Certain people must use Publication 596. Certain people must use Publication 596 to see if they can take the EIC and to figure the amount of the credit. You must use Publication 596 if any of the following situations applies to you.

• Your investment income (Rule 5) is more than $2,350 and you are filing Form 4797 (relating to sale of business property).
• You are filing Schedule E (Form 1040).
• You are claiming a loss on Form 1040, line 12, 13, or 18.
• You are reporting income or a loss from the rental of personal property not used in a trade or business.
• You, (or your spouse if filing a joint return) received any distributions from a pension, annuity, or IRA that are not fully taxable.
• You owe alternative minimum tax (AMT), found on Form 1040, line 51, or included in the total found on Form 1040A, line 34.

For information on how you can get free IRS publications, see How To Get More Information in the back of this publication.

Earned income amount is more.
The amount you can earn and still get the credit has increased for 1999. The amount you earn must be less than:

• $26,928 with one qualifying child,
• $30,580 with more than one qualifying child, or
• $10,200 without a qualifying child.

Investment income amount is more.
The maximum amount of investment income you can have and still get the credit has increased for 1999. You can have investment income up to $2,350. For most people, investment income is taxable interest and dividends, tax-exempt interest, and capital gain net income. To get more detailed information, see Rule 5, later.

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