Indiana Earned Income Credit - 2013 Page 3
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17Publication EIC: Indiana Earned Income Credit
Introduction
What is the Earned Income Credit?
The earned income credit (EIC) is a tax credit for certain people who work and have earned income under
$43,038. A tax credit usually means more money in your pocket. It reduces the amount of tax you owe. The EIC
may also give you a refund.
Can I Claim Indiana’s EIC?
To claim Indiana’s EIC, you must meet certain rules. These rules are summarized in Table 1.
Table 1. Indiana Earned Income Credit in a Nutshell
Second, you must meet all
First, you must meet all the rules in
the rules in this column if
Third, you must meet the rules
this column.
claiming a child.
in this column.
Rules if you have a
Rules for everyone
Figuring and claiming the EIC
qualifying child
1. You must have a valid federal
3. Your child must meet the
5. Your Indiana EIC must be
earned income credit.
federal EIC qualifying
reduced by 9 percent (.09) of
2. Your federal AGI, earned income
child age, residency, joint
any alternative minimum tax
AND modified AGI each must be
return and relationship
(AMT).
less than:
tests.
6. Your Indiana EIC cannot be
• $43,038 if you have two or more
4. Your child must meet two
greater than 9% of your federal
qualifying children.
additional relationship
EIC.
• $37,870 if you have one qualifying
tests (which may
child.
supersede certain federal
• $14,340 if you do not have a
relationship tests).
qualifying child.
This publication contains:
• Rules to determine if you have a qualifying child for Indiana EIC purposes
• Worksheet 1: Investment Income
• Worksheet 2: Worksheet For Line 4 of Worksheet 1
• Worksheet 3: Modified AGI
• Definitions
How do I figure Indiana’s EIC?
The instructions to figure Indiana’s EIC are located in the IT-40 and IT-40PNR instruction booklets. They begin
on page 29 of the
2013 IT-40 instruction booklet
(page 31 of the
2013 IT-40PNR instruction
booklet).
Do I Need This Publication?
If you were sent here from the EIC instructions found in the IT-40/IT-40PNR instruction booklets, you will need
to complete Worksheet 1 if:
• your investment income is more than $3,300,
• you filed federal Form 4797 (Sale of Business property), and
• you were sent here from Step 2 of the IT-40 (IT-40PNR) Indiana EIC instructions.
Page 2
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