Instructions for Form 1040
taxmap/instr/i1040gi-014.htm#TXMP0af268ebtaxmap/instr/i1040gi-014.htm#TXMP15b1f2d2The EIC is a credit for certain people who work. The credit may
give you a refund even if you do not owe any tax.
taxmap/instr/i1040gi-014.htm#TXMP32688043
- Follow the steps below.
- Complete the worksheet that applies to you or let the IRS
figure the credit for you.
- If you have a qualifying child, complete and attach Schedule
EIC.
For help in determining if you are eligible for the EIC, go
to
www.irs.gov/eitc and click on
EITC Assistant.
This service is available in English and Spanish.
 | If you take the EIC even though you are not eligible and
it is determined that your error is due to reckless or intentional disregard of
the EIC rules, you will not be allowed to take the credit for 2 years even if
you are otherwise eligible to do so. If you fraudulently take the EIC, you will
not be allowed to take the credit for 10 years. See Form 8862, who must file, on
page 48. You may also have to pay penalties. |
taxmap/instr/i1040gi-014.htm#TXMP301664b5 Step 1 All Filers
| 1. | If, in 2010: ● 3 or more children lived with you, is the amount
on Form 1040, line 38, less than $43,352 ($48,362 if married filing jointly)? ● 2 children lived with you, is the amount on
Form 1040, line 38, less than $40,363 ($45,373 if married filing jointly)? ● 1 child lived with you, is the amount on Form
1040, line 38, less than $35,535 ($40,545 if married filing jointly)? ● No children lived with you, is the amount on
Form 1040, line 38, less than $13,460 ($18,470 if married filing jointly)? | No. Stop. | You cannot take the credit. |
|
| 2. | Do you, and your spouse if filing a joint return, have a
social security number that allows you to work or is valid for EIC purposes (see
page 48)?| No. Stop. | You cannot take the credit. Enter
No on the dotted line next to line 64a. |
|
| 3. | Is your filing status married filing separately?| Yes. Stop. | You cannot take the credit. |
|
| 4. | Are you filing Form 2555 or 2555-EZ (relating to foreign
earned income)?| Yes. Stop. | You cannot take the credit. |
|
| 5. | Were you or your spouse a nonresident alien for any part
of 2010?| Yes. | See
Nonresident aliens on page 48. |
|
taxmap/instr/i1040gi-014.htm#TXMP2104e5b3 Step 2 Investment Income
| 1. | Add the amounts from Form 1040:| | Line 8a | | | | | | Line 8b | + | | | | | Line 9a | + | | | | | Line 13* | + | | | | | | | | | | Investment Income
| = | | | | *If line 13 is a loss, enter -0-. | | | |
|
| 2. | Is your investment income more than $3,100?| No. | Skip question 3; go to question 4. |
|
| 3. | Are you filing Form 4797 (relating to sales of business property)?| Yes. | See
Form 4797 filers on page 48. |
| No. Stop. | You cannot take the credit. |
|
| 4. | Do any of the following apply for 2010? ● You are filing Schedule E. ● You are a member of a qualified joint venture
that is a passive activity reporting rental real estate income not subject to
self-employment tax on Schedule C or C-EZ. ● You are reporting income from the rental of
personal property not used in a trade or business. ● You are reporting income on Form 1040, line
21, from Form 8814 (relating to election to report child's interest and
dividends). | Yes. | You must use Worksheet 1 in Pub. 596 to see if you can
take the credit. |
| No. | Go to Step 3 on page 46. |
|
taxmap/instr/i1040gi-014.htm#TXMP3fda88c9 Step 3 Qualifying Child
| A qualifying child for the EIC is a child who is your... |
| Son, daughter, stepchild, foster child, brother, sister, stepbrother,
stepsister, half brother, half sister, or a descendant of any of them (for
example, your grandchild, niece, or nephew)
|
|
| was ... |
Under age 19 at the end of 2010 and younger than you
(or your spouse, if filing jointly)
|
| or |
| Under age 24 at the end of 2010, a student (see page 48),
and younger than you (or your spouse, if filing jointly) |
| or |
| Any age and permanently and totally disabled (see page 48) |
|
|
Who is not filing a joint return for 2010
or is filing a joint return for 2010 only as a claim for
refund (defined on page 47)
|
|
|
Who lived with you in the United States for more than half
of 2010.
