Study Guide for EIC Overview

The study guide is provided to guide you through the course material in a step by step format.

Reading assignments are for “Earned Income Tax Credit Overview.”

1) Earned Income Credit Rules

Reading Assignment: Chapter 1 <<>> Review Questions: #1-5

The learning objectives for this lesson are to gain an understanding of:

• Eligibility to Receive EIC
• EIC Rules Applicable to Everyone
• EIC Rules That Apply Only if the Taxpayer Has a Qualifying Child
• EIC Rules That Apply if Taxpayer Does Not Have a Qualifying Child
• Figuring the Amount of the Earned Income Credit

2) Earned Income Credit Errors

Reading Assignment: Chapter 2 <<>> Review Questions: # 1-5

The learning objectives for this lesson are to gain an understanding of:

• 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

3)  EIC Disallowance

Reading Assignment: Chapter 3  <<>> Review Questions: # 1-5

The learning objectives for this lesson are to gain an understanding of:

• IRS Efforts to Reduce Improper EIC Payments
• Claiming EIC after Disallowance
• Client Consequences of EIC Disallowance

4)  EIC Due Diligence

Reading Assignment: Chapter 4 <<>> Review Questions: 1-5

The learning objectives for this lesson are to gain an understanding of:

• Tax Preparer Due Diligence a Statutory Requirement
• Failure to Meet Due Diligence Requirements