Tax preparers must make every effort to be certain that taxpayers qualify for the HOH filing status they choose, the EIC, CTC/ACTC/ODC, AOTC, and all expenses they declare on Schedule C.
Appropriate worksheets should be completed by taxpayers and kept in the taxpayer’s file. As had been previously required, copies of identification cards and Social Security cards are required for taxpayers claiming earned income credit. Copies of Social Security cards are also required for dependents claimed by those taxpayers.
The following worksheets will help taxpayers determine whether they qualify. Taxpayers who are filing Head of Household should complete the Head of Household Qualification worksheet. Before signing that sheet, the taxpayer should fill out the Head of Household worksheet.
To determine whether children can be claimed as dependents if the taxpayer is receiving AFDC (Aid to Families with Dependent Children), the Cost of Maintaining a Household worksheet should be completed. Tax preparers must develop the habit of asking clients if they are receiving Aid to Families with Dependent Children.