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Free E File 2013 Taxes

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Free E File 2013 Taxes

Free e file 2013 taxes 1. Free e file 2013 taxes   Tax Withholding for 2014 Table of Contents Introduction Useful Items - You may want to see: Salaries and WagesDetermining Amount of Tax Withheld Using Form W-4 Completing Form W-4 and Worksheets Getting the Right Amount of Tax Withheld Rules Your Employer Must Follow Exemption From Withholding Supplemental Wages Penalties Tips Taxable Fringe BenefitsSpecial rule. Free e file 2013 taxes Exceptions. Free e file 2013 taxes Sick Pay Pensions and AnnuitiesPeriodic Payments Nonperiodic Payments Eligible Rollover Distributions Choosing Not To Have Income Tax Withheld Gambling WinningsException. Free e file 2013 taxes Identical wagers. Free e file 2013 taxes Unemployment Compensation Federal Payments Backup WithholdingTaxpayer identification number. Free e file 2013 taxes Underreported interest or dividends. Free e file 2013 taxes Introduction This chapter discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. Free e file 2013 taxes This chapter explains in detail the rules for withholding tax from each of these types of income. Free e file 2013 taxes The discussion of salaries and wages includes an explanation of how to complete Form W-4. Free e file 2013 taxes This chapter also covers backup withholding on interest, dividends, and other payments. Free e file 2013 taxes Useful Items - You may want to see: Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request See chapter 5 of this publication for information about getting these publications and forms. Free e file 2013 taxes Salaries and Wages Income tax is withheld from the pay of most employees. Free e file 2013 taxes Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Free e file 2013 taxes It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Free e file 2013 taxes See Supplemental Wages , later, for definitions of accountable and nonaccountable plans. Free e file 2013 taxes If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Free e file 2013 taxes This is explained under Exemption From Withholding , later. Free e file 2013 taxes You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Free e file 2013 taxes If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed in chapter 2. Free e file 2013 taxes Military retirees. Free e file 2013 taxes   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. Free e file 2013 taxes Household workers. Free e file 2013 taxes   If you are a household worker, you can ask your employer to withhold income tax from your pay. Free e file 2013 taxes A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Free e file 2013 taxes   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Free e file 2013 taxes If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed in chapter 2. Free e file 2013 taxes Farmworkers. Free e file 2013 taxes   Generally, income tax is withheld from your cash wages for work on a farm unless your employer both: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. Free e file 2013 taxes Differential wage payments. Free e file 2013 taxes   When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Free e file 2013 taxes Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. Free e file 2013 taxes The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Free e file 2013 taxes Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. Free e file 2013 taxes The amount you earn in each payroll period. Free e file 2013 taxes The information you give your employer on Form W-4. Free e file 2013 taxes Form W-4 includes four types of information that your employer will use to figure your withholding. Free e file 2013 taxes Whether to withhold at the single rate or at the lower married rate. Free e file 2013 taxes How many withholding allowances you claim (each allowance reduces the amount withheld). Free e file 2013 taxes Whether you want an additional amount withheld. Free e file 2013 taxes Whether you are claiming an exemption from withholding in 2014. Free e file 2013 taxes See Exemption From Withholding , later. Free e file 2013 taxes Note. Free e file 2013 taxes You must specify a filing status and a number of withholding allowances on Form W-4. Free e file 2013 taxes You cannot specify only a dollar amount of withholding. Free e file 2013 taxes New Job When you start a new job, you must fill out a Form W-4 and give it to your employer. Free e file 2013 taxes Your employer should have copies of the form. Free e file 2013 taxes If you need to change the information later, you must fill out a new form. Free e file 2013 taxes If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. Free e file 2013 taxes You may be able to avoid overwithholding if your employer agrees to use the part-year method. Free e file 2013 taxes See Part-Year Method , later, for more information. Free e file 2013 taxes Employee also receiving pension income. Free e file 2013 taxes   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Free e file 2013 taxes However, you can choose to split your withholding allowances between your pension and job in any manner. Free e file 2013 taxes Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. Free e file 2013 taxes When this happens, you may need to give your employer a new Form W-4 to change your withholding status or number of allowances. Free e file 2013 taxes If the changes reduce the number of allowances you are allowed to claim or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. Free e file 2013 taxes See Marital Status (Line 3 of Form W-4) and Withholding Allowances (Line 5 of Form W-4) , later. Free e file 2013 taxes Generally, you can submit a new Form W-4 whenever you wish to change your withholding allowances for any other reason. Free e file 2013 taxes See Table 1-1 for examples of personal and financial changes you should consider. Free e file 2013 taxes Table 1-1. Free e file 2013 taxes Personal and Financial Changes Factor Examples Lifestyle change Marriage Divorce Birth or adoption of child Loss of an exemption Purchase of a new home Retirement Filing chapter 11 bankruptcy Wage income You or your spouse start or stop working, or start or stop a second job Change in the amount of taxable income not subject to withholding Interest income Dividends Capital gains Self-employment income IRA (including certain Roth  IRA) distributions Change in the amount of adjustments to income IRA deduction Student loan interest deduction Alimony expense Change in the amount of itemized deductions or tax credits Medical expenses Taxes Interest expense Gifts to charity Job expenses Dependent care expenses Education credit Child tax credit Earned income credit If you change the number of your withholding allowances, you can request that your employer withhold using the Cumulative Wage Method , explained later. Free e file 2013 taxes Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too much or too little. Free e file 2013 taxes If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Free e file 2013 taxes You can get a blank Form W-4 from your employer or print the form from IRS. Free e file 2013 taxes gov. Free e file 2013 taxes You should try to have your withholding match your actual tax liability. Free e file 2013 taxes If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. Free e file 2013 taxes If too much tax is withheld, you will lose the use of that money until you get your refund. Free e file 2013 taxes Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. Free e file 2013 taxes See Table 1-1 for examples. Free e file 2013 taxes Note. Free e file 2013 taxes You cannot give your employer a payment to cover federal income tax withholding on salaries and wages for past pay periods or a payment for estimated tax. Free e file 2013 taxes When Should You Check Your Withholding? The earlier in the year you check your withholding, the easier it is to get the right amount of tax withheld. Free e file 2013 taxes You should check your withholding when any of the following situations occur. Free e file 2013 taxes You receive a paycheck stub (statement) covering a full pay period in 2014, showing tax withheld based on 2014 tax rates. Free e file 2013 taxes You prepare your 2013 tax return and get a: Big refund, or Balance due that is: More than you can comfortably pay, or Subject to a penalty. Free e file 2013 taxes There are changes in your life or financial situation that affect your tax liability. Free e file 2013 taxes See Table 1-1. Free e file 2013 taxes There are changes in the tax law that affect your tax liability. Free e file 2013 taxes How Do You Check Your Withholding? You can use the worksheets and tables in this publication to see if you are having the right amount of tax withheld. Free e file 2013 taxes You can also use the IRS Withholding calculator at www. Free e file 2013 taxes irs. Free e file 2013 taxes gov/individuals. Free e file 2013 taxes If you use the worksheets and tables in this publication, follow these steps. Free e file 2013 taxes Fill out Worksheet 1-5 to project your total federal income tax liability for 2014. Free e file 2013 taxes Fill out Worksheet 1-7 to project your total federal withholding for 2014 and compare that with your projected tax liability from Worksheet 1-5. Free e file 2013 taxes If you are not having enough tax withheld, line 6 of Worksheet 1-7 will show you how much more to have withheld each payday. Free e file 2013 taxes For ways to increase the amount of tax withheld, see How Do You Increase Your Withholding? If line 5 of Worksheet 1-7 shows that you are having more tax withheld than necessary, see How Do You Decrease Your Withholding, for ways to decrease the amount of tax you have withheld each payday. Free e file 2013 taxes How Do You Increase Your Withholding? There are two ways to increase your withholding. Free e file 2013 taxes You can: Decrease the number of allowances you claim on Form W-4, or Enter an additional amount that you want withheld from each paycheck on Form W-4. Free e file 2013 taxes Requesting an additional amount withheld. Free e file 2013 taxes   You can request that an additional amount be withheld from each paycheck by following these steps. Free e file 2013 taxes Complete Worksheets 1-5 and 1-7. Free e file 2013 taxes Complete a new Form W-4 if the amount on Worksheet 1-7, line 5: Is more than you want to pay with your tax return or in estimated tax payments throughout the year, or Would cause you to pay a penalty when you file your tax return for 2014. Free e file 2013 taxes Enter on your new Form W-4, the same number of withholding allowances your employer now uses for your withholding. Free e file 2013 taxes This is the number of allowances you entered on the last Form W-4 you gave your employer. Free e file 2013 taxes Enter on your new Form W-4, the amount from Worksheet 1-7, line 6. Free e file 2013 taxes Give your newly completed Form W-4 to your employer. Free e file 2013 taxes   If you have this additional amount withheld from your pay each payday, you should avoid owing a large amount at the end of the year. Free e file 2013 taxes Example. Free e file 2013 taxes Early in 2014, Steve Miller used Worksheets 1-5, 1-6, and 1-7 to project his 2014 tax liability ($4,316) and his withholding for the year ($3,516). Free e file 2013 taxes Steve's tax will be underwithheld by $800 ($4,316 − $3,516). Free e file 2013 taxes His choices are to pay this amount when he files his 2014 tax return, make estimated tax payments, or increase his withholding now. Free e file 2013 taxes Steve gets a new Form W-4 from his employer, who tells him that there are 50 paydays remaining in 2014. Free e file 2013 taxes Steve completes the new Form W-4 as before, entering the same number of withholding allowances as before, but, in addition, entering $16 ($800 ÷ 50) on the form as the additional amount to be withheld from his pay each payday. Free e file 2013 taxes He gives the completed form to his employer. Free e file 2013 taxes What if I have more than one job or my spouse also has a job?   You are more likely to need to increase your withholding if you have more than one job or if you are married filing jointly and your spouse also works. Free e file 2013 taxes If this is the case, you can increase your withholding for one or more of the jobs. Free e file 2013 taxes   You can apply the amount on Worksheet 1-7, line 5, to only one job or divide it between the jobs any way you wish. Free e file 2013 taxes For each job, determine the extra amount that you want to apply to that job and divide that amount by the number of paydays remaining in 2014 for that job. Free e file 2013 taxes This will give you the additional amount to enter on the Form W-4 you will file for that job. Free e file 2013 taxes You need to give your employer a new Form W-4 for each job for which you are changing your withholding. Free e file 2013 taxes Example. Free e file 2013 taxes Meg Green works in a store and earns $46,000 a year. Free e file 2013 taxes Her husband, John, works full-time in manufacturing and earns $68,000 a year. Free e file 2013 taxes In 2014, they will also have $184 in taxable interest and $1,000 of other taxable income. Free e file 2013 taxes They expect to file a joint income tax return. Free e file 2013 taxes Meg and John complete Worksheets 1-5, 1-6, and 1-7. Free e file 2013 taxes Line 5 of Worksheet 1-7 shows that they will owe an additional $4,459 after subtracting their withholding for the year. Free e file 2013 taxes They can divide the $4,459 any way they want. Free e file 2013 taxes They can enter an additional amount on either of their Forms W-4, or divide it between them. Free e file 2013 taxes They decide to have the additional amount withheld from John's wages, so they enter $91 ($4,459 ÷ 49 remaining paydays) on his Form W-4. Free e file 2013 taxes Both claim the same number of allowances as before. Free e file 2013 taxes How Do You Decrease Your Withholding? If your completed Worksheets 1-5 and 1-7 show that you may have more tax withheld than your projected tax liability for 2014, you may be able to decrease your withholding. Free e file 2013 taxes There are two ways to do this. Free e file 2013 taxes You can: Decrease any additional amount you are having withheld, or Increase the number of allowances you claim on Form W-4. Free e file 2013 taxes You can claim only the number of allowances to which you are entitled. Free e file 2013 taxes To see if you can decrease your withholding by increasing your allowances, see the Form W-4 instructions and the rest of this publication. Free e file 2013 taxes Increasing the number of allowances. Free e file 2013 taxes   Figure and increase the number of withholding allowances you can claim as follows. Free e file 2013 taxes On a new Form W-4, complete the Personal Allowances Worksheet. Free e file 2013 taxes If you plan to itemize deductions, claim adjustments to income, or claim tax credits, complete a new Deductions and Adjustments Worksheet. Free e file 2013 taxes If you plan to claim tax credits, see Converting Credits to Withholding Allowances, later. Free e file 2013 taxes If you meet the criteria on line H of the Form W-4 Personal Allowances Worksheet, complete a new Two-Earners/Multiple Jobs Worksheet. Free e file 2013 taxes If the number of allowances you can claim on Form W-4, is different from the number you already are claiming, give the newly completed Form W-4 to your employer. Free e file 2013 taxes Converting Credits to Withholding Allowances Table 1-2 , later, shows many of the tax credits you may be able to use to decrease your withholding. Free e file 2013 taxes The Form W-4 Personal Allowances Worksheet provides only rough adjustments for the child and dependent care credit and the child tax credit. Free e file 2013 taxes Complete Worksheet 1-8 to figure these credits more accurately and also take other credits into account. Free e file 2013 taxes Include the amount from line 12 of Worksheet 1-8 in the total on line 5 of the Deductions and Adjustments