Worksheet B—Earned Income Credit —Lines 64a and 64b

Summary: This flowchart represents the information listed on the Worksheet B, page 1 to determine Earned Income Credit.

Start

This is the starting of the flowchart.

Process (a)

Use this worksheet if you answered Yes to Step 5, questions 3, on page 48, and you do not elect to use your 2007 earned income to figure your EIC (see page 48).

Decision (1)

Are you self-employed, member of the clergy, or have church employee income filing Schedule SE?

Process (b)

PART 1: 1a. Enter the amount from Schedule SE, Section A, line 3, or Section B, line 3, whichever applies.

Process (c)

1b. Enter any amount from Schedule SE, Section B, line 4b, and line 5a.

Process (d)

1c. Combine lines 1a and 1b.

Process (e)

1d. Enter the amount from Schedule SE, Section A, line 6, or Section B, line 13, whichever applies.

Process (f)

1e. Subtract line 1d from 1c.

Decision (2)

Are you self-employed and NOT required to file Schedule SE?

Process (g)

PART 2: 2. Do not include on these lines any statutory employee income, any net profit from services performed as notary public, or any amount exempt from self-employment tax as the result of the filing and approval of Form 4029 or Form 4361.

Process (h)

2a. Enter any net farm profit or (loss) from Schedule F, line 36, and from farm partnerships, Schedule K-1 (Form 1065), box 14, code A*.
Footnote: If you have any Schedule K-1 amounts, complete the appropriate line(s) of Schedule SE, Section A. Reduce these amounts before entering them on schedule SE by any partnership section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties. Enter your name and social security number on Schedule SE and attach it to your return.

Process (i)

2b. Enter any net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1*.
Footnote: If you have any Schedule K-1 amounts, complete the appropriate line(s) of Schedule SE, Section A. Reduce these amounts before entering them on schedule SE by any partnership section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties. Enter your name and social security number on Schedule SE and attach it to your return.

Process (j)

2c. Combine lines 2a and 2b.

Process (k)

Part 3: For Statutory Employees Filing Schedule C or C-EZ. 3. Enter the amount from Schedule C, line 1, or Schedule C-EZ, line 1, that you are filing as a statutory employee.

Process (l)

Part 4: For All Filers Using Worksheet B. Note. If line 4b includes income on which you should have paid self-employment tax but did not, we may reduce your credit by the amount of self-employment tax not paid. 4a. Enter your earned income from Step 5 on page 48.

Process (m)

4b. Combine lines 1e, 2c, 3, and 4a. This is your total earned income.

Decision (3)

Is line 4b zero or less?

Process (n)

STOP. You cannot take the credit. Enter No on the dotted line next to line 64a.

Decision (4)

Do you have any qualifying children?

Decision (5)

Is line 4b less than $12,880 ($15,880 if married filing jointly)?

Process (o)

If you want the Internal Revenue Service to figure your credit, see page 48. If you want to figure the credit yourself, enter the amount from line 4b on line 6 (page 52).

Process (p)

STOP. You cannot take the credit. Enter No on the dotted line next to line 64a.

Decision (6)

Do you have 2 or more qualifying children?

Decision (7)

Is line 4b less than $38,646 ($41,646 if married filing jointly)?

Decision (8)

Is line 4b less then $33,995 ($36,995 if married filing jointly)?

End

This is the ending of the flowchart.

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