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2010 Tax Forms 1040

Amended Tax ReturnFree Tax FiingAmend 2010 Tax2012 Federal Tax Forms 1040H&r Block Free Tax File 2012Free Downloadable Irs Tax FormsFillable Form 1040ez1040x HrblockLate File Taxes1040a Or 1040ezI Need To File My State Taxes OnlyFree Online Tax Filing For 2012File 2010 Tax Return2009 TaxesTurbo Tax Free State EfileHow To Fill Out An Amended Tax Return Form2010 Federal Tax FormIrs Forms For 2011My Freetaxes Com2009 Tax FormsH&r Block Free Federal Tax Return1040ez Online FreeBack Tax HelpIrs Amended Tax Return 2011How To Refile Your TaxesMy Turbotax2011 Irs Form 8863Free Irs FormsHow Do You Do State Taxes2014 Federal Tax Forms 1040ezHow Do I File Self Employment TaxesHow Do I File 2011 Taxes NowIncome Tax Preparation SoftwareEfile 2012 Taxes1040ez Turbotax FreeHow To File A 2012 Tax ReturnHow Do I File An Amended Return2011 Tax Form 1040 EzDo My State Tax For Free1040x Amended Return Form

2010 Tax Forms 1040

2010 tax forms 1040 3. 2010 tax forms 1040   Savings Incentive Match Plans for Employees (SIMPLE) Table of Contents Introduction What Is a SIMPLE Plan?Eligible Employees How Are Contributions Made? How Much Can Be Contributed on Your Behalf?Matching contributions less than 3%. 2010 tax forms 1040 Traditional IRA mistakenly moved to SIMPLE IRA. 2010 tax forms 1040 When Can You Withdraw or Use Assets?Are Distributions Taxable? Introduction This chapter is for employees who need information about savings incentive match plans for employees (SIMPLE plans). 2010 tax forms 1040 It explains what a SIMPLE plan is, contributions to a SIMPLE plan, and distributions from a SIMPLE plan. 2010 tax forms 1040 Under a SIMPLE plan, SIMPLE retirement accounts for participating employees can be set up either as: Part of a 401(k) plan, or A plan using IRAs (SIMPLE IRA). 2010 tax forms 1040 This chapter only discusses the SIMPLE plan rules that relate to SIMPLE IRAs. 2010 tax forms 1040 See chapter 3 of Publication 560 for information on any special rules for SIMPLE plans that do not use IRAs. 2010 tax forms 1040 If your employer maintains a SIMPLE plan, you must be notified, in writing, that you can choose the financial institution that will serve as trustee for your SIMPLE IRA and that you can roll over or transfer your SIMPLE IRA to another financial institution. 2010 tax forms 1040 See Rollovers and Transfers Exception, later under When Can You Withdraw or Use Assets. 2010 tax forms 1040 What Is a SIMPLE Plan? A SIMPLE plan is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. 2010 tax forms 1040 See chapter 3 of Publication 560 for information on the requirements employers must satisfy to set up a SIMPLE plan. 2010 tax forms 1040 A SIMPLE plan is a written agreement (salary reduction agreement) between you and your employer that allows you, if you are an eligible employee (including a self-employed individual), to choose to: Reduce your compensation (salary) by a certain percentage each pay period, and Have your employer contribute the salary reductions to a SIMPLE IRA on your behalf. 2010 tax forms 1040 These contributions are called salary reduction contributions. 2010 tax forms 1040 All contributions under a SIMPLE IRA plan must be made to SIMPLE IRAs, not to any other type of IRA. 2010 tax forms 1040 The SIMPLE IRA can be an individual retirement account or an individual retirement annuity, described in chapter 1. 2010 tax forms 1040 Contributions are made on behalf of eligible employees. 2010 tax forms 1040 (See Eligible Employees below. 2010 tax forms 1040 ) Contributions are also subject to various limits. 2010 tax forms 1040 (See How Much Can Be Contributed on Your Behalf , later. 2010 tax forms 1040 ) In addition to salary reduction contributions, your employer must make either matching contributions or nonelective contributions. 2010 tax forms 1040 See How Are Contributions Made , later. 2010 tax forms 1040 You may be able to claim a credit for contributions to your SIMPLE plan. 2010 tax forms 1040 For more information, see chapter 4. 2010 tax forms 1040 Eligible Employees You must be allowed to participate in your employer's SIMPLE plan if you: Received at least $5,000 in compensation from your employer during any 2 years prior to the current year, and Are reasonably expected to receive at least $5,000 in compensation during the calendar year for which contributions are made. 2010 tax forms 1040 Self-employed individual. 