Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Unemployed Tax Credit

Www Irs GovFile Taxes 20121040ez Tax Form And BookletIrs 1040ez 20111040nr Online Tax CalculatorTaxact.com 20111040nr Tax FormEfile State Taxes For Free1040ez Form And InstructionsWhat If I Did Not File 2011 TaxesWhere Can I Get 1040ez Tax Forms FreeFill Out 1040ez OnlineEasy 10402011 1040How Do I File My Taxes For Last YearForm 1040 EsFederal Tax Return FormsTax 1040ezPrintable 1040ez PdfMilitary Tax DeductionIrs Form 1040Free Irs Tax FilingIrs Ez FormCan I Efile My State Taxes For FreeE File IrsDo Students Have To File TaxesAmend Federal Tax ReturnState 1040 Ez FormTax Planning Us 2006 TaxesE File 2012Senior Taxes2012 990 Tax FormsFree Online Tax FilingFile Free State TaxesTax Return Preparation State Income TaxesFree State Tax Return1040x Turbotax1040x Form For 20131040ez Form PrintableCan I File 1040x Online

Unemployed Tax Credit

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

Father's Day

Father's Day is celebrated on the third Sunday of June. This year it takes place on June 16.

Learn about the history of the holiday and find ideas to celebrate dad.


The Unemployed Tax Credit

Unemployed tax credit 2. Unemployed tax credit   The Tax and Filing Requirements Table of Contents Returns and Filing Requirements Payment of TaxFederal Tax Deposits Must be Made by Electronic Funds Transfer All organizations subject to the tax on unrelated business income, except the exempt trusts described in section 511(b)(2), are taxable at corporate rates on that income. Unemployed tax credit All exempt trusts subject to the tax on unrelated business income that, if not exempt, would be taxable as trusts are taxable at trust rates on that income. Unemployed tax credit However, an exempt trust may not claim the deduction for a personal exemption that is normally allowed to a trust. Unemployed tax credit The tax is imposed on the organization's unrelated business taxable income (described in chapter 4). Unemployed tax credit The tax is reduced by any applicable tax credits, including the general business credits (such as the investment credit) and the foreign tax credit. Unemployed tax credit Alternative minimum tax. Unemployed tax credit   Organizations liable for tax on unrelated business income may be liable for alternative minimum tax on certain adjustments and tax preference items. Unemployed tax credit Returns and Filing Requirements An exempt organization subject to the tax on unrelated business income must file Form 990-T and attach any required supporting schedules and forms. Unemployed tax credit The obligation to file Form 990-T is in addition to the obligation to file any other required returns. Unemployed tax credit Form 990-T is required if the organization's gross income from unrelated businesses is $1,000 or more. Unemployed tax credit An exempt organization must report income from all its unrelated businesses on a single Form 990-T. Unemployed tax credit Each organization must file a separate Form 990-T, except section 501(c)(2) title holding corporations and organizations receiving their earnings that file a consolidated return under section 1501. Unemployed tax credit The various provisions of tax law relating to accounting periods, accounting methods, at-risk limits (described in section 465), assessments, and collection penalties that apply to tax returns generally also apply to Form 990-T. Unemployed tax credit When to file. Unemployed tax credit   The Form 990-T of an employees' trust described in section 401(a), an IRA (including a traditional, SEP, SIMPLE, Roth, or Coverdell IRA), or an MSA must be filed by the 15th day of the 4th month after the end of its tax year. Unemployed tax credit The Form 990-T of any other exempt organization must be filed by the 15th day of the 5th month after the end of its tax year. Unemployed tax credit If the due date falls on a Saturday, Sunday, or legal holiday, the return is due by the next business day. Unemployed tax credit Extension of time to file. Unemployed tax credit   A Form 990-T filer may request an automatic 3-month (6 months for corporation) extension of time to file a return by submitting Form 8868, Application for Extension of Time To File an Exempt Organization Return. Unemployed tax credit The Form 990-T filer may also use Form 8868 to apply for an additional (not automatic) 3-month extension to file the return if the original 3-month extension was not enough time. Unemployed tax credit Public Inspection Requirements of Section 501(c)(3) Organizations. Unemployed tax credit   Under section 6104(d), a section 501(c)(3) organization that has gross income from an unrelated trade or business of $1,000 or more must make its annual exempt organization business income tax return (including amended returns) available for public inspection. Unemployed tax credit    A section 501(c)(3) organization filing the Form 990-T only to request a credit for certain federal excise taxes paid does not have to make the Form 990-T available for public inspection. Unemployed tax credit Payment of Tax Estimated tax. Unemployed tax credit   A tax-exempt organization must make estimated tax payments if it expects its tax (unrelated business income tax after certain adjustments) to be $500 or more. Unemployed tax credit Estimated tax payments are generally due by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. Unemployed tax credit If any due date falls on a Saturday, Sunday, or legal holiday, the payment is due on the next business day. Unemployed tax credit   Any organization that fails to pay the proper estimated tax when due may be charged an underpayment penalty for the period of underpayment. Unemployed tax credit Generally, to avoid the estimated tax penalty, the organization must make estimated tax payments that total 100% of the organization's current tax year liability. Unemployed tax credit However, an organization can base its required estimated tax payments on 100% of the tax shown on its return for the preceding year (unless no tax is shown) if its taxable income for each of the 3 preceding tax years was less than $1 million. Unemployed tax credit If an organization's taxable income for any of those years was $1 million or more, it can base only its first required installment payment on its last year's tax. Unemployed tax credit   All tax-exempt organizations should use Form 990-W (Worksheet), to figure their estimated tax. Unemployed tax credit    Tax due with Form 990-T. Unemployed tax credit   Any tax due with Form 990-T must be paid in full when the return is filed, but no later than the date the return is due (determined without extensions). Unemployed tax credit Federal Tax Deposits Must be Made by Electronic Funds Transfer You must use electronic funds transfer to make all federal deposits (such as deposits of estimated tax, employment tax, and excise tax). Unemployed tax credit Forms 8109 and 8109-B, Federal Tax Deposit Coupon, are no longer in use. Unemployed tax credit Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Unemployed tax credit If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. Unemployed tax credit Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Unemployed tax credit EFTPS is a free service provided by the Department of Treasury. Unemployed tax credit Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Unemployed tax credit To get more information about EFTPS or to enroll in EFTPS, visit www. Unemployed tax credit eftps. Unemployed tax credit gov or call 1-800-555-4477. Unemployed tax credit Additional information about EFTPS is available in Publication 966, The Secure Way to Pay Your Federal Taxes. Unemployed tax credit Deposits on business days only. Unemployed tax credit   If a deposit is required to be made on a day that is not a business day, the deposit is considered timely if it is made by the close of the next business day. Unemployed tax credit A business day is any day other than a Saturday, Sunday, or legal holiday. Unemployed tax credit For example, if a deposit is required to be made on a Friday and Friday is a legal holiday, the deposit will be considered timely if it is made by the following Monday (if that Monday is a business day). Unemployed tax credit The term "legal holiday" means any legal holiday in the District of Columbia. Unemployed tax credit Prev  Up  Next   Home   More Online Publications