What documents are needed for EIC?
Michele — Here are the records that can be submitted to your paid preparer to document the residency of qualifying children for the earned income credit:
- School records or statement.
- Landlord or property management statement.
- Health provider statement.
- Medical records.
- Child care provided records.
What are the four requirements of EITC due diligence?
The Four Due Diligence Requirements
- Complete and Submit Form 8867. (Treas. Reg. section 1.6695-2(b)(1))
- Compute the Credits. (Treas. Reg. section 1.6695-2(b)(2))
- Knowledge. (Treas. Reg. section 1.6695-2(b)(3))
- Keep Records for Three Years.
What is the preparer required to do when preparing a tax return with EITC?
Proposed Changes to the Due-Diligence Requirements Sec. 1.6695-2(b)(1)(i) requires the tax return preparer to submit Form 8867 along with the return claiming the EITC credit, and Prop.
How does the IRS verify EITC?
IRS uses both internal information and information from external sources such as other government agencies. If the review shows questionable or incomplete information, the IRS holds the EITC portion of the taxpayer’s refund and contacts the taxpayer to verify the information.
What are the requirements to file an EIC?
Must have lived in the United States more than half the year. Can’t file Form 2555 (relating to foreign earned income). Can’t be a qualifying child of another person. Investment income must be $3,600 or less. Can’t be a qualifying child of another
Do you need documentation to claim earned income credit?
The answer is yes, you need to provide the documentation if you used a paid preparer for your tax return and you claimed the earned income credit. The earned income credit is for certain people who work and have earned income less than $51,567.
Can You claim the EIC without a qualifying child?
No, you can qualify for the EIC without a qualifying child if you are at least age 25 but under age 65 and your earned income is less than $15,820 ($21,710 if married filing jointly). See chapter 3. How Do I Figure the Amount of EIC? If you can claim the EIC, you can either have the IRS figure your credit, or you can figure it yourself.
How to complete the EITC Due Diligence Checklist?
Complete and submit the Form 8867, Paid Preparer’s Due Diligence Checklist, as directed for all paper and electronic tax returns and all other claims for refund claiming the EITC, CTC/ACTC/ODC, AOTC and/or HOH filing status.