2010 tax forms 1040   For SIMPLE plan purposes, the term employee includes a self-employed individual who received earned income. 2010 tax forms 1040 Excludable employees. 2010 tax forms 1040   Your employer can exclude the following employees from participating in the SIMPLE plan. 2010 tax forms 1040 Employees whose retirement benefits are covered by a collective bargaining agreement (union contract). 2010 tax forms 1040 Employees who are nonresident aliens and received no earned income from sources within the United States. 2010 tax forms 1040 Employees who would not have been eligible employees if an acquisition, disposition, or similar transaction had not occurred during the year. 2010 tax forms 1040 Compensation. 2010 tax forms 1040   For purposes of the SIMPLE plan rules, your compensation for a year generally includes the following amounts. 2010 tax forms 1040 Wages, tips, and other pay from your employer that is subject to income tax withholding. 2010 tax forms 1040 Deferred amounts elected under any 401(k) plans, 403(b) plans, government (section 457) plans, SEP plans, and SIMPLE plans. 2010 tax forms 1040 Self-employed individual compensation. 2010 tax forms 1040   For purposes of the SIMPLE plan rules, if you are self-employed, your compensation for a year is your net earnings from self-employment (Schedule SE (Form 1040), Section A, line 4, or Section B, line 6) before subtracting any contributions made to a SIMPLE IRA on your behalf. 2010 tax forms 1040   For these purposes, net earnings from self-employment include services performed while claiming exemption from self-employment tax as a member of a group conscientiously opposed to social security benefits. 2010 tax forms 1040 How Are Contributions Made? Contributions under a salary reduction agreement are called salary reduction contributions. 2010 tax forms 1040 They are made on your behalf by your employer. 2010 tax forms 1040 Your employer must also make either matching contributions or nonelective contributions. 2010 tax forms 1040 Salary reduction contributions. 2010 tax forms 1040   During the 60-day period before the beginning of any year, and during the 60-day period before you are eligible, you can choose salary reduction contributions expressed either as a percentage of compensation, or as a specific dollar amount (if your employer offers this choice). 2010 tax forms 1040 You can choose to cancel the election at any time during the year. 2010 tax forms 1040   Salary reduction contributions are also referred to as “elective deferrals. 2010 tax forms 1040 ”   Your employer cannot place restrictions on the contributions amount (such as by limiting the contributions percentage), except to comply with the salary reduction contributions limit, discussed under How Much Can Be Contributed on Your Behalf, later. 2010 tax forms 1040 Matching contributions. 2010 tax forms 1040   Unless your employer chooses to make nonelective contributions, your employer must make contributions equal to the salary reduction contributions you choose (elect), but only up to certain limits. 2010 tax forms 1040 See How Much Can Be Contributed on Your Behalf below. 2010 tax forms 1040 These contributions are in addition to the salary reduction contributions and must be made to the SIMPLE IRAs of all eligible employees (defined earlier) who chose salary reductions. 2010 tax forms 1040 These contributions are referred to as matching contributions. 2010 tax forms 1040   Matching contributions on behalf of a self-employed individual are not treated as salary reduction contributions. 2010 tax forms 1040 Nonelective contributions. 2010 tax forms 1040   Instead of making matching contributions, your employer may be able to choose to make nonelective contributions on behalf of all eligible employees. 2010 tax forms 1040 These nonelective contributions must be made on behalf of each eligible employee who has at least $5,000 of compensation from your employer, whether or not the employee chose salary reductions. 2010 tax forms 1040   One of the requirements your employer must satisfy is notifying the employees that the election was made. 2010 tax forms 1040 For other requirements that your employer must satisfy, see chapter 3 of Publication 560. 2010 tax forms 1040 How Much Can Be Contributed on Your Behalf? The limits on contributions to a SIMPLE IRA vary with the type of contribution that is made. 2010 tax forms 1040 Salary reduction contributions limit. 