Rule 15 - Your Modified AGI Must Be Less Than: $30,580 if you have more than one qualifyingchild, $26,928 if you have one qualifying child, or $10,200 if you do not have a qualifying child. Modified Adjusted Gross Income (AGI) Modified AGI for most people is thesame as AGI. AGI includes items such as taxable social securitybenefits and unemployment benefits. AGI is the amount on line 33 (Form1040), line 18 (Form 1040A), or line 4 (Form 1040EZ). You must add certain amounts to your AGI if you: Naples cheap hotelsClaim a loss on Schedule C, C-EZ, D, E, or F, Claim a loss from the rental of personal property not usedin a trade or business, Received any tax-exempt interest, or Received any pension, annuity, or individual retirementarrangement (IRA) distribution that was partly nontaxable. Community property.If you are married, qualify to file as head of household, and livein a state that has community propertylaws, your adjusted grossincome (AGI) for the EIC includes that portion of both your and yourspouse's wages that you are required to include in gross income. Thisis different from the community property rules that apply underRule 6. Roth IRA conversion.If you converted your traditional IRA to aRoth IRA during 1998 andelected to spread the taxable amount over 4 years, only 25% of thetaxable amount is reported each tax year. This 25% is added to yourAGI on line 16b of Form 1040, or line 10b of Form 1040A. Do notadd to your modified AGI for 1999 the remaining amounts that will beincluded in your income for 2000 and 2001. (However, you may have toinclude those amounts in your 1999 AGI if you make a withdrawal fromthe Roth IRA. See Publication 590,Individual RetirementArrangements, for details about withdrawals.) Form 1040EZ.If you file Form 1040EZ, your modified AGI is the amount on line 4of that form plus the amount of any tax-exempt interest you wrote inthe space to the right of the words "Form 1040EZ" on line 2. Form 1040A.If you file Form 1040A, your AGI is the amount on line 18 of thatform. To find your modified AGI, add to your AGI any amount on line 8bof Form 1040A. Also, add the nontaxable part of any pension, annuity,or individual retirement arrangement (IRA) distribution, except anyamount that is nontaxable because it was a trustee-to-trustee transferor a rollover distribution. This is any part of the distribution thatyou did not report on lines 10b or 11b of Form 1040A(except any part that was nontaxable because you rolled it over intoanother account within 60 days or transferred it from one trustee toanother). See Publication 590for more information about IRAs, andPublication 575, Pension and Annuity Income, hôtels Reimsfor moreinformation about pensions and annuities. Form 1040.If you file Form 1040, use Worksheet 3, next, to figureyour modified AGI. *Worksheet 3 instructions To figure your modified AGI, you must add certain amounts to yourAGI, including all or part of certain losses you are claiming on yourreturn. On the worksheet, enterlosses as positive amounts(except for lines 7, 8, and 9). For example, if your AGI (Form1040, line 33) is $10,000 and you have a $1,000 capital loss from thesale of stock (Form 1040, line 13), you will enter $10,000 on line 1of Worksheet 3 and $1,000 on line 3. If you do not have toenter any other amounts, your modified AGI is $11,000 ($10,000 plus$1,000). Line 4. Nontaxable part of distribution.Enter on line 4 of Worksheet 3 the "nontaxable part"of anypension, annuity, or individual retirement arrangement (IRA)distribution you received in 1999. This is any part of thedistribution that you did not report on lines 15b or 16b ofForm 1040. But do not include on line 4 of Worksheet 3 anyamount that was nontaxable because you rolled it over into anotheraccount within 60 days or transferred it from one trustee to another.See Publication 590for more information about IRAs, and Publication 575 for more information about pensions and annuities. Line 5. More than one business.If you have a business loss on line 12 of Form 1040, enter theamount of the loss on line 5 of Worksheet 3. Do this evenif that loss amount is the result of combining gains and losses frommore than one Schedule C. Example.You have twoSchedules C. One shows a$2,000 gain. The other shows a $10,000 loss. You enter the net loss of$8,000 on line 12 of Form 1040. When figuring your modified AGI forEIC, enter $8,000 on line 5 of Worksheet 3. Example of a loss on Worksheet 3 (lines5-12) Other gains andlosses  5. Enter the amount of any loss claimed onForm 1040, line 12. (If theamount on Form 1040, line 12, is a gain, enter zero.)