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Filing Late Tax Returns

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Filing Late Tax Returns

Filing late tax returns 3. Filing late tax returns   Personal Exemptions and Dependents Table of Contents What's New Introduction Useful Items - You may want to see: ExemptionsPersonal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. Filing late tax returns Taxpayer identification numbers for aliens. Filing late tax returns Taxpayer identification numbers for adoptees. Filing late tax returns What's New Exemption amount. Filing late tax returns  The amount you can deduct for each exemption has increased. Filing late tax returns It was $3,800 for 2012. Filing late tax returns It is $3,900 for 2013. Filing late tax returns Exemption phaseout. Filing late tax returns  You lose at least part of the benefit of your exemptions if your adjusted gross income is more than a certain amount. Filing late tax returns For 2013, this amount is $150,000 for a married individual filing a separate return; $250,000 for a single individual; $275,000 for a head of household; and $300,000 for married individuals filing jointly or a qualifying widow(er). Filing late tax returns See Phaseout of Exemptions , later. Filing late tax returns Introduction This chapter discusses the following topics. Filing late tax returns Personal exemptions — You generally can take one for yourself and, if you are married, one for your spouse. Filing late tax returns Exemptions for dependents — You generally can take an exemption for each of your dependents. Filing late tax returns A dependent is your qualifying child or qualifying relative. Filing late tax returns If you are entitled to claim an exemption for a dependent, that dependent cannot claim a personal exemption on his or her own tax return. Filing late tax returns Phaseout of exemptions — Your deduction is reduced if your adjusted gross income is more than a certain amount. Filing late tax returns Social security number (SSN) requirement for dependents — You must list the SSN of any dependent for whom you claim an exemption. Filing late tax returns Deduction. Filing late tax returns   Exemptions reduce your taxable income. Filing late tax returns You can deduct $3,900 for each exemption you claim in 2013. Filing late tax returns But you may lose at least part of the dollar amount of your exemptions if your adjusted gross income is more than a certain amount. Filing late tax returns See Phaseout of Exemptions , later. Filing late tax returns How to claim exemptions. Filing late tax returns    How you claim an exemption on your tax return depends on which form you file. Filing late tax returns    If you file Form 1040EZ, the exemption amount is combined with the standard deduction amount and entered on line 5. Filing late tax returns    If you file Form 1040A, complete lines 6a through 6d. Filing late tax returns The total number of exemptions you can claim is the total in the box on line 6d. Filing late tax returns Also complete line 26. Filing late tax returns   If you file Form 1040, complete lines 6a through 6d. Filing late tax returns The total number of exemptions you can claim is the total in the box on line 6d. Filing late tax returns Also complete line 42. Filing late tax returns Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information Form (and Instructions) 2120 Multiple Support Declaration 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent Exemptions There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). Filing late tax returns While each is worth the same amount ($3,900 for 2013), different rules apply to each type. Filing late tax returns Personal Exemptions You are generally allowed one exemption for yourself. Filing late tax returns If you are married, you may be allowed one exemption for your spouse. Filing late tax returns These are called personal exemptions. Filing late tax returns Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. Filing late tax returns If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. Filing late tax returns Your Spouse's Exemption Your spouse is never considered your dependent. Filing late tax returns Joint return. Filing late tax returns   On a joint return you can claim one exemption for yourself and one for your spouse. Filing late tax returns Separate return. Filing late tax returns   If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. Filing late tax returns This is true even if the other taxpayer does not actually claim your spouse as a dependent. Filing late tax returns You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. Filing late tax returns S. Filing late tax returns tax purposes, must not be filing a return, and must not be the dependent of another taxpayer. Filing late tax returns Death of spouse. Filing late tax returns   If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . Filing late tax returns If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . Filing late tax returns   If you remarried during the year, you cannot take an exemption for your deceased spouse. Filing late tax returns   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. Filing late tax returns If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. Filing late tax returns Divorced or separated spouse. Filing late tax returns   If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. Filing late tax returns This rule applies even if you provided all of your former spouse's support. Filing late tax returns Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. Filing late tax returns You can claim an exemption for a dependent even if your dependent files a return. Filing late tax returns The term “dependent” means: A qualifying child, or A qualifying relative. Filing late tax returns The terms “ qualifying child ” and “ qualifying relative ” are defined later. Filing late tax returns You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. Filing late tax returns Dependent taxpayer test. Filing late tax returns Joint return test. Filing late tax returns Citizen or resident test. Filing late tax returns These three tests are explained in detail later. Filing late tax returns All the requirements for claiming an exemption for a dependent are summarized in Table 3-1. Filing late tax returns Table 3-1. Filing late tax returns Overview of the Rules for Claiming an Exemption for a Dependent Caution. Filing late tax returns This table is only an overview of the rules. Filing late tax returns For details, see the rest of this chapter. Filing late tax returns You cannot claim any dependents if you (or your spouse, if filing jointly) could be claimed as a dependent by another taxpayer. Filing late tax returns   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. Filing late tax returns   You cannot claim a person as a dependent unless that person is a U. Filing late tax returns S. Filing late tax returns citizen, U. Filing late tax returns S. Filing late tax returns resident alien, U. Filing late tax returns S. Filing late tax returns national, or a resident of Canada or Mexico. Filing late tax returns 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. Filing late tax returns   Tests To Be a Qualifying Child   Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Filing late tax returns   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled. Filing late tax returns   The child must have lived with you for more than half of the year. Filing late tax returns 2  The child must not have provided more than half of his or her own support for the year. Filing late tax returns   The child is not filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid). Filing late tax returns  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. Filing late tax returns See the Special Rule for Qualifying Child of More Than One Person to find out which person is the person entitled to claim the child as a qualifying child. Filing late tax returns   The person cannot be your qualifying child or the qualifying child of any other taxpayer. Filing late tax returns   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). Filing late tax returns   The person's gross income for the year must be less than $3,900. Filing late tax returns 3  You must provide more than half of the person's total support for the year. Filing late tax returns 4  1There is an exception for certain adopted children. Filing late tax returns 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. Filing late tax returns 3There is an exception if the person is disabled and has income from a sheltered workshop. Filing late tax returns 4There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. Filing late tax returns Dependent not allowed a personal exemption. Filing late tax returns If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. Filing late tax returns This is true even if you do not claim the dependent's exemption on your return. Filing late tax returns It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. Filing late tax returns Housekeepers, maids, or servants. Filing late tax returns   If these people work for you, you cannot claim exemptions for them. Filing late tax returns Child tax credit. Filing late tax returns   You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. Filing late tax returns For more information, see chapter 34. Filing late tax returns Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. Filing late tax returns Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. Filing late tax returns If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. Filing late tax returns Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. Filing late tax returns Exception. Filing late tax returns   You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. Filing late tax returns Example 1—child files joint return. Filing late tax returns You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Filing late tax returns He earned $25,000 for the year. Filing late tax returns The couple files a joint return. Filing late tax returns You cannot take an exemption for your daughter. Filing late tax returns Example 2—child files joint return only as claim for refund of withheld tax. Filing late tax returns Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Filing late tax returns Neither is required to file a tax return. Filing late tax returns They do not have a child. Filing late tax returns Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. Filing late tax returns The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. Filing late tax returns You can claim exemptions for each of them if all the other tests to do so are met. Filing late tax returns Example 3—child files joint return to claim American opportunity credit. Filing late tax returns The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Filing late tax returns He and his wife are not required to file a tax return. Filing late tax returns However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Filing late tax returns Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. Filing late tax returns The exception to the joint return test does not apply, so you cannot claim an exemption for either of them. Filing late tax returns Citizen or Resident Test You cannot claim a person as a dependent unless that person is a U. Filing late tax returns S. Filing late tax returns citizen, U. Filing late tax returns S. Filing late tax returns resident alien, U. Filing late tax returns S. Filing late tax returns national, or a resident of Canada or Mexico. Filing late tax returns However, there is an exception for certain adopted children, as explained next. Filing late tax returns Exception for adopted child. Filing late tax returns   If you are a U. Filing late tax returns S. Filing late tax returns citizen or U. Filing late tax returns S. Filing late tax returns national who has legally adopted a child who is not a U. Filing late tax returns S. Filing late tax returns citizen, U. Filing late tax returns S. Filing late tax returns resident alien, or U. Filing late tax returns S. Filing late tax returns national, this test is met if the child lived with you as a member of your household all year. Filing late tax returns This exception also applies if the child was lawfully placed with you for legal adoption. Filing late tax returns Child's place of residence. Filing late tax returns   Children usually are citizens or residents of the country of their parents. Filing late tax returns   If you were a U. Filing late tax returns S. Filing late tax returns citizen when your child was born, the child may be a U. Filing late tax returns S. Filing late tax returns citizen and meet this test even if the other parent was a nonresident alien and the child was born in a foreign country. Filing late tax returns Foreign students' place of residence. Filing late tax returns   Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. Filing late tax returns S. Filing late tax returns residents and do not meet this test. Filing late tax returns You cannot claim an exemption for them. Filing late tax returns However, if you provided a home for a foreign student, you may be able to take a charitable contribution deduction. Filing late tax returns See Expenses Paid for Student Living With You in chapter 24. Filing late tax returns U. Filing late tax returns S. Filing late tax returns national. Filing late tax returns   A U. Filing late tax returns S. Filing late tax returns national is an individual who, although not a U. Filing late tax returns S. Filing late tax returns citizen, owes his or her allegiance to the United States. Filing late tax returns U. Filing late tax returns S. Filing late tax returns nationals include American Samoans and Northern Mariana Islanders who chose to become U. Filing late tax returns S. Filing late tax returns nationals instead of U. Filing late tax returns S. Filing late tax returns citizens. Filing late tax returns Qualifying Child Five tests must be met for a child to be your qualifying child. Filing late tax returns The five tests are: Relationship, Age, Residency, Support, and Joint return. Filing late tax returns These tests are explained next. Filing late tax returns If a child meets the five tests to be the qualifying child of more than one person, a special rule applies to determine which person can actually treat the child as a qualifying child. Filing late tax returns See Special Rule for Qualifying Child of More Than One Person, later. Filing late tax returns Relationship Test To meet this test, a child must be: Your son, daughter, stepchild, foster child, or a descendant (for example, your grandchild) of any of them, or Your brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant (for example, your niece or nephew) of any of them. Filing late tax returns Adopted child. Filing late tax returns   An adopted child is always treated as your own child. Filing late tax returns The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Filing late tax returns Foster child. Filing late tax returns   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Filing late tax returns Age Test To meet this test, a child must be: Under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), A student under age 24 at the end of the year and younger than you (or your spouse, if filing jointly), or Permanently and totally disabled at any time during the year, regardless of age. Filing late tax returns Example. Filing late tax returns Your son turned 19 on December 10. Filing late tax returns Unless he was permanently and totally disabled or a student, he does not meet the age test because, at the end of the year, he was not under age 19. Filing late tax returns Child must be younger than you or spouse. Filing late tax returns   To be your qualifying child, a child who is not permanently and totally disabled must be younger than you. Filing late tax returns However, if you are married filing jointly, the child must be younger than you or your spouse but does not have to be younger than both of you. Filing late tax returns Example 1—child not younger than you or spouse. Filing late tax returns Your 23-year-old brother, who is a student and unmarried, lives with you and your spouse. Filing late tax returns He is not disabled. Filing late tax returns Both you and your spouse are 21 years old, and you file a joint return. Filing late tax returns Your brother is not your qualifying child because he is not younger than you or your spouse. Filing late tax returns Example 2—child younger than your spouse but not younger than you. Filing late tax returns The facts are the same as in Example 1 except your spouse is 25 years old. Filing late tax returns Because your brother is younger than your spouse, and you and your spouse are filing a joint return, your brother is your qualifying child, even though he is not younger than you. Filing late tax returns Student defined. Filing late tax returns   To qualify as a student, your child must be, during some part of each of any 5 calendar months of the year: A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency. Filing late tax returns The 5 calendar months do not have to be consecutive. Filing late tax returns Full-time student. Filing late tax returns   A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. Filing late tax returns School defined. Filing late tax returns   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Filing late tax returns However, an on-the-job training course, correspondence