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H&r Block Free StateTax Forms 2011 1040Filing Taxes OnlineFiling An Amended Tax Return For 2012E File 2012 Returns1040 Ez 2011 Form1040 Ez InstructionsFile 1040ez FormFree File State Income TaxFederal 1040xFree FileHow To File A Amended Tax ReturnVita Tax 2014Tax Easy FormH R Block 2011Taxact 2012 Login1040 EasyTax Forms For 2012Free Irs Tax Filing 20121040nr Form 2013Can I File 2011 Taxes With TurbotaxAmended Us Tax Form 1040xFile Taxes For 2010H&r Block Free File Tax Return1040 Tax Form 2011Amending 2011 TaxesHow Do I File A Amended Tax ReturnFederal Tax Amended ReturnFree 1040ez Tax FilingFiling Taxes With Unemployment Income 20112012 Irs 1040ez FormAmend 2012 Tax ReturnTax Act 2009Fillable 1040x FormFree Tax AmendmentH&r Block Free Online TaxesH & R Block OnlineFiling Taxes With UnemploymentWhere Can I File My State Taxes For Free2010 Tax Deadline

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Free tax preparation Publication 516 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. Free tax preparation Tax questions. Free tax preparation Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 516, such as treaties effective after it was published, go to www. Free tax preparation irs. Free tax preparation gov/pub516. Free tax preparation What's New U. Free tax preparation S. Free tax preparation tax treaties and foreign tax laws. Free tax preparation  This publication has been expanded to cover U. Free tax preparation S. Free tax preparation tax treaties and compliance with foreign tax laws. Free tax preparation Reminders Combat zone participants. Free tax preparation  If you were a civilian who served in a combat zone or qualified hazardous duty area in support of the U. Free tax preparation S. Free tax preparation Armed Forces, you can get certain extensions of deadlines for filing tax returns, paying taxes, filing claims for refund, and doing certain other tax-related acts. Free tax preparation For details, see Publication 3, Armed Forces' Tax Guide. Free tax preparation Death due to terrorist or military action. Free tax preparation  U. Free tax preparation S. Free tax preparation income taxes are forgiven for a U. Free tax preparation S. Free tax preparation Government civilian employee who dies as a result of wounds or injuries incurred while employed by the U. Free tax preparation S. Free tax preparation Government. Free tax preparation The wounds or injuries must have been caused by terrorist or military action directed against the United States or its allies. Free tax preparation The taxes are forgiven for the deceased employee's tax years beginning with the year immediately before the year in which the wounds or injury occurred and ending with the year of death. Free tax preparation If the deceased government employee and the employee's spouse filed a joint return, only the decedent's part of the joint tax liability is forgiven. Free tax preparation For additional details, see Publication 559, Survivors, Executors, and Administrators. Free tax preparation Form 8938. Free tax preparation  If you had foreign financial assets in 2012, you may have to file Form 8938 with your return. Free tax preparation See Foreign Bank Accounts, later. Free tax preparation Introduction If you are a U. Free tax preparation S. Free tax preparation citizen working for the U. Free tax preparation S. Free tax preparation Government, including the foreign service, and you are stationed abroad, your income tax filing requirements are generally the same as those for citizens and residents living in the United States. Free tax preparation You are taxed on your worldwide income, even though you live and work abroad. Free tax preparation However, you may receive certain allowances and have certain expenses that you generally do not have while living in the United States. Free tax preparation This publication explains: Many of the allowances, reimbursements, and property sales you are likely to have, and whether you must report them as income on your tax return, and Many of the expenses you are likely to have, such as moving expenses and foreign taxes, and whether you can deduct them on your tax return. Free tax preparation U. Free tax preparation S. Free tax preparation possessions. Free tax preparation   This publication does not cover the rules that apply if you are stationed in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, or Puerto Rico. Free tax preparation That information is in Publication 570, Tax Guide for Individuals With Income From U. Free tax preparation S. Free tax preparation Possessions. Free tax preparation Comments and suggestions. Free tax preparation   We welcome your comments about this publication and your suggestions for future editions. Free tax preparation   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Free tax preparation NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free tax preparation Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free tax preparation   You can email us at taxforms@irs. Free tax preparation gov. Free tax preparation Please put “Publications Comment” on the subject line. Free tax preparation You can also send us comments from www. Free tax preparation irs. Free tax preparation gov/formspubs/. Free tax preparation Select “Comment on Tax Forms and Publications” under “Information about. Free tax preparation ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Free tax preparation Ordering forms and publications. Free tax preparation   Visit www. Free tax preparation irs. Free tax preparation gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Free tax preparation Internal Revenue Service 1201 N. Free tax preparation Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Free tax preparation   If you have a tax question, check the information available on IRS. Free tax preparation gov or call 1-800-829-1040. Free tax preparation We cannot answer tax questions sent to either of the above addresses. Free tax preparation Useful Items - You