2010 tax forms 1040   Salary reduction contributions (employee-chosen contributions or elective deferrals) that your employer can make on your behalf under a SIMPLE plan are limited to $12,000 for 2013. 2010 tax forms 1040 The limitation remains at $12,000 for 2014. 2010 tax forms 1040 If you are a participant in any other employer plans during 2013 and you have elective salary reductions or deferred compensation under those plans, the salary reduction contributions under the SIMPLE plan also are included in the annual limit of $17,500 for 2013 on exclusions of salary reductions and other elective deferrals. 2010 tax forms 1040 You, not your employer, are responsible for monitoring compliance with these limits. 2010 tax forms 1040 Additional elective deferrals can be contributed to your SIMPLE plan if: You reached age 50 by the end of 2013, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions, such as the regular annual limit. 2010 tax forms 1040 The most that can be contributed in additional elective deferrals to your SIMPLE plan is the lesser of the following two amounts. 2010 tax forms 1040 $2,500 for 2013, or Your compensation for the year reduced by your other elective deferrals for the year. 2010 tax forms 1040 The additional deferrals are not subject to any other contribution limit and are not taken into account in applying other contribution limits. 2010 tax forms 1040 The additional deferrals are not subject to the nondiscrimination rules as long as all eligible participants are allowed to make them. 2010 tax forms 1040 Matching employer contributions limit. 2010 tax forms 1040   Generally, your employer must make matching contributions to your SIMPLE IRA in an amount equal to your salary reduction contributions. 2010 tax forms 1040 These matching contributions cannot be more than 3% of your compensation for the calendar year. 2010 tax forms 1040 See Matching contributions less than 3% below. 2010 tax forms 1040 Example 1. 2010 tax forms 1040 In 2013, Joshua was a participant in his employer's SIMPLE plan. 2010 tax forms 1040 His compensation, before SIMPLE plan contributions, was $41,600 ($800 per week). 2010 tax forms 1040 Instead of taking it all in cash, Joshua elected to have 12. 2010 tax forms 1040 5% of his weekly pay ($100) contributed to his SIMPLE IRA. 2010 tax forms 1040 For the full year, Joshua's salary reduction contributions were $5,200, which is less than the $12,000 limit on these contributions. 2010 tax forms 1040 Under the plan, Joshua's employer was required to make matching contributions to Joshua's SIMPLE IRA. 2010 tax forms 1040 Because his employer's matching contributions must equal Joshua's salary reductions, but cannot be more than 3% of his compensation (before salary reductions) for the year, his employer's matching contribution was limited to $1,248 (3% of $41,600). 2010 tax forms 1040 Example 2. 2010 tax forms 1040 Assume the same facts as in Example 1 , except that Joshua's compensation for the year was $408,163 and he chose to have 2. 2010 tax forms 1040 94% of his weekly pay contributed to his SIMPLE IRA. 2010 tax forms 1040 In this example, Joshua's salary reduction contributions for the year (2. 2010 tax forms 1040 94% × $408,163) were equal to the 2013 limit for salary reduction contributions ($12,000). 2010 tax forms 1040 Because 3% of Joshua's compensation ($12,245) is more than the amount his employer was required to match ($12,000), his employer's matching contributions were limited to $12,000. 2010 tax forms 1040 In this example, total contributions made on Joshua's behalf for the year were $24,000 ($12,000 (Joshua's contributions) + $12,000 (matching contributions)), the maximum contributions permitted under a SIMPLE IRA for 2013. 2010 tax forms 1040 Matching contributions less than 3%. 2010 tax forms 1040   Your employer can reduce the 3% limit on matching contributions for a calendar year, but only if: The limit is not reduced below 1%, The limit is not reduced for more than 2 years out of the 5-year period that ends with (and includes) the year for which the election is effective, and Employees are notified of the reduced limit within a reasonable period of time before the 60-day election period during which they can enter into salary reduction agreements. 2010 tax forms 1040   For purposes of applying the rule in item (2) in determining whether the limit was reduced below 3% for the year, any year before the first year in which your employer (or a former employer) maintains a SIMPLE IRA plan will be treated as a year for which the limit was 3%. 