Frequently Asked Questions and Answers

IRS - Top Frequently Asked Questions

Earned Income Tax Credit Checklist
Lista de verificación y documentos para dependientes en sus impuestos

Doc Checklist PDF

EITC = Earned Income Tax Credit - Form 886-H-EIC Toolkit

This tool is to help you identify what documents you need to provide to the IRS, if you are audited, to prove you can claim the Earned Income Tax Credit (EITC) with a qualifying child (if you are not sure you are qualified, use the EITC Assistant to find out if you qualify)

EITC = Crédito Tributario por Ingreso del Trabajo - Formulario 886-H-EIC Toolkit

Esta herramienta es para ayudarle a identificar los documentos que usted tendrá que proporcionar al IRS, si usted es auditado, para verificar que tiene derecho a reclamar el Crédito Tributario por Ingreso del Trabajo (EITC, por sus siglas en inglés) con un hijo calificado (si no está seguro si tiene derecho a reclamarlo, utilice el Asistente EITC para saber si reúne los requisitos).

1) - Question: What is Earned Income Credit?

Pub 596 PDF

2) - Who qualifies a taxpayer for the child and dependent care credit?


3) - Question: What are the tax changes 2020?


4) - If I claim my daughter as a dependent because she is a full-time college student, can she claim her own personal exemption when she files her return?


5) - Can I receive a tax refund if I am currently making payments under an installment agreement or payment plan for a prior year's federal taxes?


6) - For head of household filing status, do you have to claim a child as a dependent to qualify?


7) - What should I do if I made a mistake on my federal return that I have already filed?


8) - What is a split refund?


9) - How do I know if I have to file quarterly individual estimated tax payments?


10) - I retired last year, and started receiving social security payments. Do I have to pay taxes on my social security benefits?


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Del Valle Tax Service - Due Diligence Videos

Tie Breaker Rule

Does Aunt Joan qualify for EITC in Tax Tales: The Case of the Unclear Aunt? The preparer must take a closer look at Aunt Joan's AGI and whether the tie-breaker rules apply to determine if she can claim the EITC.

Schedule C/Recordkeeping

Recordkeeping is important for those who are self-employed to determine if they are eligible for the EITC. In Tax Tales: The Case of the Teased Up Records, the preparer talks with Mrs. Davis about how to reasonably reconstruct records for her hair styling business to meet EITC due diligence requirements, and determine if she is eligible for the credit.

Residency Requirement

Does Mrs. Romero, who was recently divorced, qualify for the EITC - or does her ex-husband? See what questions the preparer asks about Mrs. Romero's daughter, and their living situation to find out if she meets the residency requirement for EITC in Tax Tales: The Case of the Angry Divorcee.


Over or under reporting income is one of the most common EITC errors. Watch Tax Tales: The Case of the Missing Ledger as the Preparer determine if John's records are enough to satisfy if he is eligible for EITC.

Qualifying Child

In Tax Tales: The Case of the Too Open Door, the preparer meets a potential new client, Sunshine, who's got quite the extended family, and she wants to know if she qualifies for the EITC. See what question the preparer asks her to see if Sunshine is eligible for the credit.

Qualifying Child 2

Mr. Kimble wants to claim EITC on his tax return for his niece and nephew. But the preparer has a few questions to ensure his information stacks up - and to determine if he will qualify. Tax Tales: The Case of the Complicated Household showcases how Publication 4717 provides clients with information about what their responsibility is, and why preparers ask questions to determine eligibility for the credit.

Employer Responsibility

Stuart, a new employee, is confident in this tax preparation skills, but the preparer isn't quite sure Stuart has been practicing EITC due diligence. Watch Tax Tales: The Case of the Unexpected Handicap to see how the preparer handles due diligence with his new employee.

Disabled Child

Sit back to see Mr. Samuels and the preparer in Tax Tales: The Case of the Unexpected Double and learn about the right questions that will determine if Mr. Samuels' child meets the definition of a qualifying child for the credit.

IRS Tax Audit

Max, a fellow tax preparer, is worried about an IRS audit. What will happen if the IRS finds errors or omissions? Can his friend, the preparer, give him the facts about an EITC due diligence audit, and help relieve his worst fears? In Tax Tales: The Case of the Anxious Preparer, the preparer provides information about what happens during and EITC due diligence audit and best practice tips for tax preparers.

AGI/Tie Breaker Rule

Watch Tax Tales: The Case of the Topsy--Turvy Grandma where we'll see if Alice Jackson's AGI and child's residency meet the requirements to claim EITC. Will the preparer ensure due diligence, and ask the right questions?