Worksheet. Free e file 2013 taxes Then complete the Deductions and Adjustments Worksheet and the rest of Form W-4. Free e file 2013 taxes If you take the child and dependent care credit into account on Worksheet 1-8, enter -0- on line F of the Personal Allowances Worksheet. Free e file 2013 taxes If you take the child tax credit into account on Worksheet 1-8, enter -0- on line G of the Personal Allowances Worksheet. Free e file 2013 taxes Example. Free e file 2013 taxes Brett and Alyssa Davis are married and expect to file a joint return for 2014. Free e file 2013 taxes Their expected taxable income from all sources is $68,000. Free e file 2013 taxes They expect to have $15,900 of itemized deductions. Free e file 2013 taxes Their projected tax credits include a child and dependent care credit of $960 and an adoption credit of $1,500. Free e file 2013 taxes The Davis' complete Worksheet 1-8, as follows, to see whether they can convert their tax credits into additional withholding allowances. Free e file 2013 taxes Line 1, expected child and dependent care credit—$960. Free e file 2013 taxes Line 9, expected adoption credit—$1,500. Free e file 2013 taxes Line 10, total estimated tax credits—$2,460. Free e file 2013 taxes Line 11. Free e file 2013 taxes Their combined total income from all sources, $68,000, falls between $42,001 and $98,000 on the table for married filing jointly or qualifying widow(er). Free e file 2013 taxes The number to the right of this range is 6. Free e file 2013 taxes 7. Free e file 2013 taxes Line 12, multiply line 10 by line 11—$16,482. Free e file 2013 taxes Then the Davis' complete the Form W-4 worksheets. Free e file 2013 taxes Because they choose to account for their child and dependent care credit on the Deductions and Adjustments Worksheet, they enter -0- on line F of the Personal Allowances Worksheet and figure a new total for line H. Free e file 2013 taxes They take the result on line 12 of Worksheet 1-8, add it to their other adjustments on line 5 of the Form W-4 Deductions and Adjustments Worksheet, and complete the Form W-4 worksheets. Free e file 2013 taxes When Will Your New Form W-4 Go Into Effect? If the change is for the current year, your employer must put your new Form W-4 into effect no later than the start of the first payroll period ending on or after the 30th day after the day on which you give your employer your revised Form W-4. Free e file 2013 taxes If the change is for next year, your new Form W-4 will not take effect until next year. Free e file 2013 taxes Retirees Returning to the Workforce When you first began receiving your pension, you told the payer how much tax to withhold, if any, by completing Form W-4P, Withholding Certificate for Pension or Annuity Payments (or similar form). Free e file 2013 taxes However, if your retirement pay is from the military or certain deferred compensation plans, you completed Form W-4 instead of Form W-4P. Free e file 2013 taxes You completed either form based on your projected income at that time. Free e file 2013 taxes Now that you are returning to the workforce, your new Form W-4 (given to your employer) and your Form W-4 or W-4P (on file with your pension plan) must work together to determine the correct amount of withholding for your new amount of income. Free e file 2013 taxes The worksheets that come with Forms W-4 and W-4P are basically the same, so you can use either set of worksheets to figure out how many withholding allowances you are entitled to claim. Free e file 2013 taxes Start off with the Personal Allowances Worksheet. Free e file 2013 taxes Then, if you will be itemizing your deductions, claiming adjustments to income, or claiming tax credits when you file your tax return, complete the Deductions and Adjustments Worksheet. Free e file 2013 taxes The third worksheet is the most important for this situation. Free e file 2013 taxes Form W-4 calls it the Two-Earners/Multiple Jobs Worksheet, Form W-4P calls it the Multiple Pensions/More-Than-One-Income Worksheet—both are the same. Free e file 2013 taxes If you have more than one source of income, in order to have enough withholding to cover the tax on your higher income, you may need to claim fewer withholding allowances or request your employer to withhold an additional amount from each paycheck. Free e file 2013 taxes Once you have figured out how many allowances you are entitled to claim, look at the income from both your pension and your new job, and how often you receive payments. Free e file 2013 taxes It is your decision how to divide up your withholding allowances between these sources of income. Free e file 2013 taxes For example, you may want to “take home” most of your weekly paycheck to use as spending money and use your monthly pension to “pay the bills. Free e file 2013 taxes ” In that case, change your Form W-4P to zero allowances and claim all that you are entitled to on your Form W-4. Free e file 2013 taxes There are a couple of ways you can get a better idea of how much tax will be withheld when claiming a certain number of allowances. Free e file 2013 taxes Use the withholding tables in Publication 15 (Circular E), Employer's Tax Guide. Free e file 2013 taxes Contact your pension provider and your employer's payroll department. Free e file 2013 taxes And remember, this is not a final decision. Free e file 2013 taxes If you do not get the correct amount of withholding with the first Forms W-4 and W-4P you submit, you should refigure your allowances (or divide them differently) using the information and worksheets in this publication, or the resources mentioned above. Free e file 2013 taxes You should go through this same process each time your life situation changes, whether it be for personal or financial reasons. Free e file 2013 taxes You may need more tax withheld, or you may need less. Free e file 2013 taxes Table 1-2. Free e file 2013 taxes Tax Credits for 2014 For more information about the . Free e file 2013 taxes . Free e file 2013 taxes . Free e file 2013 taxes See . Free e file 2013 taxes . Free e file 2013 taxes . Free e file 2013 taxes Adoption credit Form 8839 instructions Child and dependent care expenses, credit for Publication 503, Child and Dependent Care Expenses Child tax credit (including the additional child tax credit) Instructions for Form 1040 or Form 1040A Earned income credit Publication 596, Earned Income Credit Education credits Publication 970, Tax Benefits for Education Elderly or the disabled, credit for the Publication 524, Credit for the Elderly or the Disabled Foreign tax credit (except any credit that applies to wages not subject to U. Free e file 2013 taxes S. Free e file 2013 taxes income tax withholding because they are subject to income tax withholding by a foreign country) Publication 514, Foreign Tax Credit for Individuals General business credit Form 3800, General Business Credit Mortgage interest credit Publication 530, Tax Information for First-Time Homeowners Qualified electric vehicle passive activity credit Form 8834 Prior year minimum tax, credit for (if you paid alternative minimum tax in an earlier year) Form 8801 instructions Retirement savings contributions credit (saver's credit) Publication 590, Individual Retirement Arrangements (IRAs) Tax credit bonds, credit to holders of Form 8912 instructions Completing Form W-4 and Worksheets When reading the following discussion, you may find it helpful to refer to Form W-4. Free e file 2013 taxes Marital Status There is a lower withholding rate for people who qualify to check the “Married” box on line 3 of Form W-4. Free e file 2013 taxes Everyone else must have tax withheld at the higher single rate. Free e file 2013 taxes Single. Free e file 2013 taxes   You must check the “Single” box if any of the following applies. Free e file 2013 taxes You are single. Free e file 2013 taxes If you are divorced, or separated from your spouse under a court decree of separate maintenance, you are considered single. Free e file 2013 taxes You are married, but neither you nor your spouse is a citizen or resident of the United States. Free e file 2013 taxes You are married, either you or your spouse is a nonresident alien, and you have not chosen to have that person treated as a resident alien for tax purposes. Free e file 2013 taxes For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519. Free e file 2013 taxes Married. Free e file 2013 taxes   You qualify to check the “Married” box if any of the following applies. Free e file 2013 taxes You are married and neither you nor your spouse is a nonresident alien. Free e file 2013 taxes You are considered married for the whole year even if your spouse died during the year. Free e file 2013 taxes You are married and either you or your spouse is a nonresident alien who has chosen to be treated as a resident alien for tax purposes. Free e file 2013 taxes For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519. Free e file 2013 taxes You expect to be able to file your return as a qualifying widow or widower. Free e file 2013 taxes You usually can use this filing status if your spouse died within the previous 2 years and you provide more than half the cost of keeping up a home for the entire year that was the main home for you and your child whom you can claim as a dependent. Free e file 2013 taxes However, you must file a new Form W-4 showing your filing status as single by December 1 of the last year you are eligible to file as a qualifying widow or widower. Free e file 2013 taxes For more information on this filing status, see Qualifying Widow(er) With Dependent Child under Filing Status in Publication 501, Exemptions, Standard Deduction, and Filing Information. Free e file 2013 taxes Married, but withhold at higher single rate. Free e file 2013 taxes   Some married people find that they do not have enough tax withheld at the married rate. Free e file 2013 taxes This can happen, for example, when both spouses work. Free e file 2013 taxes To avoid this, you can check the “Married, but withhold at higher Single rate” box (even if you qualify for the married rate). Free e file 2013 taxes Also, you may find that more tax is withheld if you fill out the Two-Earners/Multiple Jobs Worksheet, explained later. Free e file 2013 taxes Withholding Allowances The more allowances you claim on Form W-4, the less income tax your employer will withhold. Free e file 2013 taxes You will have the most tax withheld if you claim “0” allowances. Free e file 2013 taxes The number of allowances you can claim depends on the following factors. Free e file 2013 taxes How many exemptions you can take on your tax return. Free e file 2013 taxes Whether you have income from more than one job. Free e file 2013 taxes What deductions, adjustments to income, and credits you expect to have for the year. Free e file 2013 taxes Whether you will file as head of household. Free e file 2013 taxes If you are married (filing jointly), it also depends on whether your spouse also works and claims any allowances on his or her own Form W-4. Free e file 2013 taxes Or, if married filing separately, whether or not your spouse also works. Free e file 2013 taxes Form W-4 worksheets. Free e file 2013 taxes    Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Free e file 2013 taxes The worksheets are for your own records. Free e file 2013 taxes Do not give them to your employer. Free e file 2013 taxes   Complete only one set of Form W-4 worksheets, no matter how many jobs you have. Free e file 2013 taxes If you are married and will file a joint return, complete only one set of worksheets for you and your spouse, even if you both earn wages and each must give Form W-4 to your employers. Free e file 2013 taxes Complete separate sets of worksheets only if you and your spouse will file separate returns. Free e file 2013 taxes   If you are not exempt from withholding (see Exemption From Withholding , later), complete the Personal Allowances Worksheet on page 1 of the form. Free e file 2013 taxes Also, use the worksheets on page 2 of the form to adjust the number of your withholding allowances for itemized deductions and adjustments to income, and for two-earner or multiple-job situations. Free e file 2013 taxes If you want to adjust the number of your withholding allowances for certain tax credits, use the Deductions and Adjustments Worksheet on page 2 of Form W-4, even if you do not have any deductions or adjustments. Free e file 2013 taxes   Complete all worksheets that apply to your situation. Free e file 2013 taxes The worksheets will help you figure the maximum number of withholding allowances you are entitled to claim so that the amount of income tax withheld from your wages will match, as closely as possible, the amount of income tax you will owe at the end of the year. Free e file 2013 taxes Multiple jobs. Free e file 2013 taxes   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Free e file 2013 taxes Then split your allowances between the Forms W-4 for each job. Free e file 2013 taxes You cannot claim the same allowances with more than one employer at the same time. Free e file 2013 taxes You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Free e file 2013 taxes Married individuals. Free e file 2013 taxes   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. Free e file 2013 taxes Use only one set of worksheets. Free e file 2013 taxes You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Free e file 2013 taxes   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. Free e file 2013 taxes Alternative method of figuring withholding allowances. Free e file 2013 taxes   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. Free e file 2013 taxes   The method you use must be based on withholding schedules, the tax rate schedules, and the 2014 Estimated Tax Worksheet in chapter 2. Free e file 2013 taxes It must take into account only the items of income, adjustments to income, deductions, and tax credits that are taken into account on Form W-4. Free e file 2013 taxes   You can use the number of withholding allowances determined under an alternative method rather than the number determined using the Form W-4 worksheets. Free e file 2013 taxes You still must give your employer a Form W-4 claiming your withholding allowances. Free e file 2013 taxes Employees who are not citizens or residents. Free e file 2013 taxes   If you are neither a citizen nor a resident of the United States, you usually can claim only one withholding allowance. Free e file 2013 taxes However, this rule does not apply if you are a resident of Canada or Mexico, or if you are a U. Free e file 2013 taxes S. Free e file 2013 taxes national. Free e file 2013 taxes It also does not apply if your spouse is a U. Free e file 2013 taxes S. Free e file 2013 taxes citizen or resident and you have chosen to be treated as a resident of the United States for tax purposes. Free e file 2013 taxes Special rules apply to residents of South Korea and India. Free e file 2013 taxes For more information, see Withholding From Compensation in chapter 8 of Publication 519. Free e file 2013 taxes Personal Allowances Worksheet Use the Personal Allowances Worksheet on page 1 of Form W-4 to figure your withholding allowances based on all of the following that apply. Free e file 2013 taxes Exemptions. Free e file 2013 taxes Only one job. Free e file 2013 taxes Head of household filing status. Free e file 2013 taxes Child and dependent care credit. Free e file 2013 taxes Child tax credit. Free e file 2013 taxes Exemptions (worksheet lines A, C, and D). Free e file 2013 taxes   You can claim one withholding allowance for each exemption you expect to claim on your tax return. Free e file 2013 taxes Self. Free e file 2013 taxes   You can claim an allowance for your exemption on line A unless another person can claim an exemption for you on his or her tax return. Free e file 2013 taxes If another person is entitled to claim an exemption for you, you cannot claim an allowance for your exemption even if the other person will not claim your exemption. Free e file 2013 taxes Spouse. Free e file 2013 