About Course

This self-study continuing education program focuses on credit eligibility, computation, and phaseouts — the tax-law mechanics of the four major refundable and partially refundable tax credits most frequently audited by the IRS: the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC), the American Opportunity Tax Credit (AOTC), and the Head of Household filing status. The program covers eligibility rules, calculation mechanics, phaseout formulas, and Form 8867 documentation requirements, with preparer due diligence obligations under IRC Section 6695(g) addressed as they apply to correct credit computation.

Upon completion, participants will be equipped to apply the correct eligibility rules for each credit, calculate credit amounts and phaseouts accurately, complete and document Form 8867 for all applicable returns, identify common audit triggers and preparer errors, and fulfill their professional due diligence obligations in accordance with Circular 230 and current IRS enforcement priorities.

Related Course: For the practitioner-conduct side — Circular 230 standards, preparer penalties under IRC Section 6695, and Office of Professional Responsibility risk — see Preparer Due Diligence and Circular 230 Compliance.

Course Content

Module 1 – Earned Income Tax Credit — Eligibility, Calculation, and Due Diligence
This module covers EITC eligibility, qualifying child rules, income limits, and credit calculation basics. It also explains Schedule C risk and preparer due diligence requirements under IRC Section 6695(g).

Earned Income Tax Credit — Eligibility, Calculation, and Due Diligence

Module 2 – Child Tax Credit, ACTC, and American Opportunity Tax Credit
This module reviews CTC, ACTC, and AOTC eligibility rules, credit calculations, phaseouts, and documentation requirements. It also covers Form 1098-T reconciliation and due diligence for education and child-related credits.

Module 3 – Head of Household, Form 8867, and Documentation Standards
This module explains Head of Household filing status rules, Form 8867 requirements, and preparer documentation standards. It focuses on eligibility tests, client interviews, and resolving inconsistent taxpayer information.

Module 4 – Penalties, Audit Risk, and Preparer Compliance
This module covers IRS due diligence penalties, audit triggers, record retention, and preparer compliance duties. It also explains reckless versus willful conduct and Circular 230 responsibilities.

Final Assessment – Tax Credits and Due Diligence Compliance
This final examination evaluates your understanding of Earned Income Tax Credit eligibility, Child Tax Credit and Additional Child Tax Credit rules, American Opportunity Tax Credit requirements, Head of Household filing status, Form 8867 due diligence standards, preparer compliance obligations, penalties, audit risk factors, and IRS record retention requirements. The exam consists of 10 multiple-choice questions. A score of 70% or higher is required to successfully complete the course and receive CE credit.

About Course

Related Courses

What Will You Learn?

Course Content

Module 1 – Earned Income Tax Credit — Eligibility, Calculation, and Due Diligence This module covers EITC eligibility, qualifying child rules, income limits, and credit calculation basics. It also explains Schedule C risk and preparer due diligence requirements under IRC Section 6695(g).

Earned Income Tax Credit — Eligibility, Calculation, and Due Diligence

Module 2 – Child Tax Credit, ACTC, and American Opportunity Tax Credit This module reviews CTC, ACTC, and AOTC eligibility rules, credit calculations, phaseouts, and documentation requirements. It also covers Form 1098-T reconciliation and due diligence for education and child-related credits.

Child Tax Credit, ACTC, and American Opportunity Tax Credit

Module 3 – Head of Household, Form 8867, and Documentation Standards This module explains Head of Household filing status rules, Form 8867 requirements, and preparer documentation standards. It focuses on eligibility tests, client interviews, and resolving inconsistent taxpayer information.

Head of Household, Form 8867, and Documentation Standards

Module 4 – Penalties, Audit Risk, and Preparer Compliance This module covers IRS due diligence penalties, audit triggers, record retention, and preparer compliance duties. It also explains reckless versus willful conduct and Circular 230 responsibilities.

Penalties, Audit Risk, and Preparer Compliance

Tax Credits and Due Diligence Compliance

Module 1 – Earned Income Tax Credit — Eligibility, Calculation, and Due Diligence
This module covers EITC eligibility, qualifying child rules, income limits, and credit calculation basics. It also explains Schedule C risk and preparer due diligence requirements under IRC Section 6695(g).

Module 2 – Child Tax Credit, ACTC, and American Opportunity Tax Credit
This module reviews CTC, ACTC, and AOTC eligibility rules, credit calculations, phaseouts, and documentation requirements. It also covers Form 1098-T reconciliation and due diligence for education and child-related credits.

Module 3 – Head of Household, Form 8867, and Documentation Standards
This module explains Head of Household filing status rules, Form 8867 requirements, and preparer documentation standards. It focuses on eligibility tests, client interviews, and resolving inconsistent taxpayer information.

Module 4 – Penalties, Audit Risk, and Preparer Compliance
This module covers IRS due diligence penalties, audit triggers, record retention, and preparer compliance duties. It also explains reckless versus willful conduct and Circular 230 responsibilities.