The next few pages contain two detailed examples (with a filled-in Schedule EIC and EIC Worksheet) that may be helpful if you have questions about claiming the EIC.
Sharon Rose is age 63 and retired. She received $7,000 in social security benefits during the year and $9,000 from a part-time job. She also received a taxable pension of $6,400. Sharon had no other income. Her AGI on line 22 of Form 1040A is $15,400 ($9,000 + $6,400).
Sharon is not married and lived alone in the United States for the entire year. She cannot be claimed as a dependent on anyone else's return. She does not have any investment income and does not have a qualifying child.
Sharon reads the steps for eligibility in her Form 1040A instructions. In Step 1 she discovers that, because her AGI ($15,400) is not less than $14,590, she cannot take the EIC. She completes the rest of her Form 1040A and files it with the IRS.
Cynthia and Jerry Grey have two children, Kirk, age 8, and Susanne, age 6. The children lived with Cynthia and Jerry for all of 2014. Cynthia earned wages of $15,000 and Jerry had wages of $10,000. The Greys received $525 in interest on their savings account. They had no other income in 2014.
Cynthia and Jerry have the 2014 Form 1040A and instructions. They want to see if they qualify for the EIC, so they follow the steps in the instructions for lines 42a and 42b.
Cynthia and Jerry enter their total earned income ($25,000) on line 1.
To find their credit, they go to the EIC Table (shown later in this publication). The part of the EIC Table they use is included as part of this example. They find their earned income of $25,000 in the range of $25,000 to $25,050. They follow this line across to the column Two children under Married filing jointly and find $5,088. They enter $5,088 on line 2.
They enter on line 3 their AGI ($25,525) and see that it is different from the amount on line 1.
They look up $25,525 in the EIC Table and enter the amount of $4,983 on line 5.
They enter $4,983 on line 6. This is the smaller of the line 2 amount ($5,088) and the line 5 amount ($4,983).
The Greys enter $4,983 on line 42a of their Form 1040A. They will now complete Schedule EIC (shown later) and attach it to their return. They will keep the EIC Worksheet for their records.
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