1040 Tax Credits

Overview

The Internal Revenue Code offers numerous tax credits for individuals, families and many different types of businesses and industries. Although these credits cover many different situations, they all have the common goal of reducing the taxes otherwise payable by the recipients. Tax credits can be very helpful to reduce your client's tax liability, and knowing the rules for each credit can drastically reduce their liability.

The course will focus on the more common credits you might see in your tax practice, including the supporting schedules and forms that are used to calculate the credits. We will discuss the Earned Income Tax Credit but will focus mainly on your responsibility as a tax preparer when a client claims the credit.

Learning Objectives

Upon completion of this course, you will be able to:

  • identify the three methods available on Form 1040 for reporting foreign taxes paid, and the limits on claimable amounts and carryover if Form 1116 is not filed
  • recognize the differences between the American Opportunity Credit and the Lifetime Learning Credit and taxpayer eligibility criteria for each
  • identify taxpayer eligibility criteria for claiming various tax credits including; the Child and Dependent Care Tax Credit, Additional Child Tax Credit, Residential Energy Credit, and the Retirement Savings Contribution Credit
  • identify the conditions that must be met for a taxpayer to claim the Earned Income Credit, and the due diligence requirements for tax practitioners who file such claims
  • recognize the options available for taxpayers who are eligible to claim the Premium Tax Credit to offset their healthcare costs, including the requirement to report any changes in circumstances that occur during the year
  • recognize when a client has excess Social Security and Tier 1 RRTA tax withheld and determine the amount of the available credit

Tax Year: 2020

Designed For

CPAs, EAs, and other tax professionals

WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
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