2000     Luxembourg TIAS Jan. Turbotax 2012 coupon 1, 2001     Malta TIAS Jan. Turbotax 2012 coupon 1, 2011     Mexico TIAS Jan. Turbotax 2012 coupon 1, 1994 1994-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 424 1994-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 489 Protocol TIAS Oct. Turbotax 2012 coupon 26, 1995     Protocol TIAS Jan. Turbotax 2012 coupon 1, 2004     Morocco TIAS 10195 Jan. Turbotax 2012 coupon 1, 1981 1982-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 405 1982-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 427 Netherlands TIAS Jan. Turbotax 2012 coupon 1, 1994     Protocol TIAS Jan. Turbotax 2012 coupon 1, 2005     New Zealand TIAS 10772 Nov. Turbotax 2012 coupon 2, 1983 1990-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 274 1990-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 303 Protocol TIAS Jan. Turbotax 2012 coupon 1, 2011     Norway TIAS 7474 Jan. Turbotax 2012 coupon 1, 1971 1973-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 669 1973-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 693 Protocol TIAS 10205 Jan. Turbotax 2012 coupon 1, 1982 1982-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 440 1982-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 454 Pakistan TIAS 4232 Jan. Turbotax 2012 coupon 1, 1959 1960-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 646 T. Turbotax 2012 coupon D. Turbotax 2012 coupon 6431, 1960-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 755 Philippines TIAS 10417 Jan. Turbotax 2012 coupon 1, 1983 1984-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 384 1984-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 412 Poland TIAS 8486 Jan. Turbotax 2012 coupon 1, 1974 1977-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 416 1977-1 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 427 Portugal TIAS Jan. Turbotax 2012 coupon 1, 1996     Romania TIAS 8228 Jan. Turbotax 2012 coupon 1, 1974 1976-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 492 1976-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 504 Russia TIAS Jan. Turbotax 2012 coupon 1, 1994     Slovak Republic TIAS Jan. Turbotax 2012 coupon 1, 1993     Slovenia TIAS Jan. Turbotax 2012 coupon 1, 2002     South Africa TIAS Jan. Turbotax 2012 coupon 1, 1998     Spain TIAS Jan. Turbotax 2012 coupon 1, 1991     Sri Lanka TIAS Jan. Turbotax 2012 coupon 1, 2004     Sweden TIAS Jan. Turbotax 2012 coupon 1, 1996     Protocol TIAS Jan. Turbotax 2012 coupon 1, 2007     Switzerland TIAS Jan. Turbotax 2012 coupon 1, 1998     Thailand TIAS Jan. Turbotax 2012 coupon 1, 1998     Trinidad and Tobago TIAS 7047 Jan. Turbotax 2012 coupon 1, 1970 1971-2 C. Turbotax 2012 coupon B. Turbotax 2012 coupon 479   Tunisia TIAS Jan. Turbotax 2012 coupon 1, 1990     Turkey TIAS Jan. Turbotax 2012 coupon 1, 1998     Ukraine TIAS Jan. Turbotax 2012 coupon 1, 2001     United Kingdom TIAS Jan. Turbotax 2012 coupon 1, 2004     Venezuela TIAS Jan. Turbotax 2012 coupon 1, 2000     1(TIAS) Treaties and Other International Act Series 2Information on the treaty can be found in Publication 597, Information on the United States-Canada Income Tax Treaty. Turbotax 2012 coupon 3The U. Turbotax 2012 coupon S. Turbotax 2012 coupon -U. Turbotax 2012 coupon S. Turbotax 2012 coupon S. Turbotax 2012 coupon R. Turbotax 2012 coupon income tax treaty applies to the countries of Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan. Turbotax 2012 coupon Prev  Up  Next   Home   More Online Publications
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The Turbotax 2012 Coupon

Turbotax 2012 coupon 36. Turbotax 2012 coupon   Earned Income Credit (EIC) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Do You Qualify for the Credit?If Improper Claim Made in Prior Year Part A. Turbotax 2012 coupon Rules for EveryoneRule 1. Turbotax 2012 coupon Your AGI Must Be Less Than: Rule 2. Turbotax 2012 coupon You Must Have a Valid Social Security Number (SSN) Rule 3. Turbotax 2012 coupon Your Filing Status Cannot Be Married Filing Separately Rule 4. Turbotax 2012 coupon You Must Be a U. Turbotax 2012 coupon S. Turbotax 2012 coupon Citizen or Resident Alien All Year Rule 5. Turbotax 2012 coupon You Cannot File Form 2555 or Form 2555-EZ Rule 6. Turbotax 2012 coupon Your Investment Income Must Be $3,300 or Less Rule 7. Turbotax 2012 coupon You Must Have Earned Income Part B. Turbotax 2012 coupon Rules If You Have a Qualifying ChildRule 8. Turbotax 2012 coupon Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9. Turbotax 2012 coupon Your Qualifying Child Cannot Be Used By More Than One Person To Claim the EIC Rule 10. Turbotax 2012 coupon You Cannot Be a Qualifying Child of Another Taxpayer Part C. Turbotax 2012 coupon Rules If You Do Not Have a Qualifying ChildRule 11. Turbotax 2012 coupon You Must Be at Least Age 25 but Under Age 65 Rule 12. Turbotax 2012 coupon You Cannot Be the Dependent of Another Person Rule 13. Turbotax 2012 coupon You Cannot Be a Qualifying Child of Another Taxpayer Rule 14. Turbotax 2012 coupon You Must Have Lived in the United States More Than Half of the Year Part D. Turbotax 2012 coupon Figuring and Claiming the EICRule 15. Turbotax 2012 coupon Your Earned Income Must Be Less Than: IRS Will Figure the EIC for You How To Figure the EIC Yourself ExamplesExample 1. Turbotax 2012 coupon John and Janet Smith (Form 1040A) Example 2. Turbotax 2012 coupon Kelly Green (Form 1040EZ) What's New Earned income amount is more. Turbotax 2012 coupon  The maximum amount of income you can earn and still get the credit has increased. Turbotax 2012 coupon You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). Turbotax 2012 coupon Your adjusted gross income also must be less than the amount in the above list that applies to you. Turbotax 2012 coupon For details, see Rules 1 and 15. Turbotax 2012 coupon Investment income amount is more. Turbotax 2012 coupon  The maximum amount of investment income you can have and still get the credit has increased to $3,300. Turbotax 2012 coupon See Rule 6. Turbotax 2012 coupon Reminders Increased EIC on certain joint returns. Turbotax 2012 coupon  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. Turbotax 2012 coupon As a result, the EIC table has different columns for married persons filing jointly than for everyone else. Turbotax 2012 coupon When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. Turbotax 2012 coupon Online help. Turbotax 2012 coupon  You can use the EITC Assistant at www. Turbotax 2012 coupon irs. Turbotax 2012 coupon gov/eitc to find out if you are eligible for the credit. Turbotax 2012 coupon The EITC Assistant is available in English and Spanish. Turbotax 2012 coupon EIC questioned by IRS. Turbotax 2012 coupon  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. Turbotax 2012 coupon We will tell you what documents to send us. Turbotax 2012 coupon These may include: birth certificates, school records, medical records, etc. Turbotax 2012 coupon The process of establishing your eligibility will delay your refund. Turbotax 2012 coupon Introduction The earned income credit (EIC) is a tax credit for certain people who work and have less than $51,567 of earned income. Turbotax 2012 coupon A tax credit usually means more money in your pocket. Turbotax 2012 coupon It reduces the amount of tax you owe. Turbotax 2012 coupon The EIC may also give you a refund. Turbotax 2012 coupon How do you get the earned income credit?   