Happy Saturday!

  

Today's is a special issue of the 1040 Exam Prep Newsletter presenting an info-graph in Earned Income Credit eligibility rules.

 

Have a wonderful and productive week. Until next Saturday.

 

Norma Wahnon

 

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 How to Avoid EIC Common Errors, Get it Right, and Pass the RTRP Exam

 

 

Let me ask you this. What is one of the most sensitive topics of the RTRP exam? Earned Income Credit, right?

 

Why? Because the IRS reports that historically, EIC is one of the most frequently miscalculated tax credits. Therefore, the IRS requires that you, the tax return preparer, submit Form 8867, Paid Preparers Earned Income Credit Checklist, for EACH client claiming the EIC, as part of EIC due diligence.  

 

In addition, the IRS can hold you, the tax preparer, personally liable for a penalty of $500 for each failure to properly determine taxpayer eligibility and amount of the earned income credit.

 

The following infograpgh the 1040examprep team has put together for you presents an easy visual way to grasp the EIC Eligibility Rules, as step one in determining EIC for your clients. It aims to help you recall those rules for the RTRP exam and in your practice.