Important Information about the Earned Income Credit
The Earned Income Credit (EIC) is a vital part of our nation’s tax picture. However, in the past the amount of fraud in this program has been crippling. To combat this, the IRS now requires tax professionals to review documents that confirms a taxpayer’s right to the EIC.
When you meet with your tax professional this year, you will be asked many probing questions. Please remember that your tax professional is required to ask and faces stiff penalties if they do not ask. If the child is a grandchild or a niece/nephew, they will ask questions about the parents of the child.
Please bring documents that confirm that the child is your qualified child, confirms the child’s age and proves that the child lived in your home with you for at least six months of the tax year. If the child is over 18, bring information that confirms the child is either a full time student or disabled. Below is the link to the IRS Form 8867 that your tax professional is required to complete.
You will be required to present:
- School records or statement
- Landlord or property management statement
- Health care provider statements
- Medical records
- Child care provider statements
- Placement agency statements
- Social service statements
- Place of worship statements
- Indian Tribal Official statements
The "statements" must include your name and state the child lived at your address during 2013, and include the actual street address. The statement must be on the organization's letterhead. Many schools are already prepared to issue these statements to the appropriate adults.
For more information on the EIC, here are some links:
Form 8867 can be found at http://www.irs.gov/pub/irs-pdf/f8867.pdf
Assorted IRS Resources on EIC can be found at http://www.irs.gov/Individuals/EITC-Publications,-Forms,-Brochures-and-Other-Resources
Basic Information on the EIC can be found at http://www.irs.gov/Individuals/EITC-Home-Page--It’s-easier-than-ever-to-find-out-if-you-qualify-for-EITC