Form 1040 - Lines 60a And 60b - Earned Income Credit (Eic) Instruction Page 3
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10Form 1040—Lines 60a and 60b
Continued from page 41
Step 7
Nontaxable and Taxable Earned
Step 8
Total Earned Income
Income
1.
Nontaxable Earned Income (Step 7, Box B)
1. Add all your nontaxable earned income, including your
spouse’s if filing a joint return. This includes anything of
+
Taxable Earned Income (Step 7, Box C)
value (money, goods, or services) that is not taxable that
you received from your employer for your work. Types of
Box
Total Earned Income =
D
nontaxable earned income are listed below.
● Salary deferrals, such as a 401(k) plan or the Federal Thrift Savings
2. If you have:
Plan, shown in box 13 of your W-2 form. See page 43.
● 2 or more qualifying children, is Box D less than $31,152?
● Salary reductions, such as under a cafeteria plan, unless they are
● 1 qualifying child, is Box D less than $27,413?
included in box 1 of your W-2 form. See page 43.
● Mandatory contributions to a state or local retirement plan.
● No qualifying children, is Box D less than $10,380?
● Military employee basic housing, subsistence, and combat zone
STOP
compensation. These amounts are shown in box 13 of your W-2
Yes. Go to Step 9.
No.
form with code Q.
You cannot take the credit.
● Meals and lodging provided for the convenience of your employer.
Put “No” directly to the
● Housing allowances or rental value of a parsonage for clergy
right of line 60a.
members. If filing Schedule SE, see Clergy on this page.
● Excludable dependent care benefits from Form 2441, line 18,
Step 9
How To Figure the Credit
employer-provided adoption benefits from Form 8839, line 26, and
educational assistance benefits (these benefits may be shown in box
14 of your W-2 form).
1. Do you want the IRS to figure the credit for you?
● Certain amounts received by Native Americans. See Pub. 596.
Yes. See Credit
No. Go to Worksheet A
Note. Nontaxable earned income does not include welfare
Figured by the IRS
on page 44.
benefits or workfare payments (see page 43), or qualified foster
below.
care payments.
Definitions and Special Rules
Box
Nontaxable Earned Income =
(listed in alphabetical order)
B
Adopted Child. Any child placed with you by an authorized
placement agency for legal adoption. An authorized placement agency
Enter the amount and type of your nontaxable
includes any person authorized by state law to place children for legal
earned income on Form 1040, line 60b.
adoption. The adoption does not have to be final.
Church Employees. Determine how much of the amount on
2. Are you filing Schedule SE because you had church
Form 1040, line 7, was also reported on Schedule SE, line 5a. Subtract
employee income of $108.28 or more?
that amount from the amount on Form 1040, line 7, and enter the result
Yes. See Church
No.
Continue
in the first space of Step 7, line 3. Be sure to answer “Yes” on line 4
Employees on this
of Step 7.
page.
Clergy. If you are filing Schedule SE and the amount on line 2 of that
schedule includes an amount that was also reported on Form 1040,
3. Figure taxable earned income:
line 7:
Form 1040, line 7
1. Put “Clergy” directly to the right of line 60a of Form 1040.
Subtract:
2. Do not include any housing allowance or rental value of the
● Any taxable scholarship or
parsonage as nontaxable earned income in Box B if it is
required to be included on Schedule SE, line 2.
fellowship grant not reported on
3. Determine how much of the amount on Form 1040, line 7, was
a W-2 form
also reported on Schedule SE, line 2.
● Any amount paid to an inmate
–
4. Subtract that amount from the amount on Form 1040, line 7.
in a penal institution for work
Enter the result in the first space of Step 7, line 3.
(put “PRI” and the amount
5. Be sure to answer “Yes” on line 4 of Step 7.
subtracted on the dotted line
Credit Figured by the IRS. To have the IRS figure the credit for
next to line 7 of Form 1040)
you:
Box
1. Put “EIC” directly to the right of line 60a of Form 1040.
Taxable Earned Income =
C
2. Be sure you entered the amount and the type of any nontaxable
earned income (Step 7, Box B, on this page) on Form 1040,
4. Were you self-employed, or are you filing Schedule SE
line 60b.
because you had church employee income, or are you filing
3. If you have a qualifying child, complete and attach
Schedule C or C-EZ as a statutory employee?
Schedule EIC. If your 1997, 1998, or 1999 EIC was reduced or
disallowed, see Form 8862, Who Must File, on page 43.
Yes. Skip Steps 8 and
No. Go to Step 8.
9; go to Worksheet B
(Continued on page 43)
on page 45.
- 42 -
Need more information or forms? See page 7.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Instructions For Form 8867 - Paid Preparer's Due Diligence Checklist For The Earned Income Credit (eic), The Child Tax Credit (ctc)/additional Child Tax Credit (actc), And/or The American Opportunity Tax Credit (aotc) - 2016
Financial
Instructions For Form 8867 - Paid Preparer's Due Diligence Checklist For The Earned Income Credit (eic), The Child Tax Credit (ctc)/additional Child Tax Credit (actc), And/or The American Opportunity Tax Credit (aotc) - 2017
Financial
Early Release Copies Of The 2010 Percentage Method Income Tax Withholding And Advance Earned Income Credit Payment Tables Worksheet
Financial
Related Categories
Parent category: Financial