Previous Page:  Publication 596 - Earned Income Credit - Figuring and Claiming the EIC Next Page: Publication 596 - Earned Income Credit - Schedule EIC Use   to find additional occurrences of topic items.

taxmap/wpubs/p596-011.htm#TXMP41ab52c8 How To Figure the EIC Yourself(p24)

Earned Income Credit

To figure the EIC yourself, use the EIC worksheet in the instructions for the form you are using (Form 1040, Form 1040A, or Form 1040EZ). If you have a qualifying child, complete Schedule EIC (discussed on page 25) and attach it to your tax return.

If you want the IRS to figure your EIC for you, see IRS Will Figure the EIC for You, earlier.

taxmap/wpubs/p596-011.htm#TXMP7cf226d4 Special Instructions for Form 1040 Filers(p25)

U.S. Individual Income Tax Return

If you file Form 1040, you will need to decide whether to use EIC Worksheet A or EIC Worksheet B to figure the amount of your EIC. This section explains how to use these worksheets and how to report the EIC on your return.

taxmap/wpubs/p596-011.htm#TXMP05563163 EIC Worksheet A.(p25)

Use EIC Worksheet A if you are not self-employed, a member of the clergy or a church employee who files Schedule SE, or a statutory employee filing Schedule C or C-EZ.

taxmap/wpubs/p596-011.htm#TXMP2e7b62a0 EIC Worksheet B.(p25)

Use EIC Worksheet B if you are self-employed, a member of the clergy or a church employee who files Schedule SE, or a statutory employee filing Schedule C or C-EZ. If any of the following situations apply to you, read the paragraph and then complete EIC Worksheet B.

taxmap/wpubs/p596-011.htm#TXMP6062d0f2 Net earnings from self-employment $400 or more.(p25)

If your net earnings from self-employment are $400 or more, be sure to correctly fill out Schedule SE (Form 1040) and pay the proper amount of self-employment tax. If you do not, you may not get all the EIC you are entitled to.

When figuring your net earnings from self-employment, you must claim all your allowable business expenses.

Above caution paragraph added at request of Karin Loverud, CC, in 2003.

taxmap/wpubs/p596-011.htm#TXMP4a189cf6 When to use the optional methods of figuring net earnings.(p25)

Using the optional methods on Schedule SE to figure your net earnings from self-employment may qualify you for the EIC or give you a larger credit. If your net earnings (without using the optional methods) are less than $1,600, see the instructions for Schedule SE for details about the optional methods.

taxmap/wpubs/p596-011.htm#TXMP1c9bd01e When both spouses have self-employment income.(p25)

You must complete both Parts 1 and 2 of EIC Worksheet B if all of the following conditions apply to you.

1. You are married filing a joint return.
2. Both you and your spouse have income from self-employment.
3. You or your spouse files a Schedule SE and the other spouse does not file Schedule SE.

taxmap/wpubs/p596-011.htm#TXMP49939f3c Statutory employees.(p25)

Statutory employees report wages and expenses on Schedule C or C-EZ. They do not file Schedule SE. If you are a statutory employee, enter the amount from line 1 of Schedule C or C-EZ in Part 3 when you complete EIC Worksheet B.

Previous Page:  Publication 596 - Earned Income Credit - Figuring and Claiming the EIC Next Page:  Publication 596 - Earned Income Credit - Schedule EIC Use   to find additional occurrences of topic items.