Clients with Dependents

PROGRAM CONTENT

This course provides continuing professional education (CPE) to enhance competence in preparing income tax returns for individuals. Subject matter includes information about the effect of children and other qualifying persons on deductions, credits, and filing status.

CPE CREDIT HOURS

4 Credit Hours. One 50-minute period equals one CPE Credit Hour.

LEARNING OBJECTIVES

• Dependency and Filing Requirements
  • 1-A Distinguish between a qualifying child and a qualifying relative for dependency purposes.
  • 1-B Determine eligibility for a taxpayer to claim the Head of Household filing status.
  • 1-C Determine if a dependent is required to file a tax return when he or she has income.
  • 1-D Apply the tiebreaker rules for a dependent claimed by more than one taxpayer.
  • 1-E Identify who may be claimed as a dependent by legal guardians, including foster parents.
• Credits Based on Dependents
  • 2-A Identify qualifying children for purposes of claiming the Earned Income Credit (EIC).
  • 2-B Determine eligibility for claiming a credit or exclusion for child and dependent care expenses.
  • 2-C Recognize children who are qualifying children for purposes of the Child Tax Credit.
  • 2-D Determine eligibility for claiming a credit or exclusion for the adoption of a child.
  • 2-E Recognize education credits available for dependents in college.
  • 2-F Recognize double-benefit restrictions for students in college.
• Dependent Tax Issues
  • 3-A Recognize unearned income for purposes of the Kiddie Tax.
  • 3-B Distinguish the amount of a child’s income that is subject to the parents’ tax rate under the Kiddie Tax rules.
  • 3-C Assess when a dependent may be subject to the alternative minimum tax (AMT).
  • 3-D Determine who is responsible for filing a tax return and paying tax owed for a dependent.
  • 3-E Identify rules for providing healthcare coverage to adult children.
• Divorce or Separation
  • 4-A Identify requirements for a noncustodial parent to claim a qualifying child.
  • 4-B Identify the custodial parent when a child lives with both parents during the year.
  • 4-C Determine characteristics of child support payments.
  • 4-D Recognize the rules for claiming medical expenses for a child of divorced or separated parents.

RECOMMENDED PARTICIPANTS

Tax professionals who prepare individual income tax returns are encouraged to participate in this course.

PROGRAM LEVEL

Overview. This course provides a general overview of the subject area from a broad perspective. It is appropriate for tax professionals at all organization levels.

*All CE hours issued by The Tax Book