taxes   You can claim an allowance for your spouse's exemption on line C unless your spouse is claiming his or her own exemption or another person can claim an exemption for your spouse. Free e file 2013 taxes Do not claim this allowance if you and your spouse expect to file separate returns. Free e file 2013 taxes Dependents. Free e file 2013 taxes   You can claim one allowance on line D for each exemption you will claim for a dependent on your tax return. Free e file 2013 taxes Only one job (worksheet line B). Free e file 2013 taxes    You can claim an additional withholding allowance if any of the following apply for 2014. Free e file 2013 taxes You are single and you have only one job at a time. Free e file 2013 taxes You are married, you have only one job at a time, and your spouse does not work. Free e file 2013 taxes Your wages from a second job or your spouse's wages (or the total of both) are $1,500 or less. Free e file 2013 taxes If you qualify for this allowance, enter “1” on line B of the worksheet. Free e file 2013 taxes Head of household filing status (worksheet line E). Free e file 2013 taxes   Generally, you can file as head of household if you are unmarried and pay more than half the cost of keeping up a home that: Was the main home for all of 2014 of your parent whom you can claim as a dependent, or You lived in for more than half the year with your qualifying child or any other person you can claim as a dependent. Free e file 2013 taxes For more information, see Publication 501. Free e file 2013 taxes   If you expect to file as head of household on your 2014 tax return, enter “1” on line E of the worksheet. Free e file 2013 taxes Reduction of personal allowances. Free e file 2013 taxes   For 2014, your deduction for personal exemptions on your tax return is reduced if your adjusted gross income (AGI) is more than the AGI shown next for your filing status. Free e file 2013 taxes Personal Allowance Phaseout Threshold Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than the amount listed, use Worksheet 1-1 to figure your reduced number of personal allowances on lines A, C, and D of the Personal Allowances Worksheet. Free e file 2013 taxes Worksheet 1-1. Free e file 2013 taxes Personal Allowances Worksheet (Form W-4) Reduction of Personal Allowances if AGI Above Phaseout Threshold 1. Free e file 2013 taxes Enter the total amount of allowances on lines A, C, and D of the Personal Allowance Worksheet without regard to the phaseout rule 1. Free e file 2013 taxes   2. Free e file 2013 taxes Enter your expected AGI 2. Free e file 2013 taxes       3. Free e file 2013 taxes Enter $254,200 if single $305,050 if married filing jointly or qualifying widow(er) $152,525 if married filing separately $279,650 if head of household 3. Free e file 2013 taxes       4. Free e file 2013 taxes Subtract line 3 from line 2 4. Free e file 2013 taxes       5. Free e file 2013 taxes Divide line 4 by $125,000 ($62,500 if married filing separately). Free e file 2013 taxes Enter the result as a decimal 5. Free e file 2013 taxes   6. Free e file 2013 taxes Multiply line 1 by line 5. Free e file 2013 taxes If the result is not a whole number, increase it to the next higher whole number 6. Free e file 2013 taxes   7. Free e file 2013 taxes Subtract line 6 from line 1. Free e file 2013 taxes The total of the numbers you enter on A, C, and D of the Personal Allowances Worksheet can not be more than this amount 7. Free e file 2013 taxes     Child and dependent care credit (worksheet line F). Free e file 2013 taxes   Enter “1” on line F if you expect to claim a credit for at least $2,000 of qualifying child or dependent care expenses on your 2014 return. Free e file 2013 taxes Generally, qualifying expenses are those you pay for the care of your dependent who is your qualifying child under age 13 or for your spouse or dependent who is not able to care for himself or herself so that you can work or look for work. Free e file 2013 taxes For more information, see Publication 503, Child and Dependent Care Expenses. Free e file 2013 taxes   Instead of using line F, you can choose to take the credit into account on line 5 of the Deductions and Adjustments Worksheet, as explained under Tax credits , later. Free e file 2013 taxes Child tax credit (worksheet line G). Free e file 2013 taxes   If your total income will be less than $65,000 ($95,000 if married), enter “2” on line G for each eligible child. Free e file 2013 taxes Subtract “1” from that amount if you have three to six eligible children. Free e file 2013 taxes Subtract “2” from that amount if you have seven or more eligible children. Free e file 2013 taxes   If your total income will be between $65,000 and $84,000 ($95,000 and $119,000 if married), enter “1” on line G for each eligible child. Free e file 2013 taxes   An eligible child is any child: Who is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Who will be under age 17 at the end of 2014, Who is younger than you (or your spouse if filing jointly) or permanently and totally disabled, Who will not provide over half of his or her own support for 2014, Who will not file a joint return, unless the return is filed only as a claim for refund, Who will live with you for more than half of 2014, Who is a U. Free e file 2013 taxes S. Free e file 2013 taxes citizen, U. Free e file 2013 taxes S. Free e file 2013 taxes national, or U. Free e file 2013 taxes S. Free e file 2013 taxes resident alien, and Who will be claimed as a dependent on your return. Free e file 2013 taxes If you are a U. Free e file 2013 taxes S. Free e file 2013 taxes citizen or U. Free e file 2013 taxes S. Free e file 2013 taxes national and your adopted child lived with you all year as a member of your household, that child meets the citizenship test. Free e file 2013 taxes   Also, if any other person can claim the child as an eligible child, see Qualifying child of more than one person in the 2013 instructions for Form 1040 or 1040A, line 6c. Free e file 2013 taxes   For more information about the child tax credit, see the instructions for Form 1040 or Form 1040A. Free e file 2013 taxes   Instead of using line G, you can choose to take the credit into account on line 5 of the Deductions and Adjustments Worksheet, as explained under Tax credits , later. Free e file 2013 taxes Total personal allowances (worksheet line H). Free e file 2013 taxes    Add lines A through G and enter the total on line H. Free e file 2013 taxes If you do not use either of the worksheets on the back of Form W-4, enter the number from line H on line 5 of Form W-4. Free e file 2013 taxes Deductions and Adjustments Worksheet Use the Deductions and Adjustments Worksheet on page 2 of Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. Free e file 2013 taxes Also, complete this worksheet when you have changes to those items to see if you need to change your withholding. Free e file 2013 taxes Use the amount of each item you reasonably can expect to show on your return. Free e file 2013 taxes However, do not use more than: The amount shown for that item on your 2013 return (or your 2012 return if you have not yet filed your 2013 return), plus Any additional amount related to a transaction or occurrence (such as payments already made, the signing of an agreement, or the sale of property) that you can prove has happened or will happen during 2013 or 2014. Free e file 2013 taxes Do not include any amount shown on your last tax return that has been disallowed by the IRS. Free e file 2013 taxes Example. Free e file 2013 taxes On June 30, 2013, you bought your first home. Free e file 2013 taxes On your 2013 tax return, you claimed itemized deductions of $6,600, the total mortgage interest and real estate tax you paid during the 6 months you owned your home. Free e file 2013 taxes Based on your mortgage payment schedule and your real estate tax assessment, you reasonably can expect to claim deductions of $13,200 for those items on your 2014 return. Free e file 2013 taxes You can use $13,200 to figure the number of your withholding allowances for itemized deductions. Free e file 2013 taxes Not itemizing deductions. Free e file 2013 taxes   If you expect to claim the standard deduction on your tax return, skip lines 1 and 2, and enter “0” on line 3 of the worksheet. Free e file 2013 taxes Itemized deductions (worksheet line 1). Free e file 2013 taxes   Enter your estimated total itemized deductions on line 1 of the worksheet. Free e file 2013 taxes   Listed below are some of the deductions you can take into account when figuring additional withholding allowances for 2014. Free e file 2013 taxes You normally claim these deductions on Schedule A of Form 1040. Free e file 2013 taxes Medical and dental expenses that are more than 10% (7. Free e file 2013 taxes 5% if either you or your spouse was born before January 2, 1950) of your 2014 AGI (defined under AGI , later). Free e file 2013 taxes State and local income or property taxes. Free e file 2013 taxes Deductible home mortgage interest. Free e file 2013 taxes Investment interest up to net investment income. Free e file 2013 taxes Charitable contributions. Free e file 2013 taxes Casualty and theft losses that are more than $100 and 10% of your AGI. Free e file 2013 taxes Fully deductible miscellaneous itemized deductions, including: Impairment-related work expenses of persons with disabilities, Federal estate tax on income in respect of a decedent, Repayment of more than $3,000 of income held under a claim of right that you included in income in an earlier year because at the time you thought you had an unrestricted right to it, Unrecovered investments in an annuity contract under which payments have ceased because of the annuitant's death, Gambling losses up to the amount of gambling winnings reported on your return, and Casualty and theft losses from  income-producing property. Free e file 2013 taxes Other miscellaneous itemized deductions that are more than 2% of your AGI, including: Unreimbursed employee business expenses, such as education expenses, work clothes and uniforms, union dues and fees, and the cost of work-related small tools and supplies, Safe deposit box rental, Tax counsel and assistance, and Certain fees paid to an IRA trustee or custodian. Free e file 2013 taxes AGI. Free e file 2013 taxes   For the purpose of estimating your itemized deductions, your AGI is your estimated total income for 2014 minus any estimated adjustments to income (discussed later) that you include on line 4 of the Deductions and Adjustments Worksheet. Free e file 2013 taxes Phaseout of itemized deductions. Free e file 2013 taxes   For 2014, your total itemized deductions may be phased out (reduced) if your AGI is more than the following thresholds. Free e file 2013 taxes    Itemized Deduction Phaseout Threshold Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than the amount listed, use Worksheet 1–2 to figure your reduction in itemized deductions. Free e file 2013 taxes Worksheet 1-2. Free e file 2013 taxes Deductions and Adjustments Worksheet (Form W-4)—Line 1 Phaseout of Itemized Deductions 1. Free e file 2013 taxes Enter the estimated total of your itemized deductions 1. Free e file 2013 taxes   2. Free e file 2013 taxes Enter the amount included in line 1 for medical and dental expenses, investment interest, casualty or theft losses, and gambling losses 2. Free e file 2013 taxes   3. Free e file 2013 taxes Is the amount on line 2 less than the amount on line 1? ❑ No. Free e file 2013 taxes Stop here. Free e file 2013 taxes Your deduction is not limited. Free e file 2013 taxes Enter the amount from line 1 above on line 1 of the Deductions and Adjustments Worksheet. Free e file 2013 taxes  ❑ Yes. Free e file 2013 taxes Subtract line 2 from line 1. Free e file 2013 taxes 3. Free e file 2013 taxes       4. Free e file 2013 taxes Multiply line 3 by 80% (. Free e file 2013 taxes 80) 4. Free e file 2013 taxes       5. Free e file 2013 taxes Enter your expected AGI 5. Free e file 2013 taxes       6. Free e file 2013 taxes Enter $305,050 If married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately 6. Free e file 2013 taxes   7. Free e file 2013 taxes Is the amount on line 6 less than the amount on line 5? ❑ No. Free e file 2013 taxes Stop here. Free e file 2013 taxes Your deduction is not limited. Free e file 2013 taxes Enter the amount from line 1 above on line 1 of the Deductions and Adjustments Worksheet. Free e file 2013 taxes  ❑ Yes. Free e file 2013 taxes Subtract line 6 from line 5. Free e file 2013 taxes 7. Free e file 2013 taxes       8. Free e file 2013 taxes Multiply line 7 by 3% (. Free e file 2013 taxes 03) 8. Free e file 2013 taxes       9. Free e file 2013 taxes Enter the smaller of line 4 or line 8 9. Free e file 2013 taxes     10. Free e file 2013 taxes Subtract line 9 from line 1. Free e file 2013 taxes Enter the result here and on line 1 of the Deductions and Adjustments Worksheet 10. Free e file 2013 taxes     Adjustments to income (worksheet line 4). Free e file 2013 taxes   Enter your estimated total adjustments to income on line 4 of the Deductions and Adjustments Worksheet. Free e file 2013 taxes   You can take the following adjustments to income into account when figuring additional withholding allowances for 2014. Free e file 2013 taxes These adjustments appear on page 1 of your Form 1040 or 1040A. Free e file 2013 taxes Net losses from Schedules C, D, E, and F of Form 1040 and from Part II of Form 4797, line 18b. Free e file 2013 taxes Net operating loss carryovers. Free e file 2013 taxes Certain business expenses of reservists, performing artists, and fee-based government officials. Free e file 2013 taxes Health savings account or medical savings account deduction. Free e file 2013 taxes Certain moving expenses. Free e file 2013 taxes Deduction for self-employment tax. Free e file 2013 taxes Deduction for contributions to self-employed SEP, and qualified SIMPLE plans. Free e file 2013 taxes Self-employed health insurance deduction. Free e file 2013 taxes Penalty on early withdrawal of savings. Free e file 2013 taxes Alimony paid. Free e file 2013 taxes IRA deduction. Free e file 2013 taxes Student loan interest deduction. Free e file 2013 taxes Jury duty pay given to your employer. Free e file 2013 taxes Reforestation amortization and expenses. Free e file 2013 taxes Deductible expenses related to income reported on line 21 from the rental of personal property engaged in for profit. Free e file 2013 taxes Repayment of certain supplemental unemployment benefits. Free e file 2013 taxes Contributions to IRC 501(c)(18)(D) pension plans. Free e file 2013 taxes Contributions by certain chaplains to IRC 403(b) plans. Free e file 2013 taxes Attorney fees and court costs for certain unlawful discrimination claims. Free e file 2013 taxes Attorney fees and court costs for certain whistleblower awards. Free e file 2013 taxes Estimated amount of decrease in tax attributable to income averaging using Schedule J (Form 1040). Free e file 2013 taxes Tax credits (worksheet line 5). Free e file 2013 taxes   Although you can take most tax credits into account when figuring withholding allowances, the Personal Allowances Worksheet uses only the child and dependent care credit (line F) and the child tax credit (line G). Free e file 2013 taxes But you can take these credits and others into account by adding an extra amount on line 5 of the Deductions and Adjustments Worksheet. Free e file 2013 taxes   If you take the child and dependent care credit into account on line 5, do not use line F. Free e file 2013 taxes If you take the child tax credit into account on line 5, do not use line G. Free e file 2013 taxes   In addition to the child and dependent care credit and the child tax credit, you can generally take into account the following credits. Free e file 2013 taxes See the individual tax form instructions for more details. Free e file 2013 taxes Foreign tax credit, except any credit that applies to wages not subject to U. Free e file 2013 taxes S. Free e file 2013 taxes income tax withholding because they are subject to