2010 tax forms 1040 If your employer chooses to make nonelective contributions for a year, that year also will be treated as a year for which the limit was 3%. 2010 tax forms 1040 Nonelective employer contributions limit. 2010 tax forms 1040   If your employer chooses to make nonelective contributions, instead of matching contributions, to each eligible employee's SIMPLE IRA, contributions must be 2% of your compensation for the entire year. 2010 tax forms 1040 For 2013, only $255,000 of your compensation can be taken into account to figure the contribution limit. 2010 tax forms 1040   Your employer can substitute the 2% nonelective contribution for the matching contribution for a year if both of the following requirements are met. 2010 tax forms 1040 Eligible employees are notified that a 2% nonelective contribution will be made instead of a matching contribution. 2010 tax forms 1040 This notice is provided within a reasonable period during which employees can enter into salary reduction agreements. 2010 tax forms 1040 Example 3. 2010 tax forms 1040 Assume the same facts as in Example 2 , except that Joshua's employer chose to make nonelective contributions instead of matching contributions. 2010 tax forms 1040 Because his employer's nonelective contributions are limited to 2% of up to $255,000 of Joshua's compensation, his employer's contribution to Joshua's SIMPLE IRA was limited to $5,100. 2010 tax forms 1040 In this example, total contributions made on Joshua's behalf for the year were $17,100 (Joshua's salary reductions of $12,000 plus his employer's contribution of $5,100). 2010 tax forms 1040 Traditional IRA mistakenly moved to SIMPLE IRA. 2010 tax forms 1040   If you mistakenly roll over or transfer an amount from a traditional IRA to a SIMPLE IRA, you can later recharacterize the amount as a contribution to another traditional IRA. 2010 tax forms 1040 For more information, see Recharacterizations in chapter 1. 2010 tax forms 1040 Recharacterizing employer contributions. 2010 tax forms 1040   You cannot recharacterize employer contributions (including elective deferrals) under a SEP or SIMPLE plan as contributions to another IRA. 2010 tax forms 1040 SEPs are discussed in chapter 2 of Publication 560. 2010 tax forms 1040 SIMPLE plans are discussed in this chapter. 2010 tax forms 1040 Converting from a SIMPLE IRA. 2010 tax forms 1040   Generally, you can convert an amount in your SIMPLE IRA to a Roth IRA under the same rules explained in chapter 1 under Converting From Any Traditional IRA Into a Roth IRA . 2010 tax forms 1040    However, you cannot convert any amount distributed from the SIMPLE IRA during the 2-year period beginning on the date you first participated in any SIMPLE IRA plan maintained by your employer. 2010 tax forms 1040 When Can You Withdraw or Use Assets? Generally, the same distribution (withdrawal) rules that apply to traditional IRAs apply to SIMPLE IRAs. 2010 tax forms 1040 These rules are discussed in chapter 1. 2010 tax forms 1040 Your employer cannot restrict you from taking distributions from a SIMPLE IRA. 2010 tax forms 1040 Are Distributions Taxable? Generally, distributions from a SIMPLE IRA are fully taxable as ordinary income. 2010 tax forms 1040 If the distribution is an early distribution (discussed in chapter 1), it may be subject to the additional tax on early distributions. 2010 tax forms 1040 See Additional Tax on Early Distributions, later. 2010 tax forms 1040 Rollovers and Transfers Exception Generally, rollovers and trustee-to-trustee transfers are not taxable distributions. 2010 tax forms 1040 Two-year rule. 2010 tax forms 1040   To qualify as a tax-free rollover (or a tax-free trustee-to-trustee transfer), a rollover distribution (or a transfer) made from a SIMPLE IRA during the 2-year period beginning on the date on which you first participated in your employer's SIMPLE plan must be contributed (or transferred) to another SIMPLE IRA. 2010 tax forms 1040 The 2-year period begins on the first day on which contributions made by your employer are deposited in your SIMPLE IRA. 2010 tax forms 1040   After the 2-year period, amounts in a SIMPLE IRA can be rolled over or transferred tax free to an IRA other than a SIMPLE IRA, or to a qualified plan, a tax-sheltered annuity plan (section 403(b) plan), or deferred compensation plan of a state or local government (section 457 plan). 