This self-study course is approved for one continuing education credit for enrolled agents and other tax return preparers.
To receive credit, you must register using your PTIN, complete the course, and pass the test.
CPAs, attorneys, and others licensed by state boards or organizations should check with their respective licensing body to determine if credit applies toward their continuing education requirements.
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This module covers the specific due diligence requirements under Treasury Regulation section 1.6695-2 that paid preparers must meet when preparing returns or claims for refund claiming the:
- Earned income tax credit (EITC),
- Child tax credit (CTC), additional child tax credit (ACTC), credit for other dependents (ODC),
- American opportunity tax credit (AOTC), or
- Head of household (HOH) filing status.
EITC Temporary Special Rule for Determination of Earned Income
The training module does not include information about the temporary special rule for figuring the EITC for 2021 returns under the American Rescue Plan Act of 2021. Under this rule, your client may elect to use their 2019 earned income to figure their 2021 EITC if their 2019 earned income is more than their 2021 earned income. For details, see Publication 596, Earned Income Credit.
If you prepare a tax return in which the taxpayer makes this election, the due diligence requirements under the Treasury Regulation apply to your computation of earned income for two years:
- the 2021 tax year to determine that earned income has decreased from 2019, and
- the 2019 tax year to determine the earned income used to compute the EITC claimed under the election.
EITC Special Rules for 2021 for Individuals With No Qualifying Children
The training module does not include information about special EITC rules for 2021 under the American Rescue Plan Act of 2021. Only for tax year 2021, the improvements include:
- Age ranges modified:
- Most taxpayers can claim the credit beginning at age 19
- Some taxpayers can claim the credit at age 18
- Some taxpayers can claim the credit beginning at age 24
- Taxpayers can claim the credit after age 64
- Credit amount is higher
- Earned income limit is higher
- Income range for credit phase-out is higher
For details, see Publication 596, Earned Income Credit.
CTC Improvements for 2021
The training module does not include information about CTC improvements for 2021 under the American Rescue Plan Act of 2021. Only for tax year 2021, the improvements include:
- 17-year-old child can be claimed for the credit
- Credit amount increased
- For most taxpayers:
- Full credit can be refundable
- No earned income requirement for refundable amount
- Monthly advance CTC payments made in 2021, payments must be reconciled to the allowable credit on the 2021 tax return, and for eligible taxpayers, some excess advance payments are protected from repayment
For details, see Child Tax Credit and Credit for Other Dependents in Publication 17, Your Federal Income Tax.