Modified AGI (adjusted gross income). Your modified AGI used to limit your credit includes:

1. Tax-exempt interest, and
2. The nontaxable part of a pension, annuity, or individual retirement arrangement (IRA) distribution, except any amount that is nontaxable due to a trustee-to-trustee transfer or a rollover distribution.

Also, the amount of business losses that must be added back to AGI to figure modified AGI is 75%.

If you qualify for the 2000 advance payment of the earned income credit, use these increases to figure your 2000 modified AGI.

See Publication 596, Earned Income Credit, for more detailed information on modified AGI.

Advance payment of the earned income credit in your paycheck. If you qualify for the earned income credit in 2000, you can receive part of it in each paycheck throughout the year. See Advance Earned Income Credit, later, for more information.

Earned income credit has no effect on certain welfare benefits. The earned income credit and advance earned income credit payments you receive will not be used to determine whether you are eligible for the following benefit programs, or how much you can receive from these programs.

• Temporary assistance for needy families (TANF).
• Medicaid and supplemental security income (SSI).
• Food stamps.
• Low-income housing.

Social security numbers.
You must provide a correct and valid social security number (SSN) for yourself, your spouse, and any qualifying children. If an SSN is missing or incorrect, you may not get the credit. See Rule 1, later.

Form 8862 to claim EIC after disallowance.
You must file Form 8862, Information To Claim Earned Income Credit After Disallowance, to claim earned income credit if you are denied the credit unless the credit was denied because of a mathematical or clerical error. See Publication 596 for more information.

Previous | Next

Publication 17 | 1999 Tax Year Archives | Tax Help Archives | Home