Earned Income Credit - 2019
Field of Study:
The Earned Income Credit (EIC) is a refundable tax credit that has a significant impact on United States revenue.
In fact, EIC claims in any year generally total more than $68 billion.
EIC claims are also increasing in both number and amount1. In the ten year period ending in 2014, the number of EIC
claims increased from 22.8 million to 28.5 million, an increase of 25.4%. Not only had the number of claims for EIC
increased over the period, the average credit per family also increased by 28.5%, from $1,864 at the beginning of
the period to $2,395 in the year the 10-year period ended. The combination of an increased number of EIC claims
coupled with an increase in the average credit caused the total amount of EIC claimed to climb by 61.1% over the
period from $42.4 billion to $68.3 billion.
In a recent year, 148.6 million individual federal tax returns were filed, and 28.5 million—19.2% of individual
taxpayers—claimed the Earned Income Credit. Based on that percentage, it would not be unexpected that approximately
one taxpayer in every five may claim the EIC.
After completing this course you will be able to:
- Apply the earned income credit rules to determine if a taxpayer is eligible for the tax credit;
- Identify the common errors committed in connection with the earned income credit;
- List the consequences of the IRS’ disallowance of the earned income credit; and
- Recognize the tax return preparer’s EIC due diligence requirements.
Recommended CPE credits:
General understanding of federal income taxation.
Type of Delivery Method:
QAS Self Study
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and the final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org