income tax withholding by a foreign country. Free e file 2013 taxes See Publication 514, Foreign Tax Credit for Individuals. Free e file 2013 taxes Credit for the elderly or the disabled. Free e file 2013 taxes See Publication 524, Credit for the Elderly or the Disabled. Free e file 2013 taxes Education credits. Free e file 2013 taxes See Publication 970, Tax Benefits for Education. Free e file 2013 taxes Retirement savings contributions credit (saver's credit). Free e file 2013 taxes See Publication 590. Free e file 2013 taxes Mortgage interest credit. Free e file 2013 taxes See Publication 530, Tax Information for Homeowners. Free e file 2013 taxes Adoption credit. Free e file 2013 taxes See the Instructions for Form 8839. Free e file 2013 taxes Credit for nonrefundable portion of prior year minimum tax if you paid alternative minimum tax in an earlier year. Free e file 2013 taxes See the Instructions for Form 8801. Free e file 2013 taxes General business credit. Free e file 2013 taxes See the Instructions for Form 3800. Free e file 2013 taxes Earned income credit. Free e file 2013 taxes See Publication 596. Free e file 2013 taxes Figuring line 5 entry. Free e file 2013 taxes   To figure the amount to add on line 5 for tax credits, multiply your estimated total credits by the appropriate number from Table 1-3 . Free e file 2013 taxes Example. Free e file 2013 taxes You are married and expect to file a joint return for 2014. Free e file 2013 taxes Your combined estimated wages are $68,000. Free e file 2013 taxes Your estimated tax credits include a child and dependent care credit of $960 and a mortgage interest credit of $1,700 (total credits = $2,660). Free e file 2013 taxes In Table 1-3, the number corresponding to your combined estimated wages ($42,001 – $98,000) is 6. Free e file 2013 taxes 7. Free e file 2013 taxes Multiply your total estimated tax credits of $2,660 by 6. Free e file 2013 taxes 7. Free e file 2013 taxes Add the result, $17,822, to the amount you otherwise would show on line 5 of the Deductions and Adjustments Worksheet and enter the total on line 5. Free e file 2013 taxes Because you choose to account for your child and dependent care credit this way, do not make an entry on line F of the Personal Allowances Worksheet. Free e file 2013 taxes Nonwage income (worksheet line 6). Free e file 2013 taxes   Enter on line 6 your estimated total nonwage income (other than tax-exempt income). Free e file 2013 taxes Nonwage income includes interest, dividends, net rental income, unemployment compensation, alimony, gambling winnings, prizes and awards, hobby income, capital gains, royalties, and partnership income. Free e file 2013 taxes   If line 6 is more than line 5, you may not have enough income tax withheld from your wages. Free e file 2013 taxes See Getting the Right Amount of Tax Withheld , later. Free e file 2013 taxes Net deductions and adjustments (worksheet line 8). Free e file 2013 taxes    If line 7 is less than $3,950, enter “0” on line 8. Free e file 2013 taxes If line 7 is $3,950 or more, divide it by $3,950, drop any fraction, and enter the result on line 8. Free e file 2013 taxes Example. Free e file 2013 taxes If line 7 is $5,200, $5,200 ÷ $3,950 = 1. Free e file 2013 taxes 32. Free e file 2013 taxes Drop the fraction (. Free e file 2013 taxes 32) and enter “1” on line 8. Free e file 2013 taxes Two-Earners/Multiple Jobs Worksheet Complete the Two-Earners/Multiple Jobs Worksheet on page 2 of Form W-4 if you have more than one job or are married and you and your spouse both work and the combined earnings from all jobs are more than $50,000 ($20,000 if married). Free e file 2013 taxes Reducing your allowances (worksheet lines 1-3). Free e file 2013 taxes   On line 1 of the worksheet, enter the number from line H of the Personal Allowances Worksheet (or line 10 of the Deductions and Adjustments Worksheet, if used). Free e file 2013 taxes Using Table 1 in the Two-Earners/Multiple Jobs Worksheet, find the number listed beside the amount of your estimated wages for the year from your lowest paying job (or if lower and you are filing jointly, your spouse's job). Free e file 2013 taxes Enter that number on line 2. Free e file 2013 taxes However, if you are married filing jointly and estimated wages from the highest paying job are $65,000 or less, do not enter more than “3. Free e file 2013 taxes ”    Table 1-3. Free e file 2013 taxes Deductions and Adjustments Worksheet (Form W-4)—Line 5 a. Free e file 2013 taxes  Married Filing Jointly or Qualifying Widow(er) If combined income from all sources is:   Multiply credits by: $0 – 42,000 10. Free e file 2013 taxes 0 $42,001 – 98,000 6. Free e file 2013 taxes 7 $98,001 – 180,000 4. Free e file 2013 taxes 0 $180,001 – 270,000 3. Free e file 2013 taxes 6 $270,001 – 440,000 3. Free e file 2013 taxes 0 $440,001 – 490,000. Free e file 2013 taxes . Free e file 2013 taxes . Free e file 2013 taxes . Free e file 2013 taxes 2. Free e file 2013 taxes 9 $490,001 and over 2. Free e file 2013 taxes 5 b. Free e file 2013 taxes  Single If combined income from all sources is:   Multiply credits by: $0 – 19,000 10. Free e file 2013 taxes 0 $19,001 – 47,000 6. Free e file 2013 taxes 7 $47,001 – 104,000 4. Free e file 2013 taxes 0 $104,001 – 205,000 3. Free e file 2013 taxes 6 $205,001 – 430,000 3. Free e file 2013 taxes 0 $430,001 and over 2. Free e file 2013 taxes 5 c. Free e file 2013 taxes  Head of Household If combined income from all sources is:   Multiply credits by: $0 – 30,000 10. Free e file 2013 taxes 0 $30,001 – 66,000 6. Free e file 2013 taxes 7 $66,001 – 150,000 4. Free e file 2013 taxes 0 $150,001 – 235,000 3. Free e file 2013 taxes 6 $235,001 – 430,000 3. Free e file 2013 taxes 0 $430,001 – 460,000 2. Free e file 2013 taxes 9 $460,001 and over 2. Free e file 2013 taxes 5 d. Free e file 2013 taxes  Married Filing Separately   If combined income from all sources is:   Multiply credits by: $0 – 21,000 10. Free e file 2013 taxes 0 $21,001 – 49,000 6. Free e file 2013 taxes 7 $49,001 – 90,000 4. Free e file 2013 taxes 0 $90,001 – 135,000 3. Free e file 2013 taxes 6 $135,001 – 220,000 3. Free e file 2013 taxes 0 $220,001 – 245,000 2. Free e file 2013 taxes 9 $245,001 and over 2. Free e file 2013 taxes 5   Subtract line 2 from line 1 and enter the result (but not less than zero) on line 3 and on Form W-4, line 5. Free e file 2013 taxes If line 1 is more than or equal to line 2, do not use the rest of the worksheet. Free e file 2013 taxes   If line 1 is less than line 2, enter “0” on Form W-4, line 5. Free e file 2013 taxes Then complete lines 4 through 9 of the worksheet to figure the additional withholding needed to avoid underwithholding. Free e file 2013 taxes Other amounts owed. Free e file 2013 taxes   If you expect to owe amounts other than income tax, such as self-employment tax, include them on line 8. Free e file 2013 taxes The total is the additional withholding needed for the year. Free e file 2013 taxes Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. Free e file 2013 taxes You accurately complete all the Form W-4 worksheets that apply to you. Free e file 2013 taxes You give your employer a new Form W-4 when changes occur. Free e file 2013 taxes But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Free e file 2013 taxes This is most likely to happen in the following situations. Free e file 2013 taxes You are married and both you and your spouse work. Free e file 2013 taxes You have more than one job at a time. Free e file 2013 taxes You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Free e file 2013 taxes You will owe additional amounts with your return, such as self-employment tax. Free e file 2013 taxes Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Free e file 2013 taxes Your earnings are more than $130,000 if you are single or $180,000 if you are married. Free e file 2013 taxes You work only part of the year. Free e file 2013 taxes You change the number of your withholding allowances during the year. Free e file 2013 taxes You are subject to Additional Medicare Tax or Net Investment Income Tax. Free e file 2013 taxes If you anticipate liability for Additional Medicare Tax or Net Investment Income Tax, you may request that your employer withhold an additional amount of income tax withholding on Form W-4. Free e file 2013 taxes Part-Year Method If you work only part of the year and your employer agrees to use the part-year withholding method, less tax will be withheld from each wage payment than would be withheld if you worked all year. Free e file 2013 taxes To be eligible for the part-year method, you must meet both of the following requirements. Free e file 2013 taxes You must use the calendar year (the 12 months from January 1 through December 31) as your tax year. Free e file 2013 taxes You cannot use a fiscal year. Free e file 2013 taxes You must not expect to be employed for more than 245 days during the year. Free e file 2013 taxes To figure this limit, count all calendar days that you are employed (including weekends, vacations, and sick days) beginning with the first day you are on the job for pay and ending with your last day of work. Free e file 2013 taxes If you are temporarily laid off for 30 days or less, count those days too. Free e file 2013 taxes If you are laid off for more than 30 days, do not count those days. Free e file 2013 taxes You will not meet this requirement if you begin working before May 1 and expect to work for the rest of the year. Free e file 2013 taxes How to apply for the part-year method. Free e file 2013 taxes   You must ask your employer in writing to use this method. Free e file 2013 taxes The request must state all three of the following. Free e file 2013 taxes The date of your last day of work for any prior employer during the current calendar year. Free e file 2013 taxes That you do not expect to be employed more than 245 days during the current calendar year. Free e file 2013 taxes That you use the calendar year as your tax year. Free e file 2013 taxes Cumulative Wage Method If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. Free e file 2013 taxes You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. Free e file 2013 taxes You must ask your employer in writing to use this method. Free e file 2013 taxes To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Free e file 2013 taxes ) since the beginning of the year. Free e file 2013 taxes Aids for Figuring Your Withholding IRS Withholding Calculator. Free e file 2013 taxes   If you had too much or too little income tax withheld from your pay, the IRS provides a withholding calculator on its website. Free e file 2013 taxes Go to www. Free e file 2013 taxes irs. Free e file 2013 taxes gov/Individuals/IRS-Withholding-Calculator. Free e file 2013 taxes It can help you determine the correct amount to be withheld any time during the year. Free e file 2013 taxes Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Free e file 2013 taxes These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Free e file 2013 taxes New Form W-4. Free e file 2013 taxes   When you start a new job, your employer should give you a Form W-4 to fill out. Free e file 2013 taxes Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Free e file 2013 taxes   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Free e file 2013 taxes The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. Free e file 2013 taxes No Form W-4. Free e file 2013 taxes   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. Free e file 2013 taxes Repaying withheld tax. Free e file 2013 taxes   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. Free e file 2013 taxes Your employer cannot repay any of the tax previously withheld. Free e file 2013 taxes Instead, claim the full amount withheld when you file your tax return. Free e file 2013 taxes   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. Free e file 2013 taxes Your employer can repay the amount that was withheld incorrectly. Free e file 2013 taxes If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. Free e file 2013 taxes IRS review of your withholding. Free e file 2013 taxes   Whether you are entitled to claim a certain number of allowances or a complete exemption from withholding is subject to review by the IRS. Free e file 2013 taxes Your employer may be required to send a copy of the Form W-4 to the IRS. Free e file 2013 taxes There is a penalty for supplying false information on Form W-4. Free e file 2013 taxes See Penalties , later. Free e file 2013 taxes   If the IRS determines that you cannot claim more than a specified number of withholding allowances or claim a complete exemption from withholding, the IRS will issue a notice of the maximum number of withholding allowances permitted (commonly referred to as a “lock-in letter”) to both you and your employer. Free e file 2013 taxes   The IRS will provide a period of time during which you can dispute the determination before your employer adjusts your withholding. Free e file 2013 taxes If you believe that you are entitled to claim complete exemption from withholding or claim more withholding allowances than the maximum number specified by the IRS in the lock-in letter, you must submit a new Form W-4 and a written statement to support your claims to the IRS. Free e file 2013 taxes Contact information (a toll-free number and an IRS office address) will be provided in the lock-in letter. Free e file 2013 taxes At the end of this period, if you have not responded or if your response is not adequate, your employer will be required to withhold based on the original lock-in letter. Free e file 2013 taxes   After the lock-in letter takes effect, your employer must withhold tax on the basis of the withholding rate (marital status) and maximum number of withholding allowances specified in that letter. Free e file 2013 taxes   If you later believe that you are entitled to claim exemption from withholding or more allowances than the IRS determined, you can complete a new Form W-4 and a written statement to support the claims made on the Form W-4 and send them directly to the IRS address shown on the lock-in letter. Free e file 2013 taxes Your employer must continue to figure your withholding on the basis of the number of allowances previously determined by the IRS until the IRS advises your employer otherwise. Free e file 2013 taxes   At any time, either before or after the lock-in letter becomes effective, you may give your employer a new Form W-4 that does not claim complete exemption from withholding and results in more income tax withheld than specified in the lock-in letter. Free e file 2013 taxes Your employer must then withhold tax based on this new Form W-4. Free e file 2013 taxes   Additional information is available at IRS. Free e file 2013 taxes gov. Free e file 2013 taxes Enter “withholding compliance questions” in the search box. Free e file 2013 taxes Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Free e file 2013 taxes The exemption applies only to income tax, not to social security or Medicare tax. Free e file 2013 taxes You can claim exemption from withholding for 2014 only if both of the following situations apply. Free e file 2013 taxes For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Free e file 2013 taxes For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Free e file 2013 taxes Use Figure 1-A to help you decide whether you can claim exemption from withholding. Free e file 2013 taxes Do not use Figure 1-A if you: Are 65 or older, Are blind, Will itemize deductions on your 2014 return, Will claim an exemption for a dependent on your 2014 return, or Will claim any tax credits on your 2014 return. Free e file 2013 taxes These situations are discussed later. Free e file 2013 taxes Students. Free e file 2013 taxes   If you are a student, you are not automatically exempt. Free e file 2013 taxes If you work only part time or during the summer, you may qualify for exemption from withholding. Free e file 2013 taxes Example 1. Free e file 2013 taxes You are a high school student and expect to earn $2,500 from a summer job. Free