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Taxpayer's summary of expenses or summary of expenses

period of time during the year. If the child lived with each parent for

provided by taxpayer

the same amount of time, the child is treated as the qualifying child

Bank statements reconstruction

of the parent who had the higher adjusted gross income (AGI) for the

year.

Line 6

If no parent can claim the child as a qualifying child, the child is

treated as the qualifying child of the person who had the highest AGI

If your client’s return is selected for audit, the IRS may ask your

for the year.

client to provide documents to show eligibility for, and the amount of,

If a parent can claim the child as a qualifying child but no parent

the credit(s) claimed on the return or claim for refund. The credit(s)

does so, the child is treated as the qualifying child of the person who

may not be allowed without this information. You can help your

had the highest AGI for the year, but only if that person's AGI is

clients be prepared to answer questions about their eligibility for the

higher than the highest AGI of any of the child’s parents who can

credit(s) claimed and the correctness of the amount of the credit(s)

claim the child.

claimed if you help them understand that the IRS may ask for

Subject to the rules just described, the taxpayer and the other

underlying documentation regarding eligibility for, and the

person(s) may be able to choose which of them treats the child as a

computation of, the amount of the credit(s).

qualifying child. If the taxpayer allows another person to treat the

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child as a qualifying child, the taxpayer is not eligible to claim the

EIC for the same child. Also, generally EIC claims must be

Unless an exception applies, if the EIC, the CTC/ACTC, and/or the

consistent with claims for other child-related benefits. For examples

AOTC claimed in a prior year was denied for a reason other than a

and details, see Pub. 596.

clerical or math error, a claim for the credit on the taxpayer’s 2017

In many cases, the taxpayer may be able to tell you whether his

return will be denied unless Form 8862 is attached to the return. See

or her AGI is higher than the AGI of the child’s parents or other

the Form 8862 instructions for more information.

person who might also claim the child.

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Part III—Due Diligence Questions for

The EIC, the CTC/ACTC, and the AOTC are determined using

Returns Claiming the CTC/ACTC

information that includes information about the kind and source of

income reported on a taxpayer’s return. For self-employed

As a paid tax return preparer, you must exercise due diligence to

individuals, this information is generally reported on Schedule C

determine whether a taxpayer meets all of the eligibility

(Form 1040) as income from self-employment. To exercise due

requirements for the CTC/ACTC. Lines 10a, 10b, and 10c only ask

diligence when determining eligibility for, and the amount of, the EIC,

three specific questions about eligibility for the CTC/ACTC.

the CTC/ACTC, and/or the AOTC for a self-employed individual, you

However, your client must meet all of the eligibility requirements for

may also be required to ask additional questions to determine

claiming the CTC/ACTC. Therefore, your client may not claim the

whether the Schedule C is correct and complete unless you

CTC/ACTC unless all of the eligibility requirements for these credits

prepared the individual’s return and/or Schedule C and already

are satisfied, regardless of the answers to the questions on line 10.

exercised due diligence at that time. Additional guidance on

Schedule C and the EIC is available as part of the EIC Tax Preparer

Line 10

Toolkit at

If the taxpayer is the custodial parent of the child claimed for the

If a taxpayer is not reporting self-employment income on

credit, and he or she has completed Form 8332 or signed a similar

Schedule C, select NA.

document containing the same information, releasing a claim to

Part II—Due Diligence Questions for

exemption for the child in question, he or she is not entitled to claim

the CTC/ACTC.

Returns Claiming the EIC

If the taxpayer is the noncustodial parent and has a Form 8332

(or equivalent document) signed by the custodial parent, you should

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determine whether there is a more recent form revoking the release

of the exemption. See the Instructions for Form 8332 for more

As a paid tax return preparer, you must exercise due diligence to

information.

determine whether a taxpayer meets all of the eligibility

Part IV—Due Diligence Questions for

requirements for the EIC. Although lines 9a, 9b, and 9c only ask

three specific questions related to claiming a qualifying child for the

Returns Claiming the AOTC

EIC, all of the eligibility requirements for claiming the EIC must be

met. Therefore, your client may not claim the EIC unless all of the

As a paid tax return preparer, you must exercise due diligence to

eligibility requirements for the EIC are satisfied, even if you answer

determine whether a taxpayer meets all of the eligibility

“Yes” to questions 9a, 9b, and 9c.

requirements for the AOTC. Although line 11 only asks about

Line 9a. If your client is eligible to claim the EIC for taxpayers

substantiation of qualified tuition and related expenses, your client

without a qualifying child, answer question 9a and skip questions 9b

must meet all of the eligibility requirements for claiming the AOTC.

Therefore, your client may not claim the AOTC unless all of the

and 9c.

eligibility requirements for the AOTC are satisfied, even if you

Line 9c—Tiebreaker rules. These rules determine if a taxpayer

answer “Yes” to the question on line 11.

may claim a child as a qualifying child for the EIC when the child

meets the definition of a qualifying child for more than one person. If,

Line 11

under these rules, the taxpayer may not claim a child as a qualifying

child for the EIC, the taxpayer may be able to claim the EIC under

Only qualified tuition and related expenses included. For

the rules for a taxpayer without a qualifying child. For more

purposes of claiming the AOTC, only qualified tuition and related

information, see Pub. 596.

expenses are included in calculating the amount of the credit a

If only one of the persons is the child's parent, the child is treated

taxpayer may claim. Qualified tuition and related expenses are

as the qualifying child of the parent.

tuition and certain related expenses required for enrollment or

If the parents file a joint return together and can claim the child as

attendance at an eligible educational institution. For more

a qualifying child, the child is treated as the qualifying child of both of

information on determining whether expenses meet the definition of

the parents.

qualified tuition and related expenses, see Pub. 970.

If the parents do not file a joint return together but both parents

Eligible educational institution. An eligible educational institution

claim the child as a qualifying child, the child is treated as the

is a school offering higher education beyond high school. The

qualifying child of the parent with whom the child lived for the longer

school must be a college, university, vocational school, or other

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Instructions For Form 8867 - Paid Preparer'S Due Diligence Checklist For The Earned Income Credit (Eic), The Child Tax Credit (Ctc)/additional Child Tax Credit (Actc), And/or The American Opportunity Tax Credit (Aotc) - 2017 Page 3

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