Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2012 Page 32
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64Federal Form 4797 filers. If the amount on Form 1040, line 13, in-
Example. You and your 8-year-old daughter moved in with your
cludes an amount from federal Form 4797, you must use Worksheet 1
mother in 2009. You are not a qualifying child of your mother.
in Indiana’s Pub. EIC to see if you can take the EIC. Otherwise, STOP;
Your daughter meets the conditions to be a qualifying child for
you cannot take the EIC.
both you and your mother. Your MAGI for 2012 was $8,000 and
your mother’s was $14,000. Because your mother’s MAGI was
Foster child.
higher, your daughter is your mother’s qualifying child for EIC
purposes. You cannot figure an EIC using your child as a qualify-
•
Any child you cared for as your own child and who is (a) your
brother, sister, stepbrother, or stepsister; (b) a descendant (such as
ing child, even if your mother does not claim the credit.
a child, including an adopted child) of your brother, sister, step-
brother, or stepsister; or (c) a child placed with you by an autho-
Social Security Number. Your child must have a valid Social Security
rized placement agency. For example, if you acted as the parent of
number (SSN) unless the child was born and died in 2012. If your
your niece or nephew, this child is considered your foster child.
dependent child was born and died in 2012 and you do not have an
•
The qualifying foster child must live with you for the entire year
SSN for the child, you will be able to claim the child for purposes of
(except for temporary absences).
claiming Indiana’s earned income credit as long as all the other re-
quirements have been met. For more information, see the instructions
Grandchild. For the EIC, this means any descendant of your son,
on Schedule IN-EIC.
daughter, or adopted child. For example, a grandchild includes your
great-grandchild, great-great-grand child, etc.
Student. A student is a child who, during any 5 months of 2012, was
enrolled as a full-time student at a school that has a regular teaching
Married child. A child who was married at the end of 2012 is a quali-
staff, course of study, and regular student body at the school, or took a
fying child only if (a) you can claim him or her as your dependent on
full-time, on-farm training course given by a school or a state, county,
federal Form 1040 or 1040A, line 6c, or (b) you could have claimed
or local government agency. A school does not include a technical,
him or her as your dependent except for the special rule for Children
trade or mechanical school. It does not include an on-the-job train-
of divorced or parents who lived apart. Get Indiana’s Pub. EIC for more
ing course, correspondence school, or school offering courses only
information about this special rule.
through the Internet.
Members of the military. U.S. military personnel stationed outside
Temporary absences. Count time that you or your child is away from
the United States on extended active duty are considered to live in
home on a temporary absence due to a special circumstance as time
the United States during that duty period for purposes of the EIC.
the child lived with you. Examples of a special circumstance include
Extended active duty is military duty ordered for an indefinite period
illness, school attendance, business, vacation, military service, and
or a period of more than 90 days. Once you begin serving extended
detention in a juvenile facility.
active duty, you are considered to be on extended active duty even if
you do not serve more than 90 days.
Permanently and totally disabled. A person is permanently and to-
tally disabled if, at any time during 2012, the person could not engage
in any substantial gainful activity because of a physical or mental con-
dition 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 2012 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 unless
the child was born and died in 2012. Skip Step 4; go to Step 5 on page
30. If you do not have the highest MAGI, STOP; you cannot take the
EIC. See Step 5 to figure your modified adjusted gross income.
Page 32
IT-40 Booklet 2012
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