To claim the EIC, you must: Qualify by meeting certain rules, and File a tax return, even if you: Do not owe any tax, Did not earn enough money to file a return, or Did not have income taxes withheld from your pay. Turbotax 2012 coupon When you complete your return, you can figure your EIC by using a worksheet in the instructions for Form 1040, Form 1040A, or Form 1040EZ. Turbotax 2012 coupon Or, if you prefer, you can let the IRS figure the credit for you. Turbotax 2012 coupon How will this chapter help you?   This chapter will explain the following. Turbotax 2012 coupon The rules you must meet to qualify for the EIC. Turbotax 2012 coupon How to figure the EIC. Turbotax 2012 coupon Useful Items - You may want to see: Publication 596 Earned Income Credit (EIC) Form (and Instructions) Schedule EIC Earned Income Credit (Qualifying Child Information) 8862 Information To Claim Earned Income Credit After Disallowance Do You Qualify for the Credit? To qualify to claim the EIC, you must first meet all of the rules explained in Part A, Rules for Everyone . Turbotax 2012 coupon Then you must meet the rules in Part B, Rules If You Have a Qualifying Child , or Part C, Rules If You Do Not Have a Qualifying Child . Turbotax 2012 coupon There is one final rule you must meet in Part D, Figuring and Claiming the EIC . Turbotax 2012 coupon You qualify for the credit if you meet all the rules in each part that applies to you. Turbotax 2012 coupon If you have a qualifying child, the rules in Parts A, B, and D apply to you. Turbotax 2012 coupon If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Turbotax 2012 coupon Table 36-1, Earned Income Credit in a Nutshell. Turbotax 2012 coupon   Use Table 36–1 as a guide to Parts A, B, C, and D. Turbotax 2012 coupon The table is a summary of all the rules in each part. Turbotax 2012 coupon Do you have a qualifying child?   You have a qualifying child only if you have a child who meets the four tests described in Rule 8 and illustrated in Figure 36–1. Turbotax 2012 coupon If Improper Claim Made in Prior Year If your EIC for any year after 1996 was denied or reduced for any reason other than a math or clerical error, you must attach a completed Form 8862 to your next tax return to claim the EIC. Turbotax 2012 coupon You must also qualify to claim the EIC by meeting all the rules described in this chapter. Turbotax 2012 coupon However, if your EIC was denied or reduced as a result of a math or clerical error, do not attach Form 8862 to your next tax return. Turbotax 2012 coupon For example, if your arithmetic is incorrect, the IRS can correct it. Turbotax 2012 coupon If you do not provide a correct social security number, the IRS can deny the EIC. Turbotax 2012 coupon These kinds of errors are called math or clerical errors. Turbotax 2012 coupon If your EIC for any year after 1996 was denied and it was determined that your error was due to reckless or intentional disregard of the EIC rules, then you cannot claim the EIC for the next 2 years. Turbotax 2012 coupon If your error was due to fraud, then you cannot claim the EIC for the next 10 years. Turbotax 2012 coupon More information. Turbotax 2012 coupon   See chapter 5 in Publication 596 for more detailed information about the disallowance period and Form 8862. Turbotax 2012 coupon Part A. Turbotax 2012 coupon Rules for Everyone This part of the chapter discusses Rules 1 through 7. Turbotax 2012 coupon You must meet all seven rules to qualify for the earned income credit. Turbotax 2012 coupon If you do not meet all seven rules, you cannot get the credit and you do not need to read the rest of the chapter. Turbotax 2012 coupon If you meet all seven rules in this part, then read either Part B or Part C (whichever applies) for more rules you must meet. Turbotax 2012 coupon Rule 1. Turbotax 2012 coupon Your AGI Must Be Less Than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Turbotax 2012 coupon Adjusted gross income (AGI). Turbotax 2012 coupon   AGI is the amount on line 38 (Form 1040), line 22 (Form 1040A), or line 4 (Form 1040EZ). Turbotax 2012 coupon If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Turbotax 2012 coupon Example. Turbotax 2012 coupon Your AGI is $38,550, you are single, and you have one qualifying child. Turbotax 2012 coupon You cannot claim the EIC because your AGI is not less than $37,870. Turbotax 2012 coupon 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. Turbotax 2012 coupon Community property. Turbotax 2012 coupon   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. Turbotax 2012 coupon This is different from the community property rules that apply under Rule 7 . Turbotax 2012 coupon Rule 2. Turbotax 2012 coupon 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). Turbotax 2012 coupon Any qualifying child listed on Schedule EIC also must have a valid SSN. Turbotax 2012 coupon (See Rule 8 if you have a qualifying child. Turbotax 2012 coupon ) 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. Turbotax 2012 coupon An example of a federally funded benefit is Medicaid. Turbotax 2012 coupon 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. Turbotax 2012 coupon S. Turbotax 2012 coupon citizen or permanent resident, ask the SSA for a new social security card without the legend. Turbotax 2012 coupon U. Turbotax 2012 coupon S. Turbotax 2012 coupon citizen. Turbotax 2012 coupon   If you were a U. Turbotax 2012 coupon S. Turbotax 2012 coupon citizen when you received your SSN, you have a valid SSN. Turbotax 2012 coupon Valid for work only with INS or DHS authorization. Turbotax 2012 coupon   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. Turbotax 2012 coupon SSN missing or incorrect. Turbotax 2012 coupon   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Turbotax 2012 coupon Other taxpayer identification number. Turbotax 2012 coupon   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). Turbotax 2012 coupon ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Turbotax 2012 coupon No SSN. Turbotax 2012 coupon   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). Turbotax 2012 coupon You cannot claim the EIC. Turbotax 2012 coupon Getting an SSN. Turbotax 2012 coupon   If you (or your spouse, if filing a joint return) do not have an SSN, you can apply for one by filing Form SS-5, Application for a Social Security Card, with the SSA. Turbotax 2012 coupon You can get Form SS-5 online at www. Turbotax 2012 coupon socialsecurity. Turbotax 2012 coupon gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Turbotax 2012 coupon Filing deadline approaching and still no SSN. Turbotax 2012 coupon   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Turbotax 2012 coupon Request an automatic 6-month extension of time to file your return. Turbotax 2012 coupon You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Turbotax 2012 coupon S. Turbotax 2012 coupon Individual Income Tax Return. Turbotax 2012 coupon For more information, see chapter 1 . Turbotax 2012 coupon File the return on time without claiming the EIC. Turbotax 2012 coupon After receiving the SSN, file an amended return (Form 1040X, Amended U. Turbotax 2012 coupon S. Turbotax 2012 coupon Individual Income Tax