Child Tax Credit Instructions - Department Of The Treasury (Page 8 of 16) in pdf

1040 Filers - Taxable Earned Income Worksheet

Before you begin:

Use this worksheet only if you were sent here from the Line 11 Worksheet on page 6 of this publication or line

4a of Form 8812, Additional Child Tax Credit.

Disregard community property laws when figuring the amounts to enter on this worksheet.

If married filing jointly, include your spouse’s amounts with yours when completing this worksheet.

1. a. Enter the amount from Form 1040, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a.

b. Enter the amount of any nontaxable combat pay received. Also enter this amount on Form 8812, line 4b.

This amount should be shown in Form(s) W-2, box 14, with code Q. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b.

Next, if you are filing Schedule C, C-EZ, F, or SE, or you received a Schedule K-1 (Form 1065 or Form

1065-B), go to line 2a. Otherwise, skip lines 2a through 2e and go to line 3.

2. a. Enter any statutory employee income reported on line 1 of Schedule C or C-EZ . . . . . . . . . . . . . . . . . . . 2a.

b. Enter any net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065),

box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code K1.* Reduce this

amount by any unreimbursed nonfarm partnership expenses you deducted on Schedule E. Do not

include any statutory employee income or any other amounts exempt from self-employment tax. Options

and commodities dealers must add any gain or subtract any loss (in the normal course of dealing in or

trading section 1256 contracts) from section 1256 contracts or related property . . . . . . . . . . . . . . . . . . . 2b.

c. Enter any net farm profit or (loss) from Schedule F, line 36, and from farm partnerships,

Schedule K-1 (Form 1065), box 14, code A.* Reduce this amount by any unreimbursed

farm partnership expenses you deducted on Schedule E. Do not include any amounts

exempt from self-employment tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c.

d. If you used the farm optional method to figure net earnings from self-employment, enter

the amount from Schedule SE, Section B, line 15. Otherwise, skip this line and enter on

line 2e the amount from line 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d.

e. If line 2c is a profit, enter the smaller of line 2c or line 2d. If line 2c is a (loss), enter the (loss) from line 2c. 2e.

3. Combine lines 1a, 1b, 2a, 2b, and 2e. If zero or less, stop. Do not complete the rest of this worksheet.

Instead, enter -0- on line 2 of the Line 11 Worksheet on page 6 or line 4a of Form 8812, whichever applies . . 3.

4. Enter any amount included on line 1a that is:

a. A scholarship or fellowship grant not reported on Form W-2 . . . . . . . . . . . . . . . . . . . . . 4a.

b. For work done while an inmate in a penal institution (enter “PRI” and this amount on the

dotted line next to line 7 of Form 1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b.

c. A pension or annuity from a nonqualified deferred compensation plan or a

nongovernmental section 457 plan (enter “DFC” and this amount on the dotted line next

to line 7 of Form 1040). This amount may be shown in box 11 of your Form W-2. If you

received such an amount but box 11 is blank, contact your employer for the amount

received as a pension or annuity.

4c.

5. a. Enter any amount included on line 3 that is also included on Form

2555, line 41, or Form 2555-EZ, line 18. Do not include any amount

that is also included on line 4a, 4b, or 4c above . . . . . . . . . . . . . . . . . 5a.

b. Enter the amount, if any, from Form 2555, line 42, that is also

deducted on Schedule C, C-EZ, or F, or included on Schedule E in

partnership net income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5b.

c. Subtract line 5b from line 5a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5c.

6. Enter the amount from Form 1040, line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Add lines 4a through 4c, 5c, and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Subtract line 7 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

•

If you were sent here from the Line 11 Worksheet on page 6, enter this amount on line 2 of that

worksheet.

•

If you were sent here from Form 8812, enter this amount on line 4a of that form.

*If you have any Schedule K-1 amounts and you are not required to file Schedule SE, complete the appropriate

line(s) of Schedule SE, Section A. Put your name and social security number on Schedule SE and attach it to your

return.

Page 8

Child Tax Credit Instructions - Department Of The Treasury Page 8

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