Earned Income Tax Credit - 2020
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 amount . In the ten year period ending in 2016, the number of EIC
claims increased from 24.6 million to 27.4 million, an increase of 11.4%. Not only had the number of claims for EIC
increased over the period, the average credit per family also increased by 23.5%, from $1,974 at the beginning of
the period to $2,437 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 37.5% over the period from
$48.5 billion to $66.7 billion.
In a recent year, 150.3 million individual federal tax returns were filed, and 27.4 million—18.2% 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;
- Describe the consequences of the IRS’ disallowance of the earned income credit; and
- Recognize the tax return preparer’s EIC due diligence requirements.
General understanding of federal income taxation.
Type of delivery method:
Recommended CPE credits:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and 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 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