Instructions For 1040ez - 2016 (Page 16 of 46) in pdf

2016 Form 1040EZ—Lines 8a and 8b

2. Be sure you enter the nontaxable combat pay you elect to

How To Figure the Credit

Step 3

include in earned income on Form 1040EZ, line 8b. See

Combat pay, nontaxable, earlier.

1. Do you want the IRS to figure the credit for you?

3. If your EIC for a year after 1996 was reduced or disallowed,

Yes. See

No. Go to the

see Form 8862, who must file, later.

Credit

Earned

figured by the IRS

Income Credit (EIC)

under Definitions and

Worksheet.

Exception to time you lived with the other person. Tempo-

Special Rules, later.

rary absences by you or the other person for special circumstan-

ces, such as school, vacation, business, medical care, military

Definitions and Special Rules

service, or detention in a juvenile facility, count as time lived with

the other person. A child is considered to have lived with some-

(listed in alphabetical order)

one for more than half of 2016 if the child was born or died in

Claim for refund. A claim for refund is a return filed only to get

2016 and that person’s home was the child's home for more than

a refund of withheld income tax or estimated tax paid. A return

half the time he or she was alive in 2016. Special rules apply to

isn't a claim for refund if you claim the earned income credit or

members of the military (see

Members of the

military, later) or if

any other similar refundable credit.

the child was kidnapped (see Pub. 596).

Combat pay, nontaxable. If you were a member of the U.S.

Form 8862, who must file. You must file Form 8862 if your EIC

Armed Forces who served in a combat zone, certain pay is ex-

for a year after 1996 was reduced or disallowed for any reason

cluded from your income. See Combat Zone Exclusion in Pub. 3.

other than a math or clerical error. But do not file Form 8862 if

You can elect to include this pay in your earned income when

either of the following applies.

figuring the EIC. The amount of your nontaxable combat pay

1. You filed Form 8862 for another year, the EIC was allowed

should be shown in box 12 of Form(s) W-2 with code Q. If you

for that year, and your EIC has not been reduced or disal-

are filing a joint return and both you and your spouse received

lowed again for any reason other than a math or clerical er-

nontaxable combat pay, you can each make your own election.

ror.

In other words, if one of you makes the election, the other one

can choose whether to also make the election.

2. The only reason your EIC was reduced or disallowed in the

earlier year was because it was determined that a child lis-

Credit figured by the IRS. To have the IRS figure your EIC:

ted on Schedule EIC was not your qualifying child.

1. Enter “EIC” in the space to the left of line 8a on Form

1040EZ.

Keep for Your Records

Earned Income Credit (EIC) Worksheet—Lines 8a and 8b

Enter your earned income from Step 2, earlier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

Look up the amount on line 1 above in the EIC Table, later, to find the credit. Be sure you use the correct column for your filing

status (single or married filing jointly).

Enter the credit here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

STOP

If line 2 is zero,

You cannot take the credit. Enter “No” in the space to the left of line 8a.

Enter the amount from Form 1040EZ, line 4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

Are the amounts on lines 3 and 1 the same?

Yes. Skip line 5; enter the amount from line 2 on line 6.

No. Go to line 5.

Is the amount on line 3 less than $8,300 ($13,850 if married filing jointly)?

Yes. Leave line 5 blank; enter the amount from line 2 on line 6.

No. Look up the amount on line 3 in the EIC Table, later, to find the credit. Be sure you use the correct column for your

filing status (single or married filing jointly).

Enter the credit here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

Look at the amounts on lines 5 and 2. Then, enter the smaller amount on line 6.

Earned income credit. Enter this amount on Form 1040EZ, line 8a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If your EIC for a year after 1996 was reduced or disallowed, see

Form 8862, who must file

under Definitions and

Special Rules, later, to find out if you must file Form 8862 to take the credit for 2016.

CAUTION

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Instructions for Form 1040EZ