Return) claiming the EIC. Turbotax 2012 coupon Attach a filled-in Schedule EIC if you have a qualifying child. Turbotax 2012 coupon Table 36-1. Turbotax 2012 coupon Earned Income Credit in a Nutshell First, you must meet all the rules in this column. Turbotax 2012 coupon Second, you must meet all the rules in one of these columns, whichever applies. Turbotax 2012 coupon Third, you must meet the rule in this column. Turbotax 2012 coupon Part A. Turbotax 2012 coupon  Rules for Everyone Part B. Turbotax 2012 coupon  Rules If You Have a Qualifying Child Part C. Turbotax 2012 coupon  Rules If You Do Not Have a Qualifying Child Part D. Turbotax 2012 coupon  Figuring and Claiming the EIC 1. Turbotax 2012 coupon 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. Turbotax 2012 coupon 2. Turbotax 2012 coupon You must have a valid social security number. Turbotax 2012 coupon  3. Turbotax 2012 coupon Your filing status cannot be “Married filing separately. Turbotax 2012 coupon ” 4. Turbotax 2012 coupon You must be a U. Turbotax 2012 coupon S. Turbotax 2012 coupon citizen or resident alien all year. Turbotax 2012 coupon  5. Turbotax 2012 coupon You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Turbotax 2012 coupon  6. Turbotax 2012 coupon Your investment income must be $3,300 or less. Turbotax 2012 coupon  7. Turbotax 2012 coupon You must have earned income. Turbotax 2012 coupon 8. Turbotax 2012 coupon Your child must meet the relationship, age, residency, and joint return tests. Turbotax 2012 coupon  9. Turbotax 2012 coupon Your qualifying child cannot be used by more than one person to claim the EIC. Turbotax 2012 coupon  10. Turbotax 2012 coupon You cannot be a qualifying child of another person. Turbotax 2012 coupon 11. Turbotax 2012 coupon You must be at least age 25 but under age 65. Turbotax 2012 coupon  12. Turbotax 2012 coupon You cannot be the dependent of another person. Turbotax 2012 coupon  13. Turbotax 2012 coupon You cannot be a qualifying child of another person. Turbotax 2012 coupon  14. Turbotax 2012 coupon You must have lived in the United States more than half of the year. Turbotax 2012 coupon 15. Turbotax 2012 coupon 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. Turbotax 2012 coupon Rule 3. Turbotax 2012 coupon Your Filing Status Cannot Be Married Filing Separately If you are married, you usually must file a joint return to claim the EIC. Turbotax 2012 coupon Your filing status cannot be “Married filing separately. Turbotax 2012 coupon ” Spouse did not live with you. Turbotax 2012 coupon   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. Turbotax 2012 coupon In that case, you may be able to claim the EIC. Turbotax 2012 coupon For detailed information about filing as head of household, see chapter 2 . Turbotax 2012 coupon Rule 4. Turbotax 2012 coupon You Must Be a U. Turbotax 2012 coupon S. Turbotax 2012 coupon 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. Turbotax 2012 coupon You can use that filing status only if one spouse is a U. Turbotax 2012 coupon S. Turbotax 2012 coupon citizen or resident alien and you choose to treat the nonresident spouse as a U. Turbotax 2012 coupon S. Turbotax 2012 coupon resident. Turbotax 2012 coupon If you make this choice, you and your spouse are taxed on your worldwide income. Turbotax 2012 coupon 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). Turbotax 2012 coupon If you need more information on making this choice, get Publication 519, U. Turbotax 2012 coupon S. Turbotax 2012 coupon Tax Guide for Aliens. Turbotax 2012 coupon Rule 5. Turbotax 2012 coupon 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. Turbotax 2012 coupon You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Turbotax 2012 coupon U. Turbotax 2012 coupon S. Turbotax 2012 coupon possessions are not foreign countries. Turbotax 2012 coupon See Publication 54, Tax Guide for U. Turbotax 2012 coupon S. Turbotax 2012 coupon Citizens and Resident Aliens Abroad, for more detailed information. Turbotax 2012 coupon Rule 6. Turbotax 2012 coupon 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. Turbotax 2012 coupon If your investment income is more than $3,300, you cannot claim the credit. Turbotax 2012 coupon For most people, investment income is the total of the following amounts. Turbotax 2012 coupon Taxable interest (line 8a of Form 1040 or 1040A). Turbotax 2012 coupon Tax-exempt interest (line 8b of Form 1040 or 1040A). Turbotax 2012 coupon Dividend income (line 9a of Form 1040 or 1040A). Turbotax 2012 coupon Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Turbotax 2012 coupon 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. Turbotax 2012 coupon However, see Rule 6 in chapter 1 of Publication 596 if: You are filing Schedule E (Form 1040), Form 4797, or Form 8814, or You are reporting income from the rental of personal property on Form 1040, line 21. Turbotax 2012 coupon Rule 7. Turbotax 2012 coupon You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. Turbotax 2012 coupon If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Turbotax 2012 coupon If you are an employee, earned income includes all the taxable income you get from your employer. Turbotax 2012 coupon If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the instructions for Form 1040. Turbotax 2012 coupon Earned Income Earned income includes all of the following types of income. Turbotax 2012 coupon Wages, salaries, tips, and other taxable employee pay. Turbotax 2012 coupon Employee pay is earned income only if it is taxable. Turbotax 2012 coupon Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Turbotax 2012 coupon But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained below. Turbotax 2012 coupon Net earnings from self-employment. Turbotax 2012 coupon Gross income received as a statutory employee. Turbotax 2012 coupon Wages, salaries, and tips. Turbotax 2012 coupon   Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Turbotax 2012 coupon You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Turbotax 2012 coupon Nontaxable combat pay election. Turbotax 2012 coupon   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Turbotax 2012 coupon Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Turbotax 2012 coupon Figure the credit with and without your nontaxable combat pay before making the election. Turbotax 2012 coupon   If you make the election, you must include in earned income all nontaxable combat pay you received. Turbotax 2012 coupon If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Turbotax 2012 coupon In other words, if one of you makes the election, the other one can also make it but does not have to. Turbotax 2012 coupon   The amount of your nontaxable combat pay should be shown in box 12 of your Form W-2 with code “Q. Turbotax 2012 coupon ” Self-employed persons and statutory employees. Turbotax 2012 coupon   If you are self-employed or received income as a statutory employee, you must use the Form 1040 instructions to see if you qualify to get the EIC. Turbotax 2012 coupon 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. Turbotax 2012 coupon Each approved form exempts certain income from social security taxes. Turbotax 2012 coupon Each form is discussed here in terms of what is or is not earned income for the EIC. Turbotax 2012 coupon Form 4361. Turbotax 