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| Author : | Paul Winn, CLU, ChFC |
| Course Length : | Pages: 74 ||| Word Count: 29,735 ||| Review Questions: 22 ||| Final Exam Questions: 25 |
| CPE Credits : | 5.0 |
| IRS Credits : | 5 |
| Price : | $44.95 |
| 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 2470 |
| Description : | Individual Income Tax Credits and Due Diligence Requirements examines the income tax credits available to individual taxpayers. In so doing, this 5 chapter 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 final chapter focuses on the due diligence requirements applicable to tax preparers and examines the:
o Having the appropriate knowledge,
Of the 161,336,659 federal income tax returns received in 2023 (2022 income) by the IRS, 61,831,870 taxpayersóabout 38%óclaimed one or more federal income tax credits amounting to a total of $154.8 billion. For a tax preparer that prepares 150 to 200 tax returns in a season, the numbers indicate that he or she is likely to encounter between 55 and 75 returns claiming income tax credits that average approximately 2,500. |
| Usage Rank : | 15000 |
| Release : | 2025 |
| Version : | 1.0 |
| Prerequisites : | None. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Tax Credit: What It Is, How It Works, What Qualifies, 3 Types
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 03-Mar-2025 |
| 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 - 2470 |
| Keywords : | Taxes, Individual, Income, Tax, Credits, Due, Diligence, Requirements, 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
Chapter 5
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| Course Contents : | Course Learning Objectives Introduction to the Course Chapter 1 - Federal Income Tax Credits Chapter Learning Objectives Introduction Tax Credits vs. Tax Deductions All Tax Credits are Equal But Some are More Equal Nonrefundable Federal Income Tax Credits Partially Refundable Federal Income Tax Credits Fully-Refundable Federal Income Tax Credits Tax Credit Carry Forward Adoption Tax Credit may be Carried Forward Foreign Income Tax Credit may be Carried Back and Carried Forward Credits for Energy Efficiency Summary Chapter 1 Review Chapter 2 - Non-Refundable Income Tax Credits – Part 1 Chapter Learning Objectives Introduction Child Tax Credit Child Tax Credit Phaseout and Nonrefundable Amounts Social Security Number Requirement Credit for Other Dependents Limits on the CTC and ODC Claiming CTC and ODC Adoption Credit Eligible Child Qualified Adoption Expenses Qualified Adoption Expenses not required for Special Needs Adoptions The Benefit Timing of the Credit/Exclusion Benefit Phased-Out at Higher Taxpayer MAGI Benefit may be Carried Over Lifetime Learning Credit Eligibility to Claim a Lifetime Learning Credit Expenses Qualifying for a Lifetime Learning Credit Qualified Education Expenses Eligible Educational Institution Double Benefit Prohibited Adjustments to Qualified Education Expenses Tax-Free Educational Assistance Refunds Expenses That Do Not Qualify Eligible Students Claiming a Dependent’s Expenses Expenses Paid by the Dependent Expenses Paid by Others Tuition Reductions Tuition Reductions for Undergraduate Level Education Tuition Reductions for Graduate Level Education Figuring the Lifetime Learning Credit Maximum Lifetime Learning Credit Subject to Income Limits/Filing Status Lifetime Learning Credit Recapture Child and Dependent Care Credit Eligible Care Recipients Limited to Qualifying Persons Eligible Taxpayers Retirement Savings Contribution Credit Saver’s Credit Applicable to Range of Retirement Contributions Saver’s Credit Eligibility Based on Income and Filing Status Mortgage Interest Credit Mortgage Interest Credit Recapture Foreign Income Tax Credit Summary Chapter 2 Review Chapter 3 - Energy-Related Nonrefundable Income Tax Credits Chapter Learning Objectives Introduction Energy-Efficient Home Improvement Credit Qualified Energy Efficiency Improvements Energy Efficient Building Envelope Component Tax Credit Limitations Qualified Energy Property Heat Pumps and Heat Pump Water Heaters Biomass Stoves and Boilers Oil Furnace and Hot Water Boilers Panelboard, Circuity Replacements, or Improvements Residential Energy Property Expenditures Eligible Fuel Home Energy Audits Special Rules Applicable to the Energy Efficient Home Improvement Credit Subsidized Energy Financing Tax Credits Reduce Taxpayer’s Basis Product Identification Number Required Qualified Manufacturer/Identification Number Tax Credits for Purchase of Electric Vehicles Clean Vehicle New Clean Vehicle Additional Defined Terms Calculating Available EV Tax Credits New Clean Vehicle Tax Credits Critical Materials Requirement Battery Component Manufacture/Assembly Requirement Income-Based EV Tax Credit Limitations Manufacturer’s Suggested Retail Price Affects Tax Credit Eligibility Transfer of Credit Tax Treatment of Payments Special Rules Other Requirements Effective Date Previously-Owned Clean Vehicle Previously-Owned Clean Vehicle Tax Credits Income-Based EV Tax Credit Limitations Qualified Sale Qualified Buyer Definition of Motor Vehicle; Capacity Application of Certain Rules Transfer of Credit Tax Treatment of Payments Summary Chapter 3 Review Chapter 4 - Partially & Fully Refundable Income Tax Credits Chapter Learning Objectives Introduction Partially Refundable Tax Credits Additional Child Tax Credit American Opportunity Credit Figuring the American Opportunity Credit Maximum American Opportunity Credit Subject to Income Limits/Filing Status Refundable Part of the American Opportunity Credit Fully Refundable Tax Credits Earned Income Tax Credit Adjusted Gross Income Limits Valid Social Security Number Required Tax Filing Status – Separated Spouses Citizenship or Residency EIC Rules That Apply Only if the Taxpayer Has a Qualifying Child EIC Rules That Apply if Taxpayer Does Not Have a Qualifying Child Premium Tax Credit Federal Poverty Level Amount of the Credit Benchmark Plan Taxpayer’s Expected Contribution Additional Tax Limitation Summary Chapter 4 Review Chapter 5 - Due Diligence Requirements Chapter Learning Objectives Introduction Due Diligence in Tax Preparation Have Appropriate Knowledge Compute the Credit(s) Prepare and Submit Form 8867, Paid Preparer’s Due Diligence Checklist Keep Appropriate Records Due Diligence a Legal Mandate Credits Involving a Significant Level of Errors Tax Credit Overpayments Education and Compliance Actions Paid Preparer’s Due Diligence Checklist – IRS Form 8867 Earned Income Tax Credit Most Common EIC Errors Claiming a Non-qualifying Child for the EIC Married Taxpayers not Filing a Joint Return Special Rule for Married (but Separated) Taxpayers Incorrectly Reporting Income Education Tax Credits Most Common AOTC Errors Child Tax Credit Most Common CTC/ACTC/ODC Errors Consequences of Claim Denial Taxpayer’s Cost of Claim Denial Claiming a Tax Credit after Disallowance Exceptions to Filing Form 8862 Preparer’s Cost of Claim Denial Employer’s Cost of Claim Denial American Opportunity Credit Summary Chapter 5 Review Glossary |
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