Single - With Dependents

CPAs, EAs, CRTPs

In this illustrative course, the goal is to address the various credits available to single parents. In addition to the child tax credit and the child care credit, many single parents qualify for the earned income credit. This credit is not only available to taxpayers with children, and this course strives to review the key determining factors in evaluating a taxpayer for qualification. Determining who the child is a dependent of, entitlement for dependency allowances, and the dependency rules are also covered. Unreported Social Security and Medicare taxes are also addressed, particularly as they relate to the receipt of tip income.

• Identify applicable credits (e.g., earned income credit, child tax credit, credit for other dependents, child and dependent care credit, and saver’s credit)
• Identify items excluded from income
• Determine special filing requirements (e.g., presidentially declared disaster areas)
• Determine qualifying child/relative tests for earned income credit
• Explain eligibility requirements for earned income credit
• Determine unreported Social Security and Medicare tax on certain tip income
• Explain requirements of Form 8867 Paid Preparer’s Due Diligence Checklist and related penalty for failure to exercise due diligence (e.g., IRC 6695(g))