e file 2013 taxes You do not expect to have any other income during the year, and your parents will be able to claim an exemption for you on their tax return. Free e file 2013 taxes You worked last summer and had $375 federal income tax withheld from your pay. Free e file 2013 taxes The entire $375 was refunded when you filed your 2013 return. Free e file 2013 taxes Using Figure 1-A, you find that you can claim exemption from withholding. Free e file 2013 taxes Please click here for the text description of the image. Free e file 2013 taxes Figure 1-A: Exemption From Withholding on Form W-4 Example 2. Free e file 2013 taxes The facts are the same as in Example 1, except that you also have a savings account and expect to have $400 interest income during the year. Free e file 2013 taxes Using Figure 1-A, you find that you cannot claim exemption from withholding because your unearned income will be more than $350 and your total income will be more than $1,000. Free e file 2013 taxes    You may have to file a tax return, even if you are exempt from withholding. Free e file 2013 taxes See Publication 501 to see whether you must file a return. Free e file 2013 taxes    Age 65 or older or blind. Free e file 2013 taxes If you are 65 or older or blind, use Worksheet 1-3 or Worksheet 1-4, to help you decide whether you can claim exemption from withholding. Free e file 2013 taxes Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Free e file 2013 taxes Instead, see Itemizing deductions or claiming exemptions or credits, next. Free e file 2013 taxes Itemizing deductions or claiming exemptions or credits. Free e file 2013 taxes   If you had no tax liability for 2013, and you will: Itemize deductions, Claim an exemption for a dependent, or Claim a tax credit, use the 2014 Estimated Tax Worksheet (also see chapter 2), to figure your 2014 expected tax liability. Free e file 2013 taxes You can claim exemption from withholding only if your total expected tax liability (line 13c of the worksheet) is zero. Free e file 2013 taxes Claiming exemption from withholding. Free e file 2013 taxes   To claim exemption, you must give your employer a Form W-4. Free e file 2013 taxes Do not complete lines 5 and 6. Free e file 2013 taxes Enter “Exempt” on line 7. Free e file 2013 taxes   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. Free e file 2013 taxes If you claim exemption in 2014 but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. Free e file 2013 taxes   Your claim of exempt status may be reviewed by the IRS. Free e file 2013 taxes See IRS review of your withholding , earlier. Free e file 2013 taxes An exemption is good for only 1 year. Free e file 2013 taxes   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Free e file 2013 taxes Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Free e file 2013 taxes The payer can figure withholding on supplemental wages using the same method used for your regular wages. Free e file 2013 taxes However, if these payments are identified separately from regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. Free e file 2013 taxes Expense allowances. Free e file 2013 taxes   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Free e file 2013 taxes A nonaccountable plan is a reimbursement arrangement that does not require you to account for, or prove, your business expenses to your employer or does not require you to return your employer's payments that are more than your proven expenses. Free e file 2013 taxes   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. Free e file 2013 taxes Accountable plan. Free e file 2013 taxes   To be an accountable plan, your employer's reimbursement or allowance arrangement must include all three of the following rules. Free e file 2013 taxes Your expenses must have a business connection. Free e file 2013 taxes That is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Free e file 2013 taxes You must adequately account to your employer for these expenses within a reasonable period of time. Free e file 2013 taxes You must return any excess reimbursement or allowance within a reasonable period of time. Free e file 2013 taxes    An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer. Free e file 2013 taxes   The definition of reasonable period of time depends on the facts and circumstances of your situation. Free e file 2013 taxes However, regardless of those facts and circumstances, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Free e file 2013 taxes You receive an advance within 30 days of the time you have an expense. Free e file 2013 taxes You adequately account for your expenses within 60 days after they were paid or incurred. Free e file 2013 taxes You return any excess reimbursement within 120 days after the expense was paid or incurred. Free e file 2013 taxes You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. Free e file 2013 taxes Nonaccountable plan. Free e file 2013 taxes   Any plan that does not meet the definition of an accountable plan is considered a nonaccountable plan. Free e file 2013 taxes For more information about accountable and nonaccountable plans, see chapter 6 of Publication 463, Travel, Entertainment, Gift, and Car Expenses. Free e file 2013 taxes Penalties You may have to pay a penalty of $500 if both of the following apply. Free e file 2013 taxes You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Free e file 2013 taxes You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Free e file 2013 taxes There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. Free e file 2013 taxes The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Free e file 2013 taxes These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. Free e file 2013 taxes A simple error or an honest mistake will not result in one of these penalties. Free e file 2013 taxes For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a Form W-4 penalty. Free e file 2013 taxes However, see chapter 4 for information on the penalty for underpaying your tax. Free e file 2013 taxes Tips The tips you receive while working on your job are considered part of your pay. Free e file 2013 taxes You must include your tips on your tax return on the same line as your regular pay. Free e file 2013 taxes However, tax is not withheld directly from tip income, as it is from your regular pay. Free e file 2013 taxes Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Free e file 2013 taxes Reporting tips to your employer. Free e file 2013 taxes   If you receive tips of $20 or more in a month while working for any one employer, you must report to your employer the total amount of tips you receive on the job during the month. Free e file 2013 taxes The report is due by the 10th day of the following month. Free e file 2013 taxes   If you have more than one job, make a separate report to each employer. Free e file 2013 taxes Report only the tips you received while working for that employer, and only if they total $20 or more for the month. Free e file 2013 taxes How employer figures amount to withhold. Free e file 2013 taxes   The tips you report to your employer are counted as part of your income for the month you report them. Free e file 2013 taxes Your employer can figure your withholding in either of two ways. Free e file 2013 taxes By withholding at the regular rate on the sum of your pay plus your reported tips. Free e file 2013 taxes By withholding at the regular rate on your pay plus a percentage of your reported tips. Free e file 2013 taxes Not enough pay to cover taxes. Free e file 2013 taxes   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. Free e file 2013 taxes   If you do not give your employer money to cover the shortage, your employer first withholds as much Medicare tax and social security or railroad retirement tax as possible, up to the proper amount, and then withholds income tax up to the full amount of your pay. Free e file 2013 taxes If not enough tax is withheld, you may have to pay estimated tax. Free e file 2013 taxes When you file your return, you also may have to pay any Medicare and social security tax or railroad retirement tax your employer could not withhold. Free e file 2013 taxes Tips not reported to your employer. Free e file 2013 taxes   On your tax return, you must report all the tips you receive during the year, even tips you do not report to your employer (this includes the value of any noncash tips you received, such as tickets, passes, or other items of value). Free e file 2013 taxes Make sure you are having enough tax withheld, or are paying enough estimated tax (see chapter 2), to cover all your tip income. Free e file 2013 taxes Allocated tips. Free e file 2013 taxes   If you work in a large food or beverage establishment, your employer may have to report an allocated amount of tips on your Form W-2. Free e file 2013 taxes   Your employer should not withhold income tax, Medicare tax, and social security or railroad retirement tax on the allocated amount. Free e file 2013 taxes Withholding is based only on your pay plus your reported tips. Free e file 2013 taxes Your employer should refund to you any incorrectly withheld tax. Free e file 2013 taxes More information. Free e file 2013 taxes   For more information on the reporting and withholding rules for tip income and on tip allocation, see Publi
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Free e file 2013 taxes 36. Free e file 2013 taxes   Earned Income Credit (EIC) Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Do You Qualify for the Credit?If Improper Claim Made in Prior Year Part A. Free e file 2013 taxes Rules for EveryoneRule 1. Free e file 2013 taxes Your AGI Must Be Less Than: Rule 2. Free e file 2013 taxes You Must Have a Valid Social Security Number (SSN) Rule 3. Free e file 2013 taxes Your Filing Status Cannot Be Married Filing Separately Rule 4. Free e file 2013 taxes You Must Be a U. Free e file 2013 taxes S. Free e file 2013 taxes Citizen or Resident Alien All Year Rule 5. Free e file 2013 taxes You Cannot File Form 2555 or Form 2555-EZ Rule 6. Free e file 2013 taxes Your Investment Income Must Be $3,300 or Less Rule 7. Free e file 2013 taxes You Must Have Earned Income Part B. Free e file 2013 taxes Rules If You Have a Qualifying ChildRule 8. Free e file 2013 taxes Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9. Free e file 2013 taxes Your Qualifying Child Cannot Be Used By More Than One Person To Claim the EIC Rule 10. Free e file 2013 taxes You Cannot Be a Qualifying Child of Another Taxpayer Part C. Free e file 2013 taxes Rules If You Do Not Have a Qualifying ChildRule 11. Free e file 2013 taxes You Must Be at Least Age 25 but Under Age 65 Rule 12. Free e file 2013 taxes You Cannot Be the Dependent of Another Person Rule 13. Free e file 2013 taxes You Cannot Be a Qualifying Child of Another Taxpayer Rule 14. Free e file 2013 taxes You Must Have Lived in the United States More Than Half of the Year Part D. Free e file 2013 taxes Figuring and Claiming the EICRule 15. Free e file 2013 taxes Your Earned Income Must Be Less Than: IRS Will Figure the EIC for You How To Figure the EIC Yourself ExamplesExample 1. Free e file 2013 taxes John and Janet Smith (Form 1040A) Example 2. Free e file 2013 taxes Kelly Green (Form 1040EZ) What's New Earned income amount is more. Free e file 2013 taxes  The maximum amount of income you can earn and still get the credit has increased. Free e file 2013 taxes You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). Free e file 2013 taxes Your adjusted gross income also must be less than the amount in the above list that applies to you. Free e file 2013 taxes For details, see Rules 1 and 15. Free e file 2013 taxes Investment income amount is more. Free e file 2013 taxes  The maximum amount of investment income you can have and still get the credit has increased to $3,300. Free e file 2013 taxes See Rule 6. Free e file 2013 taxes Reminders Increased EIC on certain joint returns. Free e file 2013 taxes  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. Free e file 2013 taxes As a result, the EIC table has different columns for married persons filing jointly than for everyone else. Free e file 2013 taxes When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. Free e file 2013 taxes Online help. Free e file 2013 taxes  You can use the EITC Assistant at www. Free e file 2013 taxes irs. Free e file 2013 taxes gov/eitc to find out if you are eligible for the credit. Free e file 2013 taxes The EITC Assistant is available in English and Spanish. Free e file 2013 taxes EIC questioned by IRS. Free e file 2013 taxes  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. Free e file 2013 taxes We will tell you what documents to send us. Free e file 2013 taxes These may include: birth certificates, school records, medical records, etc. Free e file 2013 taxes The process of establishing your eligibility will delay your refund. Free e file 2013 taxes Introduction The earned income credit (EIC) is a tax credit for certain people who work and have less than $51,567 of earned income. Free e file 2013 taxes A tax credit usually means more money in your pocket. Free e file 2013 taxes It reduces the amount of tax you owe. Free e file 2013 taxes The EIC may also give you a refund. Free e file 2013 taxes How do you get the earned income credit?   To claim the EIC, you must: Qualify by meeting certain rules, and File a tax return, even if you: Do not owe any tax, Did not earn enough money to file a return, or Did not have income taxes withheld from your pay. Free e file 2013 taxes When you complete your return, you can figure your EIC by using a worksheet in the instructions for Form 1040, Form 1040A, or Form 1040EZ. Free e file 2013 taxes Or, if you prefer, you can let the IRS figure the credit for you. Free e file 2013 taxes How will this chapter help you?   This chapter will explain the following. Free e file 2013 taxes The rules you must meet to qualify for the EIC. Free e file 2013 taxes How to figure the EIC. Free e file 2013 taxes Useful Items - You may want to see: Publication 596 Earned Income Credit (EIC) Form (and Instructions) Schedule EIC Earned Income Credit (Qualifying Child Information) 8862 Information To Claim Earned Income Credit After Disallowance Do You Qualify for the Credit? To qualify to claim the EIC, you must first meet all of the rules explained in Part A, Rules for Everyone . Free e file 2013 taxes Then you must meet the rules in Part B, Rules If You Have a Qualifying Child , or Part C, Rules If You Do Not Have a Qualifying Child . Free e file 2013 taxes There is one final rule you must meet in Part D, Figuring and Claiming the EIC . Free e file 2013 taxes You qualify for the credit if you meet all the rules in each part that applies to you. Free e file 2013 taxes If you have a qualifying child, the rules in Parts A, B, and D apply to you. Free e file 2013 taxes If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Free e file 2013 taxes Table 36-1, Earned Income Credit in a Nutshell. Free e file 2013 taxes   Use Table 36–1 as a guide to Parts A, B, C, and D. Free e file 2013 taxes The table is a summary of all the rules in each part. Free e file 2013 taxes Do you have a qualifying child?   