Form Publication EIC Fillable Indiana Earned Income Credit Publication 2013
(all forms fillable on Windows, Mac, Android tablets, and iPad using Adobe Reader XI)

$14 340 if you do not have a $14 340 if you do not have a qualifying child $37 870 if you have one qualifying $37 870 if you have one qualifying child or $43 038 if you have more than one qualifying child $43 038 if you have two or more 1 qualifying child is line 17 less than $37 870? 2 or more qualifying children is line 17 less than $43 038? Any child you cared for as your own child and who is (a) your brother sister stepbrother or stepsister; (b) as found in the federal Publication 596 Birth or death of 13 Claim a loss from the rental of personal property not used in a trade or business Claim a loss on federal Schedule C C EZ D E or F Definitions Do I need this publication? Foster child 4 14 How do I figure Indiana s EIC? How to figure your modified AGI If you did not include it when figuring your federal EIC then do not enter any amount in Step 6 line 2 If you have: If you included your combat pay when figuring your federal EIC then enter the same amount in Step 6 Married child 14 Modified AGI defined No qualifying children is line 17 less than $14 340? Received any tax exempt interest or Received certain pension annuity or individual retirement arrangement (IRA) distributions that were partly Rules to determine if you have a qualifying child for Indiana EIC purposes Table 1 Indiana s Earned Income Credit in a Nutshell the federal tax instruction booklet for federal Forms 1040 or 1040A (depending on which federal form you The qualifying foster child must live with you for the entire year (except for temporary absences) What does this publication contain? What is the earned income credit (EIC)? Worksheet 1: Investment Income Worksheet 2 Worksheet for Line 4 of Worksheet 1 8 Worksheet 2: Worksheet For Line 4 of Worksheet 1 Worksheet 3 Modified AGI Worksheet 3 Modified AGI 10 Worksheet 3: Modified AGI You and and/or spouse if married filing jointly received a distribution from a pension annuity IRA or You are claiming a loss on federal Form 1040 line 12 13 and/or 18 You are reporting income or a loss from the rental of personal property not used in a trade or business you filed federal Form 4797 (Sale of Business property) and You filed federal Schedule E You must complete this worksheet(s) if you were sent here from the EIC instructions You reported income on federal Form 1040 line 21 from federal Form 8814 (relating to election to report you were sent here from Step 2 of the IT 40 (IT 40PNR) Indiana EIC instructions Your child must meet the additional Indiana relationship tests Your child must meet the relationship age residency and joint return tests your investment income is more than $3 300 $16 000 Your former spouse s modified AGI is $18 000 Your son is a qualifying child of both you and your $43 038 A tax credit usually means more money in your pocket It reduces the amount of tax you owe The EIC (AMT) (If filing more than one Form 8814 enter on line 4 of Worksheet 1 the total of the amounts on line 10 of all Worksheets 2 ) (If the amount on Form 1040 line 13 is a gain enter zero ) 3 (If the amount on Form 1040 line 18 is a gain enter zero ) 6 (If the result is less than zero enter 0 ) 10 (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 (Rev 12 13) (See instructions below for lines 7 8 and 9 ) 8 (See instructions below for lines 7 8 and 9 ) 9 1 Age 1 Determine how much of the amount on federal Form 1040 line 7 was also reported on federal Schedule SE 1 Enter any amount from Form 1040 line 8a 1 1 Enter the amount from federal Form 1040 line 37 1 1 Enter the amount from Form 8814 line 2a 1 1 The year there is a determination that the child is dead or 1 You must have a valid federal 10 Combine the amounts on lines 7 8 and 9 If the result is a loss enter it here 10 Subtract line 9 from line 8 Enter the result on line 4 of Worksheet 1 10 10 Subtract the amount on line 9 of this worksheet from the amount on line 8 1040A) or line 1 (Form 1040EZ) put DFC and the amount on the dotted line next to line 7 (Form 1040) in the 1040EZ) put PRI and the amount on the dotted line next to line 7 (Form 1040) in the space to the left of the 11 Add the amounts on lines 5 6 and 10 of this worksheet Enter the result 11 11 Enter the total of all net income or losses from qualified joint ventures that are 12 Enter the total of any net income from passive activities (such as income included 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 13 Enter the total of any losses from passive activities (such as losses included on 14 Combine the amounts on lines 11 12 and 13 of this worksheet (If the result is less 14 Enter any income from the rental of personal property shown on federal Form 1040 line 21 15 Add the amounts on lines 1 2 3 4 7 10 and 14 Enter the total This is your Investment Income 15 15 Enter any expenses from the rental of personal property deducted on federal 15b or 16b of federal Form 1040) except any amount that is nontaxable because it 16 Is the amount on line 15 more than $3 300? 