Earned Income Tax Credit ON DEMAND

Overview

The Earned Income Credit (EIC) is a refundable tax credit that has a significant impact on United States revenue. In a recent year, 12.7% of individual taxpayers claimed the Earned Income Credit. Based on that percentage, it would not be unexpected that any tax return preparer will prepare the tax returns for many EIC claimants.

Highlights

Eligibility to receive EIC. EIC rules applicable to everyone. EIC rules that apply only if the taxpayer has a qualifying child. Figuring the amount of the earned income credit. Incidence and factors leading to earned income credit errors. Common earned income credit errors. Claiming EIC after disallowance. Client consequences of EIC disallowance. Tax preparer due diligence a statutory requirement. Failure to meet due diligence requirements.

Prerequisites

None.

Designed For

CPAs.

Objectives

Recognize the EIC eligibility rules that apply to all taxpayers. Identify the EIC eligibility rules applicable to taxpayers who have a qualifying child. List the EIC eligibility rules that apply to taxpayers who do not have a qualifying child. Recognize how the EIC for which an eligible taxpayer qualifies is determined. Recognize the incidence of errors in claiming the earned income credit and their probable causes. Identify the estimated impact of earned income credit errors on federal revenue. List the most common earned income credit errors and their potential problem areas. Recognize the additional questions tax preparers need to ask if taxpayer-provided information appears incorrect, inconsistent or incomplete, and more.

Preparation

None.

Notice

None.