2010 tax forms 1040 Additional Tax on Early Distributions The additional tax on early distributions (discussed in chapter 1) applies to SIMPLE IRAs. 2010 tax forms 1040 If a distribution is an early distribution and occurs during the 2-year period following the date on which you first participated in your employer's SIMPLE plan, the additional tax on early distributions is increased from 10% to 25%. 2010 tax forms 1040 If a rollover distribution (or transfer) from a SIMPLE IRA does not satisfy the 2-year rule, and is otherwise an early distribution, the additional tax imposed because of the early distribution is increased from 10% to 25% of the amount distributed. 2010 tax forms 1040 Prev  Up  Next   Home   More Online Publications
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The 2010 Tax Forms 1040

2010 tax forms 1040 5. 2010 tax forms 1040   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. 2010 tax forms 1040 You may be able to reduce your federal income tax by claiming one or more of these credits. 2010 tax forms 1040 Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. 2010 tax forms 1040 For more information, see Publication 524, Credit for the Elderly or the Disabled. 2010 tax forms 1040 You can take the credit only if you file Form 1040 or Form 1040A. 2010 tax forms 1040 You cannot take the credit if you file Form 1040EZ or Form 1040NR. 2010 tax forms 1040 Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. 2010 tax forms 1040 You are a qualified individual. 2010 tax forms 1040 Your income is not more than certain limits. 2010 tax forms 1040  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. 2010 tax forms 1040   Qualified Individual You are a qualified individual for this credit if you are a U. 2010 tax forms 1040 S. 2010 tax forms 1040 citizen or resident alien, and either of the following applies. 2010 tax forms 1040 You were age 65 or older at the end of 2013. 2010 tax forms 1040 You were under age 65 at the end of 2013 and all three of the following statements are true. 2010 tax forms 1040 You retired on permanent and total disability (explained later). 2010 tax forms 1040 You received taxable disability income for 2013. 2010 tax forms 1040 On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). 2010 tax forms 1040 Age 65. 2010 tax forms 1040 You are considered to be age 65 on the day before your 65th birthday. 2010 tax forms 1040 Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. 2010 tax forms 1040 Figure 5-A. 2010 tax forms 1040 Are You a Qualified Individual? This image is too large to be displayed in the current screen. 2010 tax forms 1040 Please click the link to view the image. 2010 tax forms 1040 Figure 5-A, Are you a qualified individual? U. 2010 tax forms 1040 S. 2010 tax forms 1040 citizen or resident alien. 2010 tax forms 1040   You must be a U. 2010 tax forms 1040 S. 2010 tax forms 1040 citizen or resident alien (or be treated as a resident alien) to take the credit. 2010 tax forms 1040 Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. 2010 tax forms 1040 Exceptions. 2010 tax forms 1040   You may be able to take the credit if you are a nonresident alien who is married to a U. 2010 tax forms 1040 S. 2010 tax forms 1040 citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. 2010 tax forms 1040 S. 2010 tax forms 1040 resident alien. 2010 tax forms 1040 If you make that choice, both you and your spouse are taxed on your worldwide income. 2010 tax forms 1040   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. 2010 tax forms 1040 S. 2010 tax forms 1040 citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. 2010 tax forms 1040 S. 2010 tax forms 1040 resident alien for the entire year. 2010 tax forms 1040 In that case, you may be allowed to take the credit. 2010 tax forms 1040   For information on these choices, see chapter 1 of Publication 519, U. 2010 tax forms 1040 S. 2010 tax forms 1040 Tax Guide for Aliens. 2010 tax forms 1040 Married persons. 2010 tax forms 1040   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. 2010 tax forms 1040 However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. 2010 tax forms 1040 Head of household. 2010 tax forms 1040   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. 2010 tax forms 1040 See Publication 524 and Publication 501. 2010 tax forms 1040 Under age 65. 