*  5. 8,000  6. Enter the amount of any loss claimed on Form1040, line 18. (If the amount on Form 1040, line 18, is a gain, enterzero.)*  6.           7. Enter the amount of any rental real estateincome (or loss) included onSchedule E, line 26.*  7.           8. Enter the amount from Schedule E, line 31.*  8.           9. Enter the amount from Schedule E, line 39.*  9.          10. Combine the amounts on lines 7, 8, and 9. If theresult is a loss, enter it here. If the result is a gain, enterzero.* 10.          11. Add the amounts on lines 5, 6, and 10 of thisworksheet. Enter the result. 11. 8,000 12. Multiply the amount on line 11 of this worksheetby 75% (0.75). Enter the result. 12.+ 6,000 Lines 7, 8, and 9.These lines are an exception to the rule that all amounts enteredon the worksheet must be entered as positive amounts. On these lines,enter any loss by enclosing it in parentheses. Line 10.Combine the amounts on lines 7, 8, and 9 to arrive at the amount online 10. For example, if you enter $2,000 on line 7, $1,000 on line 8,and a loss of ($3,500) on line 9, enter $500 ($2,000 + $1,000 -$3,500) on line 10. But if the result of combining lines 7, 8, and 9is a gain, enter zero. For example, if you enter $2,000 on line 7,$1,000 on line 8, and a loss of ($2,500) on line 9, enter zero on line10. Worksheet 3: Modified AGI If You Are Filing Form1040 Amounts from Form1040  1. Enter the amount from Form 1040, line 33.  1.           2. Enter any amount from Form 1040, line 8b.  2.+           3. Enter the amount of any loss* claimed on Form1040, line 13. (If the amount on Form 1040, line 13, is a gain, enterzero.)  3.+           4. Enter the nontaxable part of a pension, annuity,or individual retirement arrangement (IRA) distribution, except anyamount that is nontaxable because it was a trustee-to-trustee transferor a rollover distribution.*  4.+          Other gains andlosses  5. Enter the amount of any loss claimed onForm 1040, line 12. (If theamount on Form 1040, line 12, is a gain, enter zero.)*  5.           6. Enter the amount of any loss claimed on Form1040, line 18. (If the amount on Form 1040, line 18, is a gain, enterzero.)*  6.           7. Enter the amount of any rental real estateincome (or loss) included onSchedule E, line 26.*  7.           8. Enter the amount from Schedule E, line 31.*  8.           9. Enter the amount from Schedule E, line 39.*  9.          10. Combine the amounts on lines 7, 8, and 9. If theresult is a loss, enter it here. If the result is a gain, enterzero.* 10.          11. Add the amounts on lines 5, 6, and 10 of thisworksheet. Enter the result. 11.          12. Multiply the amount on line 11 of this worksheetby 75% (0.75). Enter the result. 12.+          13. Enter the amount of any loss claimed on ScheduleE, line 36.* 13.+          14. Enter any income from the rental of personalproperty shown on Form 1040, line 21. 14.          15. Enter any royalty income from Schedule E, line4. 15.+          16. Add the amounts on lines 14 and 15 of thisworksheet. 16.          17. Enter the amount of any expenses from the rentalof personal property deducted on Form 1040, line 32. 17.          18. Enter the amount of any expenses from ScheduleE, line 21, related to royalty income. 18.+          19. Add the amounts on lines 17 and 18 of thisworksheet. 19.          20. Subtract the amount on line 19 of this worksheetfrom the amount on line 16. If the result is a loss, enter it here. Ifthe result is a gain, enter zero. 20.+          21. Lugano Hotel de lujoAdd the amounts on lines 1, 2, 3,4, 12, 13, and 20 of this worksheet. Enter the total. This isyour Modified AGI. 21.=          *See Worksheet 3 instructions onthe previous page.    Your modified AGI must be less than: $30,580 if you have more than one qualifying child, $26,928 if you have one qualifying child, or $10,200 if you do not have a qualifying child. If your modified AGI is too great, you cannot claim the EIC. You donot need to read the rest of this publication. You can go back andfinish the rest of your tax return.