16 Subtract the amount on line 15 of this worksheet from the amount on line 14 17 Add the amounts on lines 1 2 3 4 12 13 and 16 of this worksheet Enter the total Modified AGI 17 2 Enter any amount from federal Form 1040 line 8b plus any amount on 2 Enter any amount from Form 1040 line 8b plus any amount on Form 8814 line 1b 2 2 Enter the amount from Form 8814 line 2b 2 2 Residency 2 Subtract that amount from the amount on federal Form 1040 line 7 Enter the result in the first space of Step 2 The year the child would have reached age 18 2 Your federal AGI earned income 2013 Temporary absences such as for school vacation medical care or detention in a juvenile facility count as 3 Be sure to answer yes to question 1 in Step 6 3 Enter any amount from Form 1040 line 9a 3 3 Enter the amount of any loss claimed on federal Form 1040 line 13 3 Joint return and 3 Subtract line 2 from line 1 3 3 Your child must meet the 4 Enter the amount from Form 1040 line 21 that is from Form 8814 if you are filing that form to report your 4 Enter the amount from Form 8814 line 1a 4 4 Enter the nontaxable part of a pension annuity or individual retirement arrangement (IRA) 4 Form 1040EZ) Modified AGI is explained in detail in Chapter 3 If your qualifying child meets the tests to be 4 Relationship 4 Your child must meet two 5 Add lines 3 and 4 5 5 Enter the amount from Form 1040 line 13 If the amount on that line is a loss 5 Enter the amount of any loss claimed on federal Form 1040 line 12 (If the amount on 5 Your Indiana EIC must be 5: Credits (IT 40PNR Schedule F); go to Step 3 to find out if you can take the credit 6 Enter any gain from Form 4797 Sales of Business Property line 7 If the amount 6 Enter the amount of any loss claimed on federal Form 1040 line 18 6 Enter the amount of the child s Alaska Permanent Fund dividend 6 6 line 2 6 Your Indiana EIC cannot be 7 Divide line 6 by line 5 Enter the result as a decimal (rounded to at least three places) 7 7 Enter the amount of any rental real estate income (or loss) included on federal 7 Subtract line 6 of this worksheet from line 5 of this worksheet (If the result is less than zero enter 0 ) 7 8 Enter any royalty income included on federal Schedule E line 4 plus any income 8 Enter the amount from federal Schedule E line 32 8 Enter the amount from Form 8814 line 12 8 9 Enter any expenses from Schedule E line 20 related to royalty income plus any 9 Enter the amount from federal Schedule E line 40 9 Multiply line 7 by line 8 9 a descendant (such as a child including an adopted child) of your brother sister step brother or stepsister; a descendant (such as a child including an adopted child) of your brother sister stepbrother a qualifying child of both you and any other person and you have the higher modified AGI you meet this rule If Additional Indiana Relationship Tests additional relationship Adopted child 13 Adopted child An adopted child is always treated as your own child The term adopted child includes a child age residency joint federal return and relationship EIC tests for federal EIC purposes as long as the child also Alaska Permanent Fund dividends 9 alive and died in 2013 If your dependent child was born and died in 2013 and you do not have an SSN for the child AND modified AGI each must be and someone else have the same qualifying child and your sister You care for your niece as you would your own child Your modified AGI is $16 000 Your sister s any alternative minimum tax any federal schedules you completed appropriate statutes rules and court decisions Any information that is inconsistent with current are considered to live in the United States during that duty period for purposes of the EIC Extended active Armed forces 13 14 arrangement (IRA) distribution except any amount that is nontaxable because it was a trustee to trustee transfer As a rule for Indiana EIC purposes you will be able to claim as a qualifying dependent a child who meets the at a school that has a regular teaching staff course of study and regular student body at the school or took a attendance business vacation military service and detention in a juvenile facility because your sister s modified AGI is higher than yours she is the only one who may claim them for Indiana EIC Before you begin 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 both you and your mother because he meets the age joint federal return and residency tests for both you and by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the can apply is the earlier of: can claim the EIC using that child The paragraphs that follow will help you decide who can claim Indiana s EIC Can I Claim Indiana s EIC? cannot claim the EIC you cannot claim your son as a qualifying child for Indiana EIC purposes because your cannot file your Indiana tax return electronically You must enclose a copy of the child s birth certificate Capital Gain Net Income 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 Chapter 1 Rules If You Have a Qualifying Child Chapter 1 Rules If You Have a Qualifying Child 4 Chapter 2 Worksheet 1 Investment income; Chapter 2 Worksheet 1: Investment Income If You Are Filing Federal Form 1040 Chapter 3 Modified Adjusted Gross Income (AGI) Chapter 4 Definitions and Special