school, or school offering courses only through the Internet does not count as a school. Filing late tax returns Vocational high school students. Filing late tax returns   Students who work on “co-op” jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. Filing late tax returns Permanently and totally disabled. Filing late tax returns   Your child is permanently and totally disabled if both of the following apply. Filing late tax returns He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Filing late tax returns A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Filing late tax returns Residency Test To meet this test, your child must have lived with you for more than half the year. Filing late tax returns There are exceptions for temporary absences, children who were born or died during the year, kidnapped children, and children of divorced or separated parents. Filing late tax returns Temporary absences. Filing late tax returns   Your child is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. Filing late tax returns Your child is also considered to have lived with you during any required hospital stay following birth, as long as the child would have lived with you during that time but for the hospitalization. Filing late tax returns Death or birth of child. Filing late tax returns   A child who was born or died during the year is treated as having lived with you more than half of the year if your home was the child's home more than half of the time he or she was alive during the year. Filing late tax returns Child born alive. Filing late tax returns   You may be able to claim an exemption for a child born alive during the year, even if the child lived only for a moment. Filing late tax returns State or local law must treat the child as having been born alive. Filing late tax returns There must be proof of a live birth shown by an official document, such as a birth certificate. Filing late tax returns The child must be your qualifying child or qualifying relative, and all the other tests to claim an exemption for a dependent must be met. Filing late tax returns Stillborn child. Filing late tax returns   You cannot claim an exemption for a stillborn child. Filing late tax returns Kidnapped child. Filing late tax returns   You may be able to treat your child as meeting the residency test even if the child has been kidnapped. Filing late tax returns See Publication 501 for details. Filing late tax returns Children of divorced or separated parents (or parents who live apart). Filing late tax returns   In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. Filing late tax returns However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true. Filing late tax returns The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of the year, whether or not they are or were married. Filing late tax returns The child received over half of his or her support for the year from the parents. Filing late tax returns The child is in the custody of one or both parents for more than half of the year. Filing late tax returns Either of the following statements is true. Filing late tax returns The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. Filing late tax returns (If the decree or agreement went into effect after 1984 and before 2009, see Post-1984 and pre-2009 divorce decree or separation agreement , later. Filing late tax returns If the decree or agreement went into effect after 2008, see Post-2008 divorce decree or separation agreement , later. Filing late tax returns ) A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during the year. Filing late tax returns Custodial parent and noncustodial parent. Filing late tax returns   The custodial parent is the parent with whom the child lived for the greater number of nights during the year. Filing late tax returns The other parent is the noncustodial parent. Filing late tax returns   If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the year. Filing late tax returns   A child is treated as living with a parent for a night if the child sleeps: At that parent's home, whether or not the parent is present, or In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation together). Filing late tax returns Equal number of nights. Filing late tax returns   If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income (AGI). Filing late tax returns December 31. Filing late tax returns   The night of December 31 is treated as part of the year in which it begins. Filing late tax returns For example, December 31, 2013, is treated as part of 2013. Filing late tax returns Emancipated child. Filing late tax returns   If a child is emancipated under state law, the child is treated as not living with either parent. Filing late tax returns See Examples 5 and 6. Filing late tax returns Absences. Filing late tax returns   If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. Filing late tax returns But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that night. Filing late tax returns Parent works at night. Filing late tax returns   If, due to a parent's nighttime work schedule, a child lives for a greater number of days, but not nights, with the parent who works at night, that parent is treated as the custodial parent. Filing late tax returns On a school day, the child is treated as living at the primary residence registered with the school. Filing late tax returns Example 1—child lived with one parent for a greater number of nights. Filing late tax returns You and your child’s other parent are divorced. Filing late tax returns In 2013, your child lived with you 210 nights and with the other parent 155 nights. Filing late tax returns You are the custodial parent. Filing late tax returns Example 2—child is away at camp. Filing late tax returns In 2013, your daughter lives with each parent for alternate weeks. Filing late tax returns In the summer, she spends 6 weeks at summer camp. Filing late tax returns During the time she is at camp, she is treated as living with you for 3 weeks and with her other parent, your ex-spouse, for 3 weeks because this is how long she would have lived with each parent if she had not attended summer camp. Filing late tax returns Example 3—child lived same number of nights with each parent. Filing late tax returns Your son lived with you 180 nights during the year and lived the same number of nights with his other parent, your ex-spouse. Filing late tax returns Your AGI is $40,000. Filing late tax returns Your ex-spouse's AGI is $25,000. Filing late tax returns You are treated as your son's custodial parent because you have the higher AGI. Filing late tax returns Example 4—child is at parent’s home but with other parent. Filing late tax returns Your son normally lives with you during the week and with his other parent, your ex-spouse, every other weekend. Filing late tax returns You become ill and are hospitalized. Filing late tax returns The other parent lives in your home with your son for 10 consecutive days while you are in the hospital. Filing late tax returns Your son is treated as living with you during this 10-day period because he was living in your home. Filing late tax returns Example 5—child emancipated in May. Filing late tax returns When your son turned age 18 in May 2013, he became emancipated under the law of the state where he lives. Filing late tax returns As a result, he is not considered in the custody of his parents for more than half of the year. Filing late tax returns The special rule for children of divorced or separated parents does not apply. Filing late tax returns Example 6—child emancipated in August. Filing late tax returns Your daughter lives with you from January 1, 2013, until May 31, 2013, and lives with her other parent, your ex-spouse, from June 1, 2013, through the end of the year. Filing late tax returns She turns 18 and is emancipated under state law on August 1, 2013. Filing late tax returns Because she is treated as not living with either parent beginning on August 1, she is treated as living with you the greater number of nights in 2013. Filing late tax returns You are the custodial parent. Filing late tax returns Written declaration. Filing late tax returns    The custodial parent may use either Form 8332 or a similar statement (containing the same information required by the form) to make the written declaration to release the exemption to the noncustodial parent. Filing late tax returns The noncustodial parent must attach a copy of the form or statement to his or her tax return. Filing late tax returns   The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. Filing late tax returns Post-1984 and pre-2009 divorce decree or separation agreement. Filing late tax returns   If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. Filing late tax returns The decree or agreement must state all three of the following. Filing late tax returns The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support. Filing late tax returns The custodial parent will not claim the child as a dependent for the year. Filing late tax returns The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent. Filing late tax returns   The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return. Filing late tax returns The cover page (write the other parent's social security number on this page). Filing late tax returns The pages that include all of the information identified in items (1) through (3) above. Filing late tax returns The signature page with the other parent's signature and the date of the agreement. Filing late tax returns Post-2008 divorce decree or separation agreement. Filing late tax returns   The noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. Filing late tax returns The custodial parent must sign either Form 8332 or a similar statement whose only purpose is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must attach a copy to his or her return. Filing late tax returns The form or statement must release the custodial parent's claim to the child without any conditions. Filing late tax returns For example, the release must not depend on the noncustodial parent paying support. Filing late tax returns    The noncustodial parent must attach the required information even if it was filed with a return in an earlier year. Filing late tax returns Revocation of release of claim to an exemption. Filing late tax returns   The custodial parent can revoke a release of claim to exemption that he or she previously released to the noncustodial parent on Form 8332 (or a similar statement). Filing late tax returns For the revocation to be effective for 2013, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2012 or earlier. Filing late tax returns The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the revocation. Filing late tax returns Remarried parent. Filing late tax returns   If you remarry, the support provided by your new spouse is treated as provided by you. Filing late tax returns Parents who never married. Filing late tax returns   This special rule for divorced or separated parents also applies to parents who never married, and who lived apart at all times during the last 6 months of the year. Filing late tax returns Support Test (To Be a Qualifying Child) To meet this test, the child cannot have provided more than half of his or her own support for the year. Filing late tax returns This test is different from the support test to be a qualifying relative, which is described later. Filing late tax returns However, to see what is or is not support, see Support Test (To Be a Qualifying Relative) , later. Filing late tax returns If you are not sure whether a child provided more than half of his or her own support, you may find Worksheet 3-1 helpful. Filing late tax returns Worksheet 3-1. Filing late tax returns Worksheet for Determining Support Funds Belonging to the Person You Supported       1. Filing late tax returns Enter the total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year. Filing late tax returns Do not include funds provided by the state; include those amounts on line 23 instead 1. Filing late tax returns     2. Filing late tax returns Enter the amount on line 1 that was used for the person's support 2. Filing late tax returns     3. Filing late tax returns Enter the amount on line 1 that was used for other purposes 3. Filing late tax returns     4. Filing late tax returns Enter the total amount in the person's savings and other accounts at the end of the year 4. Filing late tax returns     5. Filing late tax returns Add lines 2 through 4. Filing late tax returns (This amount should equal line 1. Filing late tax returns ) 5. Filing late tax returns     Expenses for Entire Household (where the person you supported lived)       6. Filing late tax returns Lodging (complete line 6a or 6b):         a. Filing late tax returns Enter the total rent paid 6a. Filing late tax returns       b. Filing late tax returns Enter the fair rental value of the home. Filing late tax returns If the person you supported owned the home,  also include this amount in line 21 6b. Filing late tax returns     7. Filing late tax returns Enter the total food expenses 7. Filing late tax returns     8. Filing late tax returns Enter the total amount of utilities (heat, light, water, etc. Filing late tax returns not included in line 6a or 6b) 8. Filing late tax returns     9. Filing late tax returns Enter the total amount of repairs (not included in line 6a or 6b) 9. Filing late tax returns     10. Filing late tax returns Enter the total of other expenses. Filing late tax returns Do not include expenses of maintaining the home, such as mortgage interest, real estate taxes, and insurance 10. Filing late tax returns     11. Filing late tax returns Add lines 6a through 10. Filing late tax returns These are the total household expenses 11. Filing late tax returns     12. Filing late tax returns Enter total number of persons who lived in the household 12. Filing late tax returns     Expenses for the Person You Supported       13. Filing late tax returns Divide line 11 by line 12. Filing late tax returns This is the person's share of the household expenses 13. Filing late tax returns     14. Filing late tax returns Enter the person's total clothing expenses 14. Filing late tax returns     15. Filing late tax returns Enter the person's total education expenses 15. Filing late tax returns     16. Filing late tax returns Enter the person's total medical and dental expenses not paid for or reimbursed by insurance 16. Filing late tax returns     17. Filing late tax returns Enter the person's total travel and recreation expenses 17. Filing late tax returns     18. Filing late tax returns Enter the total of the person's other expenses 18. Filing late tax returns     19. Filing late tax returns Add lines 13 through 18. Filing late tax returns This is the total cost of the person's support for the year 19. Filing late tax returns     Did the Person Provide More Than Half of His or Her Own Support?       20. Filing late tax returns Multiply line 19 by 50% (. Filing late tax returns 50) 20. Filing late tax returns     21. Filing late tax returns Enter the amount from line 2, plus the amount from line 6b if the person you supported owned  the home. Filing late tax returns This is the amount the person provided for his or her own support 21. Filing late tax returns     22. Filing late tax returns Is line 21 more than line 20?   No. Filing late tax returns You meet the support test for this person to be your qualifying child. Filing late tax returns If this person also meets the other tests to be a qualifying child, stop here; do not complete lines 23–26. Filing late tax returns Otherwise, go to line 23 and fill out the rest of the worksheet to determine if this person is your qualifying relative. Filing late tax returns    Yes. Filing late tax returns You do not meet the support test for this person to be either your qualifying child or your qualifying relative. Filing late tax returns Stop here. Filing late tax returns        Did You Provide More Than Half?       23. Filing late tax returns Enter the amount others provided for the person's support. Filing late tax returns Include amounts provided by state, local, and other welfare societies or agencies. Filing late tax returns Do not include any amounts included on line 1 23. Filing late tax returns     24. Filing late tax returns Add lines 21 and 23 24. Filing late tax returns     25. Filing late tax returns Subtract line 24 from line 19. Filing late tax returns This is the amount you provided for the person's support 25. Filing late tax returns     26. Filing late tax returns Is line 25 more than line 20?   