In this episode of “The Tale of the Complicated Household,” learn more about who can claim the Earned Income Tax Credit.

Don’t forget that the law about who can claim a child changed over the last few years. If a parent and non-parent both meet EITC requirements, the non-parent must have the higher AGI. If you claim the credit in error, you could be audited, and potentially have to pay back the money with interest and potentially penalties.

Here are some due diligence must do’s:

  1. Work the checklist, no matter what.
  2. Trust, but verify when necessary.
  3. Update clients on tax law changes.
  4. Make sure clients know their tax responsibilities and consequences of error.