may want to see: Publication 54 Tax Guide for U. Free tax preparation S. Free tax preparation Citizens and Resident Aliens Abroad 463 Travel, Entertainment, Gift, and Car Expenses 514 Foreign Tax Credit for Individuals 519 U. Free tax preparation S. Free tax preparation Tax Guide for Aliens 521 Moving Expenses 523 Selling Your Home Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 1116 Foreign Tax Credit 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3903 Moving Expenses 4868 Application for Automatic Extension of Time To File U. Free tax preparation S. Free tax preparation Individual Income Tax Return 8938 Statement of Specified Foreign Financial Assets TD F 90-22. Free tax preparation 1 Report of Foreign Bank and Financial Accounts See How To Get Tax Help near the end of this publication, for information about getting these publications and forms. Free tax preparation Prev  Up  Next   Home   More Online Publications
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Free tax preparation 5. Free tax preparation   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. Free tax preparation You may be able to reduce your federal income tax by claiming one or more of these credits. Free tax preparation Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. Free tax preparation For more information, see Publication 524, Credit for the Elderly or the Disabled. Free tax preparation You can take the credit only if you file Form 1040 or Form 1040A. Free tax preparation You cannot take the credit if you file Form 1040EZ or Form 1040NR. Free tax preparation Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Free tax preparation You are a qualified individual. Free tax preparation Your income is not more than certain limits. Free tax preparation  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. Free tax preparation   Qualified Individual You are a qualified individual for this credit if you are a U. Free tax preparation S. Free tax preparation citizen or resident alien, and either of the following applies. Free tax preparation You were age 65 or older at the end of 2013. Free tax preparation You were under age 65 at the end of 2013 and all three of the following statements are true. Free tax preparation You retired on permanent and total disability (explained later). Free tax preparation You received taxable disability income for 2013. Free tax preparation On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Free tax preparation Age 65. Free tax preparation You are considered to be age 65 on the day before your 65th birthday. Free tax preparation Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. Free tax preparation Figure 5-A. Free tax preparation Are You a Qualified Individual? This image is too large to be displayed in the current screen. Free tax preparation Please click the link to view the image. Free tax preparation Figure 5-A, Are you a qualified individual? U. Free tax preparation S. Free tax preparation citizen or resident alien. Free tax preparation   You must be a U. Free tax preparation S. Free tax preparation citizen or resident alien (or be treated as a resident alien) to take the credit. Free tax preparation Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Free tax preparation Exceptions. Free tax preparation   You may be able to take the credit if you are a nonresident alien who is married to a U. Free tax preparation S. Free tax preparation citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Free tax preparation S. Free tax preparation resident alien. Free tax preparation If you make that choice, both you and your spouse are taxed on your worldwide income. Free tax preparation   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Free tax preparation S. Free tax preparation citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Free tax preparation S. Free tax preparation resident alien for the entire year. Free tax preparation In that case, you may be allowed to take the credit. Free tax preparation   For information on these choices, see chapter 1 of Publication 519, U. Free tax preparation S. Free tax preparation Tax Guide for Aliens. Free tax preparation Married persons. Free tax preparation   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Free tax preparation However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Free tax preparation Head of household. Free tax preparation   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. Free tax preparation See Publication 524 and Publication 501. Free tax preparation Under age 65. Free tax preparation   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). Free tax preparation You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. Free tax preparation You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. Free tax preparation   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Free tax preparation If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Free tax preparation Permanent and total disability. Free tax preparation   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Free tax preparation A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Free tax preparation See Physician's statement , later. Free tax preparation Substantial gainful activity. Free tax preparation   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Free tax preparation   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Free tax preparation   Substantial gainful activity is not work you do to take care of yourself or your home. Free tax preparation It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Free tax preparation However, doing this kind of work may show that you are able to engage in substantial gainful activity. Free tax preparation    Figure 5-B. Free tax preparation Income Limits IF your filing status is. Free tax preparation . Free tax preparation . Free tax preparation THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. Free tax preparation . Free tax preparation . Free tax preparation OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Free