Yes. Filing late tax returns You meet the support test for this person to be your qualifying relative. Filing late tax returns    No. Filing late tax returns You do not meet the support test for this person to be your qualifying relative. Filing late tax returns You cannot claim an exemption for this person unless you can do so under a multiple support agreement, the support test for children of divorced or separated parents, or the special rule for kidnapped children. Filing late tax returns See Multiple Support Agreement or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) , or Kidnapped child under Qualifying Relative. Filing late tax returns   Example. Filing late tax returns You provided $4,000 toward your 16-year-old son's support for the year. Filing late tax returns He has a part-time job and provided $6,000 to his own support. Filing late tax returns He provided more than half of his own support for the year. Filing late tax returns He is not your qualifying child. Filing late tax returns Foster care payments and expenses. Filing late tax returns   Payments you receive for the support of a foster child from a child placement agency are considered support provided by the agency. Filing late tax returns Similarly, payments you receive for the support of a foster child from a state or county are considered support provided by the state or county. Filing late tax returns   If you are not in the trade or business of providing foster care and your unreimbursed out-of-pocket expenses in caring for a foster child were mainly to benefit an organization qualified to receive deductible charitable contributions, the expenses are deductible as charitable contributions but are not considered support you provided. Filing late tax returns For more information about the deduction for charitable contributions, see chapter 24. Filing late tax returns If your unreimbursed expenses are not deductible as charitable contributions, they may qualify as support you provided. Filing late tax returns   If you are in the trade or business of providing foster care, your unreimbursed expenses are not considered support provided by you. Filing late tax returns Example 1. Filing late tax returns Lauren, a foster child, lived with Mr. Filing late tax returns and Mrs. Filing late tax returns Smith for the last 3 months of the year. Filing late tax returns The Smiths cared for Lauren because they wanted to adopt her (although she had not been placed with them for adoption). Filing late tax returns They did not care for her as a trade or business or to benefit the agency that placed her in their home. Filing late tax returns The Smiths' unreimbursed expenses are not deductible as charitable contributions but are considered support they provided for Lauren. Filing late tax returns Example 2. Filing late tax returns You provided $3,000 toward your 10-year-old foster child's support for the year. Filing late tax returns The state government provided $4,000, which is considered support provided by the state, not by the child. Filing late tax returns See Support provided by the state (welfare, food stamps, housing, etc. Filing late tax returns ) , later. Filing late tax returns Your foster child did not provide more than half of her own support for the year. Filing late tax returns Scholarships. Filing late tax returns   A scholarship received by a child who is a student is not taken into account in determining whether the child provided more than half of his or her own support. Filing late tax returns Joint Return Test (To Be a Qualifying Child) To meet this test, the child cannot file a joint return for the year. Filing late tax returns Exception. Filing late tax returns   An exception to the joint return test applies if your child and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid. Filing late tax returns Example 1—child files joint return. Filing late tax returns You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Filing late tax returns He earned $25,000 for the year. Filing late tax returns The couple files a joint return. Filing late tax returns Because your daughter and her husband file a joint return, she is not your qualifying child. Filing late tax returns Example 2—child files joint return only as a claim for refund of withheld tax. Filing late tax returns Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Filing late tax returns Neither is required to file a tax return. Filing late tax returns They do not have a child. Filing late tax returns Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. Filing late tax returns The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Filing late tax returns Example 3—child files joint return to claim American opportunity credit. Filing late tax returns The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Filing late tax returns He and his wife were not required to file a tax return. Filing late tax returns However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Filing late tax returns Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. Filing late tax returns The exception to the joint return test does not apply, so your son is not your qualifying child. Filing late tax returns Special Rule for Qualifying Child of More Than One Person If your qualifying child is not a qualifying child of anyone else, this special rule does not apply to you and you do not need to read about it. Filing late tax returns This is also true if your qualifying child is not a qualifying child of anyone else except your spouse with whom you file a joint return. Filing late tax returns If a child is treated as the qualifying child of the noncustodial parent under the rules for children of divorced or separated parents (or parents who live apart) described earlier, see Applying this special rule to divorced or separated parents (or parents who live apart), later. Filing late tax returns Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. Filing late tax returns Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). Filing late tax returns The exemption for the child. Filing late tax returns The child tax credit. Filing late tax returns Head of household filing status. Filing late tax returns The credit for child and dependent care expenses. Filing late tax returns The exclusion from income for dependent care benefits. Filing late tax returns The earned income credit. Filing late tax returns The other person cannot take any of these benefits based on this qualifying child. Filing late tax returns In other words, you and the other person cannot agree to divide these benefits between you. Filing late tax returns The other person cannot take any of these tax benefits for a child unless he or she has a different qualifying child. Filing late tax returns Tiebreaker rules. Filing late tax returns   To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker rules apply. Filing late tax returns If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Filing late tax returns If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents. Filing late tax returns 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 during the year. Filing late tax returns 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 the year. Filing late tax returns 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 the year. Filing late tax returns 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 the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. Filing late tax returns If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' combined AGI equally between the parents. Filing late tax returns See Example 6 . Filing late tax returns   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. Filing late tax returns Example 1—child lived with parent and grandparent. Filing late tax returns You and your 3-year-old daughter Jane lived with your mother all year. Filing late tax returns You are 25 years old, unmarried, and your AGI is $9,000. Filing late tax returns Your mother's AGI is $15,000. Filing late tax returns Jane's father did not live with you or your daughter. Filing late tax returns You have not signed Form 8332 (or a similar statement) to release the child's exemption to the noncustodial parent. Filing late tax returns Jane is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. Filing late tax returns However, only one of you can claim her. Filing late tax returns Jane is not a qualifying child of anyone else, including her father. Filing late tax returns You agree to let your mother claim Jane. Filing late tax returns This means your mother can claim Jane as a qualifying child for all of the six tax benefits listed earlier, if she qualifies (and if you do not claim Jane as a qualifying child for any of those tax benefits). Filing late tax returns Example 2—parent has higher AGI than grandparent. Filing late tax returns The facts are the same as in Example 1 except your AGI is $18,000. Filing late tax returns Because your mother's AGI is not higher than yours, she cannot claim Jane. Filing late tax returns Only you can claim Jane. Filing late tax returns Example 3—two persons claim same child. Filing late tax returns The facts are the same as in Example 1 except that you and your mother both claim Jane as a qualifying child. Filing late tax returns In this case, you, as the child's parent, will be the only one allowed to claim Jane as a qualifying child. Filing late tax returns The IRS will disallow your mother's claim to the six tax benefits listed earlier unless she has another qualifying child. Filing late tax returns Example 4—qualifying children split between two persons. Filing late tax returns The facts are the same as in Example 1 except you also have two other young children who are qualifying children of both you and your mother. Filing late tax returns Only one of you can claim each child. Filing late tax returns However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Filing late tax returns For example, if you claim one child, your mother can claim the other two. Filing late tax returns Example 5—taxpayer who is a qualifying child. Filing late tax returns The facts are the same as in Example 1 except you are only 18 years old and did not provide more than half of your own support for the year. Filing late tax returns This means you are your mother's qualifying child. Filing late tax returns If she can claim you as a dependent, then you cannot claim your daughter as a dependent because of the Dependent Taxpayer Test explained earlier. Filing late tax returns Example 6—child lived with both parents and grandparent. Filing late tax returns The facts are the same as in Example 1 except you are married to your daughter's father. Filing late tax returns The two of you live together with your daughter and your mother, and have an AGI of $20,000 on a joint return. Filing late tax returns If you and your husband do not claim your daughter as a qualifying child, your mother can claim her instead. Filing late tax returns Even though the AGI on your joint return, $20,000, is more than your mother's AGI of $15,000, for this purpose each parent's AGI can be treated as $10,000, so your mother's $15,000 AGI is treated as higher than the highest AGI of any of the child's parents who can claim the child. Filing late tax returns Example 7—separated parents. Filing late tax returns You, your husband, and your 10-year-old son lived together until August 1, 2013, when your husband moved out of the household. Filing late tax returns In August and September, your son lived with you. Filing late tax returns For the rest of the year, your son lived with your husband, the boy's father. Filing late tax returns Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship, age, support, and joint return tests for both of you. Filing late tax returns At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the rule for children of divorced or separated parents (or parents who live apart) does not apply. Filing late tax returns You and your husband will file separate returns. Filing late tax returns Your husband agrees to let you treat your son as a qualifying child. Filing late tax returns This means, if your husband does not claim your son as a qualifying child, you can claim your son as a qualifying child for the dependency exemption, child tax credit, and exclusion for dependent care benefits (if you qualify for each of those tax benefits). Filing late tax returns However, you cannot claim head of household filing status because you and your husband did not live apart for the last 6 months of the year. Filing late tax returns As a result, your filing status is married filing separately, so you cannot claim the earned income credit or the credit for child and dependent care expenses. Filing late tax returns Example 8—separated parents claim same child. Filing late tax returns The facts are the same as in Example 7 except that you and your husband both claim your son as a qualifying child. Filing late tax returns In this case, only your husband will be allowed to treat your son as a qualifying child. Filing late tax returns This is because, during 2013, the boy lived with him longer than with you. Filing late tax returns If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. Filing late tax returns If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the exclusion for dependent care benefits. Filing late tax returns In addition, because you and your husband did not live apart for the last 6 months of the year, your husband cannot claim head of household filing status. Filing late tax returns As a result, his filing status is married filing separately, so he cannot claim the earned income credit or the credit for child and dependent care expenses. Filing late tax returns Example 9—unmarried parents. Filing late tax returns You, your 5-year-old son, and your son's father lived together all year. Filing late tax returns You and your son's father are not married. Filing late tax returns Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, support, and joint return tests for both you and his father. Filing late tax returns Your AGI is $12,000 and your son's father's AGI is $14,000. Filing late tax returns Your son's father agrees to let you claim the child as a qualifying child. Filing late tax returns This means you can claim him as a qualifying child for the dependency exemption, child tax credit, head of household filing status, credit for child and dependent care expenses, exclusion for dependent care benefits, and the earned income credit, if you qualify for each of those tax benefits (and if your son's father does not, in fact, claim your son as a qualifying child for any of those tax benefits). Filing late tax returns Example 10—unmarried parents claim same child. Filing late tax returns The facts are the same as in Example 9 except that you and your son's father both claim your son as a qualifying child. Filing late tax returns In this case, only your son's father will be allowed to treat your son as a qualifying child. Filing late tax returns This is because his AGI, $14,000, is more than your AGI, $12,000. Filing late tax returns If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. Filing late tax returns If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the earned income credit, head of household filing status, the credit for child and dependent care expenses, and the exclusion for dependent care benefits. Filing late tax returns Example 11—child did not live with a parent. Filing late tax returns You and your 7-year-old niece, your sister's child, lived with your mother all year. Filing late tax returns You are 25 years old, and your AGI is $9,300. Filing late tax returns Your mother's AGI is $15,000. Filing late tax returns Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Filing late tax returns Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. Filing late tax returns However, only your mother can treat her as a qualifying child. Filing late tax returns This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Filing late tax returns Applying this special rule to divorced or separated parents (or parents who live apart). Filing late tax returns   If a child is treated as the qualifying child of the noncustodial parent under the rules described earlier for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. Filing late tax returns However, the custodial parent, if eligible, or other eligible person can claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. Filing late tax returns If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules just explained determine which person can treat the child as a qualifying child. Filing late tax returns Example 1. Filing late tax returns You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Filing late tax returns Your AGI is $10,000. Filing late tax returns Your mother's AGI is $25,000. Filing late tax returns Your son's father did not live with you or your son. Filing late tax returns Under the rules explained earlier for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for him. Filing late tax returns Because of this, you cannot claim an exemption or the child tax credit for your son. Filing late tax returns However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the earned income credit. Filing late tax returns You and your mother did not have any child care expenses or dependent care benefits, so neither of you can claim the credit for child and dependent care expenses or the exclusion for dependent care benefits. Filing late tax returns But the boy is a qualifying child of both you and your mother for head of household filing status and the earned income credit because he meets the relationship, age, residency, support, and joint return tests for both you and your mother. Filing late tax returns (Note: The support test does not apply for the earned income credit. Filing late tax returns ) However, you agree to let your mother claim your son. Filing late tax returns This means she can claim him for head of household filing status and the earned income credit if she qualifies for each and if you do not claim him as a qualifying child for the earned income credit. Filing late tax returns (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the home. Filing late tax returns ) Example 2. Filing late tax returns The facts are the same as in Example 1 except your AGI is $25,000 and your mother's