Author : | Paul Winn, CLU, ChFC |
Course Length : | Pages: 36 ||| Review Questions: 20 ||| Final Exam Questions: 30 |
CPE Credits : | 6.0 |
IRS Credits : | 6 |
Price : | $53.95 |
Passing Score : | 70% |
Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents |
Technical Designation: | Technical |
Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 633 |
Description : | The Earned Income Credit (EIC) is a refundable tax credit that has a significant impact on United States revenue and, in the 2022 tax year, amounted to about $64 billion claimed by more than 31 million tax filers. In a recent year, 153.8 million individual federal tax returns were filed, and 19.6 million—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. |
Usage Rank : | 14286 |
Release : | 2023 |
Version : | 1.0 |
Prerequisites : | None. |
Experience Level : | Overview |
Additional Contents : | Complete, no additional material needed. |
Additional Links : |
Earned Income Tax Credit (EITC)
|
Advance Preparation : | None. |
Delivery Method : | QAS Self Study |
Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
Revision Date : | 01-Feb-2024 |
NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Approved Audience : | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 633 |
Keywords : | Taxes, Earned, Income, Credit, cpe, cpa, online course |
Learning Objectives : |
Course Learning Objectives Upon completion of this course, you should be able to:
Chapter 1
Chapter 2
Chapter 3
Chapter 4
|
Course Contents : | Course Learning Objectives Introduction to The Course Chapter 1 - Earned Income Credit Rules Learning Objectives Introduction Eligibility to Receive EIC EIC Rules Applicable to Everyone Adjusted Gross Income Limits Valid Social Security Number Required Tax Filing Status Separated Spouses Citizenship or Residency Foreign Earned Income Investment Income Earned Income EIC Rules That Apply Only if the Taxpayer Has a Qualifying Child Relationship, Age, Residence and Joint Return Tests The Relationship Test The Age Test Student Defined Permanently and Totally Disabled Defined The Residency Test Exception for U.S. Military Stationed Outside the U.S. The Joint Return Test Child Must Have Valid Social Security Number Taxpayers with Qualifying Children who Fail to Meet Identification Requirements Qualifying Child of More than One Person Rule Tiebreaker Rules Qualifying Child of Another Taxpayer Rule EIC Rules That Apply if Taxpayer Does Not Have a Qualifying Child The Age Rule Death of Spouse During Year The Dependent of Another Person Rule The Qualifying Child of Another Taxpayer Rule The Main Home Rule Figuring the Amount of the Earned Income Credit Calculating Earned Income for EIC Purposes Taxpayers Not Self-Employed, Statutory Employees, Clergy or Church Employees Self-Employed Taxpayers, Statutory Employees, Clergy and Church Employees Summary Chapter Review Chapter 2 - Earned Income Credit Errors Learning Objectives Introduction Incidence of Earned Income Credit Errors Factors Leading to Earned Income Credit Errors Estimated Revenue Impact of Earned Income Credit Errors Common Earned Income Credit Errors Earned Income Credit Errors Involving Qualifying Children Qualifying Child Requirements When a Child is Disabled Avoiding Qualifying Child Earned Income Credit Errors Earned Income Credit Errors Involving a Client’s Filing Status Single Filing Status Head of Household Filing Status Married Persons Living Apart Avoiding Filing Status Earned Income Credit Errors Earned Income Credit Errors Involving Income Reporting Avoiding Income Reporting Earned Income Credit Errors – Red Flags Earned Income Credit Errors Involving Social Security Numbers Avoiding Social Security Number Earned Income Credit Errors Summary Chapter Review Chapter 3 - EIC Disallowance Learning Objectives Introduction IRS Efforts to Reduce Improper EIC Payments Claiming EIC after Disallowance IRS Form 8862 Timing Filing IRS Form 8862 Exceptions Client Consequences of EIC Disallowance Disallowance Due to Reckless or Intentional Disregard of EIC Rules Disallowance Due to Fraud Summary Chapter Review Chapter 4 - EIC Due Diligence Learning Objectives Introduction Tax Preparer Due Diligence a Statutory Requirement – IRC §6695 Due Diligence Requirements Paid Preparer’s Due Diligence Checklist – IRS Form 8867 Due Diligence Questions to Ask to Avoid Qualifying Child Errors Paid Preparer’s Due Diligence Checklist Best Practices EIC Computation Computation Best Practices Know the Law and the Client – Ask the Right Questions When Should a Preparer Ask Additional Questions – Examples Knowledge Requirement Best Practices Record Maintenance Record Maintenance Best Practices Failure to Meet Due Diligence Requirements Consequences for the Tax Return Preparer Possible Consequences for the Preparer’s Employer Summary Chapter Review Glossary |