Federal Tax Form 1040 Schedule EIC - Earned Income Credit Instructions

General Instructions for Schedule EIC (Form 1040)

CAUTION:

• If you take the EIC even though you are not eligible, you may not be allowed to take the credit for up to 10 years. See back of schedule for details.
• It will take us longer to process your return and issue your refund if you do not fill in all lines that apply for each qualifying child.
• Be sure the child’s name on line 1 and social security number (SSN) on line 2 agree with the child’s social security card. Otherwise, at the time we process your return, we may reduce or disallow your EIC. If the name or SSN on the child’s social security card is not correct, call the Social Security Administration at 1-800-772-1213.

Purpose of Schedule

After you have figured your earned income credit (EIC), use Schedule EIC to give the IRS information about your qualifying child(ren).

To figure the amount of your credit or to have the IRS figure it for you, see the instructions for Form 1040A, lines 40a and 40b, or Form 1040, lines 66a and 66b.

Taking the EIC when not eligible. If you take the EIC even though you are not eligible and it is determined that your error is due to reckless or intentional disregard of the EIC rules, you will not be allowed to take the credit for 2 years even if you are otherwise eligible to do so. If you fraudulently take the EIC, you will not be allowed to take the credit for 10 years. You may also have to pay penalties.

Qualifying Child

A qualifying child for the EIC is a child who is your . . .

Son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or
a descendant of any of them (for example, your grandchild, niece, or nephew)

AND

was . . .

Under age 19 at the end of 2007
or
Under age 24 at the end of 2007 and a student
or
Any age and permanently and totally disabled

AND

who . . .

Lived with you in the United States for more than half
of 2007. If the child did not live with you for the
required time, see Exception to time lived with you
beginning on page 40 of the Form 1040A instructions or
page 47 of the Form 1040 instructions.

CAUTION: If the child was married or meets the conditions to be a qualifying child of another person (other than your spouse if filing a joint return), special rules apply. For details, see page 41 of the Form 1040A instructions or page 47 of the Form 1040 instructions.