Instructions For Form 1040ez - Income Tax Return - Internal Revenue Service- 2006 Page 14

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Form 1040EZ — Lines 8a and 8b
3. Can you, or your spouse if filing a joint return, be claimed
as a dependent on someone else’s 2006 tax return?
Step 2
Earned Income
Yes.
No. Continue
STOP
1. Figure earned income:
You cannot take the
credit.
Form 1040EZ, line 1
Subtract, if included in line 1, any:
4. Were you, or your spouse if filing a joint return, at least age
Taxable scholarship or fellowship
}
25 but under age 65 at the end of 2006?
grant not reported on a Form W-2.
Yes. Continue
No.
STOP
Amount paid to an inmate in a penal
You cannot take the credit.
institution for work (enter “PRI” in
the space to the left of line 1 on
5. Was your home, and your spouse’s if filing a joint return, in
Form 1040EZ).
the United States for more than half of 2006? Members of
Amount received as a pension or
the military stationed outside the United States, see page 15
annuity from a nonqualified deferred
before you answer.
compensation plan or a
Yes. Continue
No.
nongovernmental section 457 plan
STOP
(enter “DFC” and the amount
You cannot take the credit.
subtracted in the space to the left of
Enter “No” in the space to
line 1 on Form 1040EZ). This
the left of line 8a.
amount may be shown on your
Form W-2 in box 11. If you
6. Look at the qualifying child conditions below. Could you, or
received such an amount but box 11
your spouse if filing a joint return, be a qualifying child of
is blank, contact your employer for
another person in 2006?
the amount received as a pension or
Yes.
No. Go to Step 2
STOP
annuity.
on this page.
You cannot take the
Add all of your nontaxable combat
credit. Enter “No” in
pay if you elect to include it in
the space to the left of
earned income. Also enter this
line 8a.
amount on Form 1040EZ, line 8b.
See Combat pay, nontaxable on
A qualifying child for the EIC is a child who is a...
page 15.
+
Son, daughter, stepchild, foster child, brother, sister,
stepbrother, stepsister, or a descendant of any of them (for
!
example, your grandchild, niece, or nephew)
Electing to include nontaxable
CAUTION
combat pay may increase or decrease
AND
your EIC. Figure the credit with and
without your nontaxable combat pay
before making the election.
was
Under age 19 at the end of 2006
Earned Income =
or
Under age 24 at the end of 2006 and a student (see page 15)
or
Any age and permanently and totally disabled (see page 15)
2. Is your earned income less than $12,120 ($14,120 if married
filing jointly)?
AND
Yes. Go to Step 3.
No.
STOP
You cannot take the credit.
who...
Either lived with another person in the United States for more
Step 3
How To Figure the Credit
than half of 2006 or was born or died in 2006 and that
1. Do you want the IRS to figure the credit for you?
person’s home was the child’s home for the entire time the
child was alive in 2006.
Yes. See Credit
No. Go to the worksheet
figured by the IRS on
on page 16.
Special rules apply if the child was married or also
page 15.
!
meets the conditions to be a qualifying child of another
person (other than your spouse if filing a joint return).
CAUTION
For details, use TeleTax topic 601 (see page 6) or see
Pub. 596.
Need more information or forms? See page 5.
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