2012 coupon   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Turbotax 2012 coupon This includes wages, salaries, tips, and other taxable employee compensation. Turbotax 2012 coupon A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Turbotax 2012 coupon Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Turbotax 2012 coupon Examples include fees for performing marriages and honoraria for delivering speeches. Turbotax 2012 coupon Form 4029. Turbotax 2012 coupon   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Turbotax 2012 coupon However, amounts you received as a self-employed individual do not count as earned income. Turbotax 2012 coupon Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Turbotax 2012 coupon 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. Turbotax 2012 coupon Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Turbotax 2012 coupon You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Turbotax 2012 coupon Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Turbotax 2012 coupon Report taxable pension payments on Form 1040, lines 16a and 16b (or Form 1040A, lines 12a and 12b). Turbotax 2012 coupon Disability insurance payments. Turbotax 2012 coupon   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Turbotax 2012 coupon It does not matter whether you have reached minimum retirement age. Turbotax 2012 coupon If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Turbotax 2012 coupon ” 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. Turbotax 2012 coupon Do not include any of these items in your earned income. Turbotax 2012 coupon Earnings while an inmate. Turbotax 2012 coupon   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Turbotax 2012 coupon This includes amounts for work performed while in a work release program or while in a halfway house. Turbotax 2012 coupon Workfare payments. Turbotax 2012 coupon   Nontaxable workfare payments are not earned income for the EIC. Turbotax 2012 coupon These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if private sector employment is not available, or (2) community service program activities. Turbotax 2012 coupon Community property. Turbotax 2012 coupon   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. Turbotax 2012 coupon That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Turbotax 2012 coupon 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. Turbotax 2012 coupon Nevada, Washington, and California domestic partners. Turbotax 2012 coupon   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Turbotax 2012 coupon Your earned income for the EIC does not include any amount earned by your partner. Turbotax 2012 coupon Your earned income includes the entire amount you earned. Turbotax 2012 coupon For details, see Publication 555. Turbotax 2012 coupon Conservation Reserve Program (CRP) payments. Turbotax 2012 coupon   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. Turbotax 2012 coupon Nontaxable military pay. Turbotax 2012 coupon   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Turbotax 2012 coupon Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Turbotax 2012 coupon See Publication 3, Armed Forces' Tax Guide, for more information. Turbotax 2012 coupon    Combat pay. Turbotax 2012 coupon You can elect to include your nontaxable combat pay in earned income for the EIC. Turbotax 2012 coupon See Nontaxable combat pay election, earlier. Turbotax 2012 coupon Part B. Turbotax 2012 coupon Rules If You Have a Qualifying Child If you have met all of the rules in Part A , read Part B to see if you have a qualifying child. Turbotax 2012 coupon Part B discusses Rules 8 through 10. Turbotax 2012 coupon You must meet all three of these rules, in addition to the rules in Parts A and D , to qualify for the earned income credit with a qualifying child. Turbotax 2012 coupon You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Turbotax 2012 coupon (You cannot file Form 1040EZ. Turbotax 2012 coupon ) You also must complete Schedule EIC and attach it to your return. Turbotax 2012 coupon If you meet all the rules in Part A and this part, read Part D to find out what to do next. Turbotax 2012 coupon If you do not meet Rule 8, you do not have a qualifying child. Turbotax 2012 coupon Read Part C to find out if you can get the earned income credit without a qualifying child. Turbotax 2012 coupon Rule 8. Turbotax 2012 coupon Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. Turbotax 2012 coupon The four tests are: Relationship, Age, Residency, and Joint return. Turbotax 2012 coupon The four tests are illustrated in Figure 36–1. Turbotax 2012 coupon The paragraphs that follow contain more information about each test. Turbotax 2012 coupon 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). Turbotax 2012 coupon The following definitions clarify the relationship test. Turbotax 2012 coupon Adopted child. Turbotax 2012 coupon   An adopted child is always treated as your own child. Turbotax 2012 coupon The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Turbotax 2012 coupon Foster child. Turbotax 2012 coupon   For the EIC, a person is your foster child if the child is placed with you by an authorized placement agency or by judgement, decree, or other order of any court of competent jurisdiction. Turbotax 2012 coupon An authorized placement agency includes a state or local government agency. Turbotax 2012 coupon It also includes a tax-exempt organization licensed by a state. Turbotax 2012 coupon In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Turbotax 2012 coupon Example. Turbotax 2012 coupon 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. Turbotax 2012 coupon Debbie is your foster child. Turbotax 2012 coupon 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. Turbotax 2012 coupon    The following examples and definitions clarify the age test. Turbotax 2012 coupon Example 1—child not under age 19. Turbotax 2012 coupon Your son turned 19 on December 10. Turbotax 2012 coupon 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. Turbotax 2012 coupon Example 2—child not younger than you or your spouse. Turbotax 2012 coupon Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Turbotax 2012 coupon He is not disabled. Turbotax 2012 coupon Both you and your spouse are 21 years old and you file a joint return. Turbotax 2012 coupon Your brother is not your qualifying child because he is not younger than you or your spouse. Turbotax 2012 coupon Example 3—child younger than your spouse but not younger than you. Turbotax 2012 coupon The facts are the same as in Example 2 except that your spouse is 25 years old. Turbotax 2012 coupon Because your brother is younger than your spouse, he is your qualifying child even though he is not younger than you. Turbotax 2012 coupon Student defined. Turbotax 2012 coupon   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. Turbotax 2012 coupon The 5 calendar months need not be consecutive. Turbotax 2012 coupon   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. Turbotax 2012 coupon School defined. Turbotax 2012 coupon   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Turbotax 2012 coupon However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Turbotax 2012 coupon Vocational high school students. Turbotax 2012 coupon   