Page 392 - Individual Forms & Instructions Guide

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S had no other income. S’s AGI on line 11 of Form 1040 is column for 2 children under Married filing jointly and
$23,400 ($17,000 + $6,400). find $6,164. They enter $6,164 on line 2.
S isn't married and lived alone in the United States for 3. They enter on line 3 their AGI ($26,500) and see that
the entire year. S can’t be claimed as a dependent on any- it is different from the amount on line 1.
one else's return, doesn’t have any investment income, 4. They look up $26,500 in the EIC Table and enter the
and doesn’t have a qualifying child. amount of $6,108 on line 5.
S reads the steps for eligibility in the Form 1040 instruc- 5. They enter $6,108 on line 6. This is the smaller of the
tions. In Step 1, S discovers that, because S’s AGI line 2 amount ($6,164) and the line 5 amount
($23,400) isn't less than $22,610, S can’t take the EIC. S ($6,108).
completes the rest of Form 1040 and files it with the IRS.
6. The Greys enter $6,108 on line 27 of their Form 1040.
They will now complete Schedule EIC and attach it to
Example 2—C and J Grey their return. They will keep the EIC Worksheet for their
records.
C and J Grey have two children, the oldest is age 10, and
the youngest is age 8. The children lived with C and J for
all of 2022. C earned wages of $15,000 and J had wages How To Get Tax Help
of $10,000. The Greys received $525 in interest on their
savings account. They had no other income in 2022. If you have questions about a tax issue; need help prepar-
C and J have the 2022 Form 1040 and instructions. ing your tax return; or want to download free publications,
They want to see if they qualify for the EIC, so they follow forms, or instructions, go to IRS.gov to find resources that
the steps in the instructions for line 27. can help you right away.

Step 1. The amount C and J entered on Form 1040, Preparing and filing your tax return. After receiving all
line 11, was $25,525. They both have valid SSNs, which your wage and earnings statements (Forms W-2, W-2G,
they have had for many years. They will file a joint return. 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment
Neither C nor J is a nonresident alien. Therefore, the an- compensation statements (by mail or in a digital format) or
swers they give to the questions in Step 1 allow them to other government payment statements (Form 1099-G);
proceed to Step 2. and interest, dividend, and retirement statements from
banks and investment firms (Forms 1099), you have sev-
Step 2. The only investment income the Greys have is eral options to choose from to prepare and file your tax re-
their $525 interest income. That amount isn't more than turn. You can prepare the tax return yourself, see if you
$10,300, so they answer “No” to the second question in qualify for free tax preparation, or hire a tax professional to
Step 2 and go to Step 3. prepare your return.

Step 3. Their children, meet the relationship, age, resi- Free options for tax preparation. Go to IRS.gov to see
dency, and joint return tests to be C and J's qualifying chil- your options for preparing and filing your return online or
dren, so C and J answer “Yes” to the first question in Step in your local community, if you qualify, which include the
3. Their children aren't qualifying children of anyone else. following.
Both children have valid SSNs, which they got soon after
birth. C and J are filing a joint return, so they answer “Yes” • Free File. This program lets you prepare and file your
to the second question in Step 3. This means they can federal individual income tax return for free using
skip questions 3 though 6 and Step 4 and go to Step 5. brand-name tax-preparation-and-filing software or
Free File fillable forms. However, state tax preparation
Step 5. C and J figure their earned income to be may not be available through Free File. Go to IRS.gov/
$25,000, the amount of their combined wages. This is less FreeFile to see if you qualify for free online federal tax
than $55,529, so they go to Step 6 to figure their credit. preparation, e-filing, and direct deposit or payment op-
tions.
Step 6. C and J want to figure their EIC themselves, so • VITA. The Volunteer Income Tax Assistance (VITA)
they complete the EIC Worksheet in the Form 1040 in- program offers free tax help to people with
structions. low-to-moderate incomes, persons with disabilities,
Completing the EIC Worksheet. C and J complete and limited-English-speaking taxpayers who need
their worksheet as follows. help preparing their own tax returns. Go to IRS.gov/
VITA, download the free IRS2Go app, or call
1. C and J enter their total earned income ($25,000) on 800-906-9887 for information on free tax return prepa-
line 1. ration.
2. To find their credit, they go to the EIC Table. They find • TCE. The Tax Counseling for the Elderly (TCE) pro-
their earned income of $25,000 in the range of gram offers free tax help for all taxpayers, particularly
$25,000 to $25,050. Because both of their children those who are 60 years of age and older. TCE
have valid SSNs, they follow this line across to the volunteers specialize in answering questions about

Page 22 Publication 596 (2022)