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Individual Income Tax Credits and Due Diligence Requirements

  • ITEM SKU
    8480
  • CPE Hours
    5
  • Full Course Price
    $44.50
Exam Questions: 25
Course Level: Basic
Pages: 118 | Content: 102, Supplemental: 16
NASBA Area of Study: Taxes
Not Acceptable for: N/A
Version: 8480

This course looks at the refundable and nonrefundable individual federal income tax credits and discusses the nature of the credits, their eligibility requirements, timing, limitations, phase-outs (where appropriate), whether the credit may be carried over, the nature of any qualified expenses, and how they are calculated. It also examines the requirements for, and basic principles of, due diligence, the most common income tax credit errors encountered by the IRS, IRS guidance on addressing incomplete, inaccurate, and inconsistent client claims, taxpayer penalties for reckless and fraudulent claims, the preparer sanctions that may be applied for a failure to be diligent, and IRS Education and Compliance Actions. All course material provided. No prerequisites. Course level: Course level: Basic/Update.

EA Program Approval Number: ZX34G-T-00641-25-S

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Course Information

Table of Contents
  • Federal Income Tax Credits
  • Nonrefundable Income Tax Credits
  • Energy-Related Nonrefundble Income Tax Credits
  • Partially and Fully Refundable Income Tax Credits
  • Due Diligence Requirements
Objectives
  • To recognize the attributes of federal income tax credits versus federal income tax deductions
  • To identify the difference between refundable, nonrefundable, and partially-refundable tax credits
  • To identify the unused federal income tax credits that may be carried forward to later years
  • To identify the requirements for claiming the Child Tax Credit
  • To recall the eligibility requirements for claiming the Adoption Tax Credit
  • To recognize the applicability of the Lifetime Learning Tax Credit
  • To identify the home improvements that qualify taxpayers for the Energy-Efficient Home Improvement Credit
  • To identify attributes of the Child and Dependent Care Tax Credit
  • To identify the taxpayer contributions that qualify for the Retirement Savings Contribution Credit
  • To recognize attributes of the Mortgage Interest Credit and the Foreign Income Tax Credit
  • To identify the home improvements that qualify taxpayers for the Energy Efficient Home Improvement Credit
  • To recognize how to calculate the tax credit available for energy-efficient home improvements
  • To recall what is qualified energy property
  • To identify a clean vehicle eligible for an electric vehicle tax credit
  • To recall the rules governing electric vehicle purchase tax credits
  • To identify the maximum MAGI beyond which a taxpayer is ineligible for a new or previously-owned clean vehicle tax credit
  • To identify the income tax credits that are refundable in whole or in part
  • To recall the eligibility requirements for claiming the Additional Child Tax Credit
  • To identify attributes of the American Opportunity Tax Credit
  • To identify the requirements that apply to claiming the Earned Income Tax Credit
  • To recall how to calculate the Premium Tax Credit
  • To recall the due diligence requirements a tax preparer must meet when preparing a tax return claiming the Earned Income Tax Credit (EITC), American Opportunity Tax Credit (AOTC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), and Other Dependent Credit (ODC)
  • To recognize the records a tax return preparer is required to keep to support a client’s claim for the EITC, AOTC, CTC, ACTC, and ODC
  • To identify the penalties that may be imposed on a tax preparer for failing to comply with due diligence requirements when preparing a client’s tax return claiming the EITC, AOTC, CTC, ACTC, or ODC
  • To recognize the sanctions that may be imposed on an employer whose employee fails to comply with EITC, AOTC, CTC, ACTC, and ODC due diligence requirements
  • To iIdentify the additional requirements imposed on taxpayers claiming the EITC, AOTC, CTC, ACTC, and ODC following disallowance and the exceptions to those requirements

PLEASE NOTE: CPE credit measurement is based on NASBA Registry and QAS guidelines of one credit for every 50 minutes. Credit calculation may vary in different states — check with your State Board of Accountancy. Unless otherwise noted in the specific course description, no advanced preparation is required in order to register or complete any PES CPE course. Use of materials or services provided by Professional Education Services, LP ("PES") are governed by the Terms and Conditions stated on PES' website www.mypescpe.com. PES provides these courses with the understanding that it is not providing any accounting, legal, or other professional advice and assumes no liability whatsoever in connection with its use. PES has used diligent efforts to provide quality information and material to its customers, but does not warrant or guarantee the accuracy, timeliness, completeness, or currency of the information contained herein. Ultimately, the responsibility to comply with applicable legal requirements falls solely upon the individual licensee, not PES. PES encourages you to contact your state Board for the latest information and to confirm or clarify any questions or concerns you have regarding your duties or obligations as a licensed professional.