Rules (listed in alphabetical order) Chapter 4 Definitions and special rules 13 child child age residency joint child for federal EIC purposes then you are eligible to claim him for Indiana EIC purposes child of your mother Your daughter meets the conditions to be a qualifying child for both you and your child of your mother Your daughter meets the conditions to be a qualifying child for both you and your mother child s family This treatment applies for all years until the child is returned However the last year this treatment child s interest and dividend income on your return (If your child received an Alaska Permanent Fund child s interest and dividends) child The person with the lower modified AGI cannot use that child to claim the EIC This is true even 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 Child: Children of divorced or parents who lived apart See Chapter 1 Rules If You Have a Qualifying Child for details Church employees A church employee means an employee (other than a minister or member of a religious Claim for refund A claim for refund is a federal return filed only to get a refund of withheld income tax or claim the credit using your son This is so even though you and your sister have the same address and share the claimed on it claiming a child Clergy 13 clergy prison inmates and deferred compensation plans later ) Clergy The following instructions apply to ministers members of religious orders who have not taken a vow of Combat pay nontaxable If you were a member of the U S Armed Forces who served in a combat zone certain Combat zone pay 13 compensation plan or a nongovernmental section 457 plan is not considered earned income for the earned Complete this worksheet only if federal Form 8814 includes an Alaska Permanent Fund dividend concerning how to determine you may claim the child for Indiana EIC purposes contact your employer for the amount received as a pension or an annuity correspondence school or school offering courses only through the Internet A full time student is a student Coverdell ESA that is not fully taxable currently away from home attending college full time Your sister has a 4 year old daughter who lives with you death certificate and/or hospital records when you file The document must show the child was born December 2013 deferred compensation plans and Coverdell ESAs later ) 4 dependent except for the special rule for Children of divorced or parents who lived apart Difference 1 Indiana foster child definition Difference 2 Qualifying child of more than one person DISCLAIMER: This publication is intended to provide nontechnical assistance to the general distribution (any part of the distribution that you did not report on lines dividend use Worksheet 2 on the next page to figure the amount to enter on this line ) 4 Do I Need This Publication? doctor has determined that this condition (a) has lasted or can be expected to last continuously for at least a year does not include a technical trade or mechanical school It does not include an on the job training course duty is military duty ordered for an indefinite period or a period of more than 90 days Once you begin serving earned income credit EIC even though your sister enters the names of only two of the children on her Schedule EIC (Schedule IN EIC EIC qualifying child determination purposes EIC using that child either: eligible to claim him for Indiana EIC purposes as he did not live with you the entire year enter 0 5 enter any loss by enclosing it in parentheses 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 enter the amount from line 9 instead ) 6 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 entry space for line 7 (Form 1040A) or in the space to the left of line 1 (Form 1040EZ) estimated tax paid A federal return is not a claim for refund if the EIC or any other similar refundable credit is even if that loss amount is the result of combining gains and losses from more than one federal Schedule C even if the other person cannot claim Indiana s EIC Example 1 You and your child lived with your parent Example 1 Your 12 year old brother lived with you the entire year If you are eligible to claim him as a qualifying Example 2 The facts are the same as in Example 1 but your brother lived with you for seven months during the Example 2 The facts are the same as in Example 1 but your mother had investment income of $3 900 Your Example 3 Example 4 You your spouse and your 10 year old son lived together until July 15 2013 when your spouse Example 5 You and your sister lived together all year You have a 22 year old son who lives with you but is Example 6 You and your child lives with someone not related to you Example You and your 8 year old daughter moved in with your mother in 2010 You are not a qualifying Example You and your 8 year old daughter moved in with your mother two years ago You are not a qualifying 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 Example Your 10 year old child has taxable interest income of $400 an Alaska Permanent Fund dividend Examples 3 5 You and your child lived with another relative Examples The following examples may help you in determining whether you can