Which Form 4797 Pub 2024-2025

One of the most important things on the IRS competency exam is the use of the Earned Income Credit as a tax preparer. I will guide you through Form 8867, which is the paid preparers' Earned Income Credit checklist. This form needs to be filled out and attached to the tax return every time you claim the Earned Income Credit for certain cases. On the front of the form, you will find the taxpayer's name, social security number, and the preparer's name and PTIN. It is crucial for preparers to be aware that up to 40 percent of audits are related to the Earned Income Credit. The IRS is actively looking for preparers who submit claims that do not meet the eligibility criteria. As a tax preparer, it is important to identify the taxpayer's filing status. Married filing separately is not eligible for the Earned Income Credit. Additionally, the taxpayer and the qualifying child must have a social security number. Form 2555 is specifically for foreign income, and living abroad or being a non-resident alien disqualifies one from claiming the Earned Income Credit. Investment income exceeding $3,150 is also a disqualifying factor. The presence of a dependent child is essential for eligibility, and the form provides eligibility criteria for the first, second, and third child, if applicable. Relationship, residency in the US for over half the year, and age are key factors in determining eligibility. The age requirement is under 19 or younger than the taxpayer unless they are a full-time student under the age of 24. The extensive checklist reflects the IRS' effort to ensure tax preparers verify the taxpayer's eligibility for the Earned Income Credit. The third page of the form consists of similar qualifying questions, including the taxpayer's age between 25 and 65 and their adjusted gross...