Indiana Earned Income Credit - 2013 (Page 15 of 17) in pdf

Publication EIC: Indiana Earned Income Credit

Foster child.

• Any child you cared for as your own child and who is (a) your brother, sister, stepbrother, or stepsister; (b)

a descendant (such as a child, including an adopted child) of your brother, sister, step brother, or stepsister;

or (c) a child placed with you by an autho rized placement agency. For example, if you acted as the parent of

your niece or nephew, this child is considered your foster child.

• The qualifying foster child must live with you for the entire year (except for temporary absences).

Grandchild. For the EIC, this means any descendant of your son, daughter, or adopted child. For example, a

grandchild includes your great-grandchild, great-great-grand child, etc.

Inmate’s income. Amounts received for work performed while an inmate in a penal institution are not earned

income for the earned income credit. This includes amounts received for work performed while in a work

release program or while in a halfway house. If you received any amount for work done while an inmate in a

penal institution and that amount is included in the total on line 7 (Form 1040 or Form 1040A) or line 1 (Form

1040EZ), put “PRI” and the amount on the dotted line next to line 7 (Form 1040), in the space to the left of the

entry space for line 7 (Form 1040A), or in the space to the left of line 1 (Form 1040EZ).

Kidnapped child. A kidnapped child is treated as living with you for more than half of the year if the child lived

with you for more than half the part of the year before the date of the kidnapping. The child must be presumed

by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the

child’s family. This treatment applies for all years until the child is returned. However, the last year this treatment

can apply is the earlier of:

1. The year there is a determination that the child is dead, or

2. The year the child would have reached age 18.

Married child. A child who was married at the end of 2013 is a qualifying child only if (a) you can claim him or

her as your dependent on federal Form 1040 or 1040A, line 6c, or (b) you could have claimed him or her as your

dependent except for the special rule for Children of divorced or parents who lived apart.

Members of the military. U.S. military personnel stationed outside the United States on extended active duty

are considered to live in the United States during that duty period for purposes of the EIC. Extended active

duty is military duty ordered for an indefinite period or a period of more than 90 days. Once you begin serving

extended active duty, you are considered to be on extended active duty even if you do not serve more than 90

days.

Pension or annuity from deferred compensation plans. A pension or annuity from a nonqualified deferred

compensation plan or a nongovernmental section 457 plan is not considered earned income for the earned

income credit. If you received such an amount and it was included in the total on line 7 (Form 1040 or Form

1040A) or line 1 (Form 1040EZ), put “DFC” and the amount on the dotted line next to line 7 (Form 1040), in the

space to the left of the entry space for line 7 (Form 1040A), or in the space to the left of line 1 (Form 1040EZ).

This amount may be reported 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 an annuity.

Permanently and totally disabled. A person is permanently and totally disabled if, at any time during 2013,

the person could not engage in any substantial gainful activity because of a physical or mental condition and a

doctor has determined that this condition (a) has lasted or can be expected to last continuously for at least a year,

or (b) can be expected to lead to death.

Qualifying child of more than one person. If the child meets the conditions to be a qualifying child of more

than one person, only the person who had the highest modified adjusted gross income (MAGI) for 2013 may

treat that child as a qualifying child. The other person(s) cannot take the EIC for people who do not have a

qualifying child. If the other person is your spouse and you are filing a joint return, this rule does not apply. If

you have the highest MAGI, this child is your qualifying child. The child must have a Social Security number

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Indiana Earned Income Credit - 2013 Page 15

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