Instructions - Child Tax Credit - 2016 Page 9

1040 and 1040NR Filers — Earned Income Worksheet (for

line 2 of the Line 11 Worksheet or line 4a of Schedule 8812,

Child Tax Credit)

Keep for Your Records

Before you begin:

Use this worksheet only if you were sent here from the Line 11 Worksheet earlier in this publication or line

4a of Schedule 8812, 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, or Form 1040NR, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a.

b. Enter the amount of any nontaxable combat pay received. Also enter this amount on Schedule

8812, line 4b. This amount should be shown in Form(s) W-2, box 12, 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 J1.*

Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in

the Partner's Instructions for Schedule K-1. Do not include on this line 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 34, and from farm

partnerships, Schedule K-1 (Form 1065), box 14, code A.* Reduce any

Schedule K-1 amounts as described in the instructions for completing

Schedule SE in the Partner's Instructions for Schedule K-1. Do not include on this

line 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 or line 4a of Schedule 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 or line 8 of Form 1040NR) . . . . . . . . . 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 or line 8 of Form 1040NR). 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.

d. A Medicaid waiver payment you exclude from income (see the instructions for

Form 1040, line 21, and Pub. 525 for information about these payments) . . . . . . . . 4d.

5. Enter the amount from Form 1040, line 27, or Form 1040NR, line 27 . . . . . . . . . . . . . . . . 5.

6. Add lines 4a, 4b, 4c, 4d, and 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. Subtract line 6 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

*If you have any Schedule K1 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.

Publication 972 (2016)

Page 9