[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.32-2]

[Page 102]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.32-2  Earned income credit for taxable years beginning after December 31, 1978.

    (a) [Reserved]
    (b) Limitations. (1) [Reserved]
    (2) Married individuals. No credit is allowed by section 32 in the 
case of an eligible individual who is married (within the meaning of 
section 7703 and the regulations thereunder) unless the individual and 
spouse file a single return jointly (a joint return) for the taxable 
year (see section 6013 and the regulations thereunder relating to joint 
returns of income tax by husband and wife). The requirements of the 
preceding sentence do not apply to an eligible individual who is not 
considered as married under section 7703(b) and the regulations 
thereunder (relating to certain married individuals living apart).
    (3) Length of taxable year. No credit is allowed by section 32 in 
the case of a taxable year covering a period of less than 12 months. 
However, the rule of the preceding sentence does not apply to a taxable 
year closed by reason of the death of the eligible individual.
    (c) Definitions. (1) [Reserved]
    (2) Earned income. For purposes of this section, earned income is 
computed without regard to any community property laws which may 
otherwise be applicable. Earned income is reduced by any net loss in 
earnings from self-employment. Earned income does not include amounts 
received as a pension, an annuity, unemployment compensation, or 
workmen's compensation, or an amount to which section 871(a) and the 
regulations thereunder apply (relating to income of nonresident alien 
individuals not connected with United States business).
    (d) [Reserved]
    (e) Coordination of credit with advance payments--(1) Recapture of 
excess advance payments. If any advance payment of earned income credit 
under section 3507 is made to an individual by an employer during any 
calendar year, then the total amount of these advance payments to the 
individual in that calendar year is treated as an additional amount of 
tax imposed (by chapter 1 of the Code) upon the individual on the tax 
return for the individual's last taxable year beginning in that calendar 
year.
    (2) Reconciliation of payments advanced and credit allowed. Any 
additional amount of tax under paragraph (e)(1) of this section is not 
treated as a tax imposed by chapter 1 of the Internal Revenue Code for 
purposes of determining the amount of any credit (other than the earned 
income credit) allowable under part IV, subchapter A, chapter 1 of the 
Internal Revenue Code.

[T.D. 7683, 45 FR 16175, Mar. 13, 1980. Redesignated by T.D. 8448, 57 FR 
54923, Nov. 23, 1992; T.D. 9045, 68 FR 10656, Mar. 6, 2003]