claim Indiana s EIC when you Exception to time lived with you condition A child is considered to have lived with you for all of 2013 if the expenses from the rental of personal property deducted on Form 1040 line 36 9 extended active duty you are considered to be on extended active duty even if you do not serve more than 90 federal EIC qualifying Federal Form 4797 filers If the amount on Form 1040 line 13 includes an amount from federal Form 4797 Figuring and claiming the EIC filed) or First review the age residency joint federal return and relationship requirements for federal EIC purposes in First you must meet all the rules in for 2013 You cannot claim the EIC for persons without a qualifying child because your modified AGI is more for lines 12 and 13 ) Do not include any amount you included on line 11 above 12 for more information about IRAs and Publication 575 Pension and Annuity Income for more information about For use in preparing 2013 Returns Form 1040 line 12 is a gain enter zero ) (See instructions below for line 5 ) 5 Form 1040 line 36 plus any expenses from federal Schedule E line 20 related to royalty income 15 Form 1040A (except any part that was nontaxable because you rolled it over into another account within 60 days Form 8814 line 1b 2 former spouse because your son lived with each of you for more than half the year and because he met the Foster child Foster child 4 14 from the rental of personal property shown on Form 1040 line 21 8 full time on farm training course given by a school or a state county or local government agency A school 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 greater than 9% of your federal has spaces for the names of only two qualifying children because the EIC is the same amount for two or more her as your dependent on federal Form 1040 or 1040A line 6c or (b) you could have claimed him or her as your her the whole year she cared for them as if they were her own and they are her sister s children Therefore they higher modified adjusted gross income (AGI) is the only one who may be able to claim Indiana s EIC using that higher than your sister s only you can claim the EIC using your niece You can claim the EIC for two children higher your daughter is your mother s qualifying child for EIC purposes You cannot figure an EIC using household Your sister does not have any children; however she cares for your children as if they were her own How do I figure Indiana s EIC? How to determine if you have a qualifying child for Indiana EIC purposes How to figure your modified AGI If the result is a gain enter zero (See instructions below for line 10 ) 10 If the result is a loss enter it here If the result is a gain enter zero 16 If you file federal Form 1040: If you file federal Form 1040A: If you file federal Form 1040EZ: If you were sent here from the EIC instructions found in the IT 40/IT 40PNR instruction booklets you will need If your child does not meet all of these requirements STOP You cannot claim this child as a qualifying child for If your child meets these requirements continue if your home was the child s home the entire time he or she was alive in 2013 If your sister s modified AGI were higher than yours she could claim the EIC using your niece and you could Important For Indiana EIC purposes your qualifying child cannot be the qualifying child of another person Important If your child was born and died in 2013 and you do not have an SSN for the child you Important If your modified AGI is too great STOP You cannot claim the EIC You do not need to read the rest Important You and your sister cannot split the three qualifying children between you You cannot claim the In general most qualifying child relationship requirements for Indiana EIC purposes match the federal EIC in this column income credit If you received such an amount and it was included in the total on line 7 (Form 1040 or Form income for the earned income credit This includes amounts received for work performed while in a work income on your federal return You enter $400 on line 1a of federal Form 8814 $2 100 ($1 000 plus $1 100) on Index Indiana Earned Income Credit 2013 Indiana EIC purposes Indiana EIC purposes Because your mother s modified AGI ($15 000) is more than your modified AGI ($9 300) Inmate s income Amounts received for work performed while an inmate in a penal institution are not earned instruction booklet) If you do not have the highest MAGI STOP; you cannot take the EIC See Step 5 to figure instruction booklets Instructions for lines 12 and 13 In figuring the amount to enter on lines 12 and 13 do not take into account any royalty income (or Interest and Dividends Introduction Introduction 2 investigation and study of the current law and procedures related to its subject matter Investment income 8 joint return Kidnapped child 14 Kidnapped child A kidnapped child is treated as living with you for more than half of the year if the child lived law regulations or court decisions is not binding on either the Department or the taxpayer less than: 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 line 2 line 21 of federal Form 1040 On Worksheet 2 you enter $2 100 on line 1 $500 on line 2 $1 600 on line 3 $400 line 2a and $500 on line 2b After completing lines 4 through 11 you enter $480 on line 12 of Form 8814 and 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 line 9b of federal Form 1040A Also add the nontaxable part of any pension annuity or individual retirement lines 12 and 13 ) Do not include any amount you included on line 11 above 13 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 located in the IT 40/IT 40PNR instruction booklets loss) included on line 26 of Schedule E or any amount included in your earned income Married child A child who was married at the end of 2013 is a qualifying child only if (a) you can claim him or may also give you a refund Medicare taxes Determine how much of the amount on federal Form 1040 line 7 was also reported on federal meets the age test because he is under 24 and a full time student He meets the residency test because he is only meets the Indiana relationship tests Members of the military U S military personnel stationed outside the United States on extended active duty Military: Combat pay 13 Modified adjusted gross income (AGI) Modified AGI for most people is the same as the federal AGI AGI is Modified adjusted gross income 5 10 12 modified AGI is $14 000 Both children meet the age and residency tests for both you and your sister Your son modified AGI is greater than $43 038 she is not eligible to claim Indiana s EIC You cannot claim an Indiana EIC more than your modified AGI ($16 000) your former spouse is the only one who may be able to claim the EIC mother cannot claim the EIC because her investment income is more than $3 300 Even though your mother mother s modified AGI is more than yours mother Your MAGI for 2013 was $8 000 and your mother s was $14 000 Because your mother s MAGI was moved out of the household In November 2013 you and your spouse were divorced Your modified AGI is No Go to the Form IT 40 or IT 40PNR instruction booklet (www in gov/dor/4878 htm) Find the instructions for line 5 of Schedule No Stop nontaxable Note Fill out a separate Worksheet 2 for each Form 8814 Note For most people modified AGI is the same as federal AGI (line 37 Form 1040; line 21 Form 1040A; or line o Difference 1 Indiana foster child definition o Difference 2 Qualifying child of more than one person o You must complete Worksheet 3 if you were sent here from the EIC instructions of $1 000 and ordinary dividends of $1 100 of which $500 are qualified dividends You choose to report this of federal Form 1040 and on line 5 of this worksheet of this publication You can go back and finish the rest of your tax return on line 4 $2 000 on line 5 $1 000 on line 6 0 500 on line 7 $480 on line 8 $240 on line 9 and $240 on line 10 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 on page 29 of the 2013 IT 40 instruction booklet (page 31 of the 2013 IT 40PNR instruction booklet) on Schedule E line 26 29a (col (g)) 34a (col (d)) or 40) (See instructions below on that line is a loss enter 0 (But if you completed lines 8 and 9 of Form 4797 only your mother may be able to claim your son as a qualifying child for the Indiana EIC or (b) can be expected to lead to death or (c) a child placed with you by an authorized or (c) a child placed with you by an authorized placement agency For example if you acted as the parent of or a rollover distribution This is any part of the distribution that you did not report on lines 11b or 12b of federal or stepsister; or transferred it from one trustee to another) See Publication 590 Individual Retirement Arrangements (IRAs) order) of a church or qualified church controlled organization that is exempt from employer Social Security and other person is your spouse and you file a joint return this rule does not apply If three or more persons have the Page 1 part time job Your mother s only income was $15 000 from her job Initially your son is a qualifying child of Passive Activities passive activities with rental real estate income reported on your (and your spouse s) pay is excluded from your income penal institution and that amount is included in the total on line 7 (Form 1040 or Form 1040A) or line 1 (Form Pension or annuity from deferred compensation plans A pension or annuity from a nonqualified deferred pensions and annuities (Do not enter any amount that was from a Coverdell ESA See Special instructions for Permanently and totally disabled A person is permanently and totally disabled if at any time during 2013 person with the higher modified AGI does not claim the EIC or meet all of the rules to claim the EIC If the placement agency For example if you acted as the parent of plus any royalty income included on federal Schedule E line 4 14 poverty and Christian Science practitioners If you are filing federal Schedule SE and the amount on line 2 of public Every attempt has been made to provide information that is consistent with the PUBLICATION EIC Publication EIC: Indiana Earned Income Credit Publication EIC: Indiana Earned Income Credit Publication EIC: Indiana Earned Income Credit Publication EIC: Indiana Earned Income Credit Publication EIC: Indiana Earned Income Credit Publication EIC: Indiana Earned