If the child did not live with you for the required time,
see
Exception to time lived with you on page 47.
|
|
If the child meets the conditions to be a qualifying child of any other person
(other than your spouse if filing a joint return) for 2010, or the child was
married, see page 48. |
| |
| 1. | Do you have at least one child who meets the conditions to
be your qualifying child?| Yes. | The child must have a valid social security number (SSN)
as defined on page 48 unless the child was born and died in 2010. If at least
one qualifying child has a valid SSN (or was born or died in 2010), go to
question 2. Otherwise, you cannot take the credit. |
| No. | Skip question 2; go to Step 4. |
|
| 2. | Could you, or your spouse if filing a joint return, be a
qualifying child of another person in 2010?| Yes. Stop. | You cannot take the credit. Enter
No on the dotted line next to line 64a. |
| No. | Skip Step 4; go to Step 5 on page 47. |
|
taxmap/instr/i1040gi-014.htm#TXMP63d4103d Step 4 Filers Without a Qualifying Child
| 1. | Is the amount on Form 1040, line 38, less than $13,460 ($18,470
if married filing jointly)?| No. Stop. | You cannot take the credit. |
|
| 2. |
Could you, or your spouse if filing a joint return, be a qualifying child of
another person in 2010?| Yes. Stop. | You cannot take the credit. Enter
No on the dotted line next to line 64a. |
|
| 3. | Were you, or your spouse if filing a joint return, at least
age 25 but under age 65 at the end of 2010? If your spouse died in 2010, see
Pub. 596 before you answer.| No. Stop. | You cannot take the credit. |
|
| 4. | Was your main home, and your spouse's if filing a joint return,
in the United States for more than half of 2010? Members of the military
stationed outside the United States, see page 48 before you answer.| No. Stop. | You cannot take the credit. Enter
No on the dotted line next to line 64a. |
|
| 5. | Are you filing a joint return?| Yes. | Skip question 6; go to Step 5 on page 47. |
|
| 6. | Can you be claimed as a dependent on someone else's 2010
tax return?| Yes. Stop. | You cannot take the credit. |
| No. | Go to Step 5 on page 47. |
|
taxmap/instr/i1040gi-014.htm#TXMP1e859580 Step 5 Earned Income
| 1. | Are you filing Schedule SE because you were a member of the
clergy or you had church employee income of $108.28 or more?| Yes. | See
Clergy or
Church employees, whichever applies, on this page. |
|
| 2. | Figure earned income:| | Form 1040, line 7 | | | | | | | Subtract, if included on line 7, any: | | | | | | • | Taxable scholarship or fellowship grant not reported on
a Form W-2. | | | | | | • | Amount received for work performed while an inmate in
a penal institution (enter "PRI" and the amount subtracted on the dotted line
next to Form 1040,
line 7).
| | | | | | • | Amount received as a pension or annuity from a nonqualified
deferred compensation plan or a nongovernmental section 457 plan (enter "DFC"
and the amount subtracted on the dotted line next to Form 1040, line 7). This
amount may be shown in box 11 of Form W-2. If you received such an amount but
box 11 is blank, contact your employer for the amount received as a pension or
annuity.
|
 |
–
|
| | | | Add all of your nontaxable combat pay if you elect to
include it in earned income. Also enter this amount on Form 1040, line 64b. See
Combat pay, nontaxable on this page.
| | + | | | | |
Electing to include nontaxable combat pay may increase or decrease your EIC.
Figure the credit with and without your nontaxable combat pay before making the
election. | | | | | | |
Earned Income
= |
|
|
| 3. | Were you self-employed at any time in 2010, or are you filing
Schedule SE because you were a member of the clergy or you had church employee
income, or are you filing Schedule C or C-EZ as a statutory employee?| Yes. | Skip question 4 and Step 6; go to Worksheet B on page
50. |
|
| 4. | If you have: ● 3 or more qualifying children, is your earned
income less than $43,352 ($48,362 if married filing jointly)? ● 2 qualifying children, is your earned income
less than $40,363 ($45,373 if married filing jointly)? ● 1 qualifying child, is your earned income less
than $35,535 ($40,545 if married filing jointly)? ● No qualifying children, is your earned income
less than $13,460 ($18,470 if married filing jointly)? | No. Stop. | You cannot take the credit. |
|
taxmap/instr/i1040gi-014.htm#TXMP116f3ea4 Step 6 How To Figure the Credit
| 1. | Do you want the IRS to figure the credit for you?| Yes. | See Credit figured by the IRS on this page. |
| No. | Go to Worksheet A on page 49. |
|
taxmap/instr/i1040gi-014.htm#TXMP24329730taxmap/instr/i1040gi-014.htm#TXMP67d0c663An adopted child is always treated as your own child. An adopted
child includes a child lawfully placed with you for legal adoption.
