This course covers changes all aspects of the earned income credit. The American Rescue Plan made substantial changes to the EIC for 2021, with some changes specific to 2021-only, while some changes remain a permanent part of the law. We will cover the parts of ARPA that continue to apply.

The course provides a detailed examination of the requirements for claiming the EIC on 2023 tax returns, grounded in IRS Publication 596 and incorporating relevant permanent legislative changes. We methodically cover the 15 essential rules governing EIC eligibility, including adjusted gross income and earned income thresholds, Social Security Number mandates, permissible filing statuses, U.S. residency rules, investment income limitations, and the specific tests for a qualifying child.

Furthermore, the training places critical emphasis on the vital responsibilities of tax professionals regarding EIC. You will gain a thorough understanding of:

• Form 8862: When and how taxpayers must recertify eligibility after a prior EIC denial or reduction.
• Form 8867: The preparer due diligence requirements applicable to EIC and other key credits/filing statuses, covering mandatory questions, documentation, and record retention.
• The substantial penalties associated with failing to meet due diligence standards.
• Valuable lessons from a real-world case study illustrating the importance of proper due diligence.

By completing this course, you will be equipped to accurately assess taxpayer eligibility for the Earned Income Credit and confidently navigate the mandatory due diligence procedures for the 2023 tax year.