Income Credit Publication EIC: Indiana Earned Income Credit Publication EIC: Indiana Earned Income Credit purposes qualifies for Indiana qualify as her eligible foster children Your children are qualifying children of both you and your sister However qualifying child Qualifying child 4 7 qualifying child for Indiana s EIC purposes You cannot treat the child as a qualifying child to claim Indiana s EIC qualifying child If the other person is your spouse and you are filing a joint return this rule does not apply If Qualifying child of more than one person If the child meets the conditions to be a qualifying child of more qualifying children qualifying children ) reduced by 9 percent ( 09) of regular course of classroom and practical training are considered full time students relationship and age tests for both of you However because your former spouse s modified AGI ($18 000) is relationship requirements However there are two differences Read the following carefully to see if your child Relationship tests 4 7 relationship tests) release program or while in a halfway house If you received any amount for work done while an inmate in a reported to you on a Form W 2 is not considered earned income for the earned income credit requirements have been met For more information see the instructions on Schedule IN EIC return and relationship return Use Worksheet 3 next to figure your modified AGI Royalties and Rental Income from Personal Property Rules for everyone Rules if you have a same household same qualifying child and the other person has the higher modified AGI then the child is the other person s same qualifying child the person with the highest modified AGI is the only one who may be able to claim the Schedule C line 31 or Schedule C EZ line 3 but not included in net earnings from Schedule E line 26 (See instructions below for lines 7 8 and 9 ) 7 Schedule E line 26 29b (col (f)) 34b (col (c)) or 40) (See instructions below for Schedule SE Section B line 5a Subtract that amount from the amount on federal Form 1040 line 7 and enter Scholarship or fellowship grants not reported on a Form W 2 A scholarship or fellowship grant that was not School defined A school can be an elementary school junior or senior high school college university or schools offering courses only through the Internet do not count as schools for the EIC Second you must meet all Section A line 2 or Section B line 2 see Indiana s Pub EIC to find out if that child is a qualifying child for the EIC If you were in the military self employment Do not include this amount on line 12 or 13 below 11 Social Security number 15 Social Security Number Your child must have a valid Social Security number (SSN) unless the child was born Sometimes a child meets the tests to be a qualifying child of more than one person However only one person 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) special circumstance as time the child lived with you Examples of a special circumstance include illness school stationed outside the United States see Members of the military Student 15 Student defined A student is a child who during any five months of 2013 was enrolled as a full time student supersede certain federal Table 1 Indiana Earned Income Credit in a Nutshell TABLE OF CONTENTS take the EIC technical trade or mechanical school However on the job training courses correspondence schools and temporarily away from home while attending college Your niece meets the relationship test for both you and Temporary absences Count time that you or your child is away from home on a temporary absence due to a tests tests (which may than $14 340 than one person only the person who had the highest modified adjusted gross income (MAGI) for 2013 may than zero enter 0 ) 14 that schedule includes an amount that was also reported on federal Form 1040 line 7; that was from a Coverdell ESA See Special instructions for clergy prison inmates the amount on line 37 of federal Form 1040 line 21 of federal Form 1040A or line 4 of federal Form 1040EZ The children meet the age and residency tests for both you and your sister They meet the relationship test for The earned income credit (EIC) is a tax credit for certain people who work and have earned income under the father s modified AGI was more than yours only he may be able to claim your son for Indiana EIC purposes The first three requirements (age residency and joint return) are identical to the requirements used for federal The following definition is different that the federal foster child definition so please read it carefully The instructions to figure Indiana s EIC are located in the IT 40 and IT 40PNR instruction booklets They begin the person could not engage in any substantial gainful activity because of a physical or mental condition and a the result in the first space of Step 6 line 2 Be sure to answer Yes to question 1 in Step 6 the rules in this column if the space to the right of the words Form 1040EZ on line 2 Therefore information provided in this publication should serve only as a foundation for further Third you must meet the rules This amount may be reported in box 11 of your Form W 2 If you received such an