taxmap/instr/i1040gi-014.htm#TXMP49a0383dDetermine how much of the amount on Form 1040, line 7, was also
reported on Schedule SE, line 5a. Subtract that amount from the amount on Form
1040, line 7, and enter the result in the first space of Step 5, line 2. Be sure
to answer
Yes
to question 3 in Step 5.
taxmap/instr/i1040gi-014.htm#TXMP6a57598cA claim for refund is a return filed only to get a refund of
withheld income tax or estimated tax paid. A return is not a claim for refund if
the making work pay credit, earned income credit, or any other similar
refundable credit is claimed on it.
taxmap/instr/i1040gi-014.htm#TXMP44f3e461The following instructions apply to ministers, members of religious
orders who have not taken a vow of poverty, and Christian Science practitioners.
If you are filing Schedule SE and the amount on line 2 of that schedule includes
an amount that was also reported on Form 1040, line 7:
- Enter
Clergy
on the dotted line next to Form 1040, line 64a. - Determine how much of the amount on Form 1040, line 7, was
also reported on Schedule SE, Section A, line 2, or Section B, line 2.
- Subtract that amount from the amount on Form 1040,
line 7. Enter the result in the first space of Step 5, line
2. - Be sure to answer
Yes
to question 3 in Step 5.
If you were a member of the U.S. Armed Forces who served in a
combat zone, certain pay is excluded from your income. See
Combat Zone Exclusion
in Pub. 3. You can elect to include this pay in your earned income when figuring
the EIC. The amount of your nontaxable combat pay should be shown in box 12 of
Form(s) W-2 with code Q. If you are filing a joint return and both you and your
spouse received nontaxable combat pay, you can each make your own election.
taxmap/instr/i1040gi-014.htm#TXMP381dced5To have the IRS figure your EIC:
- Enter
EIC
on the dotted line next to Form 1040, line 64a. - Be sure you enter the nontaxable combat pay you elect to include
in earned income on Form 1040, line 64b. See
Combat pay, nontaxable above.
- If you have a qualifying child, complete and attach Schedule
EIC. If your EIC for a year after 1996 was reduced or disallowed, see
Form 8862, who must file on page 48.
Temporary absences by you or the child for special circumstances,
such as school, vacation, business, medical care, military service, or detention
in a juvenile facility, count as time the child lived with you. Also see
Kidnapped child on page 17 or
Members of the military
on page 48. A child is considered to have lived with you for all of 2010 if the
child was born or died in 2010 and your home was this child's home for the
entire time he or she was alive in 2010.
taxmap/instr/i1040gi-014.htm#TXMP281b20a8If the amount on Form 1040, line 13, includes an amount from
Form 4797, you must use Worksheet 1 in Pub. 596 to see if you can take the EIC.
Otherwise, stop; you cannot take the EIC.
taxmap/instr/i1040gi-014.htm#TXMP45e1494fYou must file Form 8862 if your EIC for a year after 1996 was
reduced or disallowed for any reason other than a math or clerical error. But do
not file Form 8862 if either of the following applies.
- You filed Form 8862 for another year, the EIC was allowed
for that year, and your EIC has not been reduced or disallowed again for any
reason other than a math or clerical error.
- You are taking the EIC without a qualifying child and the
only reason your EIC was reduced or disallowed in the other year was because it
was determined that a child listed on Schedule EIC was not your qualifying
child.
Also, do not file Form 8862 or take the credit for the:
- 2 years after the most recent tax year for which there was
a final determination that your EIC claim was due to reckless or intentional
disregard of the EIC rules, or
- 10 years after the most recent tax year for which there was
a final determination that your EIC claim was due to fraud.
