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Family and education credits

SEE 1 Chapter 18 · IRS outline 3B1, 3B2, 3B3, 3B5, 3B6

Credits cut tax dollar for dollar, and some are refundable, paying out even when no tax is owed. That makes them powerful, and it makes them the IRS's top audit target, which is why paid preparers carry extra due diligence duties. The Okafors have two kids and day care; Amara is in college; Marcus is a single dad on a modest wage; and Lily's friends are adopting. Nadia's rule: check eligibility first, then the math, then the paperwork.

In this chapter

1. Child tax credit and credit for other dependents
2. The child and dependent care credit
3. Education credits: AOTC and lifetime learning
4. The earned income credit and preparer due diligence
5. The adoption credit

This chapter has 5 lessons and 73 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Child and dependent care credit
• child tax credit and credit for other dependents
• American opportunity and lifetime learning credits
• earned income credit and due diligence
• adoption credit

Chapter 17: The qualified business income deduction · Chapter 19: Premium tax credit and other credits