Example 2. Sharon Rose(p36)

Sharon Rose is age 63 and retired. She received $7,000 in social security benefits during the year and $7,500 from a part-time job. She also received a taxable pension of $6,400. Sharon had no other income. Her AGI on line 22 of Form 1040A is $13,900 ($7,500 + $6,400).

Sharon is not married and lived alone in the United States for the entire year. She cannot be claimed as a dependent on anyone else's return. She does not have any investment income and does not have a qualifying child.

Sharon reads the steps for eligibility in her Form 1040A instructions. In Step 1 she discovers that, because her AGI ($13,900) is not less than $13,440, she cannot take the EIC. She completes the rest of her Form 1040A and files it with the IRS.