amount but box 11 is blank this column This publication contains: Tiebreaker rules 5 Tiebreaker Rules The following tiebreaker rules do not apply if the other person is your spouse and you file a time lived at home If your child is presumed to have been kidnapped by someone who is not a family member To claim Indiana s EIC you must meet certain rules These rules are summarized in Table 1 to complete Worksheet 1 if: to complete Worksheet 3 if any of the following apply for 2013: to enter any other amounts your modified AGI is $11 000 ($10 000 + $1 000) To find your modified AGI you must add certain amounts to your AGI if you: treat that child as a qualifying child The other person(s) cannot take the EIC for people who do not have a unless the child was born and died in 2013 Skip Step 4; go to Step 5 on page 30 (page 35 of the IT 40PNR Use this worksheet to figure investment income if you were went here from Step 2 of the EIC instructions found in the IT 40/IT 40PNR using your child as a qualifying child even though your mother cannot claim the credit Vocational high school students Students who work in co op jobs in private industry as a part of a school s was a trustee to trustee transfer or a roll over distribution (Do not enter any amount was higher your daughter is your mother s qualifying child for Indiana EIC purposes Since your mother s What if the person with the highest modified AGI cannot claim the EIC? If you and someone else have the What is the Earned Income Credit? when more than one person has the same qualifying child Which person can claim the EIC If you and someone else have the same qualifying child the person with the who has a higher modified AGI who is enrolled for the number of hours or courses the school considers to be full time attendance who was lawfully placed with you for legal adoption even if the adoption is not final with you for more than half the part of the year before the date of the kidnapping The child must be presumed Worksheet 1 8 Worksheet 2 9 Worksheet 2: Worksheet for Line 4 of Worksheet 1 Worksheet 3 11 Worksheet 3: Modified AGI if you are filing federal Form 1040 year Even though you may be eligible to claim him as a qualifying child for federal EIC purposes you are not Yes Go to the Form IT 40 or IT 40PNR instruction booklet (www in gov/dor/4878 htm) Find the instructions for line 5 of Schedule 5: Credits Yes STOP You cannot take the credit you all year and you cared for her as your own child Your son meets the relationship test for you but not for you and his father because he meets the relationship age and residency tests for both you and his father Because You and your sister shared a household for the entire year You have three young children who lived in the You and your son lived with your mother all year You are 25 years old Your only income was $9 300 from a you because they are your children They also meet the relationship test for your sister because they lived with You cannot take the credit you do not have the higher modified AGI you cannot claim the qualifying child for Indiana EIC purposes you have the highest MAGI this child is your qualifying child The child must have a Social Security number You must have with you your completed federal tax return Form 1040 Form 1040A or Form 1040EZ including you must use Worksheet 1 in Indiana s Pub EIC to see if you can take the EIC Otherwise STOP; you cannot You then enter $240 on line 4 of Worksheet 1 you will be able to claim the child for purposes of claiming Indiana s earned income credit as long as all the other You your 2 year old son and your son s father lived together all year You and your son s father are not married your AGI including all or part of certain losses (such as 75% of certain business losses) you are claiming on your Your AGI is the amount on line 21 of that form To find your modified AGI add to your AGI any amount on Your AGI is the amount on line 37 of that form To find your modified AGI you must add certain amounts to your child as a qualifying child even if your mother does not claim the credit Your child is a qualifying child if your child meets four tests The four tests are: Your earned income is $15 000; your sister s earned income is $20 000 Neither of you had any other income your modified adjusted gross income Your modified AGI for 2013 was $8 000 and your mother s was $54 000 Because your mother s modified AGI Your modified AGI is $18 000 Your son s father s modified AGI is $20 000 Your son is a qualifying child of both Your modified AGI is the amount on line 4 of that form plus the amount of any tax exempt interest you wrote in Your modified AGI must be less than: your mother However because you both have the same qualifying child only one of you can claim the child for your niece or nephew this child is considered your foster child your sister because she does not care for him as her own child Your son is a qualifying child for you but not for your sister She meets the test for you as your eligible foster child because she is your sister s child she lived with your sister Your niece could be a qualifying child for both you and your sister Because your modified AGI is