AGI is $21,000. Filing late tax returns Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Filing late tax returns Example 3. Filing late tax returns The facts are the same as in Example 1 except you and your mother both claim your son as a qualifying child for the earned income credit. Filing late tax returns Your mother also claims him as a qualifying child for head of household filing status. Filing late tax returns You, as the child's parent, will be the only one allowed to claim your son as a qualifying child for the earned income credit. Filing late tax returns The IRS will disallow your mother's claim to the earned income credit and head of household filing status unless she has another qualifying child. Filing late tax returns Qualifying Relative Four tests must be met for a person to be your qualifying relative. Filing late tax returns The four tests are: Not a qualifying child test, Member of household or relationship test, Gross income test, and Support test. Filing late tax returns Age. Filing late tax returns   Unlike a qualifying child, a qualifying relative can be any age. Filing late tax returns There is no age test for a qualifying relative. Filing late tax returns Kidnapped child. Filing late tax returns   You may be able to treat a child as your qualifying relative even if the child has been kidnapped. Filing late tax returns See Publication 501 for details. Filing late tax returns Not a Qualifying Child Test A child is not your qualifying relative if the child is your qualifying child or the qualifying child of any other taxpayer. Filing late tax returns Example 1. Filing late tax returns Your 22-year-old daughter, who is a student, lives with you and meets all the tests to be your qualifying child. Filing late tax returns She is not your qualifying relative. Filing late tax returns Example 2. Filing late tax returns Your 2-year-old son lives with your parents and meets all the tests to be their qualifying child. Filing late tax returns He is not your qualifying relative. Filing late tax returns Example 3. Filing late tax returns Your son lives with you but is not your qualifying child because he is 30 years old and does not meet the age test. Filing late tax returns He may be your qualifying relative if the gross income test and the support test are met. Filing late tax returns Example 4. Filing late tax returns Your 13-year-old grandson lived with his mother for 3 months, with his uncle for 4 months, and with you for 5 months during the year. Filing late tax returns He is not your qualifying child because he does not meet the residency test. Filing late tax returns He may be your qualifying relative if the gross income test and the support test are met. Filing late tax returns Child of person not required to file a return. Filing late tax returns   A child is not the qualifying child of any other taxpayer and so may qualify as your qualifying relative if the child's parent (or other person for whom the child is defined as a qualifying child) is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. Filing late tax returns Example 1—return not required. Filing late tax returns You support an unrelated friend and her 3-year-old child, who lived with you all year in your home. Filing late tax returns Your friend has no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Filing late tax returns Both your friend and her child are your qualifying relatives if the support test is met. Filing late tax returns Example 2—return filed to claim refund. Filing late tax returns The facts are the same as in Example 1 except your friend had wages of $1,500 during the year and had income tax withheld from her wages. Filing late tax returns She files a return only to get a refund of the income tax withheld and does not claim the earned income credit or any other tax credits or deductions. Filing late tax returns Both your friend and her child are your qualifying relatives if the support test is met. Filing late tax returns Example 3—earned income credit claimed. Filing late tax returns The facts are the same as in Example 2 except your friend had wages of $8,000 during the year and claimed the earned income credit on her return. Filing late tax returns Your friend's child is the qualifying child of another taxpayer (your friend), so you cannot claim your friend's child as your qualifying relative. Filing late tax returns Child in Canada or Mexico. Filing late tax returns   You may be able to claim your child as a dependent even if the child lives in Canada or Mexico. Filing late tax returns If the child does not live with you, the child does not meet the residency test to be your qualifying child. Filing late tax returns However, the child may still be your qualifying relative. Filing late tax returns If the persons the child does live with are not U. Filing late tax returns S. Filing late tax returns citizens and have no U. Filing late tax returns S. Filing late tax returns gross income, those persons are not “taxpayers,” so the child is not the qualifying child of any other taxpayer. Filing late tax returns If the child is not the qualifying child of any other taxpayer, the child is your qualifying relative as long as the gross income test and the support test are met. Filing late tax returns   You cannot claim as a dependent a child who lives in a foreign country other than Canada or Mexico, unless the child is a U. Filing late tax returns S. Filing late tax returns citizen, U. Filing late tax returns S. Filing late tax returns resident alien, or U. Filing late tax returns S. Filing late tax returns national. Filing late tax returns There is an exception for certain adopted children who lived with you all year. Filing late tax returns See Citizen or Resident Test , earlier. Filing late tax returns Example. Filing late tax returns You provide all the support of your children, ages 6, 8, and 12, who live in Mexico with your mother and have no income. Filing late tax returns You are single and live in the United States. Filing late tax returns Your mother is not a U. Filing late tax returns S. Filing late tax returns citizen and has no U. Filing late tax returns S. Filing late tax returns income, so she is not a “taxpayer. Filing late tax returns ” Your children are not your qualifying children because they do not meet the residency test. Filing late tax returns But since they are not the qualifying children of any other taxpayer, they are your qualifying relatives and you can claim them as dependents. Filing late tax returns You may also be able to claim your mother as a dependent if the gross income and support tests are met. Filing late tax returns Member of Household or Relationship Test To meet this test, a person must either: Live with you all year as a member of your household, or Be related to you in one of the ways listed under Relatives who do not have to live with you . Filing late tax returns If at any time during the year the person was your spouse, that person cannot be your qualifying relative. Filing late tax returns However, see Personal Exemptions , earlier. Filing late tax returns Relatives who do not have to live with you. Filing late tax returns   A person related to you in any of the following ways does not have to live with you all year as a member of your household to meet this test. Filing late tax returns Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Filing late tax returns (A legally adopted child is considered your child. Filing late tax returns ) Your brother, sister, half brother, half sister, stepbrother, or stepsister. Filing late tax returns Your father, mother, grandparent, or other direct ancestor, but not foster parent. Filing late tax returns Your stepfather or stepmother. Filing late tax returns A son or daughter of your brother or sister. Filing late tax returns A son or daughter of your half brother or half sister. Filing late tax returns A brother or sister of your father or mother. Filing late tax returns Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Filing late tax returns Any of these relationships that were established by marriage are not ended by death or divorce. Filing late tax returns Example. Filing late tax returns You and your wife began supporting your wife's father, a widower, in 2006. Filing late tax returns Your wife died in 2012. Filing late tax returns Despite your wife's death, your father-in-law continues to meet this test, even if he does not live with you. Filing late tax returns You can claim him as a dependent if all other tests are met, including the gross income test and support test. Filing late tax returns Foster child. Filing late tax returns   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Filing late tax returns Joint return. Filing late tax returns   If you file a joint return, the person can be related to either you or your spouse. Filing late tax returns Also, the person does not need to be related to the spouse who provides support. Filing late tax returns   For example, your spouse's uncle who receives more than half of his support from you may be your qualifying relative, even though he does not live with you. Filing late tax returns However, if you and your spouse file separate returns, your spouse's uncle can be your qualifying relative only if he lives with you all year as a member of your household. Filing late tax returns Temporary absences. Filing late tax returns   A person is considered to live with you as a member of your household during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. Filing late tax returns   If the person is placed in a nursing home for an indefinite period of time to receive constant medical care, the absence may be considered temporary. Filing late tax returns Death or birth. Filing late tax returns   A person who died during the year, but lived with you as a member of your household until death, will meet this test. Filing late tax returns The same is true for a child who was born during the year and lived with you as a member of your household for the rest of the year. Filing late tax returns The test is also met if a child lived with you as a member of your household except for any required hospital stay following birth. Filing late tax returns   If your dependent died during the year and you otherwise qualify to claim an exemption for the dependent, you can still claim the exemption. Filing late tax returns Example. Filing late tax returns Your dependent mother died on January 15. Filing late tax returns She met the tests to be your qualifying relative. Filing late tax returns The other tests to claim an exemption for a dependent were also met. Filing late tax returns You can claim an exemption for her on your return. Filing late tax returns Local law violated. Filing late tax returns   A person does not meet this test if at any time during the year the relationship between you and that person violates local law. Filing late tax returns Example. Filing late tax returns Your girlfriend lived with you as a member of your household all year. Filing late tax returns However, your relationship with her violated the laws of the state where you live, because she was married to someone else. Filing late tax returns Therefore, she does not meet this test and you cannot claim her as a dependent. Filing late tax returns Adopted child. Filing late tax returns   An adopted child is always treated as your own child. Filing late tax returns The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Filing late tax returns Cousin. Filing late tax returns   Your cousin meets this test only if he or she lives with you all year as a member of your household. Filing late tax returns A cousin is a descendant of a brother or sister of your father or mother. Filing late tax returns Gross Income Test To meet this test, a person's gross income for the year must be less than $3,900. Filing late tax returns Gross income defined. Filing late tax returns   Gross income is all income in the form of money, property, and services that is not exempt from tax. Filing late tax returns   In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business. Filing late tax returns   Gross receipts from rental property are gross income. Filing late tax returns Do not deduct taxes, repairs, or other expenses, to determine the gross income from rental property. Filing late tax returns   Gross income includes a partner's share of the gross (not a share of the net) partnership income. Filing late tax returns    Gross income also includes all taxable unemployment compensation and certain scholarship and fellowship grants. Filing late tax returns Scholarships received by degree candidates and used for tuition, fees, supplies, books, and equipment required for particular courses generally are not included in gross income. Filing late tax returns For more information about scholarships, see chapter 12. Filing late tax returns   Tax-exempt income, such as certain social security benefits, is not included in gross income. Filing late tax returns Disabled dependent working at sheltered workshop. Filing late tax returns   For purposes of the gross income test, the gross income of an individual who is permanently and totally disabled at any time during the year does not include income for services the individual performs at a sheltered workshop. Filing late tax returns The availability of medical care at the workshop must be the main reason for the individual's presence there. Filing late tax returns Also, the income must come solely from activities at the workshop that are incident to this medical care. Filing late tax returns   A “sheltered workshop” is a school that: Provides special instruction or training designed to alleviate the disability of the individual, and Is operated by certain tax-exempt organizations, or by a state, a U. Filing late tax returns S. Filing late tax returns possession, a political subdivision of a state or possession, the United States, or the District of Columbia. Filing late tax returns “Permanently and totally disabled” has the same meaning here as under Qualifying Child, earlier. Filing late tax returns Support Test (To Be a Qualifying Relative) To meet this test, you generally must provide more than half of a person's total support during the calendar year. Filing late tax returns However, if two or more persons provide support, but no one person provides more than half of a person's total support, see Multiple Support Agreement , later. Filing late tax returns How to determine if support test is met. Filing late tax returns   You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support with the entire amount of support that person received from all sources. Filing late tax returns This includes support the person provided from his or her own funds. Filing late tax returns   You may find Worksheet 3-1 helpful in figuring whether you provided more than half of a person's support. Filing late tax returns Person's own funds not used for support. Filing late tax returns   A person's own funds are not support unless they are actually spent for support. Filing late tax returns Example. Filing late tax returns Your mother received $2,400 in social security benefits and $300 in interest. Filing late tax returns She paid $2,000 for lodging and $400 for recreation. Filing late tax returns She put $300 in a savings account. Filing late tax returns Even though your mother received a total of $2,700 ($2,400 + $300), she spent only $2,400 ($2,000 + $400) for her own support. Filing late tax returns If you spent more than $2,400 for her support and no other support was received, you have provided more than half of her support. Filing late tax returns Child's wages used for own support. Filing late tax returns   You cannot include in your contribution to your child's support any support paid for by the child with the child's own wages, even if you paid the wages. Filing late tax returns Year support is provided. Filing late tax returns   The year you provide the support is the year you pay for it, even if you do so with borrowed money that you repay in a later year. Filing late tax returns   If you use a fiscal year to report your income, you must provide more than half of the dependent's support for the calendar year in which your fiscal year begins. Filing late tax returns Armed Forces dependency allotments. Filing late tax returns   The part of the allotment contributed by the government and the part taken out of your military pay are both considered provided by you in figuring whether you provide more than half of the support. Filing late tax returns If your allotment is used to support persons other than those you name, you can take the exemptions for them if they otherwise qualify. Filing late tax returns Example. Filing late tax returns You are in the Armed Forces. Filing late tax returns You authorize an allotment for your widowed mother that she uses to support herself and her sister. Filing late tax returns If the allotment provides more than half of each person's support, you can take an exemption for each of them, if they otherwise qualify, even though you authorize the allotment only for your mother. Filing late tax returns Tax-exempt military quarters allowances. Filing late tax returns   These allowances are treated the same way as dependency allotments in figuring support. Filing late tax returns The allotment of pay and the tax-exempt basic allowance for quarters are both considered as provided by you for support. Filing late tax returns Tax-exempt income. Filing late tax returns   In figuring a person's total support, include tax-exempt income, savings, and borrowed amounts used to support that person. Filing late tax returns Tax-exempt income includes certain social security benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments, nontaxable pensions, and tax-exempt interest. Filing late tax returns Example 1. Filing late tax returns You provide $4,000 toward your mother's support during the year. Filing late tax returns She has earned income of $600, nontaxable social security benefits of $4,800, and tax-exempt interest of $200. Filing late tax returns She uses all these for her support. Filing late tax returns You cannot claim an exemption for your mother because the $4,000 you provide is not more than half of her total support of $9,600 ($4,000 + $600 + $4,800 + $200). Filing late tax returns Example 2. Filing late tax returns Your niece takes out a student loan of $2,500 a
