TAILIEUCHUNG - Earned Income Credit (EIC) For use in preparing 2011 Returns

There is need to realize the fact that the present state of the world and especially the present state ofmonetary affairs are the necessary consequences of the application of the doctrines that have got hold of the minds ofour contemporaries. The great inflations ofour age are not acts ofGod. They are man-made or, to say it bluntly, govern- ment-made. They are the off-shoots of doctrines that ascribe to governments the magic power ofcreating wealth out ofnothing and ofmaking people happy by raising the 'national income' | Department of the Treasury Internal Revenue Service Publication 596 Cat. No. 15173A Earned Income Credit EIC For use in preparing 2011 Returns Jan 12 2012 TABLE OF CONTENTS Introduction-Begin Here 1 Table 1. Earned Income Credit in a Nutshell Do I need this publication What s new for 2011 Reminders As Chapter 1. Rules for Everyone 5 Your adjusted gross income cannot be more than the limit You must have a valid social security number Your filing status cannot be Married filing separately You must be a . citizen or resident alien all year You cannot file Form 2555 or Form 2555-EZ Your investment income must be 3 150 or less You must have earned income SB. Chapter 2. Rules If You Have a Qualifying Child 12 Your child must meet the relationship age residency and joint return tests Your qualifying child cannot be used by more than one person to claim the EIC You cannot be a qualifying child of another taxpayer C Chapter 3. Rules If You Do Not Have a Qualifying Child 22 You must be at least age 25 but under age 65 You cannot be the dependent of another person You cannot be a qualifying child of another taxpayer You must have lived in the United States more than half of the year Chapter 4. Figuring and Claiming the EIC 26 Earned income and limit IRS will figure the EIC for you How to figure the EIC yourself C Chapter 5. Disallowance of the EIC_30 Special procedures to follow if the IRS has previously denied your EIC Chapter 6. Detailed Examples32 Four examples with sample filled-in schedule and worksheets Appendix 43 2011 Earned Income Credit Table How To Get Tax Help Index EIC Eligibility Checklist Introduction- Begin Here Introduction- Begin Here What is the EIC The earned income credit EIC is a tax credit for certain people who work and have earned income under 49 078. A tax credit usually means more money in your pocket. It reduces the amount of tax you .

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