Child, Dependent, and Education Tax Credits

Categories: Federal Tax, IRS CE
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About Course

This two-hour continuing education course provides tax professionals with a practical understanding of the federal tax credits most commonly claimed on individual returns involving children, dependents, and education expenses. The course is designed for enrolled agents and other tax return preparers who prepare individual income tax returns claiming these credits.

Participants examine the Child Tax Credit and Credit for Other Dependents under IRC §24, including qualifying child requirements and the refundable Additional Child Tax Credit. The course provides detailed coverage of the Child and Dependent Care Credit under IRC §21, including qualifying expense and earned income limitations. Students also study the American Opportunity Tax Credit and Lifetime Learning Credit under IRC §25A, including phase-out thresholds and coordination with Form 1098-T. The course concludes with preparer due diligence requirements under IRC §6695(g) and Form 8867 for these refundable and education credits.

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What Will You Learn?

  • Determine whether a taxpayer's child meets the qualifying child requirements for the Child Tax Credit under IRC §24
  • Calculate the Child Tax Credit, the refundable Additional Child Tax Credit, and the Credit for Other Dependents
  • Determine eligibility for the Child and Dependent Care Credit under IRC §21 and identify qualifying expenses
  • Distinguish between the American Opportunity Tax Credit and the Lifetime Learning Credit under IRC §25A
  • Apply the phase-out rules for education credits and reconcile Form 1098-T information with credit eligibility
  • Apply preparer due diligence requirements under IRC §6695(g) and complete Form 8867 for returns claiming these credits

Course Content

Module 1 – Child Tax Credit and Credit for Other Dependents — IRC §24
This module covers the Child Tax Credit and Credit for Other Dependents under IRC §24 — qualifying child requirements, the credit calculation and phase-out based on modified adjusted gross income, and the refundable Additional Child Tax Credit. Participants also study the ITIN limitation that restricts a child to the Credit for Other Dependents rather than the Child Tax Credit.

  • Child Tax Credit and Credit for Other Dependents — IRC §24

Module 2 – Child and Dependent Care Credit — IRC §21
This module addresses the Child and Dependent Care Credit under IRC §21 — qualifying individual requirements, qualifying expenses, the earned income limitation for both spouses on a joint return, and coordination with employer-provided dependent care assistance under a §129 flexible spending account.

Module 3 – Education Credits — American Opportunity Tax Credit and Lifetime Learning Credit (IRC §25A)
This module examines the two education credits available under IRC §25A — the American Opportunity Tax Credit and the Lifetime Learning Credit — including eligibility differences, the four-year AOTC limit, phase-out thresholds, and reconciling Form 1098-T with actual qualified expenses paid, including 529 plan and scholarship coordination.

Module 4 – Preparer Due Diligence for Refundable Credits — Form 8867 and IRC §6695(g)
The final module covers preparer due diligence requirements under IRC §6695(g) and Form 8867 for the Child Tax Credit, Credit for Other Dependents, American Opportunity Tax Credit, and Head of Household filing status, including the knowledge requirement, recordkeeping obligations, and the per-credit, per-return penalty structure.

Final Assessment – Child, Dependent, and Education Tax Credits
You have completed a comprehensive review of the federal tax credits available to taxpayers with children, dependents, and education expenses, covering the Child Tax Credit and Credit for Other Dependents under IRC §24, the Child and Dependent Care Credit under IRC §21, and the American Opportunity Tax Credit and Lifetime Learning Credit under IRC §25A. You are now prepared to demonstrate your understanding of the key concepts. The following final examination assesses your knowledge of the material covered in all four modules. A passing score of 70% is required to successfully complete the course.

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