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. Turbotax 2012 coupon Permanently and totally disabled. Turbotax 2012 coupon   Your child is permanently and totally disabled if both of the following apply. Turbotax 2012 coupon He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Turbotax 2012 coupon A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Turbotax 2012 coupon Residency Test Your child must have lived with you in the United States for more than half of 2013. Turbotax 2012 coupon The following definitions clarify the residency test. Turbotax 2012 coupon United States. Turbotax 2012 coupon   This means the 50 states and the District of Columbia. Turbotax 2012 coupon It does not include Puerto Rico or U. Turbotax 2012 coupon S. Turbotax 2012 coupon possessions such as Guam. Turbotax 2012 coupon Homeless shelter. Turbotax 2012 coupon   Your home can be any location where you regularly live. Turbotax 2012 coupon You do not need a traditional home. Turbotax 2012 coupon 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. Turbotax 2012 coupon Military personnel stationed outside the United States. Turbotax 2012 coupon    U. Turbotax 2012 coupon S. Turbotax 2012 coupon 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. Turbotax 2012 coupon Figure 36-1. Turbotax 2012 coupon Tests for Qualifying Child Please click here for the text description of the image. Turbotax 2012 coupon Qualifying child Extended active duty. Turbotax 2012 coupon   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Turbotax 2012 coupon 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. Turbotax 2012 coupon Birth or death of a child. Turbotax 2012 coupon   A child who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the child's home for more than half the time he or she was alive in 2013. Turbotax 2012 coupon Temporary absences. Turbotax 2012 coupon   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. Turbotax 2012 coupon Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Turbotax 2012 coupon Kidnapped child. Turbotax 2012 coupon    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. Turbotax 2012 coupon The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or your child's family. Turbotax 2012 coupon This treatment applies for all years until the child is returned. Turbotax 2012 coupon 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. Turbotax 2012 coupon   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Turbotax 2012 coupon Joint Return Test To meet this test, the child cannot file a joint return for the year. Turbotax 2012 coupon Exception. Turbotax 2012 coupon   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. Turbotax 2012 coupon Example 1—child files joint return. Turbotax 2012 coupon You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Turbotax 2012 coupon He earned $25,000 for the year. Turbotax 2012 coupon The couple files a joint return. Turbotax 2012 coupon Because your daughter and her husband filed a joint return, she is not your qualifying child. Turbotax 2012 coupon Example 2—child files joint return only to claim a refund of withheld tax. Turbotax 2012 coupon Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Turbotax 2012 coupon They do not have a child. Turbotax 2012 coupon Neither is required to file a tax return. Turbotax 2012 coupon Taxes were taken out of their pay, so they filed a joint return only to get a refund of the withheld taxes. Turbotax 2012 coupon The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Turbotax 2012 coupon Example 3—child files joint return to claim American opportunity credit. Turbotax 2012 coupon The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Turbotax 2012 coupon 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. Turbotax 2012 coupon Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. Turbotax 2012 coupon The exception to the joint return test does not apply, so your son is not your qualifying child. Turbotax 2012 coupon Married child. Turbotax 2012 coupon   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. Turbotax 2012 coupon Social security number. Turbotax 2012 coupon   The qualifying child must have a valid social security number (SSN) unless the child was born and died in 2013 and you attach to your return a copy of the child's birth certificate, death certificate, or hospital records showing a live birth. Turbotax 2012 coupon You cannot claim the EIC on the basis of a qualifying child if: The qualifying child's SSN is missing from your tax return or is incorrect, The qualifying child's social security card says “Not valid for employment” and was issued for use in getting a federally funded benefit, or Instead of an SSN, the qualifying child has: An individual taxpayer identification number (ITIN), which is issued to a noncitizen who cannot get an SSN, or An adoption taxpayer identification number (ATIN), which is issued to adopting parents who cannot get an SSN for the child being adopted until the adoption is final. Turbotax 2012 coupon   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. Turbotax 2012 coupon For more information about SSNs, see Rule 2 . Turbotax 2012 coupon Rule 9. Turbotax 2012 coupon 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. Turbotax 2012 coupon However, only one of these persons can actually treat the child as a qualifying child. Turbotax 2012 coupon 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). Turbotax 2012 coupon The exemption for the child. Turbotax 2012 coupon The child tax credit. Turbotax 2012 coupon Head of household filing status. Turbotax 2012 coupon The credit for child and dependent care expenses. Turbotax 2012 coupon The exclusion for dependent care benefits. Turbotax 2012 coupon The EIC. Turbotax 2012 coupon The other person cannot take any of these benefits based on this qualifying child. Turbotax 2012 coupon In other words, you and the other person cannot agree to divide these tax benefits between you. Turbotax 2012 coupon The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Turbotax 2012 coupon The tiebreaker rules explained next explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Turbotax 2012 coupon However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Turbotax 2012 coupon Tiebreaker rules. Turbotax 2012 coupon   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. Turbotax 2012 coupon If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon See Example 8 . Turbotax 2012 coupon   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. Turbotax 2012 coupon See Examples 1 through 13 . Turbotax 2012 coupon   If you cannot claim the EIC because your qualifying child is treated under the tiebreaker rules as the qualifying child of another person for 2013, you may be able to take the EIC using a different qualifying child, but you cannot take the EIC using the rules in Part C for people who do not have a qualifying child. Turbotax 2012 coupon If the other person cannot claim the EIC. Turbotax 2012 coupon   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. Turbotax 2012 coupon See Examples 6 and 7 . Turbotax 2012 coupon 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. Turbotax 2012 coupon Examples. Turbotax 2012 coupon The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Turbotax 2012 coupon Example 1. Turbotax 2012 coupon You and your 2-year-old son