2010 tax forms 1040   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). 2010 tax forms 1040 You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. 2010 tax forms 1040 You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. 2010 tax forms 1040   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. 2010 tax forms 1040 If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. 2010 tax forms 1040 Permanent and total disability. 2010 tax forms 1040   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. 2010 tax forms 1040 A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. 2010 tax forms 1040 See Physician's statement , later. 2010 tax forms 1040 Substantial gainful activity. 2010 tax forms 1040   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. 2010 tax forms 1040   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. 2010 tax forms 1040   Substantial gainful activity is not work you do to take care of yourself or your home. 2010 tax forms 1040 It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. 2010 tax forms 1040 However, doing this kind of work may show that you are able to engage in substantial gainful activity. 2010 tax forms 1040    Figure 5-B. 2010 tax forms 1040 Income Limits IF your filing status is. 2010 tax forms 1040 . 2010 tax forms 1040 . 2010 tax forms 1040 THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. 2010 tax forms 1040 . 2010 tax forms 1040 . 2010 tax forms 1040 OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. 2010 tax forms 1040 . 2010 tax forms 1040 . 2010 tax forms 1040 single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. 2010 tax forms 1040 Physician's statement. 2010 tax forms 1040   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. 2010 tax forms 1040   You do not have to file this statement with your tax return, but you must keep it for your records. 2010 tax forms 1040 The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. 2010 tax forms 1040 Veterans. 2010 tax forms 1040   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. 2010 tax forms 1040 VA Form 21-0172 must be signed by a person authorized by the VA to do so. 2010 tax forms 1040 You can get this form from your local VA regional office. 2010 tax forms 1040 Physician's statement obtained in earlier year. 2010 tax forms 1040   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. 2010 tax forms 1040 For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. 2010 tax forms 1040 If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. 2010 tax forms 1040   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. 2010 tax forms 1040 Disability income. 2010 tax forms 1040   If you are under age 65, you must also have taxable disability income to qualify for the credit. 2010 tax forms 1040   Disability income must meet the following two requirements. 2010 tax forms 1040 It must be paid under your employer's accident or health plan or pension plan. 2010 tax forms 1040 It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. 2010 tax forms 1040 Payments that are not disability income. 2010 tax forms 1040   Any payment you receive from a plan that does not provide for disability retirement is not disability income. 2010 tax forms 1040 Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. 2010 tax forms 1040   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. 2010 tax forms 1040 Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. 2010 tax forms 1040 Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. 2010 tax forms 1040 Figuring the credit yourself. 2010 tax forms 1040   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). 2010 tax forms 1040 Next, fill out Schedule R (Form 1040A or 1040), Part III. 2010 tax forms 1040 Credit figured for you. 2010 tax forms 1040   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). 2010 tax forms 1040 If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. 2010 tax forms 1040 Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. 2010 tax forms 1040 The credit can be up to 35% of your expenses. 2010 tax forms 1040 To qualify, you must pay these expenses so you can work or look for work. 2010 tax forms 1040 If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. 2010 tax forms 1040 If the correct information is not shown, the credit may be reduced or disallowed. 2010 tax forms 1040 You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. 2010 tax forms 1040 For more information, see Publication 503, Child and Dependent Care Expenses. 