To figure the EIC yourself, use the EIC worksheet in the instructions for the form you are using (Form 1040, Form 1040A, or Form 1040EZ). If you have a qualifying child, complete Schedule EIC (discussed on page 25) and attach it to your tax return.taxmap/wpubs/p596-012.htm#en_us_publink100023421
If you file Form 1040, you will need to decide whether to use EIC Worksheet A or EIC Worksheet B to figure the amount of your EIC. This section explains how to use these worksheets and how to report the EIC on your return.taxmap/wpubs/p596-012.htm#en_us_publink100023422
Use EIC Worksheet A if you are not self-employed, a member of the clergy or a church employee who files Schedule SE, or a statutory employee filing Schedule C or C-EZ.taxmap/wpubs/p596-012.htm#en_us_publink100023423
Use EIC Worksheet B if you are self-employed, a member of the clergy or a church employee who files Schedule SE, or a statutory employee filing Schedule C or C-EZ. If any of the following situations apply to you, read the paragraph and then complete EIC Worksheet B.taxmap/wpubs/p596-012.htm#en_us_publink100023424
If your net earnings from self-employment are $400 or more, be sure to correctly fill out Schedule SE (Form 1040) and pay the proper amount of self-employment tax. If you do not, you may not get all the EIC you are entitled to.
When figuring your net earnings from self-employment, you must claim all your allowable business expenses.
Using the optional methods on Schedule SE to figure your net earnings from self-employment may qualify you for the EIC or give you a larger credit. If your net earnings (without using the optional methods) are less than $4,548, see the instructions for Schedule SE for details about the optional methods.taxmap/wpubs/p596-012.htm#en_us_publink100023426
You must complete both Parts 1 and 2 of EIC Worksheet B if all of the following conditions apply to you.
- You are married filing a joint return.
- Both you and your spouse have income from self-employment.
- You or your spouse files a Schedule SE and the other spouse does not file Schedule SE.
If you are a member of a qualified joint venture that is a passive activity with rental real estate income not subject to self-employment tax, do not include any income or loss from that activity on EIC Worksheet B. It is not earned income.taxmap/wpubs/p596-012.htm#en_us_publink100023427
Statutory employees report wages and expenses on Schedule C or C-EZ. They do not file Schedule SE. If you are a statutory employee, enter the amount from line 1 of Schedule C or C-EZ in Part 3 when you complete EIC Worksheet B.