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The Filing Late Tax Returns

Filing late tax returns Publication 596 - Main Content Table of Contents Chapter 1—Rules for EveryoneRule 1—Adjusted Gross Income (AGI) Limits Rule 2—You Must Have a Valid Social Security Number (SSN) Rule 3—Your Filing Status Cannot Be Married Filing Separately Rule 4—You Must Be a U. Filing late tax returns S. Filing late tax returns Citizen or Resident Alien All Year Rule 5—You Cannot File Form 2555 or Form 2555-EZ Rule 6—Your Investment Income Must Be $3,300 or Less Rule 7—You Must Have Earned Income Chapter 2—Rules If You Have a Qualifying ChildRule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9—Your Qualifying Child Cannot Be Used by More Than One Person To Claim the EIC Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer Chapter 3—Rules If You Do Not Have a Qualifying ChildRule 11—You Must Be at Least Age 25 but Under Age 65 Rule 12—You Cannot Be the Dependent of Another Person Rule 13—You Cannot Be a Qualifying Child of Another Taxpayer Rule 14—You Must Have Lived in the United States More Than Half of the Year Chapter 4—Figuring and Claiming the EICRule 15—Earned Income Limits IRS Will Figure the EIC for You How To Figure the EIC Yourself Schedule EIC Chapter 5—Disallowance of the EICForm 8862 Are You Prohibited From Claiming the EIC for a Period of Years? Chapter 6—Detailed ExamplesExample 1—Sharon Rose Example 2—Cynthia and Jerry Grey Chapter 1—Rules for Everyone This chapter discusses Rules 1 through 7. Filing late tax returns You must meet all seven rules to qualify for the earned income credit. Filing late tax returns If you do not meet all seven rules, you cannot get the credit and you do not need to read the rest of the publication. Filing late tax returns If you meet all seven rules in this chapter, then read either chapter 2 or chapter 3 (whichever applies) for more rules you must meet. Filing late tax returns Rule 1—Adjusted Gross Income (AGI) Limits 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. Filing late tax returns Adjusted gross income (AGI). Filing late tax returns   AGI is the amount on line 4 of Form 1040EZ, line 22 of Form 1040A, or line 38 of Form 1040. Filing late tax returns   If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Filing late tax returns You do not need to read the rest of this publication. Filing late tax returns Example—AGI is more than limit. Filing late tax returns Your AGI is $38,550, you are single, and you have one qualifying child. Filing late tax returns You cannot claim the EIC because your AGI is not less than $37,870. Filing late tax returns However, if your filing status was married filing jointly, you might be able to claim the EIC because your AGI is less than $43,210. Filing late tax returns Community property. Filing late tax returns   If you are married, but qualify to file as head of household under special rules for married taxpayers living apart (see Rule 3), and live in a state that has community property laws, your AGI includes that portion of both your and your spouse's wages that you are required to include in gross income. Filing late tax returns This is different from the community property rules that apply under Rule 7. Filing late tax returns Rule 2—You Must Have a Valid Social Security Number (SSN) To claim the EIC, you (and your spouse, if filing a joint return) must have a valid SSN issued by the Social Security Administration (SSA). Filing late tax returns Any qualifying child listed on Schedule EIC also must have a valid SSN. Filing late tax returns (See Rule 8 if you have a qualifying child. Filing late tax returns ) If your social security card (or your spouse's, if filing a joint return) 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. Filing late tax returns An example of a federally funded benefit is Medicaid. Filing late tax returns If you have a card with the legend “Not valid for employment” and your immigration status has changed so that you are now a U. Filing late tax returns S. Filing late tax returns citizen or permanent resident, ask the SSA for a new social security card without the legend. Filing late tax returns If you get the new card after you have already filed your return, you can file an amended return on Form 1040X, Amended U. Filing late tax returns S. Filing late tax returns Individual Income Tax Return, to claim the EIC. Filing late tax returns U. Filing late tax returns S. Filing late tax returns citizen. Filing late tax returns   If you were a U. Filing late tax returns S. Filing late tax returns citizen when you received your SSN, you have a valid SSN. Filing late tax returns Valid for work only with INS authorization or DHS authorization. Filing late tax returns   If your social security card reads “Valid for work only with INS authorization” or “Valid for work only with DHS authorization,” you have a valid SSN, but only if that authorization is still valid. Filing late tax returns SSN missing or incorrect. Filing late tax returns   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Filing late tax returns Other taxpayer identification number. Filing late tax returns   You cannot get the EIC if, instead of an SSN, you (or your spouse, if filing a joint return) have an individual taxpayer identification number (ITIN). Filing late tax returns ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Filing late tax returns No SSN. Filing late tax returns   If you do not have a valid SSN, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Filing late tax returns You cannot claim the EIC. Filing late tax returns Getting an SSN. Filing late tax returns   If you (or your spouse, if filing a joint return) do not have an SSN, you can apply for one by filing Form SS-5 with the SSA. Filing late tax returns You can get Form SS-5 online at www. Filing late tax returns socialsecurity. Filing late tax returns gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Filing late tax returns Filing deadline approaching and still no SSN. Filing late tax returns   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Filing late tax returns Request an automatic 6-month extension of time to file your return. Filing late tax returns You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Filing late tax returns S. Filing late tax returns Individual Income Tax Return. Filing late tax returns For more information, see the instructions for Form 4868. Filing late tax returns File the return on time without claiming the EIC. Filing late tax returns After receiving the SSN, file an amended return, Form 1040X, claiming the EIC. Filing late tax returns Attach a filled-in Schedule EIC, Earned Income Credit, if you have a qualifying child. Filing late tax returns Rule 3—Your Filing Status Cannot Be “Married Filing Separately” If you are married, you usually must file a joint return to claim the EIC. Filing late tax returns Your filing status cannot be “Married filing separately. Filing late tax returns ” Spouse did not live with you. Filing late tax returns   If you are married and your spouse did not live in your home at any time during the last 6 months of the year, you may be able to file as head of household, instead of married filing separately. Filing late tax returns In that case, you may be able to claim the EIC. Filing late tax returns For detailed information about filing as head of household, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Filing late tax returns Rule 4—You Must Be a U. Filing late tax returns S. Filing late tax returns Citizen or Resident Alien All Year If you (or your spouse, if married) were a nonresident alien for any part of the year, you cannot claim the earned income credit unless your filing status is married filing jointly. Filing late tax returns You can use that filing status only if one spouse is a U. Filing late tax returns S. Filing late tax returns citizen or resident alien and you choose to treat the nonresident spouse as a U. Filing late tax returns S. Filing late tax returns resident. Filing late tax returns If you make this choice, you and your spouse are taxed on your worldwide income. Filing late tax returns If you need more information on making this choice, get Publication 519, U. Filing late tax returns S. Filing late tax returns Tax Guide for Aliens. Filing late tax returns If you (or your spouse, if married) were a nonresident alien for any part of the year and your filing status is not married filing jointly, enter “No” on the dotted line next to line 64a (Form 1040) or in the space to the left of line 38a (Form 1040A). Filing late tax returns Rule 5—You Cannot File Form 2555 or Form 2555-EZ You cannot claim the earned income credit if you file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Filing late tax returns You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Filing late tax returns U. Filing late tax returns S. Filing late tax returns possessions are not foreign countries. Filing late tax returns See Publication 54, Tax Guide for U. Filing late tax returns S. Filing late tax returns Citizens and Resident Aliens Abroad, for more detailed information. Filing late tax returns Rule 6—Your Investment Income Must Be $3,300 or Less You cannot claim the earned income credit unless your investment income is $3,300 or less. Filing late tax returns If your investment income is more than $3,300, you cannot claim the credit. Filing late tax returns Form 1040EZ. Filing late tax returns   If you file Form 1040EZ, your investment income is the total of the amount on line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. Filing late tax returns Form 1040A. Filing late tax returns   If you file Form 1040A, your investment income is the total of the amounts on lines 8a (taxable interest), 8b (tax-exempt interest), 9a (ordinary dividends), and 10 (capital gain distributions) on that form. Filing late tax returns Form 1040. Filing late tax returns   If you file Form 1040, use Worksheet 1 in this chapter to figure your investment income. Filing late tax returns    Worksheet 1. Filing late tax returns Investment Income If You Are Filing Form 1040 Use this worksheet to figure investment income for the earned income credit when you file Form 1040. Filing late tax returns Interest and Dividends         1. Filing late tax returns Enter any amount from Form 1040, line 8a 1. Filing late tax returns   2. Filing late tax returns Enter any amount from Form 1040, line 8b, plus any amount on Form 8814, line 1b 2. Filing late tax returns   3. Filing late tax returns Enter any amount from Form 1040, line 9a 3. Filing late tax returns   4. Filing late tax returns Enter the amount from Form 1040, line 21, that is from Form 8814 if you are filing that form to report your child's interest and dividend income on your return. Filing late tax returns (If your child received an Alaska Permanent Fund dividend, use Worksheet 2 in this chapter to figure the amount to enter on this line. Filing late tax returns ) 4. Filing late tax returns   Capital Gain Net Income         5. Filing late tax returns Enter the amount from Form 1040, line 13. Filing late tax returns If the amount on that line is a loss, enter -0- 5. Filing late tax returns       6. Filing late tax returns Enter any gain from Form 4797, Sales of Business Property, line 7. Filing late tax returns If the amount on that line is a loss, enter -0-. Filing late tax returns (But, if you completed lines 8 and 9 of Form 4797, enter the amount from line 9 instead. Filing late tax returns ) 6. Filing late tax returns       7. Filing late tax returns Substract line 6 of this worksheet from line 5 of this worksheet. Filing late tax returns (If the result is less than zero, enter -0-. Filing late tax returns ) 7. Filing late tax returns   Royalties and Rental Income From Personal Property         8. Filing late tax returns Enter any royalty income from Schedule E, line 23b, plus any income from the rental of personal property shown on Form 1040, line 21 8. Filing late tax returns       9. Filing late tax returns Enter any expenses from Schedule E, line 20, related to royalty income, plus any expenses from the rental of personal property deducted on Form 1040, line 36 9. Filing late tax returns       10. Filing late tax returns Subtract the amount on line 9 of this worksheet from the amount on line 8. Filing late tax returns (If the result is less than zero, enter -0-. Filing late tax returns ) 10. Filing late tax returns   Passive Activities         11. Filing late tax returns Enter the total of any net income from passive activities (such as income included on Schedule E, line 26, 29a (col. Filing late tax returns (g)), 34a (col. Filing late tax returns (d)), or 40). Filing late tax returns (See instructions below for lines 11 and 12. Filing late tax returns ) 11. Filing late tax returns       12. Filing late tax returns Enter the total of any losses from passive activities (such as losses included on Schedule E, line 26, 29b (col. Filing late tax returns (f)), 34b (col. Filing late tax returns (c)), or 40). Filing late tax returns (See instructions below for lines 11 and 12. Filing late tax returns ) 12. Filing late tax returns       13. Filing late tax returns Combine the amounts on lines 11 and 12 of this worksheet. Filing late tax returns (If the result is less than zero, enter -0-. Filing late tax returns ) 13. Filing late tax returns   14. Filing late tax returns Add the amounts on lines 1, 2, 3, 4, 7, 10, and 13. Filing late tax returns Enter the total. Filing late tax returns This is your investment income 14. Filing late tax returns   15. Filing late tax returns Is the amount on line 14 more than $3,300? ❑ Yes. Filing late tax returns You cannot take the credit. Filing late tax returns  ❑ No. Filing late tax returns Go to Step 3 of the Form 1040 instructions for lines 64a and 64b to find out if you can take the credit (unless you are using this publication to find out if you can take the credit; in that case, go to Rule 7, next). Filing late tax returns       Instructions for lines 11 and 12. Filing late tax returns In figuring the amount to enter on lines 11 and 12, do not take into account any royalty income (or loss) included on line 26 of Schedule E or any amount included in your earned income. Filing late tax returns To find out if the income on line 26 or line 40 of Schedule E is from a passive activity, see the Schedule E instructions. Filing late tax returns If any of the rental real estate income (or loss) included on Schedule E, line 26, is not from a passive activity, print “NPA” and the amount of that income (or loss) on the dotted line next to line 26. Filing late tax returns Worksheet 2. Filing late tax returns Worksheet for Line 4 of Worksheet 1 Complete this worksheet only if Form 8814 includes an Alaska Permanent Fund dividend. Filing late tax returns Note. Filing late tax returns Fill out a separate Worksheet 2 for each Form 8814. Filing late tax returns     1. Filing late tax returns Enter the amount from Form 8814, line 2a 1. Filing late tax returns   2. Filing late tax returns Enter the amount from Form 8814, line 2b 2. Filing late tax returns   3. Filing late tax returns Subtract line 2 from line 1 3. Filing late tax returns   4. Filing late tax returns Enter the amount from Form 8814, line 1a 4. Filing late tax returns   5. Filing late tax returns Add lines 3 and 4 5. Filing late tax returns   6. Filing late tax returns Enter the amount of the child's Alaska Permanent Fund dividend 6. Filing late tax returns   7. Filing late tax returns Divide line 6 by line 5. Filing late tax returns Enter the result as a decimal (rounded to at least three places) 7. Filing late tax returns   8. Filing late tax returns Enter the amount from Form 8814, line 12 8. Filing late tax returns   9. Filing late tax returns Multiply line 7 by line 8 9. Filing late tax returns   10. Filing late tax returns Subtract line 9 from line 8. Filing late tax returns Enter the result on line 4 of Worksheet 1 10. Filing late tax returns     (If filing more than one Form 8814, enter on line 4 of Worksheet 1 the total of the amounts on line 10 of all Worksheets 2. Filing late tax returns )     Example—completing Worksheet 2. Filing late tax returns Your 10-year-old child has taxable interest income of $400, an Alaska Permanent Fund dividend of $1,000, and ordinary dividends of $1,100, of which $500 are qualified dividends. Filing late tax returns You choose to report this income on your return. Filing late tax returns You enter $400 on line 1a of Form 8814, $2,100 ($1,000 + $1,100) on line 2a, and $500 on line 2b. Filing late tax returns After