Earned Income Tax Credit - Example(s) For 2012 From IRS Pub. 596

Example(s) For 2012 From IRS Pub. 596

Cynthia and Jerry Grey have two children ages 6 and 8. For tax year 2012, one spouse made $10,000 in wages and the other spouse made $15,000, plus the couple received $525 on interest from a savings account. Since they are into the phase-out range, their EIC will phase out by the greater of earned income or adjusted gross income. So, they will look up in the EIC table $25,525 for MFJ with two children, and this amount is $4,557. Since they are claiming children, the Greys will also need to attach Schedule EIC to their tax return which will ask for each child, the child's name, social security number, year of birth, relationship to couple, and months lived with couple in the United States during 2012. If the Greys use 1040A, they will enter $4,557 on line 38a. If they use form 1040, they will enter $4,557 on line 64a.