Complete and Submit Eligibility Checklist - The purpose of Form 8867 is to ensure that the tax preparer has considered all applicable EITC eligibility requirements for each prepared tax return. You should ask questions applicable to each client and be able to explain the meaning and reasoning behind each question when needed. Form 8867 should be completed based on information provided by the taxpayer to the tax return preparer.
- Complete Form 8867, Paid Preparer’s Earned Income Credit Checklist, to make sure you consider all EITC eligibility criteria for each return prepared.
- Complete checklist based on information provided by your client(s).
- For returns or claims for refund filed electronically, submit Form 8867 to IRS electronically with the return.
- For returns or claims for refund not filed electronically, attach the completed form to any paper return you prepare and file.
- For returns or claims for refund you prepare but do not submit directly to the IRS, provide completed Form 8867 to the taxpayer to send with the filed tax return or claim for refund.
Computing the Credit - Your TaxSlayer Pro software calculates the correct amount of Earned Income Credit on the tax returns that you prepare. Special rules regarding the treatment of income, deductions, credits, etc. in certain circumstances are all preprogrammed into the software. Although the software calculates the amount of the Earned Income Credit, the calculations are based strictly on the information and data that is entered into the tax return. It is the responsibility of the taxpayer to ensure the accuracy of all figures used in the calculation of the EITC.
- Complete EITC worksheet from the Form 1040 instructions, or Publication 596, Earned Income Credit, or a document with the same information. The worksheet shows what is included in the computation, that is, self-employment income, total earned income, investment income, and adjusted gross income. Most tax preparation software has the computation worksheet.