Tools for Tax Pros TheTaxBook™
Earned Income Credit (EIC) Worksheet
See Earned Income Credit, page 11-8, TheTaxBook, 1040 Edition/Deluxe Edition, for information on who qualifies for the Earned Income Credit.
Earned Income Worksheet
1) Enter amount from line 1, Form 1040 ...................................................................................................................................... 1)
2) Enter any of the following if it is included on line 1, Form 1040:
• Taxable scholarship or fellowship grant not reported on a Form W-2.
• Income received for work performed while an inmate in a penal institution.
• Pension or annuity income from a nonqualified deferred compensation plan or a nongovernmental section 457 plan.
• Medicaid waiver payment excluded from income
.............................................................................................................. 2)
3) Subtract line 2 from line 1
...................................................................................................................................................... 3)
4) Enter all nontaxable combat pay if elected. Also enter “NCP” and amount on dotted line next to line 27, Form 1040.
See Combat pay election, page 11-10, TheTaxBook, 1040Edition/Deluxe Edition
................................................................. 4)
5) Earned income. Add line 3 plus line 4
................................................................................................................................... 5)
Worksheet A
*
For taxpayers other than self-employed, clergy, certain church employees, or statutory employees.
1) Enter earned income from the Earned Income Worksheet above, line 5
.............................................................................. 1)
2) Look up the amount from line 1, above, in the Earned Income Credit (EIC) Table, page 2-15, TheTaxBook, 1040 Edition/
Deluxe Edition and enter the result here
............................................................................................................................... 2)
3) Enter AGI, line 11, Form 1040
................................................................................................................................................. 3)
4) If amounts on line 1 and line 3 are the same, skip line 5 and enter the amount from line 2 on line 6. Otherwise, go to line 5.
5) If taxpayer has: • No qualifying children. Is the amount on line 3 less than $8,800 ($14,700 if MFJ)?
• One or more qualifying children. Is the amount on line 3 less than $19,350 ($25,250 if MFJ)?
Yes. Leave line 5 blank, enter the amount from line 2 on line 6.
No. Look up the amount on line 3 in the EIC Table and enter the result here
........................................ 5)
6) Enter the smaller of line 2 or line 5 here. This is the EIC to enter on line 27, Form 1040
...................................................... 6)
Worksheet B
*
For self-employed taxpayers, members of the clergy or church employees filing Schedule SE, and
statutory employees filing Schedule C.
1a) Enter the amount from Schedule SE, Section A, line 3, or Section B, line 3, whichever applies
......................................... 1a)
1b) Enter any amount from Schedule SE, Section B, line 4b, and line 5a
................................................................................... 1b)
1c) Combine line 1a plus line 1b
.................................................................................................................................................. 1c)
1d) Enter the amount from Schedule SE, Section A, line 6, or Section B, line 13, whichever applies
....................................... 1d)
1e) Subtract line 1d from line 1c
.................................................................................................................................................. 1e)
2) Enter amounts on line 2a through 2c only if taxpayer was not required to file Schedule SE. For example, Schedule SE
was not filed because self-employment was less than $400. Do not include on lines 2a through 2c any statutory
employee income, any net profit from services performed as a notary public, any amount exempt from SE tax as a
result of the filing and approval of Form 4029 or Form 4361, or any other amounts exempt from self-employment tax.
2a) Enter any net farm profit or (loss) from line 34, Schedule F (Form 1040), and from farm partnerships, Schedule K-1
(Form 1065), box 14, code A (reduced by any Section 179, unreimbursed partner expenses, and depletion claimed on
oil and gas properties)
........................................................................................................................................................... 2a)
2b) Enter net profit or (loss) from line 31, Schedule C (Form 1040), and from Schedule K-1 (Form 1065), box 14, code A
(other than farming), (reduced by any Section 179, unreimbursed partner expenses, and depletion claimed on oil and
gas properties)
....................................................................................................................................................................... 2b)
2c) Combine lines 2a and 2b
........................................................................................................................................................ 2c)
3) Statutory employees filing Schedule C, enter the amount from Schedule C, line 1
............................................................. 3)
Earned Income Credit (EIC) Worksheet continued