tax preparation . Free tax preparation . Free tax preparation single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Free tax preparation Physician's statement. Free tax preparation   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Free tax preparation   You do not have to file this statement with your tax return, but you must keep it for your records. Free tax preparation The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. Free tax preparation Veterans. Free tax preparation   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Free tax preparation VA Form 21-0172 must be signed by a person authorized by the VA to do so. Free tax preparation You can get this form from your local VA regional office. Free tax preparation Physician's statement obtained in earlier year. Free tax preparation   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Free tax preparation For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. Free tax preparation If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. Free tax preparation   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. Free tax preparation Disability income. Free tax preparation   If you are under age 65, you must also have taxable disability income to qualify for the credit. Free tax preparation   Disability income must meet the following two requirements. Free tax preparation It must be paid under your employer's accident or health plan or pension plan. Free tax preparation It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. Free tax preparation Payments that are not disability income. Free tax preparation   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Free tax preparation Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Free tax preparation   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Free tax preparation Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. Free tax preparation Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. Free tax preparation Figuring the credit yourself. Free tax preparation   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). Free tax preparation Next, fill out Schedule R (Form 1040A or 1040), Part III. Free tax preparation Credit figured for you. Free tax preparation   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). Free tax preparation If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. Free tax preparation Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. Free tax preparation The credit can be up to 35% of your expenses. Free tax preparation To qualify, you must pay these expenses so you can work or look for work. Free tax preparation If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. Free tax preparation If the correct information is not shown, the credit may be reduced or disallowed. Free tax preparation You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. Free tax preparation For more information, see Publication 503, Child and Dependent Care Expenses. Free tax preparation Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. Free tax preparation The EIC is available to persons with or without a qualifying child. Free tax preparation Credit has no effect on certain welfare benefits. Free tax preparation   Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. Free tax preparation These programs include the following. Free tax preparation Medicaid and supplemental security income (SSI). Free tax preparation Supplemental Nutrition Assistance Program (food stamps). Free tax preparation Low-income housing. Free tax preparation Temporary Assistance for Needy Families (TANF). Free tax preparation  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Free tax preparation Check with your local benefit coordinator to find out if your refund will affect your benefits. Free tax preparation Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. Free tax preparation The specific rules you must meet depend on whether you have a qualifying child. Free tax preparation If you have a qualifying child, the rules in Parts A, B, and D apply to you. Free tax preparation If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Free tax preparation  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. Free tax preparation You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). Free tax preparation The sections that follow provide additional information for some of the rules. Free tax preparation Adjusted gross income (AGI). Free tax preparation   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. Free tax preparation Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). Free tax preparation Table 5-1. Free tax preparation Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. Free tax preparation Second, you must meet all the rules in one of these columns, whichever applies. Free tax preparation Third, you must meet the rule in this column. Free tax preparation Part A. Free tax preparation  Rules for Everyone Part B. Free tax preparation  Rules If You Have a Qualifying Child Part C. Free tax preparation  Rules If You Do Not Have a Qualifying Child Part D. Free tax preparation  Figuring and Claiming the EIC 1. Free tax preparation 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 tax preparation 2. Free tax preparation You must have a valid social security number. Free tax preparation  3. Free tax preparation Your filing status cannot be “Married filing separately. Free tax preparation ” 4. Free tax preparation You must be a U. Free tax preparation S. Free tax preparation citizen or resident alien all year. Free tax preparation  5. Free tax preparation You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Free tax preparation  6. Free tax preparation Your investment income must be $3,300 or less. Free tax preparation  7. Free tax preparation You must have earned income. Free tax preparation 8. Free tax preparation Your child must meet the relationship, age, residency, and joint return tests. Free tax preparation  9. Free tax preparation Your qualifying child cannot be used by