Earned Income Tax Credit - 2024 (Text Based)

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.

Learning Objectives:

1. Apply the earned income credit rules to determine if a taxpayer is eligible for the tax credit

2. Identify the common errors committed in connection with the earned income credit

3. Describe the consequences of the IRS' disallowance of the earned income credit

4. Recognize the tax return preparer's EIC due diligence requirements

5. Recognize the EIC eligibility rules that apply to all taxpayers

6. Recognize the incidence of errors in claiming the earned income credit and their probable causes

7. List the principal tools used by the IRS to verify the propriety of EIC claims and to prevent or recover improper EIC payments;

8. Identify the additional requirements imposed on taxpayers claiming the EIC following disallowance

9. List the due diligence requirements a tax return preparer must meet when preparing a tax return claiming the earned income credit

10. Identify the sanctions that may be imposed on an employer whose employee fails to comply with EIC due diligence requirements.
    

Instructional Method: Self-Study

Review Date: 04/22/2024

Required Components: Written Materials

CPE Final Exam Required Passage Grade: 70%

Please Note: This course must be completed within 1 year of the date of receipt of this course for CPE Credit.

Field of Study: Taxes

Level of Knowledge: Beginner

Prerequisites: None

Advanced Knowledge: None

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FurtherEd is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.