Things aren't always as they seem. In this episode of Tax Tales: The Case of the Unclear Aunt, does Aunt Joan qualify for the EITC? The preparer must take a closer look at Aunt Joan's AGI and whether the tie-breaker rules apply to determine if she can claim the EITC.
All tax preparers must practice due diligence, especially when it comes to the EITC, or they could be fined $500. Their clients could be fined as well. EITC eligibility is complicated. An updated version of Form 8867, the paid preparer's checklist, is worth reviewing in every situation. If tax preparers complete and submit the form with [...]
Think you can claim the Earned Income Tax Credit for having a disabled child? You may need to think again. Tax law says you can only claim the EITC for a disabled child if s/he's disabled for more than 12 months. However, the caregiver of a disabled child may qualify for a smaller credit just for [...]
There are many reasons to check your tax withholding. This means looking to see how much money your employer is withholding from your paycheck for federal income tax. It's a good idea to check your withholding, as it will help you avoid a surprise at tax time. If your employer is withholding too little, you could [...]
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 [...]