Jimmy lived with your mother all year. Turbotax 2012 coupon You are 25 years old, unmarried, and your AGI is $9,000. Turbotax 2012 coupon Your only income was $9,000 from a part-time job. Turbotax 2012 coupon Your mother's only income was $20,000 from her job, and her AGI is $20,000. Turbotax 2012 coupon Jimmy's father did not live with you or Jimmy. Turbotax 2012 coupon The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Turbotax 2012 coupon 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. Turbotax 2012 coupon However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier for which that person qualifies). Turbotax 2012 coupon He is not a qualifying child of anyone else, including his father. Turbotax 2012 coupon 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). Turbotax 2012 coupon Example 2. Turbotax 2012 coupon The facts are the same as in Example 1 except your AGI is $25,000. Turbotax 2012 coupon Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Turbotax 2012 coupon Only you can claim him. Turbotax 2012 coupon Example 3. Turbotax 2012 coupon The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon Example 4. Turbotax 2012 coupon 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. Turbotax 2012 coupon Only one of you can claim each child. Turbotax 2012 coupon However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Turbotax 2012 coupon For example, if you claim one child, your mother can claim the other two. Turbotax 2012 coupon Example 5. Turbotax 2012 coupon The facts are the same as in Example 1 except that you are only 18 years old. Turbotax 2012 coupon This means you are a qualifying child of your mother. Turbotax 2012 coupon Because of Rule 10 , discussed next, you cannot claim the EIC and cannot claim Jimmy as a qualifying child. Turbotax 2012 coupon Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Turbotax 2012 coupon 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. Turbotax 2012 coupon Example 6. Turbotax 2012 coupon The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Turbotax 2012 coupon Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Turbotax 2012 coupon Example 7. Turbotax 2012 coupon The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Turbotax 2012 coupon Your earned income is too high for you to claim the EIC. Turbotax 2012 coupon But your mother cannot claim the EIC either, because her AGI is not higher than yours. Turbotax 2012 coupon Example 8. Turbotax 2012 coupon The facts are the same as in Example 1 except that you and Jimmy's father are married to each other, live with Jimmy and your mother, and have an AGI of $30,000 on a joint return. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon In other words, each parent's AGI can be treated as $15,000. Turbotax 2012 coupon Example 9. Turbotax 2012 coupon You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Turbotax 2012 coupon In August and September, Joey lived with you. Turbotax 2012 coupon For the rest of the year, Joey lived with your husband, who is Joey's father. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon You and your husband will file separate returns. Turbotax 2012 coupon Your husband agrees to let you treat Joey as a qualifying child. Turbotax 2012 coupon 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. Turbotax 2012 coupon However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Turbotax 2012 coupon See Rule 3 . Turbotax 2012 coupon Example 10. Turbotax 2012 coupon The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Turbotax 2012 coupon In this case, only your husband will be allowed to treat Joey as a qualifying child. Turbotax 2012 coupon This is because, during 2013, the boy lived with him longer than with you. Turbotax 2012 coupon You cannot claim the EIC (either with or without a qualifying child). Turbotax 2012 coupon 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. Turbotax 2012 coupon See Rule 3 . Turbotax 2012 coupon Example 11. Turbotax 2012 coupon You, your 5-year-old son and your son's father lived together all year. Turbotax 2012 coupon You and your son's father are not married. Turbotax 2012 coupon 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. Turbotax 2012 coupon Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Turbotax 2012 coupon Neither of you had any other income. Turbotax 2012 coupon Your son's father agrees to let you treat the child as a qualifying child. Turbotax 2012 coupon 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. Turbotax 2012 coupon Example 12. Turbotax 2012 coupon 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. Turbotax 2012 coupon In this case, only your son's father will be allowed to treat your son as a qualifying child. Turbotax 2012 coupon This is because his AGI, $14,000, is more than your AGI, $12,000. Turbotax 2012 coupon You cannot claim the EIC (either with or without a qualifying child). Turbotax 2012 coupon Example 13. Turbotax 2012 coupon You and your 7-year-old niece, your sister's child, lived with your mother all year. Turbotax 2012 coupon You are 25 years old, and your AGI is $9,300. Turbotax 2012 coupon Your only income was from a part-time job. Turbotax 2012 coupon Your mother's AGI is $15,000. Turbotax 2012 coupon Her only income was from her job. Turbotax 2012 coupon Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Turbotax 2012 coupon 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. Turbotax 2012 coupon However, only your mother can treat her as a qualifying child. Turbotax 2012 coupon This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Turbotax 2012 coupon Special rule for divorced or separated parents (or parents who live apart). Turbotax 2012 coupon   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. Turbotax 2012 coupon The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of 2013, whether or not they are or were married. Turbotax 2012 coupon The child received over half of his or her support for the year from the parents. Turbotax 2012 coupon The child is in the custody of one or both parents for more than half of 2013. Turbotax 2012 coupon Either of the following statements is true. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon  For details, see chapter 3. Turbotax 2012 coupon Also see Applying Rule 9 to divorced or separated parents (or parents who live apart) , next. Turbotax 2012 coupon Applying Rule 9 to divorced or separated parents (or parents who live apart). Turbotax 2012 coupon   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. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon Example 1. Turbotax 2012 coupon You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Turbotax 2012 coupon Your AGI is $10,000. Turbotax 2012 coupon Your mother’s AGI is $25,000. Turbotax 2012 coupon Your son's father did not live with you or your son. Turbotax 2012 coupon Under the special rule for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for the child. Turbotax 2012 coupon 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. Turbotax 2012 coupon You and your mother did not have any child care expenses or dependent care benefits. Turbotax 2012 coupon 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. Turbotax 2012 coupon Example 2. Turbotax 2012 coupon The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Turbotax 2012 coupon Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Turbotax 2012 coupon Example 3. Turbotax 2012 coupon 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. Turbotax 2012 coupon Your mother also claims him as a qualifying child for head of household filing status. Turbotax 2012 coupon You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Turbotax 2012 coupon The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Turbotax 2012 coupon Rule 10. Turbotax 2012 coupon You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Turbotax 2012 coupon ) if all of the following statements are true. Turbotax 2012 coupon You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Turbotax 2012 coupon Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). Turbotax 2012 coupon 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. Turbotax 2012 coupon You lived with that person in the United States for more than half of the year. Turbotax 2012 coupon 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). Turbotax 2012 coupon For more details about the tests to be a qualifying child, see Rule 8 . Turbotax 2012 coupon If you are a qualifying child of another taxpayer, you cannot claim the EIC. Turbotax 2012 coupon 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. Turbotax 2012 coupon Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Turbotax 2012 coupon Example. Turbotax 2012 coupon You and your daughter lived with your mother all year. Turbotax 2012 coupon You are 22 years old, unmarried, and attended a trade school full time. Turbotax 2012 coupon You had a part-time job and earned $5,700. Turbotax 2012 coupon You had no other income. Turbotax 2012 coupon Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Turbotax 2012 coupon She can claim the EIC if she meets all the other requirements. Turbotax 2012 coupon Because you are your mother's qualifying child, you cannot claim the EIC. Turbotax 2012 coupon This is so even if your mother cannot or does not claim the EIC. Turbotax 2012 coupon Child of person not required to file a return. Turbotax 2012 coupon   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. Turbotax 2012 coupon Example. Turbotax 2012 coupon 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. Turbotax 2012 coupon As a result, you are not your mother's qualifying child. Turbotax 2012 coupon You can claim the EIC if you meet all the other requirements to do so. Turbotax 2012 coupon   See Rule 10 in Publication 596 for additional examples. Turbotax 2012 coupon Part C. Turbotax 2012 coupon Rules If You Do Not Have a Qualifying Child Read this part if you: Do not have a qualifying child, and Have met all the rules in Part A . Turbotax 2012 coupon  Part C discusses Rules 11 through 14. Turbotax 2012 coupon You must meet all four of these rules, in addition to the rules in Parts A and D , to qualify for the earned income credit without a qualifying child. Turbotax 2012 coupon If you have a qualifying child, the rules in this part do not apply to you. Turbotax 2012 coupon You can claim the credit only if you meet all the rules in Parts A, B, and D. Turbotax 2012 coupon See Rule 8 to find out if you have a qualifying child. Turbotax 2012 coupon Rule 11. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon It does not matter which spouse meets the age test, as long as one of the spouses does. Turbotax 2012 coupon You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Turbotax 2012 coupon 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. Turbotax 2012 coupon If neither you nor your spouse meets the age test, you cannot claim the EIC. Turbotax 2012 coupon Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Turbotax 2012 coupon Death of spouse. Turbotax 2012 coupon   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. Turbotax 2012 coupon Example 1. Turbotax 2012 coupon You are age 28 and unmarried. Turbotax 2012 coupon You meet the age test. Turbotax 2012 coupon Example 2—spouse meets age test. Turbotax 2012 coupon You are married and filing a joint return. Turbotax 2012 coupon You are age 23 and your spouse is age 27. Turbotax 2012 coupon You meet the age test because your spouse is at least age 25 but under age 65. Turbotax 2012 coupon Example 3—spouse dies in 2013. Turbotax 2012 coupon You are married and filing a joint return with your spouse who died in August 2013. Turbotax 2012 coupon You are age 67. Turbotax 2012 coupon Your spouse would have become age 65 in November 2013. Turbotax 2012 coupon Because your spouse was under age 65 when she died, you meet the age test. Turbotax 2012 coupon Rule 12. Turbotax 2012 coupon 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. Turbotax 2012 coupon 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. Turbotax 2012 coupon If you are not sure whether someone else can claim you (or your spouse, if filing a joint return) as a dependent, read the rules for claiming a dependent in chapter 3. Turbotax 2012 coupon If someone else can claim you (or your spouse, if filing a joint return) as a dependent on his or her return, but does not, you still cannot claim the credit. Turbotax 2012 coupon Example 1. Turbotax 2012 coupon In 2013, you were age 25, single, and living at home with your parents. Turbotax 2012 coupon You worked and were not a student. Turbotax 2012 coupon You earned $7,500. Turbotax 2012 coupon Your parents cannot claim you as a dependent. Turbotax 2012 coupon 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. Turbotax 2012 coupon You meet this rule. Turbotax 2012 coupon You can claim the EIC if you meet all the other requirements. Turbotax 2012 coupon Example 2. Turbotax 2012 coupon The facts are the same as in Example 1 , except that you earned $2,000. Turbotax 2012 coupon Your parents can claim you as a dependent but decide not to. Turbotax 2012 coupon You do not meet this rule. Turbotax 2012 coupon You cannot claim the credit because your parents could have claimed you as a dependent. Turbotax 2012 coupon Joint returns. Turbotax 2012 coupon   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Turbotax 2012 coupon   However, another person may be able to claim you as a dependent if you and your spouse file a joint return only to get a refund of income tax withheld or estimated tax paid. Turbotax 2012 coupon But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Turbotax 2012 coupon Example 1. Turbotax 2012 coupon You are 26 years old. Turbotax 2012 coupon You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Turbotax 2012 coupon Neither you nor your wife is required to file a tax return. Turbotax 2012 coupon You do not have a child. Turbotax 2012 coupon Taxes were taken out of your pay, so you file a joint return only to get a refund of the withheld taxes. Turbotax 2012 coupon Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Turbotax 2012 coupon They can claim exemptions for you and your wife if all the other tests to do so are met. Turbotax 2012 coupon Example 2. Turbotax 2012 coupon The facts are the same as in Example 1 except no taxes were taken out of your pay. Turbotax 2012 coupon 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. Turbotax 2012 coupon Because claiming the EIC is your reason for filing the return, you are not filing it only to get a refund of income tax withheld or estimated tax paid. Turbotax 2012 