2010 tax forms 1040 Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. 2010 tax forms 1040 The EIC is available to persons with or without a qualifying child. 2010 tax forms 1040 Credit has no effect on certain welfare benefits. 2010 tax forms 1040   Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. 2010 tax forms 1040 These programs include the following. 2010 tax forms 1040 Medicaid and supplemental security income (SSI). 2010 tax forms 1040 Supplemental Nutrition Assistance Program (food stamps). 2010 tax forms 1040 Low-income housing. 2010 tax forms 1040 Temporary Assistance for Needy Families (TANF). 2010 tax forms 1040  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. 2010 tax forms 1040 Check with your local benefit coordinator to find out if your refund will affect your benefits. 2010 tax forms 1040 Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. 2010 tax forms 1040 The specific rules you must meet depend on whether you have a qualifying child. 2010 tax forms 1040 If you have a qualifying child, the rules in Parts A, B, and D apply to you. 2010 tax forms 1040 If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. 2010 tax forms 1040  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. 2010 tax forms 1040 You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). 2010 tax forms 1040 The sections that follow provide additional information for some of the rules. 2010 tax forms 1040 Adjusted gross income (AGI). 2010 tax forms 1040   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. 2010 tax forms 1040 Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). 2010 tax forms 1040 Table 5-1. 2010 tax forms 1040 Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. 2010 tax forms 1040 Second, you must meet all the rules in one of these columns, whichever applies. 2010 tax forms 1040 Third, you must meet the rule in this column. 2010 tax forms 1040 Part A. 2010 tax forms 1040  Rules for Everyone Part B. 2010 tax forms 1040  Rules If You Have a Qualifying Child Part C. 2010 tax forms 1040  Rules If You Do Not Have a Qualifying Child Part D. 2010 tax forms 1040  Figuring and Claiming the EIC 1. 2010 tax forms 1040 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. 2010 tax forms 1040 2. 2010 tax forms 1040 You must have a valid social security number. 2010 tax forms 1040  3. 2010 tax forms 1040 Your filing status cannot be “Married filing separately. 2010 tax forms 1040 ” 4. 2010 tax forms 1040 You must be a U. 2010 tax forms 1040 S. 2010 tax forms 1040 citizen or resident alien all year. 2010 tax forms 1040  5. 2010 tax forms 1040 You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). 2010 tax forms 1040  6. 2010 tax forms 1040 Your investment income must be $3,300 or less. 2010 tax forms 1040  7. 2010 tax forms 1040 You must have earned income. 2010 tax forms 1040 8. 2010 tax forms 1040 Your child must meet the relationship, age, residency, and joint return tests. 2010 tax forms 1040  9. 2010 tax forms 1040 Your qualifying child cannot be used by more than one person to claim the EIC. 2010 tax forms 1040  10. 2010 tax forms 1040 You generally cannot be a qualifying child of another person. 2010 tax forms 1040 11. 2010 tax forms 1040 You must be at least age 25 but under age 65. 2010 tax forms 1040  12. 2010 tax forms 1040 You cannot be the dependent of another person. 2010 tax forms 1040  13. 2010 tax forms 1040 You generally cannot be a qualifying child of another person. 2010 tax forms 1040  14. 2010 tax forms 1040 You must have lived in the United States more than half of the year. 2010 tax forms 1040 15. 2010 tax forms 1040 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. 2010 tax forms 1040 Social security number. 2010 tax forms 1040   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). 2010 tax forms 1040 Any qualifying child listed on Schedule EIC also must have a valid SSN. 2010 tax forms 1040 (See Qualifying child , later, if you have a qualifying child. 2010 tax forms 1040 )   If your social security card (or your spouse's if you are married filing jointly) 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. 2010 tax forms 1040 An example of a federally funded benefit is Medicaid. 2010 tax forms 1040 Investment income. 2010 tax forms 1040   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. 2010 tax forms 1040 If your investment income is more than $3,300, you cannot claim the credit. 