Indiana Earned Income Credit - 2013 (Page 11 of 17) in pdf

Publication EIC: Indiana Earned Income Credit

Chapter 3. Modified Adjusted Gross Income (AGI)

Your modified AGI must be less than:

$43,038 if you have more than one qualifying child,

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$37,870 if you have one qualifying child, or

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$14,340 if you do not have a qualifying child.

•

Before you begin…

You must have with you your completed federal tax return, Form 1040, Form 1040A or Form 1040EZ, including

any federal schedules you completed.

Modified adjusted gross income (AGI). Modified AGI for most people is the same as the federal AGI. AGI is

the amount on line 37 of federal Form 1040, line 21 of federal Form 1040A, or line 4 of federal Form 1040EZ.

To find your modified AGI, you must add certain amounts to your AGI if you:

• Claim a loss on federal Schedule C, C–EZ, D, E, or F,

• Claim a loss from the rental of personal property not used in a trade or business,

• Received any tax-exempt interest, or

• Received certain pension, annuity, or individual retirement arrangement (IRA) distributions that were partly

nontaxable.

How to figure your modified AGI

If you file federal Form 1040EZ:

Your modified AGI is the amount on line 4 of that form plus the amount of any tax-exempt interest you wrote in

the space to the right of the words “Form 1040EZ” on line 2.

If you file federal Form 1040A:

Your AGI is the amount on line 21 of that form. To find your modified AGI, add to your AGI any amount on

line 9b of federal Form 1040A. Also, add the nontaxable part of any pension, annuity, or individual retirement

arrangement (IRA) distribution, except any amount that is nontaxable because it was a trustee-to-trustee transfer

or a rollover distribution. This is any part of the distribution that you did not report on lines 11b or 12b of federal

Form 1040A (except any part that was nontaxable because you rolled it over into another account within 60 days

or transferred it from one trustee to another). See Publication 590, Individual Retirement Arrangements (IRAs),

for more information about IRAs, and Publication 575, Pension and Annuity Income, for more information about

pensions and annuities. (Do not enter any amount that was from a Coverdell ESA. See Special instructions for

clergy, prison inmates, and deferred compensation plans, later.)

If you file federal Form 1040:

Your AGI is the amount on line 37 of that form. To find your modified AGI, you must add certain amounts to

your AGI, including all or part of certain losses (such as 75% of certain business losses) you are claiming on your

return. Use Worksheet 3, next, to figure your modified AGI.

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Indiana Earned Income Credit - 2013 Page 11