coupon Your parents cannot claim an exemption for either you or your wife. Turbotax 2012 coupon Rule 13. Turbotax 2012 coupon You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Turbotax 2012 coupon ) if all of the following statements are true. Turbotax 2012 coupon You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Turbotax 2012 coupon Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). Turbotax 2012 coupon You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student (as defined in Rule 8 ), and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. Turbotax 2012 coupon You lived with that person in the United States for more than half of the year. Turbotax 2012 coupon 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). Turbotax 2012 coupon For more details about the tests to be a qualifying child, see Rule 8 . Turbotax 2012 coupon If you are a qualifying child of another taxpayer, you cannot claim the EIC. Turbotax 2012 coupon 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. Turbotax 2012 coupon Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Turbotax 2012 coupon Example. Turbotax 2012 coupon You lived with your mother all year. Turbotax 2012 coupon You are age 26, unmarried, and permanently and totally disabled. Turbotax 2012 coupon Your only income was from a community center where you went three days a week to answer telephones. Turbotax 2012 coupon You earned $5,000 for the year and provided more than half of your own support. Turbotax 2012 coupon Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Turbotax 2012 coupon She can claim the EIC if she meets all the other requirements. Turbotax 2012 coupon Because you are a qualifying child of your mother, you cannot claim the EIC. Turbotax 2012 coupon This is so even if your mother cannot or does not claim the EIC. Turbotax 2012 coupon Joint returns. Turbotax 2012 coupon   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Turbotax 2012 coupon   However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return for the year only to get a refund of income tax withheld or estimated tax paid. Turbotax 2012 coupon But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Turbotax 2012 coupon Child of person not required to file a return. Turbotax 2012 coupon   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. Turbotax 2012 coupon Example. Turbotax 2012 coupon You lived all year with your father. Turbotax 2012 coupon You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Turbotax 2012 coupon You have no other income, no children, and provided more than half of your own support. Turbotax 2012 coupon Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Turbotax 2012 coupon As a result, you are not your father's qualifying child. Turbotax 2012 coupon You can claim the EIC if you meet all the other requirements to do so. Turbotax 2012 coupon   See Rule 13 in Publication 596 for additional examples. Turbotax 2012 coupon Rule 14. Turbotax 2012 coupon 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. Turbotax 2012 coupon If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Turbotax 2012 coupon United States. Turbotax 2012 coupon   This means the 50 states and the District of Columbia. Turbotax 2012 coupon It does not include Puerto Rico or U. Turbotax 2012 coupon S. Turbotax 2012 coupon possessions such as Guam. Turbotax 2012 coupon Homeless shelter. Turbotax 2012 coupon   Your home can be any location where you regularly live. Turbotax 2012 coupon You do not need a traditional home. Turbotax 2012 coupon If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Turbotax 2012 coupon Military personnel stationed outside the United States. Turbotax 2012 coupon   U. Turbotax 2012 coupon S. Turbotax 2012 coupon military personnel stationed outside the United States on extended active duty (defined in Rule 8 ) are considered to live in the United States during that duty period for purposes of the EIC. Turbotax 2012 coupon Part D. Turbotax 2012 coupon Figuring and Claiming the EIC Read this part if you have met all the rules in Parts A and B, or all the rules in Parts A and C. Turbotax 2012 coupon Part D discusses Rule 15 . Turbotax 2012 coupon You must meet this rule, in addition to the rules in Parts A and B , or Parts A and C , to qualify for the earned income credit. Turbotax 2012 coupon This part of the chapter also explains how to figure the amount of your credit. Turbotax 2012 coupon You have two choices. Turbotax 2012 coupon Have the IRS figure the EIC for you. Turbotax 2012 coupon If you want to do this, see IRS Will Figure the EIC for You . Turbotax 2012 coupon Figure the EIC yourself. Turbotax 2012 coupon If you want to do this, see How To Figure the EIC Yourself . Turbotax 2012 coupon Rule 15. Turbotax 2012 coupon 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. Turbotax 2012 coupon Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Turbotax 2012 coupon Employee pay is earned income only if it is taxable. Turbotax 2012 coupon Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Turbotax 2012 coupon But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Turbotax 2012 coupon Earned income is explained in detail in Rule 7 . Turbotax 2012 coupon Figuring earned income. Turbotax 2012 coupon   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. Turbotax 2012 coupon   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. Turbotax 2012 coupon   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). Turbotax 2012 coupon You will then reduce that amount by any amount included on that line and described in the following list: Scholarship or fellowship grants not reported on a Form W-2, Inmate's income, and Pension or annuity from deferred compensation plans. Turbotax 2012 coupon Scholarship or fellowship grants not reported on a Form W-2. Turbotax 2012 coupon   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. Turbotax 2012 coupon Inmate's income. Turbotax 2012 coupon   Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Turbotax 2012 coupon This includes amounts received for work performed while in a work release program or while in a halfway house. Turbotax 2012 coupon 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). Turbotax 2012 coupon Pension or annuity from deferred compensation plans. Turbotax 2012 coupon   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. Turbotax 2012 coupon 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). Turbotax 2012 coupon This amount may be reported in box 11 of your Form W-2. Turbotax 2012 coupon If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity. Turbotax 2012 coupon Clergy. Turbotax 2012 coupon   If you are a member of the clergy who files Schedule SE and the amount on line 2 of that schedule includes an amount that was also reported on line 7 (Form 1040), subtract that amount from the amount on line 7 (Form 1040) and enter the result in the first space of the worksheet in Step 5 of the Form 1040 instructions for lines 64a and 64b. Turbotax 2012 coupon Put “Clergy” on the dotted line next to line 64a (Form 1040). Turbotax 2012 coupon Church employees. Turbotax 2012 coupon    A church employee means an employee (other than a minister or member of a religious order) of a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Turbotax 2012 coupon If you received wages as a