Individual Income Tax Credits and Due Diligence Requirements examines the income tax credits available to individual taxpayers. In so doing, this 5 chapter course looks at both the refundable and nonrefundable 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.
The tax credits considered include the:
| Additional Child Tax Credit | Energy Efficient Home Improvement Tax Credit; |
| Adoption Credit; | Federal fuel tax credit; |
| American Opportunity Tax Credit; | Health Insurance Premium Tax Credit; |
| Child And Dependent Care Credit; | Lifetime Learning Credit; |
| Child Tax Credit; | Mortgage Interest Credit; |
| Credit for Other Dependents | Residential Clean Energy Tax Credit; |
| Earned Income Tax Credit; | Residential Energy Credit; and |
| Electric Vehicle Tax Credit | Retirement Savings Contribution Credit. |
The final chapter focuses on the due diligence requirements applicable to tax preparers and examines the:
- Four basic principles of due diligence;
- Having the appropriate knowledge,
- Computing the credit(s),
- Preparing and submitting Form 8867, Paid Preparer’s Due Diligence Checklist, and
- Keeping appropriate records;
- Most common errors encountered;
- Tips on addressing incomplete, inaccurate and inconsistent client claims;
- Penalties on taxpayers for reckless and fraudulent claims;
- Sanctions that may be applied for a failure to be diligent; and
- IRS Education and Compliance Actions.
Of the 161,336,659 federal income tax returns received in 2023 (2022 income) by the IRS, 61,831,870 taxpayers—about 38%—claimed one or more federal income tax credits amounting to a total of $154.8 billion. For a tax preparer that prepares 150 to 200 tax returns in a season, the numbers indicate that he or she is likely to encounter between 55 and 75 returns claiming income tax credits that average approximately $2,500.
No advance preparation needed
Program Level – Basic
Program prerequisites – None
Delivery method – QAS self-study
Recommended CPE credits – 5
Recommended field of study – Taxes
Course Learning Objectives
- Describe and identify the requirements for claiming the various income tax credits available to individual taxpayers;
- List the due diligence requirements a tax preparer must meet when preparing a tax return claiming the Earned Income Tax Credit (EIC), American Opportunity Tax Credit (AOTC), Child Tax Credit, Additional Child Tax Credit, and Other Dependent Credit (CTC, ACTC, ODC);
- Recognize the records a tax return preparer is required to keep to support a client’s claim for the EIC, AOTC, CTC, ACTC and ODC;
- Identify the penalties that may be imposed on a tax preparer and his or her employer for failing to comply with due diligence requirements when preparing a client’s tax return claiming the EIC, AOTC, CTC, ACTC or ODC;
- Calculate the tax credits available for taxpayers’ energy-efficient home improvements; and
- Describe the tax credits available for the purchase of electric vehicles.
Copyright 2025 by Winn Publications ALL RIGHTS RESERVED. NO PART OF THIS COURSE MAY BE REPRODUCED IN ANY FORM OR BY ANY MEANS WITHOUT THE WRITTEN PERMISSION OF THE COPYRIGHT HOLDER. All materials relating to this course are copyrighted by Winn Publications. Purchase of a course includes a license for one person to use the course materials. Absent specific written permission from the copyright holder, it is not permissible to distribute files containing course materials or printed versions of course materials to individuals who have not purchased the course. It is also not permissible to make the course materials available to others over a computer network, Intranet, Internet, or any other storage, transmittal, or retrieval system. This document is designed to provide general information and is not a substitute for professional advice in specific situations. It is not intended to be, and should not be construed as, legal or accounting advice which should be provided only by professional advisers. No advance preparation needed Program Level - Basic Program prerequisites - None Delivery method - QAS self-study Recommended CPE credits - 5 Recommended field of study - Taxes
