Worksheet B—Earned Income Credit —Lines 18a

Worksheet B—Earned Income Credit —Lines 18a

Summary: This flowchart represents the worksheet information listed on Worksheet B, page 1, to determine your Earned Income Credit.

Start

This is the beginning of the flowchart.

Process (a)

Use this worksheet if you answered "Yes" to Step 5, questions 2.

  • Complete the parts below (Parts 1 through 3) that apply to you. Then, continue to Part 4.

  • If you are married filing a joint return, include your spouse's amounts, if any, with yours to figure the amounts to enter in Parts 1 through 3.

Continue To Decision (1)

Decision (1)

Are you self-employed, member of the clergy, or have church employee income filing Schedule SE?

IF Yes Continue To Process (b)
IF No Continue To Decision (2)

Process (b)

PART 1: 1a. Enter the amount from Schedule SE, Section A, line 3, or Section B, line 3, whichever applies.

Continue To Process (c)

Process (c)

1b. Enter any amount from Schedule SE, Section B, line 4b and line 5a.

Continue To Process (d)

Process (d)

1c. Combine lines 1a and 1b.

Continue To Process (e)

Process (e)

1d. Enter the amount form Schedule SE, Section A, line 6, or Section B, line 13, whichever applies.

Continue To Process (f)

Process (f)

1e. Subtract line 1d from 1c.

Continue To Process (g)
Continue To Decision (2)

Decision (2)

Are you self-employed and NOT required to file Schedule SE? For example, your net earnings from self-employment were less than $400.

IF Yes Continue To Process (h)
IF No Continue To Process (l)

Process (h)

PART 2: 2. Don’t include on these lines any statutory employee income, any net profit from services performed as notary public, any amount exempt from self-employment tax as the result of the filing and approval of Form 4029 or Form 4361, or any other amounts exempt from self-employment tax.

Continue To Process (i)

Process (i)

2a. Enter any net farm profit or (loss) from Schedule F, line 34, and from farm partnerships, Schedule K-1 (Form 1065), box 14, code A*.

Footnote: If you have any Schedule K-1 amounts, complete the appropriate line(s) of Schedule SE, Section A. Reduce the Schedule K-1 amounts as described in the Partner’s Instructions for Schedule K-1. Enter your name and social security number on Schedule SE and attach it to your return.

Continue To Process (j)

Process (j)

2b. Enter any net profit or (loss) from Schedule C, line 31; Schedule K-1 (Form 1065), box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1*.

Footnote: If you have any Schedule K-1 amounts, complete the appropriate line(s) of Schedule SE, Section A. Reduce the Schedule K-1 amounts as described in the Partner's Instructions for Schedule K-1. Enter your name and social security number on Schedule SE and attach it to your return.

Continue To Process (k)

Process (k)

2c. Combine lines 2a and 2b.

Continue To Process (l)

Process (l)

Part 3: For Statutory Employees Filing Schedule C. 3. Enter the amount from Schedule C, line 1, that you are filing as a statutory employee.

Continue To Process (m)

Process (m)

Part 4: For All Filers Using Worksheet B. Note. If line 4b includes income on which you should have paid self-employment tax but didn’t, we may reduce your credit by the amount of self-employment tax not paid. 4a. Enter your earned income from Step 5.

Continue To Process (n)

Process (n)

4b. Combine lines 1e, 2c, 3, and 4a. This is your total earned income.

Continue To Decision (3)

Decision (3)

Is line 4b zero or less?

IF Yes Continue To Process (o)
IF No Continue To Decision (4)

Process (o)

STOP. You can’t take the credit. Enter "No" on the dotted line next to Form 1040 or 1040-SR, line 18a.

Continue To End

Decision (4)

Do you have any qualifying children?

IF Yes Continue To Decision (6)
IF No Continue To Decision (5)

Decision (5)

Is line 4b less than $15,570 ($21,370 if married filing jointly)?

IF Yes Continue To Process (p)
IF No Continue To Process (q)

Process (p)

If you want the Internal Revenue Service to figure your credit, see "Credit figured by the IRS", earlier. If you want to figure the credit yourself, enter the amount from line 4b on line 6 of this worksheet.

Continue To End

Process (q)

STOP. You cannot take the credit. Enter "No" on the dotted line next to Form 1040 or 1040-SR, line 18a.

Continue To End

Decision (6)

Do you have 3 or more qualifying children?

IF Yes Continue To Decision (7)
IF No Continue To Decision (8)

Decision (7)

Is line 4b less than $50,162 ($55,952 if married filing jointly)?

IF Yes Continue To Process (p)
IF No Continue To Process (q)

Decision (8)

Do you have 2 qualifying children?

IF Yes Continue To Decision (9)
IF No Continue To Decision (10)

Decision (9)

Is line 4b less than $46,703 ($52,493 if married filing jointly)?

IF Yes Continue To Process (p)
IF No Continue To Process (q)

Decision (10)

Is line 4b less than $41,094 ($46,884 if married filing jointly)?

IF Yes Continue To Process (p)
IF No Continue To Process (q)

End

This is the end of the flowchart.