The Earned Income Credit (EIC) is a refundable tax credit that has a significant impact on United States revenue. This course examines the earned income credit rules, the common errors made in claiming the credit, the consequences of its disallowance by the IRS and the requirements imposed on tax return preparers for earned income credit due diligence. It discusses the rules applicable to everyone, those applicable only to individuals with a qualifying child, and those that apply only when the taxpayer has a qualifying child.

Learning Objectives

• Identify the earned income credit rules to determine if a taxpayer is eligible for the tax credit
• Identify the common errors committed in connection with the earned income credit
• Describe the consequences of the IRS's disallowance of the earned income credit
• Recognize the tax return preparer's EIC due diligence requirements