2010 tax forms 1040 For most people, investment income is the total of the following amounts. 2010 tax forms 1040 Taxable interest (line 8a of Form 1040 or 1040A). 2010 tax forms 1040 Tax-exempt interest (line 8b of Form 1040 or 1040A). 2010 tax forms 1040 Dividend income (line 9a of Form 1040 or 1040A). 2010 tax forms 1040 Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). 2010 tax forms 1040  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. 2010 tax forms 1040   For more information about investment income, see Publication 596, Earned Income Credit. 2010 tax forms 1040 Earned income. 2010 tax forms 1040   Under Rule 7, you must have earned income to claim the EIC. 2010 tax forms 1040 Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. 2010 tax forms 1040 Earned income includes all of the following types of income. 2010 tax forms 1040 Wages, salaries, tips, and other taxable employee pay. 2010 tax forms 1040 Employee pay is earned income only if it is taxable. 2010 tax forms 1040 Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. 2010 tax forms 1040 But there is an exception for nontaxable combat pay, which you can choose to include in earned income. 2010 tax forms 1040 Net earnings from self-employment. 2010 tax forms 1040 Gross income received as a statutory employee. 2010 tax forms 1040 Gross income defined. 2010 tax forms 1040   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). 2010 tax forms 1040 Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). 2010 tax forms 1040 If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. 2010 tax forms 1040 Self-employed persons. 2010 tax forms 1040   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. 2010 tax forms 1040 If you do not, you may not get all the credit to which you are entitled. 2010 tax forms 1040 Disability benefits. 2010 tax forms 1040   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. 2010 tax forms 1040 Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. 2010 tax forms 1040 Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. 2010 tax forms 1040   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. 2010 tax forms 1040 It does not matter whether you have reached minimum retirement age. 2010 tax forms 1040 If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. 2010 tax forms 1040 Income that is not earned income. 2010 tax forms 1040   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. 2010 tax forms 1040 Do not include any of these items in your earned income. 2010 tax forms 1040 Workfare payments. 2010 tax forms 1040   Nontaxable workfare payments are not earned income for the EIC. 2010 tax forms 1040 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 sufficient private sector employment is not available, or (2) community service program activities. 2010 tax forms 1040 Qualifying child. 2010 tax forms 1040   Under Rule 8, your child is a qualifying child if your child meets four tests. 2010 tax forms 1040 The four tests are: Relationship, Age, Residency, and Joint return. 2010 tax forms 1040   The four tests are illustrated in Figure 5-C. 2010 tax forms 1040 See Publication 596 for more information about each test. 2010 tax forms 1040 Figure 5-C. 2010 tax forms 1040 Tests for Qualifying Child A qualifying child for the EIC is a child who is your. 2010 tax forms 1040 . 2010 tax forms 1040 . 2010 tax forms 1040 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) was . 2010 tax forms 1040 . 2010 tax forms 1040 . 2010 tax forms 1040 Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR 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 the year, regardless of age who. 2010 tax forms 1040 . 2010 tax forms 1040 . 2010 tax forms 1040 Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. 2010 tax forms 1040 . 2010 tax forms 1040 . 2010 tax forms 1040 Lived with you in the United States for more than half of 2013. 2010 tax forms 1040  If the child did not live with you for the required time, see Publication 596 for more information. 2010 tax forms 1040 Figuring the EIC To figure the amount of your credit, you have two choices. 2010 tax forms 1040 Have the IRS figure the EIC for you. 2010 tax forms 1040 If you want to do this, see IRS Will Figure the EIC for You in Publication 596. 2010 tax forms 1040 Figure the EIC yourself. 2010 tax forms 1040 If you want to do this, see How To Figure the EIC Yourself in Publication 596. 2010 tax forms 1040 Prev  Up  Next   Home   More Online Publications