completing lines 4 through 11, you enter $400 on line 12 of Form 8814 and line 21 of Form 1040. Filing late tax returns On Worksheet 2, you enter $2,100 on line 1, $500 on line 2, $1,600 on line 3, $400 on line 4, $2,000 on line 5, $1,000 on line 6, 0. Filing late tax returns 500 on line 7, $400 on line 8, $200 on line 9, and $200 on line 10. Filing late tax returns You then enter $200 on line 4 of Worksheet 1. Filing late tax returns Rule 7—You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. Filing late tax returns If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Filing late tax returns If you are an employee, earned income includes all the taxable income you get from your employer. Filing late tax returns Rule 15 has information that will help you figure the amount of your earned income. Filing late tax returns If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the Form 1040 instructions. Filing late tax returns Earned Income Earned income includes all of the following types of income. Filing late tax returns Wages, salaries, tips, and other taxable employee pay. Filing late tax returns Employee pay is earned income only if it is taxable. Filing late tax returns Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Filing late tax returns But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained later in this chapter. Filing late tax returns Net earnings from self-employment. Filing late tax returns Gross income received as a statutory employee. Filing late tax returns Wages, salaries, and tips. Filing late tax returns    Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Filing late tax returns You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Filing late tax returns Nontaxable combat pay election. Filing late tax returns   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Filing late tax returns The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q. Filing late tax returns Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Filing late tax returns For details, see Nontaxable combat pay in chapter 4. Filing late tax returns Net earnings from self-employment. Filing late tax returns   You may have net earnings from self-employment if: You own your own business, or You are a minister or member of a religious order. Filing late tax returns Minister's housing. Filing late tax returns   The rental value of a home or a housing allowance provided to a minister as part of the minister's pay generally is not subject to income tax but is included in net earnings from self-employment. Filing late tax returns For that reason, it is included in earned income for the EIC (except in the cases described in Approved Form 4361 or Form 4029 , below). Filing late tax returns Statutory employee. Filing late tax returns   You are a statutory employee if you receive a Form W-2 on which the “Statutory employee” box (box 13) is checked. Filing late tax returns You report your income and expenses as a statutory employee on Schedule C or C-EZ (Form 1040). Filing late tax returns Strike benefits. Filing late tax returns   Strike benefits paid by a union to its members are earned income. Filing late tax returns Approved Form 4361 or Form 4029 This section is for persons who have an approved: Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, or Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits. Filing late tax returns Each approved form exempts certain income from social security taxes. Filing late tax returns Each form is discussed here in terms of what is or is not earned income for the EIC. Filing late tax returns Form 4361. Filing late tax returns   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Filing late tax returns This includes wages, salaries, tips, and other taxable employee compensation. Filing late tax returns A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Filing late tax returns Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Filing late tax returns Examples include fees for performing marriages and honoraria for delivering speeches. Filing late tax returns Form 4029. Filing late tax returns   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Filing late tax returns However, amounts you received as a self-employed individual do not count as earned income. Filing late tax returns Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Filing late tax returns Disability Benefits 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. Filing late tax returns Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Filing late tax returns You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Filing late tax returns Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Filing late tax returns Report taxable pension payments on Form 1040, lines 16a and 16b, or Form 1040A, lines 12a and 12b. Filing late tax returns Disability insurance payments. Filing late tax returns   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Filing late tax returns It does not matter whether you have reached minimum retirement age. Filing late tax returns If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Filing late tax returns ” Income That Is Not Earned Income Examples of items that are not earned income include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Filing late tax returns Do not include any of these items in your earned income. Filing late tax returns Earnings while an inmate. Filing late tax returns   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Filing late tax returns This includes amounts for work performed while in a work release program or while in a halfway house. Filing late tax returns Workfare payments. Filing late tax returns   Nontaxable workfare payments are not earned income for the EIC. Filing late tax returns 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. Filing late tax returns Community property. Filing late tax returns   If you are married, but qualify to file as head of household under special rules for married taxpayers living apart (see Rule 3), and live in a state that has community property laws, your earned income for the EIC does not include any amount earned by your spouse that is treated as belonging to you under those laws. Filing late tax returns That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Filing late tax returns Your earned income includes the entire amount you earned, even if part of it is treated as belonging to your spouse under your state's community property laws. Filing late tax returns Nevada, Washington, and California domestic partners. Filing late tax returns   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Filing late tax returns Your earned income for the EIC does not include any amount earned by your partner. Filing late tax returns Your earned income includes the entire amount you earned. Filing late tax returns For details, see Publication 555. Filing late tax returns Conservation Reserve Program (CRP) payments. Filing late tax returns   If you were receiving social security retirement benefits or social security disability benefits at the time you received any CRP payments, your CRP payments are not earned income for the EIC. Filing late tax returns Nontaxable military pay. Filing late tax returns   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Filing late tax returns Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Filing late tax returns See Publication 3, Armed Forces' Tax Guide, for more information. Filing late tax returns    Combat pay. Filing late tax returns You can elect to include your nontaxable combat pay in earned income for the EIC. Filing late tax returns See Nontaxable combat pay in chapter 4. Filing late tax returns Chapter 2—Rules If You Have a Qualifying Child If you have met all the rules in chapter 1, use this chapter to see if you have a qualifying child. Filing late tax returns This chapter discusses Rules 8 through 10. Filing late tax returns You must meet all three of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit with a qualifying child. Filing late tax returns You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Filing late tax returns (You cannot file Form 1040EZ. Filing late tax returns ) You also must complete Schedule EIC and attach it to your return. Filing late tax returns If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Filing late tax returns No qualifying child. Filing late tax returns   If you do not meet Rule 8, you do not have a qualifying child. Filing late tax returns Read chapter 3 to find out if you can get the earned income credit without a qualifying child. Filing late tax returns Rule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. Filing late tax returns The fours tests are: Relationship, Age, Residency, and Joint return. Filing late tax returns The four tests are illustrated in Figure 1. Filing late tax returns The paragraphs that follow contain more information about each test. Filing late tax returns Relationship Test To be your qualifying child, a child must be your: 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). Filing late tax returns The following definitions clarify the relationship test. Filing late tax returns Adopted child. Filing late tax returns   An adopted child is always treated as your own child. Filing late tax returns The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Filing late tax returns Foster child. Filing late tax returns   For the EIC, a person is your foster child if the child is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Filing late tax returns (An authorized placement agency includes a state or local government agency. Filing late tax returns It also includes a tax-exempt organization licensed by a state. Filing late tax returns In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Filing late tax returns ) Example. Filing late tax returns Debbie, who is 12 years old, was placed in your care 2 years ago by an authorized agency responsible for placing children in foster homes. Filing late tax returns Debbie is your foster child. Filing late tax returns Figure 1. Filing late tax returns Tests for Qualifying Child Please click here for the text description of the image. Filing late tax returns Conditions for Qualifying Child Age Test Your child must be: Under age 19 at the end of 2013 and younger than you (or your spouse, if filing jointly), 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 2013, regardless of age. Filing late tax returns The following examples and definitions clarify the age test. Filing late tax returns Example 1—child not under age 19. Filing late tax returns Your son turned 19 on December 10. Filing late tax returns Unless he was permanently and totally disabled or a student, he is not a qualifying child because, at the end of the year, he was not under age 19. Filing late tax returns Example 2—child not younger than you or your spouse. Filing late tax returns Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Filing late tax returns He is not disabled. Filing late tax returns Both you and your spouse are 21 years old, and you file a joint return. Filing late tax returns Your brother is not your qualifying child because he is not younger than you or your spouse. Filing late tax returns Example 3—child younger than your spouse but not younger than you. Filing late tax returns The facts are the same as in Example 2 except that your spouse is 25 years old. Filing late tax returns Because your brother is younger than your spouse, he is your qualifying child, even though he is not younger than you. Filing late tax returns Student defined. Filing late tax returns   To qualify as a student, your child must be, during some part of each of any 5 calendar months during the calendar year: A full-time student at a school that has a regular teaching staff, course of study, and regular student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or a state, county, or local government. Filing late tax returns   The 5 calendar months need not be consecutive. Filing late tax returns   A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. Filing late tax returns School defined. Filing late tax returns   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Filing late tax returns However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Filing late tax returns Vocational high school students. Filing late tax returns   Students who work in co-op jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. Filing late tax returns Permanently and totally disabled. Filing late tax returns   Your child is permanently and totally disabled if both of the following apply. Filing late tax returns He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Filing late tax returns A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Filing late tax returns Residency Test Your child must have lived with you in the United States for more than half of 2013. Filing late tax returns The following definitions clarify the residency test. Filing late tax returns United States. Filing late tax returns   This means the 50 states and the District of Columbia. Filing late tax returns It does not include Puerto Rico or U. Filing late tax returns S. Filing late tax returns possessions such as Guam. Filing late tax returns Homeless shelter. Filing late tax returns   Your home can be any location where you regularly live. Filing late tax returns You do not need a traditional home. Filing late tax returns For example, if your child lived with you for more than half the year in one or more homeless shelters, your child meets the residency test. Filing late tax returns Military personnel stationed outside the United States. Filing late tax returns   U. Filing late tax returns S. Filing late tax returns military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC. Filing late tax returns Extended active duty. Filing late tax returns   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Filing late tax returns Once you begin serving your extended active duty, you are still considered to have been on extended active duty even if you do not serve more than 90 days. Filing late tax returns Birth or death of child. Filing late tax returns    child who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the child's home for more than half the time he or she was alive in 2013. Filing late tax returns Temporary absences. Filing late tax returns   Count time that you or your child is away from home on a temporary absence due to a special circumstance as time the child lived with you. Filing late tax returns Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Filing late tax returns Kidnapped child. Filing late tax returns   A kidnapped child is treated as living with you for more than half of the year if the child lived with you for more than half the part of the year before the date of the kidnapping. Filing late tax returns The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Filing late tax returns This treatment applies for all years until the child is returned. Filing late tax returns However, the last year this treatment can apply is the earlier of: The year there is a determination that the child is dead, or The year the child would have reached age 18. Filing late tax returns   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Filing late tax returns Joint Return Test To meet this test, the child cannot file a joint return for the year. Filing late tax returns Exception. Filing late tax returns   An exception to the joint return test applies if your child and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid. Filing late tax returns Example 1—child files joint return. Filing late tax returns You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Filing late tax returns He earned $25,000 for the year. Filing late tax returns The couple files a joint return. Filing late tax returns Because your daughter and her husband file a joint return, she is not your qualifying child. Filing late tax returns Example 2—child files joint return to get refund of tax withheld. Filing late tax returns Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Filing late tax returns They do not have a child. Filing late tax returns Neither is required to file a tax return. Filing late tax returns Taxes were taken out of their pay, so they file a joint return only to get a refund of the withheld taxes. Filing late tax returns The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Filing late tax returns Example 3—child files joint return to claim American opportunity credit. Filing late tax returns The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Filing late tax returns He and his wife are not required to file a tax return, but they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Filing late tax returns Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to claim a refund of income tax withheld or estimated tax paid. Filing late tax returns The exception to the joint return test does not apply, so your son is not your qualifying child. Filing late tax returns Married child. Filing late tax returns   Even if your child does not file a joint return, if your child was married at the end of the year, he or she cannot be your qualifying child unless: You can claim an exemption for the child, or The reason you cannot claim an exemption for the child is that you let the child's other parent claim the exemption under the Special rule for divorced or separated parents (or parents who live apart) described later. Filing late tax returns    Social security number. Filing late tax returns Your qualifying