Use this Part C if you:

1. Do not have a qualifying child, and
2. Have met all the rules in Part A.

This part of the chapter discusses rules C-1 through C-4. You must meet all four rules, in addition to the rules in Part A, to qualify for the earned income credit without a qualifying child.

If you have a qualifying child, the rules in this part do not apply to you. You can claim the credit only if you meet all the rules in Part A and Part B. See rule B-2 to find out if you have a qualifying child.

C-1. Earned Income and Modified AGI (Adjusted Gross Income) Limit

To claim the earned income credit without a qualifying child, your earned income and modified AGI must each be less than $10,030.

Earned income. Earned income includes all the income you get from working--even if it is not taxable. For examples, see A-1, Earned Income.

If the total of your taxable and nontaxable earned income is $10,030 or more print "No" directly to the right of line 59a (Form 1040) or line 37a (Form 1040A), or to the right of the word "below" on line 8b (Form 1040EZ).

Modified AGI

Modified AGI for most people is the same as AGI. AGI includes items such as taxable social security benefits and unemployment benefits. AGI is the amount on line 33 (Form 1040), line 18 (Form 1040A), or line 4 (Form 1040EZ). But if you are filing Schedule C, C-EZ, D, E, or F, or if you claim a loss from the rental of personal property not used in a trade or business, get Publication 596 for more information.

C-2. Age

You must be at least age 25 but under age 65 at the end of 1998. If you are married filing a joint return, either you or your spouse must be at least age 25 but under age 65 at the end of 1998. It does not matter which spouse meets the age rule, as long as one of the spouses does.

Example 1. You are age 28 and unmarried. You meet this rule.

Example 2. You are married and will file a joint return. You are age 23 and your spouse is age 27. You meet this rule because your spouse is at least age 25 but under age 65.

Example 3. You are married and will file a joint return. You are age 62 and your spouse is 66. You meet this rule because you are at least age 25 but under age 65.

If you (and your spouse if filing a joint return) are under age 25 or are age 65 or older, enter "No" directly to the right of line 59a (Form 1040) or line 37a (Form 1040A), or to the right of the word "below" on line 8b (Form 1040EZ).

C-3. Dependent of Another Person

You must be able to claim an exemption for yourself (and your spouse if filing a joint return) on your tax return. If someone else can claim you (or your spouse if filing a joint return) as a dependent on their return, you cannot claim the earned income credit. If someone else can claim you (or your spouse if filing a joint return) as a dependent on their return but does not, you still cannot claim the credit.

Example 1. You are age 25, single, and living at home with your parents. You work and are not a student. You earned $7,500. Your parents cannot claim you as a dependent. When you file your return, you claim an exemption for yourself. Therefore, you meet this rule.

Example 2. You are age 25, single, and living at home with your parents. You work and earned $2,000. Your parents can claim you as a dependent but decide not to. You cannot claim the credit because your parents could have claimed you as a dependent.

Example 3. You file as head of household. Your mother is your dependent. You maintain your own home. You worked and earned $8,500. No one can claim you as a dependent. You claim an exemption for yourself when you file your return. You meet this rule.

C-4. Main Home

Your main home (and your spouse's if filing a joint return) must be in the United States for more than half the year. Your main home can be any location where you regularly live. For example, a homeless individual who lives in a shelter in the United States meets this rule.

U.S. military personnel stationed outside the U. S. on extended active duty are considered to live in the United States during that duty period for the earned income credit. See Military personnel stationed outside the United States, under B-2 for a definition of "extended active duty."

If your home (or your spouse's home if filing a joint return) was not in the United States for more than half of 1998, enter "No" directly to the right of line 59a (Form 1040) or line 37a (Form 1040A), or to the right of the word "below" on line 8b (Form 1040EZ).

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