A Review of Five 2020 Tax Credits

A Review of Five 2020 Tax Credits

In this course you will learn more about 5 types of income tax credits. The objectives of the course are listed below.

1. Learn who is eligible to take each of the credits

2. Learn how to actually take the credits

3. Learn which credits are refundable and which are not.

4. The student will learn the income limitations in order take each credit.

5. Each credit has eligibility requirements which are discussed in the course.

6. Each credit, in addition, has qualifying requirements for the dependent in order to take the credit. These are addressed as well.

The 5 credits are:

The Child Tax Credit (CTC)

The Credit for Other Dependents (ODC)

The American Opportunity Credit (AOTC)

The Lifetime Learning Credit (LLC)

The Earned Income Tax Credit (EITC)

Tax credits represent dollar for dollar subtractions from a taxpayer's tax liability and are much better than tax deductions. Numerous credits are allowed by the Internal Revenue Code but these five are the ones claimed most frequently. Due diligence is required for a tax preparer (especially a paid tax preparer) when taking any of these 5 credits,. The lesson discusses the due diligence requirements, the documentation needed to meet the due diligence requirement, and the penalty that may be inflicted for failure to be diligent. Knowledge of the requirements needed to qualify for any of these credits is important to avoid penalty.

Learn about the most common tax credits.

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What you will learn

• Students will learn which tax credits they can claim, what the requirements are, and how to go about claiming the credits.

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Level: Beginner Level

Duration: 1 hour

Instructor: Michael E Scott CPA, CMA