You have a qualifying child only if you have a child who meets the four tests described in Rule 8 and illustrated in Figure 36–1. Free e file 2013 taxes If Improper Claim Made in Prior Year If your EIC for any year after 1996 was denied or reduced for any reason other than a math or clerical error, you must attach a completed Form 8862 to your next tax return to claim the EIC. Free e file 2013 taxes You must also qualify to claim the EIC by meeting all the rules described in this chapter. Free e file 2013 taxes However, if your EIC was denied or reduced as a result of a math or clerical error, do not attach Form 8862 to your next tax return. Free e file 2013 taxes For example, if your arithmetic is incorrect, the IRS can correct it. Free e file 2013 taxes If you do not provide a correct social security number, the IRS can deny the EIC. Free e file 2013 taxes These kinds of errors are called math or clerical errors. Free e file 2013 taxes If your EIC for any year after 1996 was denied and it was determined that your error was due to reckless or intentional disregard of the EIC rules, then you cannot claim the EIC for the next 2 years. Free e file 2013 taxes If your error was due to fraud, then you cannot claim the EIC for the next 10 years. Free e file 2013 taxes More information. Free e file 2013 taxes   See chapter 5 in Publication 596 for more detailed information about the disallowance period and Form 8862. Free e file 2013 taxes Part A. Free e file 2013 taxes Rules for Everyone This part of the chapter discusses Rules 1 through 7. Free e file 2013 taxes You must meet all seven rules to qualify for the earned income credit. Free e file 2013 taxes If you do not meet all seven rules, you cannot get the credit and you do not need to read the rest of the chapter. Free e file 2013 taxes If you meet all seven rules in this part, then read either Part B or Part C (whichever applies) for more rules you must meet. Free e file 2013 taxes Rule 1. Free e file 2013 taxes Your 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. Free e file 2013 taxes Adjusted gross income (AGI). Free e file 2013 taxes   AGI is the amount on line 38 (Form 1040), line 22 (Form 1040A), or line 4 (Form 1040EZ). Free e file 2013 taxes If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Free e file 2013 taxes Example. Free e file 2013 taxes Your AGI is $38,550, you are single, and you have one qualifying child. Free e file 2013 taxes You cannot claim the EIC because your AGI is not less than $37,870. Free e file 2013 taxes 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. Free e file 2013 taxes Community property. Free e file 2013 taxes   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. Free e file 2013 taxes This is different from the community property rules that apply under Rule 7 . Free e file 2013 taxes Rule 2. Free e file 2013 taxes 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). Free e file 2013 taxes Any qualifying child listed on Schedule EIC also must have a valid SSN. Free e file 2013 taxes (See Rule 8 if you have a qualifying child. Free e file 2013 taxes ) 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. Free e file 2013 taxes An example of a federally funded benefit is Medicaid. Free e file 2013 taxes 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. Free e file 2013 taxes S. Free e file 2013 taxes citizen or permanent resident, ask the SSA for a new social security card without the legend. Free e file 2013 taxes U. Free e file 2013 taxes S. Free e file 2013 taxes citizen. Free e file 2013 taxes   If you were a U. Free e file 2013 taxes S. Free e file 2013 taxes citizen when you received your SSN, you have a valid SSN. Free e file 2013 taxes Valid for work only with INS or DHS authorization. Free e file 2013 taxes   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. Free e file 2013 taxes SSN missing or incorrect. Free e file 2013 taxes   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Free e file 2013 taxes Other taxpayer identification number. Free e file 2013 taxes   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). Free e file 2013 taxes ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Free e file 2013 taxes No SSN. Free e file 2013 taxes   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). Free e file 2013 taxes You cannot claim the EIC. Free e file 2013 taxes Getting an SSN. Free e file 2013 taxes   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, Application for a Social Security Card, with the SSA. Free e file 2013 taxes You can get Form SS-5 online at www. Free e file 2013 taxes socialsecurity. Free e file 2013 taxes gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Free e file 2013 taxes Filing deadline approaching and still no SSN. Free e file 2013 taxes   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Free e file 2013 taxes Request an automatic 6-month extension of time to file your return. Free e file 2013 taxes You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Free e file 2013 taxes S. Free e file 2013 taxes Individual Income Tax Return. Free e file 2013 taxes For more information, see chapter 1 . Free e file 2013 taxes File the return on time without claiming the EIC. Free e file 2013 taxes After receiving the SSN, file an amended return (Form 1040X, Amended U. Free e file 2013 taxes S. Free e file 2013 taxes Individual Income Tax Return) claiming the EIC. Free e file 2013 taxes Attach a filled-in Schedule EIC if you have a qualifying child. Free e file 2013 taxes Table 36-1. Free e file 2013 taxes Earned Income Credit in a Nutshell First, you must meet all the rules in this column. Free e file 2013 taxes Second, you must meet all the rules in one of these columns, whichever applies. Free e file 2013 taxes Third, you must meet the rule in this column. Free e file 2013 taxes Part A. Free e file 2013 taxes  Rules for Everyone Part B. Free e file 2013 taxes  Rules If You Have a Qualifying Child Part C. Free e file 2013 taxes  Rules If You Do Not Have a Qualifying Child Part D. Free e file 2013 taxes  Figuring and Claiming the EIC 1. Free e file 2013 taxes 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. Free e file 2013 taxes 2. Free e file 2013 taxes You must have a valid social security number. Free e file 2013 taxes  3. Free e file 2013 taxes Your filing status cannot be “Married filing separately. Free e file 2013 taxes ” 4. Free e file 2013 taxes You must be a U. Free e file 2013 taxes S. Free e file 2013 taxes citizen or resident alien all year. Free e file 2013 taxes  5. Free e file 2013 taxes You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Free e file 2013 taxes  6. Free e file 2013 taxes Your investment income must be $3,300 or less. Free e file 2013 taxes  7. Free e file 2013 taxes You must have earned income. Free e file 2013 taxes 8. Free e file 2013 taxes Your child must meet the relationship, age, residency, and joint return tests. Free e file 2013 taxes  9. Free e file 2013 taxes Your qualifying child cannot be used by more than one person to claim the EIC. Free e file 2013 taxes  10. Free e file 2013 taxes You cannot be a qualifying child of another person. Free e file 2013 taxes 11. Free e file 2013 taxes You must be at least age 25 but under age 65. Free e file 2013 taxes  12. Free e file 2013 taxes You cannot be the dependent of another person. Free e file 2013 taxes  13. Free e file 2013 taxes You cannot be a qualifying child of another person. Free e file 2013 taxes  14. Free e file 2013 taxes You must have lived in the United States more than half of the year. Free e file 2013 taxes 15. Free e file 2013 taxes 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. Free e file 2013 taxes Rule 3. Free e file 2013 taxes Your Filing Status Cannot Be Married Filing Separately If you are married, you usually must file a joint return to claim the EIC. Free e file 2013 taxes Your filing status cannot be “Married filing separately. Free e file 2013 taxes ” Spouse did not live with you. Free e file 2013 taxes   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. Free e file 2013 taxes In that case, you may be able to claim the EIC. Free e file 2013 taxes For detailed information about filing as head of household, see chapter 2 . Free e file 2013 taxes Rule 4. Free e file 2013 taxes You Must Be a U. Free e file 2013 taxes S. Free e file 2013 taxes 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. Free e file 2013 taxes You can use that filing status only if one spouse is a U. Free e file 2013 taxes S. Free e file 2013 taxes citizen or resident alien and you choose to treat the nonresident spouse as a U. Free e file 2013 taxes S. Free e file 2013 taxes resident. Free e file 2013 taxes If you make this choice, you and your spouse are taxed on your worldwide income. Free e file 2013 taxes 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). Free e file 2013 taxes If you need more information on making this choice, get Publication 519, U. Free e file 2013 taxes S. Free e file 2013 taxes Tax Guide for Aliens. Free e file 2013 taxes Rule 5. Free e file 2013 taxes 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. Free e file 2013 taxes You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Free e file 2013 taxes U. Free e file 2013 taxes S. Free e file 2013 taxes possessions are not foreign countries. Free e file 2013 taxes See Publication 54, Tax Guide for U. Free e file 2013 taxes S. Free e file 2013 taxes Citizens and Resident Aliens Abroad, for more detailed information. Free e file 2013 taxes Rule 6. Free e file 2013 taxes 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. Free e file 2013 taxes If your investment income is more than $3,300, you cannot claim the credit. Free e file 2013 taxes For most people, investment income is the total of the following amounts. Free e file 2013 taxes Taxable interest (line 8a of Form 1040 or 1040A). Free e file 2013 taxes Tax-exempt interest (line 8b of Form 1040 or 1040A). Free e file 2013 taxes Dividend income (line 9a of Form 1040 or 1040A). Free e file 2013 taxes Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Free e file 2013 taxes If you file Form 1040EZ, your investment income is the total of the amount of line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. Free e file 2013 taxes However, see Rule 6 in chapter 1 of Publication 596 if: You are filing Schedule E (Form 1040), Form 4797, or Form 8814, or You are reporting income from the rental of personal property on Form 1040, line 21. Free e file 2013 taxes Rule 7. Free e file 2013 taxes You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. Free e file 2013 taxes If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Free e file 2013 taxes If you are an employee, earned income includes all the taxable income you get from your employer. Free e file 2013 taxes If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the instructions for Form 1040. Free e file 2013 taxes Earned Income Earned income includes all of the following types of income. Free e file 2013 taxes Wages, salaries, tips, and other taxable employee pay. Free e file 2013 taxes Employee pay is earned income only if it is taxable. Free e file 2013 taxes Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Free e file 2013 taxes But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained below. Free e file 2013 taxes Net earnings from self-employment. Free e file 2013 taxes Gross income received as a statutory employee. Free e file 2013 taxes Wages, salaries, and tips. Free e file 2013 taxes   Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Free e file 2013 taxes You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Free e file 2013 taxes Nontaxable combat pay election. Free e file 2013 taxes   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Free e file 2013 taxes Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Free e file 2013 taxes Figure the credit with and without your nontaxable combat pay before making the election. Free e file 2013 taxes   If you make the election, you must include in earned income all nontaxable combat pay you received. Free e file 2013 taxes If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Free e file 2013 taxes In other words, if one of you makes the election, the other one can also make it but does not have to. Free e file 2013 taxes   The amount of your nontaxable combat pay should be shown in box 12 of your Form W-2 with code “Q. Free e file 2013 taxes ” Self-employed persons and statutory employees. Free e file 2013 taxes   If you are self-employed or received income as a statutory employee, you must use the Form 1040 instructions to see if you qualify to get the EIC. Free e file 2013 taxes 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. Free e file 2013 taxes Each approved form exempts certain income from social security taxes. Free e file 2013 taxes Each form is discussed here in terms of what is or is not earned income for the EIC. Free e file 2013 taxes Form 4361. Free e file 2013 taxes   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Free e file 2013 taxes This includes wages, salaries, tips, and other taxable employee compensation. Free e file 2013 taxes A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Free e file 2013 taxes Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Free e file 2013 taxes Examples include fees for performing marriages and honoraria for delivering speeches. Free e file 2013 taxes Form 4029. Free e file 2013 taxes   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Free e file 2013 taxes However, amounts you received as a self-employed individual do not count as earned income. Free e file 2013 taxes Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Free e file 2013 taxes 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. Free e file 2013 taxes Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Free e file 2013 taxes You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Free e file 2013 taxes Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Free e file 2013 taxes Report taxable pension payments on Form 1040, lines 16a and 16b (or Form 1040A, lines 12a and 12b). Free e file 2013 taxes Disability insurance payments. Free e file 2013 taxes   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Free e file 2013 taxes It does not matter whether you have reached minimum retirement age. Free e file 2013 taxes If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Free e file 2013 taxes ” 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. Free e file 2013 taxes Do not include any of these items in your earned income. Free e file 2013 taxes Earnings while an inmate. Free e file 2013 taxes   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Free e file 2013 taxes This includes amounts for work performed while in a work release program or while in a halfway house. Free e file 2013 taxes Workfare payments. Free e file 2013 taxes   Nontaxable workfare payments are not earned income for the EIC. Free e file 2013 taxes 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 private sector employment is not available, or (2) community service program activities. Free e file 2013 taxes Community property. Free e file 2013 taxes   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. Free e file 2013 taxes That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Free e file 2013 taxes 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. Free e file 2013 taxes Nevada, Washington, and California domestic partners. Free e file 2013 taxes   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Free e file 2013 taxes Your earned income for the EIC does not include any amount earned by your partner. Free e file 2013 taxes Your earned income includes the entire amount you earned. Free e file 2013 taxes For details, see Publication 555. Free e file 2013 taxes Conservation Reserve Program (CRP) payments. Free e file 2013 taxes   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. Free e file 2013 taxes Nontaxable military pay. Free e file 2013 taxes   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Free e file 2013 taxes Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Free e file 2013 taxes See Publication 3, Armed Forces' Tax Guide, for more information. Free e file 2013 taxes    Combat pay. Free e file 2013 taxes You can elect to include your nontaxable combat pay in earned income for the EIC. Free e file 2013 taxes See Nontaxable combat pay election, earlier. Free e file 2013 taxes Part B. Free e file 2013 taxes Rules If You Have a Qualifying Child If you have met all of the rules in Part A , read Part B to see if you have a qualifying child. Free e file 2013 taxes Part B discusses Rules 8 through 10. Free e file 2013 taxes You must meet all three of these rules, in addition to the rules in Parts A and D , to qualify for the earned income credit with a qualifying child. Free e file 2013 taxes You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Free e file 2013 taxes (You cannot file Form 1040EZ. Free e file 2013 taxes ) You also must complete Schedule EIC and attach it to your return. Free e file 2013 taxes If you meet all the rules in Part A and this part, read Part D to find out what to do next. Free e file 2013 taxes If you do not meet Rule 8, you do not have a qualifying child. Free e file 2013 taxes Read Part C to find out if you can get the earned income credit without a qualifying child. Free e file 2013 taxes Rule 8. Free e file 2013 taxes Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. Free e file 2013 taxes The four tests are: Relationship, Age, Residency, and Joint return. Free e file 2013 taxes The four tests are illustrated in Figure 36–1. Free e file 2013 taxes The paragraphs that follow contain more information about each test. Free e file 2013 taxes 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). Free e file 2013 taxes The following definitions clarify the relationship test. Free e file 2013 taxes Adopted child. Free e file 2013 taxes   An adopted child is always treated as your own child. Free e file 2013 taxes The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Free e file 2013 taxes Foster child. Free e file 2013 taxes   For the EIC, a person is your foster child if the child is placed with you by an authorized placement agency or by judgement, decree, or other order of any court of competent jurisdiction. Free e file 2013 taxes An authorized placement agency includes a state or local government agency. Free e file 2013 taxes It also includes a tax-exempt organization licensed by a state. Free e file 2013 taxes In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Free e file 2013 taxes Example. Free e file 2013 taxes 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. Free e file 2013 taxes Debbie is your foster child. Free e file 2013 taxes 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. Free e file 2013 taxes    The following examples and definitions clarify the age test. Free e file 2013 taxes Example 1—child not under age 19. Free e file 2013 taxes Your son turned 19 on December 10. Free e file 2013 taxes 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. Free e file 2013 taxes Example 2—child not younger than you or your spouse. Free e file 2013 taxes Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Free e file 2013 taxes He is not disabled. Free e file 2013 taxes Both you and your spouse are 21 years old and you file a joint return. Free e file 2013 taxes Your brother is not your qualifying child because he is not younger than you or your spouse. Free e file 2013 taxes Example 3—child younger than your spouse but not younger than you. Free e file 2013 taxes The facts are the same as in Example 2 except that your spouse is 25 years old. Free e file 2013 taxes Because your brother is younger than your spouse, he is your qualifying child even though he is not younger than you. Free e file 2013 taxes Student defined. Free e file 2013 taxes   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. Free e file 2013 taxes The 5 calendar months need not be consecutive. Free e file 2013 taxes   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. Free e file 2013 taxes School defined. Free e file 2013 taxes   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Free e file 2013 taxes However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Free e file 2013 taxes Vocational high school students. Free e file 2013 taxes   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. Free e file 2013 taxes Permanently and totally disabled. Free e file 2013 taxes   Your child is permanently and totally disabled if both of the following apply. Free e file 2013 taxes He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Free e file 2013 taxes A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Free e file 2013 taxes Residency Test Your child must have lived with you in the United States for more than half of 2013. Free e file 2013 taxes The following definitions clarify the residency test. Free e file 2013 taxes United States. Free e file 2013 taxes   This means the 50 states and the District of Columbia. Free e file 2013 taxes It does not include Puerto Rico or U. Free e file 2013 taxes S. Free e file 2013 taxes possessions such as Guam. Free e file 2013 taxes Homeless shelter. Free e file 2013 taxes   Your home can be any location where you regularly live. Free e file 2013 taxes You do not need a traditional home. Free e file 2013 taxes 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. Free e file 2013 taxes Military personnel stationed outside the United States. Free e file 2013 taxes    U. Free e file 2013 taxes S. Free e file 2013 taxes 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. Free e file 2013 taxes Figure 36-1. Free e file 2013 taxes Tests for Qualifying Child Please click here for the text description of the image. Free e file 2013 taxes Qualifying child Extended active duty. Free e file 2013 taxes   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Free e file 2013 taxes 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. Free e file 2013 taxes Birth or death of a child. Free e file 2013 taxes   A 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. Free e file 2013 taxes Temporary absences. Free e file 2013 taxes   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. Free e file 2013 taxes Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Free e file 2013 taxes Kidnapped child. Free e file 2013 taxes    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. Free e file 2013 taxes The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or your child's family. Free e file 2013 taxes This treatment applies for all years until the child is returned. Free e file 2013 taxes 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. Free e file 2013 taxes   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Free e file 2013 taxes Joint Return Test To meet this test, the child cannot file a joint return for the year. Free e file 2013 taxes Exception. Free e file 2013 taxes   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. Free e file 2013 taxes Example 1—child files joint return. Free e file 2013 taxes You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Free e file 2013 taxes He earned $25,000 for the year. Free e file 2013 taxes The couple files a joint return. Free e file 2013 taxes Because your daughter and her husband filed a joint return, she is not your qualifying child. Free e file 2013 taxes Example 2—child files joint return only to claim a refund of withheld tax. Free e file 2013 taxes Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Free e file 2013 taxes They do not have a child. Free e file 2013 taxes Neither is required to file a tax return. Free e file 2013 taxes Taxes were taken out of their pay, so they filed a joint return only to get a refund of the withheld taxes. Free e file 2013 taxes The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Free e file 2013 taxes Example 3—child files joint return to claim American opportunity credit. Free e file 2013 taxes The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes The exception to the joint return test does not apply, so your son is not your qualifying child. Free e file 2013 taxes Married child. Free e file 2013 taxes   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. Free e file 2013 taxes Social security number. Free e file 2013 taxes   The 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. Free e file 2013 taxes 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), which is issued to adopting parents who cannot get an SSN for the child being adopted until the adoption is final. Free e file 2013 taxes   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. Free e file 2013 taxes For more information about SSNs, see Rule 2 . Free e file 2013 taxes Rule 9. Free e file 2013 taxes 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. Free e file 2013 taxes However, only one of these persons can actually treat the child as a qualifying child. Free e file 2013 taxes 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). Free e file 2013 taxes The exemption for the child. Free e file 2013 taxes The child tax credit. Free e file 2013 taxes Head of household filing status. Free e file 2013 taxes The credit for child and dependent care expenses. Free e file 2013 taxes The exclusion for dependent care benefits. Free e file 2013 taxes The EIC. Free e file 2013 taxes The other person cannot take any of these benefits based on this qualifying child. Free e file 2013 taxes In other words, you and the other person cannot agree to divide these tax benefits between you. Free e file 2013 taxes The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Free e file 2013 taxes The tiebreaker rules explained next explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Free e file 2013 taxes However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Free e file 2013 taxes Tiebreaker rules. Free e file 2013 taxes   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. Free e file 2013 taxes If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes See Example 8 . Free e file 2013 taxes   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. Free e file 2013 taxes See Examples 1 through 13 . Free e file 2013 taxes   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 Part C for people who do not have a qualifying child. Free e file 2013 taxes If the other person cannot claim the EIC. Free e file 2013 taxes   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. Free e file 2013 taxes See Examples 6 and 7 . Free e file 2013 taxes 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. Free e file 2013 taxes Examples. Free e file 2013 taxes The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Free e file 2013 taxes Example 1. Free e file 2013 taxes You and your 2-year-old son Jimmy lived with your mother all year. Free e file 2013 taxes You are 25 years old, unmarried, and your AGI is $9,000. Free e file 2013 taxes Your only income was $9,000 from a part-time job. Free e file 2013 taxes Your mother's only income was $20,000 from her job, and her AGI is $20,000. Free e file 2013 taxes Jimmy's father did not live with you or Jimmy. Free e file 2013 taxes The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Free e file 2013 taxes 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. Free e file 2013 taxes However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier for which that person qualifies). Free e file 2013 taxes He is not a qualifying child of anyone else, including his father. Free e file 2013 taxes 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). Free e file 2013 taxes Example 2. Free e file 2013 taxes The facts are the same as in Example 1 except your AGI is $25,000. Free e file 2013 taxes Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Free e file 2013 taxes Only you can claim him. Free e file 2013 taxes Example 3. Free e file 2013 taxes The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes Example 4. Free e file 2013 taxes 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. Free e file 2013 taxes Only one of you can claim each child. Free e file 2013 taxes However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Free e file 2013 taxes For example, if you claim one child, your mother can claim the other two. Free e file 2013 taxes Example 5. Free e file 2013 taxes The facts are the same as in Example 1 except that you are only 18 years old. Free e file 2013 taxes This means you are a qualifying child of your mother. Free e file 2013 taxes Because of Rule 10 , discussed next, you cannot claim the EIC and cannot claim Jimmy as a qualifying child. Free e file 2013 taxes Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Free e file 2013 taxes 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. Free e file 2013 taxes Example 6. Free e file 2013 taxes The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Free e file 2013 taxes Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Free e file 2013 taxes Example 7. Free e file 2013 taxes The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Free e file 2013 taxes Your earned income is too high for you to claim the EIC. Free e file 2013 taxes But your mother cannot claim the EIC either, because her AGI is not higher than yours. Free e file 2013 taxes Example 8. Free e file 2013 taxes 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 an AGI of $30,000 on a joint return. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes In other words, each parent's AGI can be treated as $15,000. Free e file 2013 taxes Example 9. Free e file 2013 taxes You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Free e file 2013 taxes In August and September, Joey lived with you. Free e file 2013 taxes For the rest of the year, Joey lived with your husband, who is Joey's father. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes You and your husband will file separate returns. Free e file 2013 taxes Your husband agrees to let you treat Joey as a qualifying child. Free e file 2013 taxes 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. Free e file 2013 taxes However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Free e file 2013 taxes See Rule 3 . Free e file 2013 taxes Example 10. Free e file 2013 taxes The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Free e file 2013 taxes In this case, only your husband will be allowed to treat Joey as a qualifying child. Free e file 2013 taxes This is because, during 2013, the boy lived with him longer than with you. Free e file 2013 taxes You cannot claim the EIC (either with or without a qualifying child). Free e file 2013 taxes 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. Free e file 2013 taxes See Rule 3 . Free e file 2013 taxes Example 11. Free e file 2013 taxes You, your 5-year-old son and your son's father lived together all year. Free e file 2013 taxes You and your son's father are not married. Free e file 2013 taxes 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. Free e file 2013 taxes Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Free e file 2013 taxes Neither of you had any other income. Free e file 2013 taxes Your son's father agrees to let you treat the child as a qualifying child. Free e file 2013 taxes 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. Free e file 2013 taxes Example 12. Free e file 2013 taxes 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. Free e file 2013 taxes In this case, only your son's father will be allowed to treat your son as a qualifying child. Free e file 2013 taxes This is because his AGI, $14,000, is more than your AGI, $12,000. Free e file 2013 taxes You cannot claim the EIC (either with or without a qualifying child). Free e file 2013 taxes Example 13. Free e file 2013 taxes You and your 7-year-old niece, your sister's child, lived with your mother all year. Free e file 2013 taxes You are 25 years old, and your AGI is $9,300. Free e file 2013 taxes Your only income was from a part-time job. Free e file 2013 taxes Your mother's AGI is $15,000. Free e file 2013 taxes Her only income was from her job. Free e file 2013 taxes Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Free e file 2013 taxes 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. Free e file 2013 taxes However, only your mother can treat her as a qualifying child. Free e file 2013 taxes This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Free e file 2013 taxes Special rule for divorced or separated parents (or parents who live apart). Free e file 2013 taxes   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. Free e file 2013 taxes 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 2013, whether or not they are or were married. Free e file 2013 taxes The child received over half of his or her support for the year from the parents. Free e file 2013 taxes The child is in the custody of one or both parents for more than half of 2013. Free e file 2013 taxes Either of the following statements is true. