Areas of Emphasis
Around 60% of all mistakes in EITC are results of 3 main areas:
1. The child might not meet the age, residency, or relationship requirement.
2. The case might be that someone is filing as single or HOH when he/she is actually married.
3. A mistake might arise when reporting income or expenses. Special attention has to be paid when the client is answering these questions.
The people who are eligible for EITC:
1. Have earned income
2. Have a valid Social Security Number
3. Are filing separately and not as married
4. Are not a nonresident alien
5. Are not a qualifying child of another person
6. Are not filing Form 2555 or Form 2555-EZ
7. Have limited investment income