child must have a valid social security number (SSN), unless the child was born and died in 2013 and you attach to your return a copy of the child's birth certificate, death certificate, or hospital records showing a live birth. Filing late tax returns You cannot claim the EIC on the basis of a qualifying child if: The qualifying child's SSN is missing from your tax return or is incorrect, The qualifying child's social security card says “Not valid for employment” and was issued for use in getting a federally funded benefit, or Instead of an SSN, the qualifying child has: An individual taxpayer identification number (ITIN), which is issued to a noncitizen who cannot get an SSN, or An adoption taxpayer identification number (ATIN), issued to adopting parents who cannot get an SSN for the child being adopted until the adoption is final. Filing late tax returns   If you have more than one qualifying child and only one has a valid SSN, you can use only that child to claim the EIC. Filing late tax returns For more information about SSNs, see Rule 2. Filing late tax returns Rule 9—Your Qualifying Child Cannot Be Used by More Than One Person To Claim the EIC Sometimes a child meets the tests to be a qualifying child of more than one person. Filing late tax returns However, only one of these persons can actually treat the child as a qualifying child. Filing late tax returns Only that person can use the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). Filing late tax returns The exemption for the child. Filing late tax returns The child tax credit. Filing late tax returns Head of household filing status. Filing late tax returns The credit for child and dependent care expenses. Filing late tax returns The exclusion for dependent care benefits. Filing late tax returns The EIC. Filing late tax returns The other person cannot take any of these benefits based on this qualifying child. Filing late tax returns In other words, you and the other person cannot agree to divide these tax benefits between you. Filing late tax returns The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Filing late tax returns The tiebreaker rules, which follow, explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Filing late tax returns However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Filing late tax returns Tiebreaker rules. Filing late tax returns   To determine which person can treat the child as a qualifying child to claim the six tax benefits just listed, the following tiebreaker rules apply. Filing late tax returns If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Filing late tax returns If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents. Filing late tax returns 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 during the year. Filing late tax returns 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 the year. Filing late tax returns 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 the year. Filing late tax returns 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 the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. Filing late tax returns If the child's parents file a joint return with each other, this rule can be applied by treating the parents' total AGI as divided evenly between them. Filing late tax returns See Example 8. Filing late tax returns   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. Filing late tax returns See Examples 1 through 13. Filing late tax returns   If you cannot claim the EIC because your qualifying child is treated under the tiebreaker rules as the qualifying child of another person for 2013, you may be able to take the EIC using a different qualifying child, but you cannot take the EIC using the rules in chapter 3 for people who do not have a qualifying child. Filing late tax returns If the other person cannot claim the EIC. Filing late tax returns   If you and someone else have the same qualifying child but the other person cannot claim the EIC because he or she is not eligible or his or her earned income or AGI is too high, you may be able to treat the child as a qualifying child. Filing late tax returns See Examples 6 and 7. Filing late tax returns But you cannot treat the child as a qualifying child to claim the EIC if the other person uses the child to claim any of the other six tax benefits listed earlier in this chapter. Filing late tax returns Examples. Filing late tax returns    The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Filing late tax returns Example 1—child lived with parent and grandparent. Filing late tax returns You and your 2-year-old son Jimmy lived with your mother all year. Filing late tax returns You are 25 years old, unmarried, and your AGI is $9,000. Filing late tax returns Your only income was $9,000 from a part-time job. Filing late tax returns Your mother's only income was $20,000 from her job, and her AGI is $20,000. Filing late tax returns Jimmy's father did not live with you or Jimmy. Filing late tax returns The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Filing late tax returns Jimmy is a qualifying child of both you and your mother because he meets the relationship, age, residency, and joint return tests for both you and your mother. Filing late tax returns However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier in this chapter for which that person qualifies). Filing late tax returns He is not a qualifying child of anyone else, including his father. Filing late tax returns If you do not claim Jimmy as a qualifying child for the EIC or any of the other tax benefits listed earlier, your mother can treat him as a qualifying child to claim the EIC (and any of the other tax benefits listed earlier for which she qualifies). Filing late tax returns Example 2—parent has higher AGI than grandparent. Filing late tax returns The facts are the same as in Example 1 except your AGI is $25,000. Filing late tax returns Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Filing late tax returns Only you can claim him. Filing late tax returns Example 3—two persons claim same child. Filing late tax returns The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Filing late tax returns In this case, you as the child's parent will be the only one allowed to claim Jimmy as a qualifying child for the EIC and the other tax benefits listed earlier for which you qualify. Filing late tax returns The IRS will disallow your mother's claim to the EIC and any of the other tax benefits listed earlier unless she has another qualifying child. Filing late tax returns Example 4—qualifying children split between two persons. Filing late tax returns The facts are the same as in Example 1 except that you also have two other young children who are qualifying children of both you and your mother. Filing late tax returns Only one of you can claim each child. Filing late tax returns However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Filing late tax returns For example, if you claim one child, your mother can claim the other two. Filing late tax returns Example 5—taxpayer who is a qualifying child. Filing late tax returns The facts are the same as in Example 1 except that you are only 18 years old. Filing late tax returns This means you are a qualifying child of your mother. Filing late tax returns Because of Rule 10, discussed next, you cannot claim the EIC and cannot claim your son as a qualifying child. Filing late tax returns Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Filing late tax returns If your mother meets all the other requirements for claiming the EIC and you do not claim Jimmy as a qualifying child for any of the other tax benefits listed earlier, your mother can claim both you and Jimmy as qualifying children for the EIC. Filing late tax returns Example 6—grandparent with too much earned income to claim EIC. Filing late tax returns The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Filing late tax returns Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Filing late tax returns Example 7—parent with too much earned income to claim EIC. Filing late tax returns The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Filing late tax returns Your earned income is too high for you to claim the EIC. Filing late tax returns But your mother cannot claim the EIC either, because her AGI is not higher than yours. Filing late tax returns Example 8—child lived with both parents and grandparent. Filing late tax returns The facts are the same as in Example 1 except that you and Jimmy's father are married to each other, live with Jimmy and your mother, and have AGI of $30,000 on a joint return. Filing late tax returns If you and your husband do not claim Jimmy as a qualifying child for the EIC or any of the other tax benefits listed earlier, your mother can claim him instead. Filing late tax returns Even though the AGI on your joint return, $30,000, is more than your mother's AGI of $20,000, for this purpose half of the joint AGI can be treated as yours and half as your husband's. Filing late tax returns In other words, each parent's AGI can be treated as $15,000. Filing late tax returns Example 9—separated parents. Filing late tax returns You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Filing late tax returns In August and September, Joey lived with you. Filing late tax returns For the rest of the year, Joey lived with your husband, who is Joey's father. Filing late tax returns Joey is a qualifying child of both you and your husband because he lived with each of you for more than half the year and because he met the relationship, age, and joint return tests for both of you. Filing late tax returns At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the Special rule for divorced or separated parents (or parents who live apart) does not apply. Filing late tax returns You and your husband will file separate returns. Filing late tax returns Your husband agrees to let you treat Joey as a qualifying child. Filing late tax returns This means, if your husband does not claim Joey as a qualifying child for any of the tax benefits listed earlier, you can claim him as a qualifying child for any tax benefit listed earlier for which you qualify. Filing late tax returns However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Filing late tax returns See Rule 3. Filing late tax returns Example 10—separated parents claim same child. Filing late tax returns The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Filing late tax returns In this case, only your husband will be allowed to treat Joey as a qualifying child. Filing late tax returns This is because, during 2013, the boy lived with him longer than with you. Filing late tax returns You cannot claim the EIC (either with or without a qualifying child). Filing late tax returns However, your husband's filing status is married filing separately, so he cannot claim the EIC or the credit for child and dependent care expenses. Filing late tax returns See Rule 3. Filing late tax returns Example 11—unmarried parents. Filing late tax returns You, your 5-year-old son, and your son's father lived together all year. Filing late tax returns You and your son's father are not married. Filing late tax returns Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, and joint return tests for both you and his father. Filing late tax returns Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Filing late tax returns Neither of you had any other income. Filing late tax returns Your son's father agrees to let you treat the child as a qualifying child. Filing late tax returns This means, if your son's father does not claim your son as a qualifying child for the EIC or any of the other tax benefits listed earlier, you can claim him as a qualifying child for the EIC and any of the other tax benefits listed earlier for which you qualify. Filing late tax returns Example 12—unmarried parents claim same child. Filing late tax returns The facts are the same as in Example 11 except that you and your son's father both claim your son as a qualifying child. Filing late tax returns In this case, only your son's father will be allowed to treat your son as a qualifying child. Filing late tax returns This is because his AGI, $14,000, is more than your AGI, $12,000. Filing late tax returns You cannot claim the EIC (either with or without a qualifying child). Filing late tax returns Example 13—child did not live with a parent. Filing late tax returns You and your 7-year-old niece, your sister's child, lived with your mother all year. Filing late tax returns You are 25 years old, and your AGI is $9,300. Filing late tax returns Your only income was from a part-time job. Filing late tax returns Your mother's AGI is $15,000. Filing late tax returns Her only income was from her job. Filing late tax returns Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Filing late tax returns Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, and joint return tests for both you and your mother. Filing late tax returns However, only your mother can treat her as a qualifying child. Filing late tax returns This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Filing late tax returns Special rule for divorced or separated parents (or parents who live apart). Filing late tax returns   A child will be treated as the qualifying child of his or her noncustodial parent (for purposes of claiming an exemption and the child tax credit, but not for the EIC) if all of the following statements are true. Filing late tax returns The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all time during the last 6 months of 2013, whether or not they are or were married. Filing late tax returns The child received over half of his or her support for the year from the parents. Filing late tax returns The child is in the custody of one or both parents for more than half of 2013. Filing late tax returns Either of the following statements is true. Filing late tax returns The custodial parent signs Form 8332 or a substantially similar statement that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches the form or statement to his or her return. Filing late tax returns If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. Filing late tax returns A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 provides that the noncustodial parent can claim the child as a dependent, and the noncustodial parent provides at least $600 for support of the child during 2013. Filing late tax returns For details, see Publication 501. Filing late tax returns Also see Applying Rule 9 to divorced or separated parents (or parents who live apart), next. Filing late tax returns Applying Rule 9 to divorced or separated parents (or parents who live apart). Filing late tax returns   If a child is treated as the qualifying child of the noncustodial parent under the special rule just described for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. Filing late tax returns However, the custodial parent, if eligible, or another eligible taxpayer can claim the child as a qualifying child for the EIC and other tax benefits listed earlier in this chapter. Filing late tax returns If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules determine which person can treat the child as a qualifying child. Filing late tax returns Example 1. Filing late tax returns You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Filing late tax returns Your AGI is $10,000. Filing late tax returns Your mother’s AGI is $25,000. Filing late tax returns Your son's father did not live with you or your son. Filing late tax returns Under the Special rule for divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for the child. Filing late tax returns However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the EIC. Filing late tax returns You and your mother did not have any child care expenses or dependent care benefits. Filing late tax returns If you do not claim your son as a qualifying child, your mother can claim him as a qualifying child for the EIC and head of household filing status, if she qualifies for these tax benefits. Filing late tax returns Example 2. Filing late tax returns The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Filing late tax returns Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Filing late tax returns Example 3. Filing late tax returns The facts are the same as in Example 1 except that you and your mother both claim your son as a qualifying child for the EIC. Filing late tax returns Your mother also claims him as a qualifying child for head of household filing status. Filing late tax returns You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Filing late tax returns The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Filing late tax returns Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Filing late tax returns ) if all of the following statements are true. Filing late tax returns You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Filing late tax returns Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Filing late tax returns You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student, and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. Filing late tax returns You lived with that person in the United States for more than half of the year. Filing late tax returns You are not filing a joint return for the year (or are filing a joint return only to claim a refund of withheld income tax or estimated tax paid). Filing late tax returns For more details about the tests to be a qualifying child, see Rule 