PWX16: Study guide EIC Overview

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