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes  For details, see chapter 3. Free e file 2013 taxes Also see Applying Rule 9 to divorced or separated parents (or parents who live apart) , next. Free e file 2013 taxes Applying Rule 9 to divorced or separated parents (or parents who live apart). Free e file 2013 taxes   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. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes Example 1. Free e file 2013 taxes You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Free e file 2013 taxes Your AGI is $10,000. Free e file 2013 taxes Your mother’s AGI is $25,000. Free e file 2013 taxes Your son's father did not live with you or your son. Free e file 2013 taxes Under the special rule 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 the child. Free e file 2013 taxes 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. Free e file 2013 taxes You and your mother did not have any child care expenses or dependent care benefits. Free e file 2013 taxes 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. Free e file 2013 taxes Example 2. Free e file 2013 taxes The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Free e file 2013 taxes Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Free e file 2013 taxes Example 3. Free e file 2013 taxes 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. Free e file 2013 taxes Your mother also claims him as a qualifying child for head of household filing status. Free e file 2013 taxes You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Free e file 2013 taxes The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Free e file 2013 taxes Rule 10. Free e file 2013 taxes You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Free e file 2013 taxes ) if all of the following statements are true. Free e file 2013 taxes You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Free e file 2013 taxes Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). Free e file 2013 taxes 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. Free e file 2013 taxes You lived with that person in the United States for more than half of the year. Free e file 2013 taxes 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). Free e file 2013 taxes For more details about the tests to be a qualifying child, see Rule 8 . Free e file 2013 taxes If you are a qualifying child of another taxpayer, you cannot claim the EIC. Free e file 2013 taxes 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. Free e file 2013 taxes Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Free e file 2013 taxes Example. Free e file 2013 taxes You and your daughter lived with your mother all year. Free e file 2013 taxes You are 22 years old, unmarried, and attended a trade school full time. Free e file 2013 taxes You had a part-time job and earned $5,700. Free e file 2013 taxes You had no other income. Free e file 2013 taxes Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Free e file 2013 taxes She can claim the EIC if she meets all the other requirements. Free e file 2013 taxes Because you are your mother's qualifying child, you cannot claim the EIC. Free e file 2013 taxes This is so even if your mother cannot or does not claim the EIC. Free e file 2013 taxes Child of person not required to file a return. Free e file 2013 taxes   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. Free e file 2013 taxes Example. Free e file 2013 taxes 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. Free e file 2013 taxes As a result, you are not your mother's qualifying child. Free e file 2013 taxes You can claim the EIC if you meet all the other requirements to do so. Free e file 2013 taxes   See Rule 10 in Publication 596 for additional examples. Free e file 2013 taxes Part C. Free e file 2013 taxes Rules If You Do Not Have a Qualifying Child Read this part if you: Do not have a qualifying child, and Have met all the rules in Part A . Free e file 2013 taxes  Part C discusses Rules 11 through 14. Free e file 2013 taxes You must meet all four of these rules, in addition to the rules in Parts A and D , to qualify for the earned income credit without a qualifying child. Free e file 2013 taxes If you have a qualifying child, the rules in this part do not apply to you. Free e file 2013 taxes You can claim the credit only if you meet all the rules in Parts A, B, and D. Free e file 2013 taxes See Rule 8 to find out if you have a qualifying child. Free e file 2013 taxes Rule 11. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes It does not matter which spouse meets the age test, as long as one of the spouses does. Free e file 2013 taxes You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Free e file 2013 taxes 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. Free e file 2013 taxes If neither you nor your spouse meets the age test, you cannot claim the EIC. Free e file 2013 taxes Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Free e file 2013 taxes Death of spouse. Free e file 2013 taxes   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. Free e file 2013 taxes Example 1. Free e file 2013 taxes You are age 28 and unmarried. Free e file 2013 taxes You meet the age test. Free e file 2013 taxes Example 2—spouse meets age test. Free e file 2013 taxes You are married and filing a joint return. Free e file 2013 taxes You are age 23 and your spouse is age 27. Free e file 2013 taxes You meet the age test because your spouse is at least age 25 but under age 65. Free e file 2013 taxes Example 3—spouse dies in 2013. Free e file 2013 taxes You are married and filing a joint return with your spouse who died in August 2013. Free e file 2013 taxes You are age 67. Free e file 2013 taxes Your spouse would have become age 65 in November 2013. Free e file 2013 taxes Because your spouse was under age 65 when she died, you meet the age test. Free e file 2013 taxes Rule 12. Free e file 2013 taxes 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. Free e file 2013 taxes 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. Free e file 2013 taxes If you are not sure whether someone else can claim you (or your spouse, if filing a joint return) as a dependent, read the rules for claiming a dependent in chapter 3. Free e file 2013 taxes If someone else can claim you (or your spouse, if filing a joint return) as a dependent on his or her return, but does not, you still cannot claim the credit. Free e file 2013 taxes Example 1. Free e file 2013 taxes In 2013, you were age 25, single, and living at home with your parents. Free e file 2013 taxes You worked and were not a student. Free e file 2013 taxes You earned $7,500. Free e file 2013 taxes Your parents cannot claim you as a dependent. Free e file 2013 taxes 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. Free e file 2013 taxes You meet this rule. Free e file 2013 taxes You can claim the EIC if you meet all the other requirements. Free e file 2013 taxes Example 2. Free e file 2013 taxes The facts are the same as in Example 1 , except that you earned $2,000. Free e file 2013 taxes Your parents can claim you as a dependent but decide not to. Free e file 2013 taxes You do not meet this rule. Free e file 2013 taxes You cannot claim the credit because your parents could have claimed you as a dependent. Free e file 2013 taxes Joint returns. Free e file 2013 taxes   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Free e file 2013 taxes   However, another person may be able to claim you as a dependent if you and your spouse file a joint return only to get a refund of income tax withheld or estimated tax paid. Free e file 2013 taxes But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Free e file 2013 taxes Example 1. Free e file 2013 taxes You are 26 years old. Free e file 2013 taxes You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Free e file 2013 taxes Neither you nor your wife is required to file a tax return. Free e file 2013 taxes You do not have a child. Free e file 2013 taxes Taxes were taken out of your pay, so you file a joint return only to get a refund of the withheld taxes. Free e file 2013 taxes Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Free e file 2013 taxes They can claim exemptions for you and your wife if all the other tests to do so are met. Free e file 2013 taxes Example 2. Free e file 2013 taxes The facts are the same as in Example 1 except no taxes were taken out of your pay. Free e file 2013 taxes 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. Free e file 2013 taxes Because claiming the EIC is your reason for filing the return, you are not filing it only to get a refund of income tax withheld or estimated tax paid. Free e file 2013 taxes Your parents cannot claim an exemption for either you or your wife. Free e file 2013 taxes Rule 13. Free e file 2013 taxes You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Free e file 2013 taxes ) if all of the following statements are true. Free e file 2013 taxes You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Free e file 2013 taxes Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or a descendant of any of them). Free e file 2013 taxes 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 (as defined in Rule 8 ), and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. Free e file 2013 taxes You lived with that person in the United States for more than half of the year. Free e file 2013 taxes 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). Free e file 2013 taxes For more details about the tests to be a qualifying child, see Rule 8 . Free e file 2013 taxes If you are a qualifying child of another taxpayer, you cannot claim the EIC. Free e file 2013 taxes 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. Free e file 2013 taxes Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Free e file 2013 taxes Example. Free e file 2013 taxes You lived with your mother all year. Free e file 2013 taxes You are age 26, unmarried, and permanently and totally disabled. Free e file 2013 taxes Your only income was from a community center where you went three days a week to answer telephones. Free e file 2013 taxes You earned $5,000 for the year and provided more than half of your own support. Free e file 2013 taxes Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Free e file 2013 taxes She can claim the EIC if she meets all the other requirements. Free e file 2013 taxes Because you are a qualifying child of your mother, you cannot claim the EIC. Free e file 2013 taxes This is so even if your mother cannot or does not claim the EIC. Free e file 2013 taxes Joint returns. Free e file 2013 taxes   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Free e file 2013 taxes   However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return for the year only to get a refund of income tax withheld or estimated tax paid. Free e file 2013 taxes But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Free e file 2013 taxes Child of person not required to file a return. Free e file 2013 taxes   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. Free e file 2013 taxes Example. Free e file 2013 taxes You lived all year with your father. Free e file 2013 taxes You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Free e file 2013 taxes You have no other income, no children, and provided more than half of your own support. Free e file 2013 taxes Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Free e file 2013 taxes As a result, you are not your father's qualifying child. Free e file 2013 taxes You can claim the EIC if you meet all the other requirements to do so. Free e file 2013 taxes   See Rule 13 in Publication 596 for additional examples. Free e file 2013 taxes Rule 14. Free e file 2013 taxes 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. Free e file 2013 taxes If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Free e file 2013 taxes United States. Free e file 2013 taxes   This means the 50 states and the District of Columbia. Free e file 2013 taxes It does not include Puerto Rico or U. Free e file 2013 taxes S. Free e file 2013 taxes possessions such as Guam. Free e file 2013 taxes Homeless shelter. Free e file 2013 taxes   Your home can be any location where you regularly live. Free e file 2013 taxes You do not need a traditional home. Free e file 2013 taxes If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Free e file 2013 taxes Military personnel stationed outside the United States. Free e file 2013 taxes   U. Free e file 2013 taxes S. Free e file 2013 taxes military personnel stationed outside the United States on extended active duty (defined in Rule 8 ) are considered to live in the United States during that duty period for purposes of the EIC. Free e file 2013 taxes Part D. Free e file 2013 taxes Figuring and Claiming the EIC Read this part if you have met all the rules in Parts A and B, or all the rules in Parts A and C. Free e file 2013 taxes Part D discusses Rule 15 . Free e file 2013 taxes You must meet this rule, in addition to the rules in Parts A and B , or Parts A and C , to qualify for the earned income credit. Free e file 2013 taxes This part of the chapter also explains how to figure the amount of your credit. Free e file 2013 taxes You have two choices. Free e file 2013 taxes Have the IRS figure the EIC for you. Free e file 2013 taxes If you want to do this, see IRS Will Figure the EIC for You . Free e file 2013 taxes Figure the EIC yourself. Free e file 2013 taxes If you want to do this, see How To Figure the EIC Yourself . Free e file 2013 taxes Rule 15. Free e file 2013 taxes 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. Free e file 2013 taxes Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Free e file 2013 taxes Employee pay is earned income only if it is taxable. Free e file 2013 taxes Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Free e file 2013 taxes But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Free e file 2013 taxes Earned income is explained in detail in Rule 7 . Free e file 2013 taxes Figuring earned income. Free e file 2013 taxes   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. Free e file 2013 taxes   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. Free e file 2013 taxes   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). Free e file 2013 taxes You will then reduce that amount by any amount included on that line and described in the following list: Scholarship or fellowship grants not reported on a Form W-2, Inmate's income, and Pension or annuity from deferred compensation plans. Free e file 2013 taxes Scholarship or fellowship grants not reported on a Form W-2. Free e file 2013 taxes   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. Free e file 2013 taxes Inmate's income. Free e file 2013 taxes   Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Free e file 2013 taxes This includes amounts received for work performed while in a work release program or while in a halfway house. Free e file 2013 taxes 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). Free e file 2013 taxes Pension or annuity from deferred compensation plans. Free e file 2013 taxes   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. Free e file 2013 taxes 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). Free e file 2013 taxes This amount may be reported in box 11 of your Form W-2. Free e file 2013 taxes If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity. Free e file 2013 taxes Clergy. Free e file 2013 taxes   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 reported on line 7 (Form 1040), subtract that amount from the amount on line 7 (Form 1040) and enter the result in the first space of the worksheet in Step 5 of the Form 1040 instructions for lines 64a and 64b. Free e file 2013 taxes Put “Clergy” on the dotted line next to line 64a (Form 1040). Free e file 2013 taxes Church employees. Free e file 2013 taxes    A church employee means an employee (other than a minister or member of a religious order) of a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Free e file 2013 taxes If you received wages as a