What the Form Is For
IRS Form 1040 Schedule EIC (2011) is used to claim the Earned Income Credit, a refundable tax credit that helps low to moderate-income workers reduce their tax burden. When taxpayers have qualifying children, this schedule provides the IRS with each child’s information—such as name, year of birth, and Social Security Number—so the agency can verify eligibility. The EIC is a federal credit that often results in a refund even when no individual income taxes are owed.
The rules for the Earned Income Tax Credit are detailed in Publication 596, which explains how family size, income level, and filing status affect the amount of the credit. For 2011, the maximum credit was available to families with three or more qualifying children. This form is filed with either Form 1040 or Form 1040A, and cannot be used with Form 1040-SR or Schedule A or Schedule B for EIC purposes.
Because the EIC is a major source of support for lower-income taxpayers, it is frequently discussed in IRS forms, bulletins, regulations, and written determinations. The credit has been expanded by federal laws, such as the American Recovery and Reinvestment Act, and reinforced by research from organizations like the Center on Budget and Policy Priorities and The Hamilton Project, as well as federal agencies like the Census Bureau, which analyzes the impacts of federal and state EITC.
When You’d Use It (Late or Amended Returns)
You would use Schedule EIC if you are claiming the credit and have at least one qualifying child. If you file late, you may still receive your refund because the EIC is refundable for up to three years after the original deadline. Taxpayers who need to correct their return can file Form 1040-X, and a complete Schedule EIC must be attached to the form.
Amended returns are common when income was miscalculated, when parents adopt shared custody arrangements using Form 8332, or when someone first files using “Married Filing Separately” but later learns they qualify to file as Head of Household due to being separated from their spouse. Some taxpayers also amend their returns if they later discover they were eligible for other credits, such as the Child and Dependent Care Credit.
Community support programs, such as Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly, assist taxpayers—especially welfare recipients, older adults, and workers in combat zones—in completing late or amended EIC filings. Many VITA sites offer secure tax return preparation, tax tools, and tax tips to ensure accurate filing.
Key Rules and Eligibility Requirements
To claim the EIC, workers must meet strict income requirements, residency rules, and relationship tests outlined in Publication 596. You must have earned income from personal services or self-employment and remain below the thresholds tied to the federal poverty line measures and the IRS equivalence scale.
Each qualifying child must pass four tests:
- Relationship test (Child – 1, Child – 2, Child – 3)
- Age test
- Residency test
- Joint return test
These rules help ensure the credit benefits families who are actually providing financial support to the child. Only the federal government may issue a Social Security Number, and the number must be valid for work before the tax return due date. Temporary numbers such as ITINs or ATINs do not qualify.
Taxpayers may not use the EIC if they claim foreign income exclusions, receive certain U.S. tax treaty benefits, or file using IRS forms like Form 2555. The IRS regularly publishes clarifications in IRS Tax Tips, the Tax Guide, the Tax Calendar, the Tax Glossary, and CCA Memos to help taxpayers comply with the tax code.
How to Complete the Form: Step-by-Step (High Level)
- Start by entering your name and SSN at the top of the schedule.
- Review the column heading for each child and enter their details in the correct row.
- Provide the child’s name, Social Security Number, birth year, and relationship to you.
- Enter the number of months the child lived with you in 2011.
- Repeat for up to three children, even if you have more.
- Attach the schedule to Form 1040 or Form 1040A and sign your return.
Taxpayers who e-file can submit a PDF file version of the schedule using Adobe Acrobat, Adobe Acrobat Reader, a tax software’s Upload PDF endpoint, or compliant filing systems that handle Adobe Portable Document Format (PDF) rules and JSON Attribute Data. If filing by mail, you may use the Find box features in digital tools or Tax Tools from the IRS to help you navigate instructions.
Common Mistakes and How to Avoid Them
Several common errors delay refunds:
- Missing or incorrect Social Security Numbers
- Claiming a child who does not meet residency or age requirements
- Using the wrong filing status, such as “Married Filing Separately” when eligible for Head of Household
- Forgetting to attach the schedule to the return
- Using outdated rules instead of the current Tax Guide or IRS Bulletins
Many errors occur because of last-minute stress or incomplete information. Taxpayers may seek help from a tax professional, the VITA program, or the TAS (Taxpayer Advocate Service) for complex issues.
Issues such as name changes, misunderstandings about the security of your connection during e-file, or relying on outdated sources instead of policies can also create filing confusion.
What Happens After You File
Once submitted, the IRS verifies your EIC and may match your information against federal EITC claims, child residency records, or information reported through the Supplemental Poverty Measure. If accurate, your refund—often delivered through direct deposit—arrives in about 21 days for e-filed returns.
If something is unclear, the IRS may request documentation such as birth certificates, school records, or proof of income. These checks help reduce fraud, assess the impact on labor supply, and ensure the EITC is distributed fairly.
Failing to respond may result in delayed refunds or denial of the credit. If denied, you may need Form 8862 in future years. Programs like Paycheck Plus and research on workforce participation demonstrate how the EIC promotes employment, making accurate filing crucial for both taxpayers and policymakers.
Frequently Asked Questions
Can I claim the credit if someone else has already claimed my child as a dependent?
If two people claim the same child, the IRS applies tie-breaker rules. You may need to provide documentation to support your claim.
What if my child were born or died in 2011?
You can still claim the child if they lived with you the entire time they were alive, even if for only part of the year.
Can military combat pay count as earned income?
You may elect to include nontaxable combat pay when calculating the credit, which may increase or decrease the EIC.
Is a self-employed person eligible?
Yes, but you must calculate net earnings properly using Tax Tips in Publication 596 and related IRS forms.
Can I use VITA or TCE for help?
Yes, a VITA site or TCE volunteer can walk you through preparing your return securely, including completing Schedule EIC.
What if I made a mistake on my return?
You can correct it using Form 1040-X, which is attached with a corrected schedule and any necessary tax tools or documentation.