more than one person to claim the EIC. Free tax preparation  10. Free tax preparation You generally cannot be a qualifying child of another person. Free tax preparation 11. Free tax preparation You must be at least age 25 but under age 65. Free tax preparation  12. Free tax preparation You cannot be the dependent of another person. Free tax preparation  13. Free tax preparation You generally cannot be a qualifying child of another person. Free tax preparation  14. Free tax preparation You must have lived in the United States more than half of the year. Free tax preparation 15. Free tax preparation 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 tax preparation Social security number. Free tax preparation   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). Free tax preparation Any qualifying child listed on Schedule EIC also must have a valid SSN. Free tax preparation (See Qualifying child , later, if you have a qualifying child. Free tax preparation )   If your social security card (or your spouse's if you are married filing jointly) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. Free tax preparation An example of a federally funded benefit is Medicaid. Free tax preparation Investment income. Free tax preparation   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. Free tax preparation If your investment income is more than $3,300, you cannot claim the credit. Free tax preparation For most people, investment income is the total of the following amounts. Free tax preparation Taxable interest (line 8a of Form 1040 or 1040A). Free tax preparation Tax-exempt interest (line 8b of Form 1040 or 1040A). Free tax preparation Dividend income (line 9a of Form 1040 or 1040A). Free tax preparation Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Free tax preparation  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 tax preparation   For more information about investment income, see Publication 596, Earned Income Credit. Free tax preparation Earned income. Free tax preparation   Under Rule 7, you must have earned income to claim the EIC. Free tax preparation Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. Free tax preparation Earned income includes all of the following types of income. Free tax preparation Wages, salaries, tips, and other taxable employee pay. Free tax preparation Employee pay is earned income only if it is taxable. Free tax preparation Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Free tax preparation But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Free tax preparation Net earnings from self-employment. Free tax preparation Gross income received as a statutory employee. Free tax preparation Gross income defined. Free tax preparation   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Free tax preparation Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Free tax preparation If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. Free tax preparation Self-employed persons. Free tax preparation   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. Free tax preparation If you do not, you may not get all the credit to which you are entitled. Free tax preparation Disability benefits. Free tax preparation   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 tax preparation Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Free tax preparation 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 tax preparation   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Free tax preparation It does not matter whether you have reached minimum retirement age. Free tax preparation If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. Free tax preparation Income that is not earned income. Free tax preparation   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Free tax preparation Do not include any of these items in your earned income. Free tax preparation Workfare payments. Free tax preparation   Nontaxable workfare payments are not earned income for the EIC. Free tax preparation These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. Free tax preparation Qualifying child. Free tax preparation   Under Rule 8, your child is a qualifying child if your child meets four tests. Free tax preparation The four tests are: Relationship, Age, Residency, and Joint return. Free tax preparation   The four tests are illustrated in Figure 5-C. Free tax preparation See Publication 596 for more information about each test. Free tax preparation Figure 5-C. Free tax preparation Tests for Qualifying Child A qualifying child for the EIC is a child who is your. Free tax preparation . Free tax preparation . Free tax preparation Son, daughter, stepchild, foster child,  or a descendant of any of them (for example, your grandchild) OR Brother, sister, half brother, half sister, stepbrother,  stepsister, or a descendant of any of them (for example, your  niece or nephew) was . Free tax preparation . Free tax preparation . Free tax preparation Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR Under age 24 at the end of 2013, a student, and younger than you (or your spouse if filing jointly) OR Permanently and totally disabled at any time during the year, regardless of age who. Free tax preparation . Free tax preparation . Free tax preparation Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. Free tax preparation . Free tax preparation . Free tax preparation Lived with you in the United States for more than half of 2013. Free tax preparation  If the child did not live with you for the required time, see Publication 596 for more information. Free tax preparation Figuring the EIC To figure the amount of your credit, you have two choices. Free tax preparation Have the IRS figure the EIC for you. Free tax preparation If you want to do this, see IRS Will Figure the EIC for You in Publication 596. Free tax preparation Figure the EIC yourself. Free tax preparation If you want to do this, see How To Figure the EIC Yourself in Publication 596. Free tax preparation Prev  Up  Next   Home   More Online Publications