Indiana Earned Income Credit - 2013 (Page 12 of 17) in pdf

Publication EIC: Indiana Earned Income Credit

Worksheet 3: Modified AGI if you are filing federal Form 1040

Enter losses as positive amounts (except for lines 7, 8, and 9). For example, if your AGI (federal Form 1040, line 37) is $10,000 and you have a $1,000

capital loss from the sale of stock (federal Form 1040, line 13), you will enter $10,000 on line 1 of this worksheet and $1,000 on line 3. If you do not have

to enter any other amounts, your modified AGI is $11,000 ($10,000 + $1,000).

1. Enter the amount from federal Form 1040, line 37.

1. ___________

2. Enter any amount from federal Form 1040, line 8b, plus any amount on

Form 8814, line 1b.

2. ___________

3. Enter the amount of any loss claimed on federal Form 1040, line 13.

(If the amount on Form 1040, line 13, is a gain, enter zero.)

3. ___________

4. Enter the nontaxable part of a pension, annuity, or individual retirement arrangement (IRA)

distribution (any part of the distribution that you did not report on lines

15b or 16b of federal Form 1040), except any amount that is nontaxable because it

was a trustee-to-trustee transfer or a roll-over distribution. (Do not enter any amount

that was from a Coverdell ESA. See Special instructions for clergy, prison inmates,

deferred compensation plans, and Coverdell ESAs, later.)

4. ___________

5. Enter the amount of any loss claimed on federal Form 1040, line 12. (If the amount on

Form 1040, line 12, is a gain, enter zero.) (See instructions below for line 5.)

5. ____________

6. Enter the amount of any loss claimed on federal Form 1040, line 18.

(If the amount on Form 1040, line 18, is a gain, enter zero.)

6. ____________

7. Enter the amount of any rental real estate income (or loss) included on federal

Schedule E, line 26. (See instructions below for lines 7, 8, and 9.)

7. ____________

8. Enter the amount from federal Schedule E, line 32.

(See instructions below for lines 7, 8, and 9.)

8. ____________

9. Enter the amount from federal Schedule E, line 40.

(See instructions below for lines 7, 8, and 9.)

9. ____________

10. Combine the amounts on lines 7, 8, and 9. If the result is a loss, enter it here.

If the result is a gain, enter zero. (See instructions below for line 10.)

10. ____________

11. Add the amounts on lines 5, 6, and 10 of this worksheet. Enter the result.

11. ____________

12. Multiply the amount on line 11 of this worksheet by 75% (0.75). Enter the result.

12. ___________

13. Enter the amount of any loss claimed on federal Schedule E, line 37.

13. ___________

14. Enter any income from the rental of personal property shown on federal Form 1040, line 21,

plus any royalty income included on federal Schedule E, line 4.

14. ___________

15. Enter any expenses from the rental of personal property deducted on federal

Form 1040, line 36, plus any expenses from federal Schedule E, line 20 related to royalty income.

15. ___________

16. Subtract the amount on line 15 of this worksheet from the amount on line 14.

If the result is a loss, enter it here. If the result is a gain, enter zero.

16. ___________

Modified AGI

17. Add the amounts on lines 1, 2, 3, 4, 12, 13, and 16 of this worksheet. Enter the total.

17. ___________

If you have:

• 2 or more qualifying children, is line 17 less than $43,038?

• 1 qualifying child, is line 17 less than $37,870?

• No qualifying children, is line 17 less than $14,340?

Yes. Go to the Form IT-40 or IT-40PNR instruction booklet ( ). Find the instructions for line 5 of Schedule 5: Credits

(IT-40PNR Schedule F). Enter the amount from line 17 on Step 5, line 1, Box A, and continue to Step 6 to find out if you can take the credit.

No. Stop.

You cannot take the credit.

Line 5 instructions. If you have a business loss on line 12 of federal Form 1040, enter the amount of the loss on line 5 of this worksheet. Do this

even if that loss amount is the result of combining gains and losses from more than one federal Schedule C.

Example. You have two federal Schedules C. One shows a $2,000 gain. The other shows a $10,000 loss. You enter the net loss of $8,000 on line 12

of federal Form 1040 and on line 5 of this worksheet.

Lines 7, 8, and 9 instructions. These lines are an exception to the rule that all amounts on the worksheet must be positive amounts. On these lines,

enter any loss by enclosing it in parentheses.

Line 10 instructions. Combine the amounts on lines 7, 8, and 9 to arrive at the amount on line 10. For example, if you enter $2,000 on line 7, $1,000

on line 8, and a loss of ($3,500) on line 9, enter the loss of $500 as a positive figure on line 10. But if the result of combining lines 7, 8, and 9 is a gain,

enter zero. For example, if you enter $2,000 on line 7, $1,000 on line 8, and a loss of ($2,500) on line 9, enter zero on line 10.

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