8. Filing late tax returns If you are a qualifying child of another taxpayer, you cannot claim the EIC. Filing late tax returns This is true even if the person for whom you are a qualifying child does not claim the EIC or meet all of the rules to claim the EIC. Filing late tax returns Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Filing late tax returns Example. Filing late tax returns You and your daughter lived with your mother all year. Filing late tax returns You are 22 years old, unmarried, and attended a trade school full time. Filing late tax returns You had a part-time job and earned $5,700. Filing late tax returns You had no other income. Filing late tax returns Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Filing late tax returns She can claim the EIC if she meets all the other requirements. Filing late tax returns Because you are your mother's qualifying child, you cannot claim the EIC. Filing late tax returns This is so even if your mother cannot or does not claim the EIC. Filing late tax returns Child of person not required to file a return. Filing late tax returns   You are not the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you met the relationship, age, residency, and joint return tests is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. Filing late tax returns Example 1—return not required. Filing late tax returns The facts are the same as in the last example except your mother had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Filing late tax returns As a result, you are not your mother's qualifying child. Filing late tax returns You can claim the EIC if you meet all the other requirements to do so. Filing late tax returns Example 2—return filed to get refund of tax withheld. Filing late tax returns The facts are the same as in Example 1 except your mother had wages of $1,500 and had income tax withheld from her wages. Filing late tax returns She files a return only to get a refund of the income tax withheld and does not claim the EIC or any other tax credits or deductions. Filing late tax returns As a result, you are not your mother's qualifying child. Filing late tax returns You can claim the EIC if you meet all the other requirements to do so. Filing late tax returns Example 3—return filed to get EIC. Filing late tax returns The facts are the same as in Example 2 except your mother claimed the EIC on her return. Filing late tax returns Since she filed the return to get the EIC, she is not filing it only to get a refund of income tax withheld. Filing late tax returns As a result, you are your mother's qualifying child. Filing late tax returns You cannot claim the EIC. Filing late tax returns Chapter 3—Rules If You Do Not Have a Qualifying Child Use this chapter if you do not have a qualifying child and have met all the rules in chapter 1. Filing late tax returns This chapter discusses Rules 11 through 14. Filing late tax returns You must meet all four of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit without a qualifying child. Filing late tax returns You can file Form 1040, Form 1040A, or Form 1040EZ to claim the EIC without a qualifying child. Filing late tax returns If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Filing late tax returns If you have a qualifying child. Filing late tax returns   If you meet Rule 8, you have a qualifying child. Filing late tax returns If you meet Rule 8 and do not claim the EIC with a qualifying child, you cannot claim the EIC without a qualifying child. Filing late tax returns Rule 11—You Must Be at Least Age 25 but Under Age 65 You must be at least age 25 but under age 65 at the end of 2013. Filing late tax returns If you are married filing a joint return, either you or your spouse must be at least age 25 but under age 65 at the end of 2013. Filing late tax returns It does not matter which spouse meets the age test, as long as one of the spouses does. Filing late tax returns You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Filing late tax returns If you are married filing a joint return, you meet the age test if either you or your spouse was born after December 31, 1948, and before January 2, 1989. Filing late tax returns If neither you nor your spouse meets the age test, you cannot claim the EIC. Filing late tax returns Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Filing late tax returns Death of spouse. Filing late tax returns   If you are filing a joint return with your spouse who died in 2013, you meet the age test if your spouse was at least age 25 but under age 65 at the time of death. Filing late tax returns Example 1. Filing late tax returns You are age 28 and unmarried. Filing late tax returns You meet the age test. Filing late tax returns Example 2—spouse meets age test. Filing late tax returns You are married and filing a joint return. Filing late tax returns You are age 23 and your spouse is age 27. Filing late tax returns You meet the age test because your spouse is at least age 25 but under age 65. Filing late tax returns Example 3—spouse dies in 2013. Filing late tax returns You are married and filing a joint return with your spouse who died in August 2013. Filing late tax returns You are age 67. Filing late tax returns Your spouse would have become age 65 in November 2013. Filing late tax returns Because your spouse was under age 65 when she died, you meet the age test. Filing late tax returns Rule 12—You Cannot Be the Dependent of Another Person If you are not filing a joint return, you meet this rule if: You checked box 6a on Form 1040 or 1040A, or You did not check the “You” box on line 5 of Form 1040EZ, and you entered $10,000 on that line. Filing late tax returns If you are filing a joint return, you meet this rule if: You checked both box 6a and box 6b on Form 1040 or 1040A, or You and your spouse did not check either the “You” box or the “Spouse” box on line 5 of Form 1040EZ, and you entered $20,000 on that line. Filing late tax returns If you are not sure whether someone else can claim you as a dependent, get Publication 501 and read the rules for claiming a dependent. Filing late tax returns If someone else can claim you as a dependent on his or her return, but does not, you still cannot claim the credit. Filing late tax returns Example 1. Filing late tax returns In 2013, you were age 25, single, and living at home with your parents. Filing late tax returns You worked and were not a student. Filing late tax returns You earned $7,500. Filing late tax returns Your parents cannot claim you as a dependent. Filing late tax returns When you file your return, you claim an exemption for yourself by not checking the You box on line 5 of your Form 1040EZ and by entering $10,000 on that line. Filing late tax returns You meet this rule. Filing late tax returns You can claim the EIC if you meet all the other requirements. Filing late tax returns Example 2. Filing late tax returns The facts are the same as in Example 1, except that you earned $2,000. Filing late tax returns Your parents can claim you as a dependent but decide not to. Filing late tax returns You do not meet this rule. Filing late tax returns You cannot claim the credit because your parents could have claimed you as a dependent. Filing late tax returns Joint returns. Filing late tax returns   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Filing late tax returns   However, another person may be able to claim you as a dependent if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. Filing late tax returns But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Filing late tax returns Example 1—return filed to get refund of tax withheld. Filing late tax returns You are 26 years old. Filing late tax returns You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Filing late tax returns Neither you nor your wife is required to file a tax return. Filing late tax returns You do not have a child. Filing late tax returns Taxes were taken out of your pay so you file a joint return only to get a refund of the withheld taxes. Filing late tax returns Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Filing late tax returns They can claim exemptions for you and your wife if all the other tests to do so are met. Filing late tax returns Example 2—return filed to get EIC. Filing late tax returns The facts are the same as in Example 1except no taxes were taken out of your pay. Filing late tax returns Also, you and your wife are not required to file a tax return, but you file a joint return to claim an EIC of $63 and get a refund of that amount. Filing late tax returns Because claiming the EIC is your reason for filing the return, you are not filing it only to claim a refund of income tax withheld or estimated tax paid. Filing late tax returns Your parents cannot claim an exemption for either you or your wife. Filing late tax returns Rule 13—You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Filing late tax returns ) if all of the following statements are true. Filing late tax returns You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Filing late tax returns Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Filing late tax returns You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student, and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. Filing late tax returns You lived with that person in the United States for more than half of the year. Filing late tax returns You are not filing a joint return for the year (or are filing a joint return only to claim a refund of withheld income tax or estimated tax paid). Filing late tax returns For more details about the tests to be a qualifying child, see Rule 8. Filing late tax returns If you are a qualifying child of another taxpayer, you cannot claim the EIC. Filing late tax returns This is true even if the person for whom you are a qualifying child does not claim the EIC or meet all of the rules to claim the EIC. Filing late tax returns Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Filing late tax returns Example. Filing late tax returns You lived with your mother all year. Filing late tax returns You are age 26, unmarried, and permanently and totally disabled. Filing late tax returns Your only income was from a community center where you went three days a week to answer telephones. Filing late tax returns You earned $5,000 for the year and provided more than half of your own support. Filing late tax returns Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Filing late tax returns She can claim the EIC if she meets all the other requirements. Filing late tax returns Because you are a qualifying child of your mother, you cannot claim the EIC. Filing late tax returns This is so even if your mother cannot or does not claim the EIC. Filing late tax returns Joint returns. Filing late tax returns   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Filing late tax returns   However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. Filing late tax returns But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Filing late tax returns Child of person not required to file a return. Filing late tax returns   You are not the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you meet the relationship, age, residency, and joint return tests is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. Filing late tax returns Example 1—return not required. Filing late tax returns You lived all year with your father. Filing late tax returns You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Filing late tax returns You have no other income, no children, and provided more than half of your own support. Filing late tax returns Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Filing late tax returns As a result, you are not your father's qualifying child. Filing late tax returns You can claim the EIC if you meet all the other requirements to do so. Filing late tax returns Example 2—return filed to get refund of tax withheld. Filing late tax returns The facts are the same as in Example 1 except your father had wages of $1,500 and had income tax withheld from his wages. Filing late tax returns He files a return only to get a refund of the income tax withheld and does not claim the EIC or any other tax credits or deductions. Filing late tax returns As a result, you are not your father's qualifying child. Filing late tax returns You can claim the EIC if you meet all the other requirements to do so. Filing late tax returns Example 3—return filed to get EIC. Filing late tax returns The facts are the same as in Example 2 except your father claimed the EIC on his return. Filing late tax returns Since he filed the return to get the EIC, he is not filing it only to get a refund of income tax withheld. Filing late tax returns As a result, you are your father's qualifying child. Filing late tax returns You cannot claim the EIC. Filing late tax returns Rule 14—You Must Have Lived in the United States More Than Half of the Year Your home (and your spouse's, if filing a joint return) must have been in the United States for more than half the year. Filing late tax returns If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Filing late tax returns United States. Filing late tax returns   This means the 50 states and the District of Columbia. Filing late tax returns It does not include Puerto Rico or U. Filing late tax returns S. Filing late tax returns possessions such as Guam. Filing late tax returns Homeless shelter. Filing late tax returns   Your home can be any location where you regularly live. Filing late tax returns You do not need a traditional home. Filing late tax returns If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Filing late tax returns Military personnel stationed outside the United States. Filing late tax returns   U. Filing late tax returns S. Filing late tax returns military personnel stationed outside the United States on extended active duty (defined in chapter 2) are considered to live in the United States during that duty period for purposes of the EIC. Filing late tax returns Chapter 4—Figuring and Claiming the EIC You must meet one more rule to claim the EIC. Filing late tax returns You need to know the amount of your earned income to see if you meet the rule in this chapter. Filing late tax returns You also need to know that amount to figure your EIC. Filing late tax returns Rule 15—Earned Income Limits 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. Filing late tax returns Earned Income Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Filing late tax returns Employee pay is earned income only if it is taxable. Filing late tax returns Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Filing late tax returns But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Filing late tax returns Earned income is explained in detail in Rule 7 in chapter 1. Filing late tax returns Figuring earned income. Filing late tax returns   If you are self-employed, a statutory employee, or a member of the clergy or a church employee who files Schedule SE (Form 1040), you will figure your earned income when you fill out Part 4 of EIC Worksheet B in the Form 1040 instructions. Filing late tax returns   Otherwise, figure your earned income by using the worksheet in Step 5 of the Form 1040 instructions for lines 64a and 64b or the Form 1040A instructions for lines 38a and 38b, or the worksheet in Step 2 of the Form 1040EZ instructions for lines 8a and 8b. Filing late tax returns   When using one of those worksheets to figure your earned income, you will start with the amount on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). Filing late tax returns You will then reduce that amount by any amount included on that line and described in the following list. Filing late tax returns Scholarship or fellowship grants not reported on a Form W-2. Filing late tax returns A scholarship or fellowship grant that was not reported to you on a Form W-2 is not considered earned income for the earned income credit. Filing late tax returns Inmate's income. Filing late tax returns Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Filing late tax returns This includes amounts received for work performed while in a work release program or while in a halfway house. Filing late tax returns If you received any amount for work done while an inmate in a penal institution and that amount is included in the total on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ), put “PRI” and the amount on the dotted line next to line 7 (Form 1040), in the space to the left of the entry space for line 7 (Form 1040A), or in the space to the left of line 1 (Form 1040EZ). Filing late tax returns Pension or annuity from deferred compensation plans. Filing late tax returns A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan is not considered earned income for the earned income credit. Filing late tax returns If you received such an amount and it was included in the total on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ), put “DFC” and the amount on the dotted line next to line 7 (Form 1040), in the space to the left of the entry space for line 7 (Form 1040A), or in the space to the left of line 1 (Form 1040EZ). Filing late tax returns This amount may be reported in box 11 of your Form W-2. Filing late tax returns If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or an annuity. Filing late tax returns Clergy. Filing late tax returns   If you are a member of the clergy who files Schedule SE and the amount on line 2 of that schedule includes an amount that was also re