A foster child is any child placed with you by an authorized
placement agency or by judgment, decree, or other order of any court of
competent jurisdiction. For more details on authorized placement agencies, see
Pub. 596.
taxmap/instr/i1040gi-014.htm#TXMP3c9064a7A child who was married at the end of 2010 is a qualifying child
only if (a) you can claim him or her as your dependent on Form 1040, line 6c, or
(b) you could have claimed him or her as your dependent except for the special
rule for
Children of divorced or separated parents that begins on page 16.
taxmap/instr/i1040gi-014.htm#TXMP6358ba04If you were on extended active duty outside the United States,
your main home is considered to be in the United States during that duty period.
Extended active duty is military duty ordered for an indefinite period or for a
period of more than 90 days. Once you begin serving extended active duty, you
are considered to be on extended active duty even if you do not serve more than
90 days.
taxmap/instr/i1040gi-014.htm#TXMP49e6d826If your filing status is married filing jointly, go to Step 2
on page 45. Otherwise, stop; you cannot take the EIC. Enter
No
on the dotted line next to line 64a.
taxmap/instr/i1040gi-014.htm#TXMP147176acA person is permanently and totally disabled if, at any time
in 2010, the person could not engage in any substantial gainful activity because
of a physical or mental condition and a doctor has determined that this
condition (a) has lasted or can be expected to last continuously for at least a
year, or (b) can be expected to lead to death.
taxmap/instr/i1040gi-014.htm#TXMP5307d0a9Even if a child meets the conditions to be the qualifying child
of more than one person, only one person can claim the child as a qualifying
child for all of the following tax benefits, unless the special rule for
Children of divorced or separated parents beginning on page 16 applies.
- Dependency exemption (line 6c).
- Child tax credits (lines 51 and 65).
- Head of household filing status (line 4).
- Credit for child and dependent care expenses (line 48).
- Exclusion for dependent care benefits (Form 2441, Part III).
- Earned income credit (lines 64a and 64b).
No other person can take any of the six tax benefits listed
above unless he or she has a different qualifying child. If you and any other
person can claim the child as a qualifying child, the following rules apply.
- If only one of the persons is the child's parent, the child
is treated as the qualifying child of the parent.
- 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 in 2010. 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 2010.
- 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 2010.
- 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 2010, but only if that person's AGI is
higher than the highest AGI of any parent of the child who can claim the child.
Your daughter meets the conditions to be a qualifying child
for both you and your mother. Your daughter does not meet the conditions to be a
qualifying child of any other person, including her other parent. Under the
rules above, you can claim your daughter as a qualifying child for all of the
six tax benefits listed on this page for which you otherwise qualify. Your
mother cannot claim any of the six tax benefits listed on this page unless she
has a different qualifying child. However, if your mother's AGI is higher than
yours and you do not claim your daughter as a qualifying child, your daughter is
the qualifying child of your mother.
For more details and examples, see Pub. 596.
If you will not be taking the EIC with a qualifying child, enter
No
on the dotted line next to line 64a. Otherwise, go to Step 3, question 1, on
page 46.
taxmap/instr/i1040gi-014.htm#TXMP6a3696caFor the EIC, a valid SSN is a number issued by the Social Security
Administration unless
Not Valid for Employment
is printed on the social security card and the number was issued solely to apply
for or receive a federally funded benefit.
To find out how to get an SSN, see page 12. If you will not have
an SSN by the date your return is due, see
What if You Cannot File on Time? on page 7.
taxmap/instr/i1040gi-014.htm#TXMP773244f0A student is a child who during any part of 5 calendar months
of 2010 was enrolled as a full-time student at a school, or took a full-time,
on-farm training course given by a school or a state, county, or local
government agency. A school includes a technical, trade, or mechanical school.
It does not include an on-the-job training course, correspondence school, or
school offering courses only through the Internet.
taxmap/instr/i1040gi-014.htm#TXMP1d92f370Any refund you receive as a result of taking the EIC will not
be used to determine if you are eligible for the following programs or how much
you can receive from them. But if the refund you receive because of the EIC is
not spent within a certain period of time, it can count as an asset (or
resource) and affect your eligibility.
- Temporary Assistance for Needy Families (TANF).
- Medicaid and supplemental security income (SSI).
- Supplemental Nutrition Assistance Program (food stamps) and
low-income housing.
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