Indiana Earned Income Credit - 2013 (Page 14 of 17) in pdf

Publication EIC: Indiana Earned Income Credit

Chapter 4. Definitions

and Special Rules (listed in alphabetical order)

Adopted child. An adopted child is always treated as your own child. The term “adopted child” includes a child

who was lawfully placed with you for legal adoption, even if the adoption is not final.

Birth or death of child. A child who was born or died in 2013 is treated as having lived with you for all of 2013

if your home was the child’s home the entire time he or she was alive in 2013.

Important. If your child was born and died in 2013, and you do not have an SSN for the child, you

cannot file your Indiana tax return electronically. You must enclose a copy of the child’s birth certificate,

death certificate and/or hospital records when you file. The document must show the child was born

alive.

Children of divorced or parents who lived apart. See Chapter 1. Rules If You Have a Qualifying Child for details

concerning how to determine you may claim the child for Indiana EIC purposes.

Church employees. A church employee means an employee (other than a minister or member of a religious

order) of a church or qualified church-controlled organization that is exempt from employer Social Security and

Medicare taxes. Determine how much of the amount on federal Form 1040, line 7, was also reported on federal

Schedule SE, Section B, line 5a. Subtract that amount from the amount on federal Form 1040, line 7, and enter

the result in the first space of Step 6, line 2. Be sure to answer “Yes” to question 1 in Step 6.

Claim for refund. A claim for refund is a federal return filed only to get a refund of withheld income tax or

estimated tax paid. A federal return is not a claim for refund if the EIC or any other similar refundable credit is

claimed on it.

Clergy. The following instructions apply to ministers, members of religious orders who have not taken a vow of

poverty, and Christian Science practitioners. If you are filing federal Schedule SE and the amount on line 2 of

that schedule includes an amount that was also reported on federal Form 1040, line 7;

1. Determine how much of the amount on federal Form 1040, line 7, was also reported on federal Schedule SE,

Section A, line 2, or Section B, line 2.

2. Subtract that amount from the amount on federal Form 1040, line 7. Enter the result in the first space of Step

6, line 2.

3. Be sure to answer “yes” to question 1 in Step 6.

Combat pay, nontaxable. If you were a member of the U.S. Armed Forces who served in a combat zone, certain

pay is excluded from your income.

• If you included your combat pay when figuring your federal EIC, then enter the same amount in Step 6,

line 2.

• If you did not include it when figuring your federal EIC, then do not enter any amount in Step 6, line 2.

Exception to “time lived with you” condition. A child is considered to have lived with you for all of 2013 if the

child was born or died in 2013 and your home was this child’s home for the entire time he or she was alive in

2013. Temporary absences, such as for school, vacation, medical care, or detention in a juvenile facility, count as

time lived at home. If your child is presumed to have been kidnapped by someone who is not a family member,

see Indiana’s Pub. EIC to find out if that child is a qualifying child for the EIC. If you were in the military

stationed outside the United States, see Members of the military.

Federal Form 4797 filers. If the amount on Form 1040, line 13, includes an amount from federal Form 4797,

you must use Worksheet 1 in Indiana’s Pub. EIC to see if you can take the EIC. Otherwise, STOP; you cannot

take the EIC.

Page 13

Indiana Earned Income Credit - 2013 Page 14