Description:
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 33.8% over the period from $48.5 billion to $64.9 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.

Delivery Method: Online Interactive Self Study

Level: Overview

Prerequisites: None

Advanced Preparation: None

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Author: Paul Winn

Category: Taxation

Field of Study: Taxes

Passing Score: 70%

Publication Date: 01/13/2021

Technical Details: Taxes: Technical

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Objectives:
Chapter 1 - Earned Income Credit Rules
1. Recognize the EIC eligibility rules that apply to all taxpayers;
2. Identify the EIC eligibility rules applicable to taxpayers who have a qualifying child;
3. List the EIC eligibility rules that apply to taxpayers who do not have a qualifying child; and
4. Recognize how the EIC for which an eligible taxpayer qualifies is determined.

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NASBA: Yes

QAS: Yes

CPA: Suitable for all CPAs

IRS: Enrolled Agents Program Number 263UK-T-00228-21-S

Profession Identifiers : CPA, EA