How To Figure the EIC Yourself You may be able to use an EIC worksheet in your tax package insteadof EIC Worksheet A or B at the end of thischapter. If you are filing Form 1040EZ, you can use the worksheet inyour tax package. If you are filing Form 1040A, you can use theworksheet in your tax package if you answered "No" to the firsttwo questions in Step 3 of the instructions for lines 37aand b. If you are filing Form 1040, you can use a worksheet in yourtax package if you answered "No" to the first five questions inStep 3 of the instructions for lines 59a and 59b. five star hotel in RotterdamHow To Use EIC Worksheets A and B Use EIC Worksheet A (page 29) or EIC Worksheet B(page 30) to figure the amount of your EIC. This sectionexplains how to use these worksheets and how to report the EIC on yourreturn. Tip: Albergo EspanaKeep your tax return handy while youcomplete EIC Worksheet A or B. EIC Worksheet A.Use EIC Worksheet Aif you are not self-employed or a statutory employee filing Schedule Cor C-EZ. You will need the amounts you figured in the worksheetsearlier in this chapter to complete EIC Worksheet A. EIC Worksheet B.Use EIC Worksheet Bif you are self-employed or a statutory employee filing Schedule C orC-EZ. You will need the amounts you figured in the worksheetsearlier in this chapter to complete EIC Worksheet B. If anyof the following situations apply to you, read the paragraph and thencomplete EIC Worksheet B. Net earnings from self-employment.If your net earnings fromself-employment are $400 or more, be sure to correctly fill outSchedule SE (Form 1040) and pay the proper amount of self-employmenttax. If you do not, you may not get all the EIC you are entitled to. When to use the optional methods of figuring net earnings.Using the optional methods on ScheduleSE to figure your net earnings from self-employment may qualify youfor the EIC or give you a larger credit. If your net earnings (withoutusing the optional methods) are less than $1,600, see Publication 533,Self-Employment Tax, and the instructions for Schedule SE,for details about the optional methods. When both spouses have self-employment income.You must complete both Parts 1 and 2 of EIC Worksheet Bif all of the following conditions apply to you. You are married filing a joint return. Both you and your spouse have income fromself-employment. You or your spouse files a Schedule SE and the other spousedoes not file Schedule SE. Statutory employees.Statutory employees reportwages and expenses on Schedule C or C-EZ. They do not fileSchedule SE. If you are a statutory employee, enter amounts fromSchedule C or C-EZ in Part 3 when you complete EICWorksheet B. Special Instructions for Clergy, Household Employees, andPrison Inmates Use the following special instructions if one of the followingsituations applies to you. Minister or member of a religious order.If you are filing Schedule SE and line 2 of that schedule includesan amount that is also included on line 7 (Form 1040), print "Clergy"directly to the right of line 59a (Form1040). Also show the amount included on both lines (for example,"Clergy $800"). If you received a housing allowance or wereprovided housing and you were required to include the allowance or therental value of the parsonage on Schedule SE, line 2, do not includeit as nontaxable earned income on line 59b (Form 1040). Household employee.If you were a household employee who did not receive a FormW-2 because your employer paid you less than $1,100 in 1999,print"HSH" and the amountpaid that was not reported on Form W-2 in the space on thedotted line next to line 7 (Form 1040), in the space to the left ofline 7 (Form 1040A), or in the space to the right of the words"W-2 form(s)" on line 1 (Form 1040EZ). Also, be sure toinclude that amount in the total for line 7 of either Form 1040 orForm 1040A, or line 1 of Form 1040EZ. Inmates.If you were aninmate in a penal institution and thetotal on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ)includes an amount paid to you for work you performed while an inmate,print "PRI" and the amount paid on the dotted line next to line 7(Form 1040), in the space to the left of line 7 (Form 1040A), or inthe space to the right of the words "W-2 form(s)" on line 1(Form 1040EZ).