Individual Income Tax Credits and Due Diligence Requirements ON DEMAND

Overview

This course examines the income tax credits available to individual taxpayers. This course looks at both the refundable and nonrefundable credits and discusses the nature of the credits, their eligibility requirements, timing, limitations, phase-outs where appropriate, whether the credit may be carried over, the nature of any qualified expenses, and how they are calculated. The course also covers the due diligence requirements applicable to tax preparers.

Highlights

Federal income tax credits. Non-refundable income tax credits. Energy-related nonrefundable income tax credits. Partially and fully refundable income tax credits. Due diligence requirements.

Prerequisites

None.

Designed For

CPAs, CEOs, and other accounting professionals.

Objectives

Describe and identify the requirements for claiming the various income tax credits available to individual taxpayers. List the due diligence requirements a tax preparer must meet when preparing a tax return claiming the Earned Income Tax Credit (EIC), American Opportunity Tax Credit (AOTC), Child Tax Credit, Additional Child Tax Credit, and Other Dependent Credit (CTC, ACTC, ODC). Recognize the records a tax return preparer is required to keep to support a client’s claim for the EIC, AOTC, CTC, ACTC and ODC. Identify the penalties that may be imposed on a tax preparer and his or her employer for failing to comply with due diligence requirements when preparing a client’s tax return claiming the EIC, AOTC, CTC, ACTC or ODC. Calculate the tax credits available for taxpayers’ energy-efficient home improvements. Describe the tax credits available for the purchase of electric vehicles.

Preparation

None.

Notice

None.