Instructions For Form 8867 - Paid Preparer'S Earned Income Credit Checklist

2015

Department of the Treasury

Internal Revenue Service

Instructions for Form 8867

Paid Preparer's Earned Income Credit Checklist

Future Developments

capital gain or loss. However, see Rule 6 in Pub. 596 to figure

investment income if the taxpayer:

For the latest information about developments related to Form

Files Schedule E, Form 4797, or Form 8814,

8867 and its instructions, such as legislation enacted after they

Reports income on Form 1040, line 21, from the rental of

were published, go to

personal property not used in a trade or business, or

Has income or loss from a passive activity.

General Instructions

Line 7

Only paid preparers have to complete this form. If you were paid

If the taxpayer is a qualifying child of another taxpayer, the

to complete a tax return for any taxpayer claiming the earned

taxpayer cannot claim the EIC. This is true even if the person for

income credit (EIC), submit this form with the return. If you are a

whom the taxpayer is a qualifying child doesn't claim the EIC or

signing tax return preparer electronically filing the return, file the

meet all of the rules to claim the EIC.

form electronically with the return. If you are a signing tax return

The taxpayer is a qualifying child of another taxpayer (the

preparer not electronically filing the return, give the taxpayer the

taxpayer's parent, guardian, foster parent, etc.) if all of the

completed form for filing. If you are a nonsigning tax return

following statements are true.

preparer, give the signing tax return preparer the completed form

1. The taxpayer is that person's son, daughter, stepchild,

in electronic or non-electronic format.

foster child, or a descendant of any of them. Or, the taxpayer is

Purpose of Form

that person's brother, sister, half brother, half sister, stepbrother,

stepsister, or a descendant of any of them.

Paid preparers of federal income tax returns or claims for refund

involving the EIC must meet due diligence requirements in

2. The taxpayer was:

determining the taxpayer's eligibility for, and the amount of, the

a. Under age 19 at the end of the year and younger than that

EIC. Failure to do so could result in a $505 penalty for each

person (or that person's spouse, if the person files jointly),

failure. See Internal Revenue Code section 6695(g) and Part IV

b. Under age 24 at the end of the year, a student, and

of this form.

younger than that person (or that person's spouse, if the person

files jointly), or

Specific Instructions

c. Permanently and totally disabled, regardless of age.

Part I–All Taxpayers

3. The taxpayer lived with that person in the United States

for more than half of the year.

4. The taxpayer is not filing a joint return for the year (or is

Line 1

filing a joint return only to claim a refund of withheld income tax

Enter the name and preparer tax identification number (PTIN) of

or estimated tax paid).

the preparer who determined the taxpayer's eligibility for, or the

However, the taxpayer isn't the qualifying child of another

amount of, the EIC, even if that preparer is not the signing

taxpayer (and so may qualify to claim the EIC) if the person for

preparer.

whom the taxpayer meets the relationship, age, residency, and

Line 2

joint return tests just described isn't required to file an income tax

return and either:

If the taxpayer was married at the end of the year, he or she

Doesn't file an income tax return, or

usually must file a joint return to take the EIC. However, if the

Files a return only to get a refund of income tax withheld or

taxpayer and his or her spouse didn't live together for the last 6

estimated tax paid.

months of the year, the taxpayer may be eligible to use head of

household filing status. See Pub. 501 for details.

For examples and more details, see Pub. 596.

Part II–Taxpayers With a Child

Line 3

For purposes of taking the EIC, a social security number (SSN)

Line 8

issued by the Social Security Administration (SSA) isn't valid if

“Not Valid for Employment” is printed on the social security card

Enter only the child’s first name unless more than one child has

and the number was issued solely to allow the recipient of the

the same first name. In that case, enter other identifying

SSN to apply for or receive a federally funded benefit. If the

information to distinguish between the two children.

social security card specifies "Valid for Work Only With DHS

Line 9

Authorization," the taxpayer can take the EIC as long as the DHS

(Department of Homeland Security) authorization is still valid.

An adopted child is treated as the taxpayer's child by blood. An

Any other SSN issued by the SSA is valid for EIC purposes. You

adopted child is a legally adopted child of the taxpayer, or an

may find it useful to look at the social security card.

individual who is lawfully placed with the taxpayer for legal

adoption by the taxpayer.

Line 6

A descendant usually refers to a grandchild or

Investment income is the total of the taxpayer's taxable interest

great-grandchild of the taxpayer, or to a child, grandchild, or

income, tax-exempt interest income, ordinary dividends, and

great-grandchild of the taxpayer’s brother, sister, stepbrother,

stepsister, half brother, or half sister.

Sep 30, 2015

Cat. No. 59407V

Instructions For Form 8867 - Paid Preparer'S Earned Income Credit Checklist - 2015

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