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EIC was denied in December 2021. You can’t claim the EIC for tax year 2021 or 2022. To claim the EIC on your return for 2023, you must complete and attach Form 8862 to your return for that year. Example 4. The facts are the same as in Example 3, except that your 2020 EIC wasn’t denied until after you filed your 2021 return. You can’t claim the EIC for tax year 2022 or 2023. To claim the EIC on your return for 2024 you must complete and attach Form 8862 to your return for that year. Example 5—Cannot claim EIC for 10 years. You claimed the EIC on your 2020 tax return, which you filed in February 2021. The IRS determined you weren't entitled to the EIC and that your error was due to fraud. In Sep- tember 2021, you received a statutory notice of deficiency telling you an adjustment would be made and tax as- sessed unless you filed a petition with the Tax Court within 90 days. You didn't act on this notice within 90 days. Therefore, your EIC was denied in December 2021. You can’t claim the EIC for tax years 2021 through 2030. To claim the EIC on your return for 2031, you must com- plete and attach Form 8862 to your return for that year. 6. Detailed Examples The next few pages contain two detailed examples (with a filled-in Schedule EIC and EIC Worksheet) that may be helpful if you have questions about claiming the EIC. Example 1—Sharon Rose Sharon Rose is age 63 and retired. She received $7,000 in social security benefits during the year and $16,000 from a part-time job. She also received a taxable pension of $6,400. Sharon had no other income. Her AGI on line 11 of Form 1040 is $22,400 ($16,000 + $6,400). Sharon isn't married and lived alone in the United States for the entire year. She can’t be claimed as a de- pendent on anyone else's return. She doesn't have any in- vestment income and doesn't have a qualifying child. Sharon reads the steps for eligibility in her Form 1040 instructions. In Step 1, she discovers that, because her AGI ($22,400) isn't less than $21,430, she can’t take the EIC. She completes the rest of her Form 1040 and files it with the IRS. Example 2—Cynthia and Jerry Grey Cynthia and Jerry Grey have two children, Kirk, age 10, and Susanne, age 8. The children lived with Cynthia and Jerry for all of 2021. Cynthia earned wages of $15,000 and Jerry had wages of $10,000. The Greys received $525 in interest on their savings account. They had no other income in 2021. Cynthia and Jerry have the 2021 Form 1040 and in- structions. They want to see if they qualify for the EIC, so they follow the steps in the instructions for line 27a. Step 1. The amount Cynthia and Jerry entered on Form 1040, line 11, was $25,525. They both have valid social security numbers (SSNs), which they have had for many years. They will file a joint return. Neither Cynthia nor Jerry is a nonresident alien. Therefore, the answers they give to the questions in Step 1 allow them to proceed to Step 2. Step 2. The only investment income the Greys have is their $525 interest income. That amount isn't more than $10,000, so they answer “No” to the second question in Step 2 and go to Step 3. Step 3. Their children, Kirk and Susanne, meet the rela- tionship, age, residency, and joint return tests to be Cyn- thia and Jerry's qualifying children, so Cynthia and Jerry answer “Yes” to the first question in Step 3. Kirk and Sus- anne aren't qualifying children of anyone else. Both chil- dren have valid SSNs, which they got soon after birth. Cynthia and Jerry are filing a joint return, so they answer “Yes” to the second question in Step 3. This means they can skip questions 3 though 6 and Step 4 and go to Step 5. Step 5. Cynthia and Jerry figure their earned income to be $25,000, the amount of their combined wages. This is less than $53,865, so they go to Step 6 to figure their credit. Step 6. Cynthia and Jerry want to figure their EIC them- selves, so they complete the EIC Worksheet in the Form 1040 instructions (shown later). Completing the EIC Worksheet. Cynthia and Jerry complete their worksheet as follows. 1. Cynthia and Jerry enter their total earned income ($25,000) on line 1. 2. To find their credit, they go to the EIC Table (shown later in this publication). The part of the EIC Table they use is included as part of this example. They find their earned income of $25,000 in the range of $25,000 to $25,050. Because both of their children have valid SSNs, they follow this line across to the column for 2 children under Married filing jointly and find $5,980. They enter $5,980 on line 2. Page 24 Chapter 6 Detailed Examples