Table of Contents

• 32. How To Figure Your Tax
  • Introduction
  • Figuring Your Tax
  • Alternative Minimum Tax
  • Tax Figured by IRS
    • Filing the Return
• 33. Tax on Investment Income of Certain Minor Children
  • Important Reminder
  • Introduction
  • Useful Items - You may want to see:
  • Which Parent's Return To Use
    • Parents Who Do Not File a Joint Return
  • Parent's Election To Report Child's Interest and Dividends
    • Effect of Making the Election
    • Figuring Child's Income
    • Figuring Additional Tax
    • Illustrated Example
  • Tax for Children Under Age 14 Who Have Investment Income of More Than $1,500
    • Providing Parental Information (Form 8615, lines A–C)
    • Step 1. Figuring the Child's Net Investment Income (Form 8615, Part I)
    • Step 2. Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II)
    • Step 3. Figuring the Child's Tax (Form 8615, Part III)
    • Illustrated Example
• 34. Child and Dependent Care Credit
  • Important Changes
  • Important Reminders
  • Introduction
  • Useful Items - You may want to see:
  • Tests To Claim the Credit
    • Qualifying Person Test
    • Keeping Up a Home Test
    • Earned Income Test
    • Work-Related Expense Test
    • Joint Return Test
    • Provider Identification Test
  • How To Figure the Credit
    • Figuring Total Work-Related Expenses
    • Earned Income Limit
    • Dollar Limit
    • Amount of Credit
  • How To Claim the Credit
    • Tax credit not refundable.
  • Employment Taxes for Household Employers
  • Example
• 35. Credit for the Elderly or the Disabled
  • Introduction
  • Useful Items - You may want to see:
  • Can You Take the Credit?
    • Qualified Individual
    • Income Limits
  • Figuring the Credit
    • Step 1. Determine Initial Amount
    • Step 2. Total Certain Nontaxable Pensions and Benefits
    • Step 3. Determine Excess Adjusted Gross Income
    • Step 4. Determine Your Credit
    • Credit Figured for You
    • Examples
• 36. Child Tax Credit
  • Important Changes
  • Introduction
  • Useful Items - You may want to see:
  • Qualifying Child
  • Amount of Credit
    • Limits on the Credit
  • Claiming the Credit
    • Example
  • Additional Child Tax Credit
  • Checking Your Withholding
• 37. Education Credits
  • Important Changes for 2003
  • Introduction
  • Useful Items - You may want to see:
  • Can You Claim the Credit
    • Who Can Claim the Credit
    • Who Cannot Claim the Credit
  • What Expenses Qualify
    • Qualified Education Expenses
    • No Double Benefit Allowed
    • Expenses That Do Not Qualify
  • Who Can Claim a Dependent's Expenses
  • Effect of the Amount of Your Income on the Amount of Your Credit
    • MAGI when using Form 1040A.
    • MAGI when using Form 1040.
  • Hope Credit
    • Who Is an Eligible Student
    • Figuring the Credit
    • Claiming the Credit
  • Lifetime Learning Credit
    • Who Is an Eligible Student
    • Figuring the Credit
    • Claiming the Credit
  • When Must the Credit Be Repaid (Recaptured)
  • Illustrated Example
• 38. Earned Income Credit
  • Important Changes
  • Important Reminders
  • Introduction
  • Useful Items - You may want to see:
  • Do You Qualify for the Credit?
    • If Improper Claim Made in Prior Year
  • Part A. Rules for Everyone
    • Rule 1. Your AGI Must Be Less Than:
    • Rule 2. You Must Have a Valid Social Security Number (SSN)
    • Rule 3. Your Filing Status Cannot Be Married Filing Separately
    • Rule 4. You Must Be a U.S. Citizen or Resident Alien All Year
    • Rule 5. You Cannot File Form 2555 or Form 2555–EZ
    • Rule 6. Your Investment Income Must Be $2,600 or Less
    • Rule 7. You Must Have Earned Income
  • Part B. Rules If You Have a Qualifying Child
    • Rule 8. Your Child Must Meet the Relationship, Age, and Residency Tests
    • Rule 9. Your Qualifying Child Cannot Be Used By More Than One Person To Claim the EIC
    • Rule 10. You Cannot Be a Qualifying Child of Another Person
  • Part C. Rules If You Do Not Have a Qualifying Child
    • Rule 11. You Must Be at Least Age 25 but Under Age 65
    • Rule 12. You Cannot Be the Dependent of Another Person
    • Rule 13. You Cannot Be a Qualifying Child of Another Person
    • Rule 14. You Must Have Lived in the United States More Than Half of the Year
  • Part D. Figuring and Claiming the EIC
    • Rule 15. Your Earned Income Must Be Less Than:
    • IRS Will Figure the EIC for You
    • How To Figure the EIC Yourself
  • Examples
    • Example 1. John and Janet Smith (Form 1040A)
    • Example 2. Kelly Green (Form 1040EZ)
  • Advance Earned Income Credit
    • How To Get Advance Payments for 2004
    • Advance Payments Received in 2003
• 39. Other Credits
  • Important Changes for 2003
  • Introduction
  • Useful Items - You may want to see:
  • Nonrefundable Credits
    • Adoption Credit
    • Foreign Tax Credit
    • Mortgage Interest Credit
    • Retirement Savings Contributions Credit
    • Credit for Prior Year Minimum Tax
    • Credit for Electric Vehicles
  • Refundable Credits
    • Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld
    • Credit for Tax on Undistributed Capital Gain
    • Health Coverage Tax Credit