Instructions For Form 1040 - U.s. Individual Income Tax Return - 2016 Page 57

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2017 Form 1040—Lines 66a and 66b
Church employees. Determine how much of the amount on
Form 4797 filers. If the amount on Form 1040, line 13, in-
Form 1040, line 7, also was reported on Schedule SE, Sec-
cludes an amount from Form 4797, you must use Worksheet 1
tion B, line 5a. Subtract that amount from the amount on Form
in Pub. 596 to see if you can take the EIC. Otherwise, stop; you
1040, line 7, and enter the result on line 1 of the worksheet in
can't take the EIC.
Step 5 (instead of entering the actual amount from Form 1040,
Form 8862, who must file. You must file Form 8862 if your
line 7). Be sure to answer “Yes” to question 2 in Step 5.
EIC for a year after 1996 was reduced or disallowed for any
Clergy. The following instructions apply to ministers, mem-
reason other than a math or clerical error. But don’t file Form
bers of religious orders who have not taken a vow of poverty,
8862 if either of the following applies.
and Christian Science practitioners. If you are filing Sched-
You filed Form 8862 for another year, the EIC was al-
ule SE and the amount on line 2 of that schedule includes an
lowed for that year, and your EIC hasn't been reduced or disal-
amount that also was reported on Form 1040, line 7:
lowed again for any reason other than a math or clerical error.
You are taking the EIC without a qualifying child and the
1. Enter “Clergy” on the dotted line next to Form 1040,
only reason your EIC was reduced or disallowed in the other
line 66a.
year was because it was determined that a child listed on Sched-
2. Determine how much of the amount on Form 1040,
ule EIC wasn't your qualifying child.
line 7, also was reported on Schedule SE, Section A, line 2, or
Also, don’t file Form 8862 or take the credit for the:
Section B, line 2.
2 years after the most recent tax year for which there was
3. Subtract that amount from the amount on Form 1040,
a final determination that your EIC claim was due to reckless or
line 7. Enter the result on line 1 of the worksheet in Step 5 (in-
intentional disregard of the EIC rules, or
stead of entering the actual amount from Form 1040, line 7).
10 years after the most recent tax year for which there was
a final determination that your EIC claim was due to fraud.
4. Be sure to answer “Yes” to question 2 in Step 5.
Foster child. A foster child is any child placed with you by an
Combat pay, nontaxable. If you were a member of the U.S.
authorized placement agency or by judgment, decree, or other
Armed Forces who served in a combat zone, certain pay is ex-
order of any court of competent jurisdiction. For more details on
cluded from your income. See Combat Zone Exclusion in Pub.
authorized placement agencies, see Pub. 596.
3. You can elect to include this pay in your earned income when
Married child. A child who was married at the end of 2017 is
figuring the EIC. The amount of your nontaxable combat pay
should be shown in box 12 of Form(s) W-2 with code Q. If you
a qualifying child only if (a) you can claim him or her as your
dependent on Form 1040, line 6c, or (b) you could have claimed
are filing a joint return and both you and your spouse received
nontaxable combat pay, you can each make your own election.
him or her as your dependent except for the special rule for
In other words, if one of you makes the election, the other one
Children of divorced or separated parents in the instructions for
line 6c.
also can make it but doesn't have to.
Members of the military. If you were on extended active duty
If you are using your 2016 earned income to figure
outside the United States, your main home is considered to be in
!
your 2017 EIC and you elected to include nontaxable
the United States during that duty period. Extended active duty
combat pay, be sure to use 2016 nontaxable combat
CAUTION
is military duty ordered for an indefinite period or for a period
pay and enter that amount on line 66b.
of more than 90 days. Once you begin serving extended active
duty, you are considered to be on extended active duty even if
Credit figured by the IRS. To have the IRS figure your EIC:
you don’t serve more than 90 days.
1. Enter “EIC” on the dotted line next to Form 1040,
Nonresident aliens. If your filing status is married filing joint-
line 66a.
ly, go to Step 2. Otherwise, stop; you can't take the EIC. Enter
2. Be sure you enter the nontaxable combat pay you elect to
“No” on the dotted line next to line 66a.
include in earned income on Form 1040, line 66b. See Combat
pay, nontaxable, earlier.
Permanently and totally disabled. A person is permanently
3. If you have a qualifying child, complete and attach
and totally disabled if, at any time in 2017, the person couldn't
Schedule EIC. If your EIC for a year after 1996 was reduced or
engage in any substantial gainful activity because of a physical
disallowed, see Form 8862, who must file, later.
or mental condition and a doctor has determined that this condi-
tion (a) has lasted or can be expected to last continuously for at
least a year, or (b) can be expected to lead to death.
Exception to time lived with you. Temporary absences by you
or the child for special circumstances, such as school, vacation,
Qualifying child of more than one person. Even if a child
business, medical care, military service, or detention in a juve-
meets the conditions to be the qualifying child of more than one
nile facility, count as time the child lived with you. Also see
person, only one person can claim the child as a qualifying child
Kidnapped child in the instructions for line 6c and Members of
for all of the following tax benefits, unless the special rule for
the military, later. A child is considered to have lived with you
Children of divorced or separated parents in the instructions for
for more than half of 2017 if the child was born or died in 2017
line 6c applies.
and your home was this child's home for more than half the time
1. Dependency exemption (line 6c).
he or she was alive in 2017.
2. Child tax credits (lines 52 and 67).
3. Head of household filing status (line 4).
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Need more information or forms? Visit IRS.gov.

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