# Presentation: 482077

## Example 1

- EITC Tax Preparer Toolkit

## A client wishing to have her taxes prepared informs you:

She is separated from her spouse	

Her child, who is 7 years old, lives with her and she wants to claim EITC

- She is separated from her spouse
- Her child, who is 7 years old, lives with her and she wants to claim EITC

- Example 1

## Filing Status
If the client is separated from her spouse, what exactly does that mean?
The preparer needs to ask questions to determine whether she must use a married filing status (married filing joint or married filing separate) or can qualify for head of household or single filing status
The preparer should ask questions to determine if she is legally separated or did not live with her spouse for last 6 months of year (allowing her to be “considered unmarried” for head of household purposes)
Qualifying Child Residency Requirement
The father might come into play here
The preparer should determine whether the child lived with the client for more than half the year
Since there is another parent involved, the preparer should ask questions to determine if there is a possibility the father might claim the child as well. The preparer has a responsibility to inform the client what will happen in a duplicate claim situation and how the IRS will apply the EITC tie breaker rules if she and her spouse both claim the child   
If the parents are separated, they may also have qualifying child issues between them

- If the client is separated from her spouse, what exactly does that mean?
- The preparer needs to ask questions to determine whether she must use a married filing status (married filing joint or married filing separate) or can qualify for head of household or single filing status
- The preparer should ask questions to determine if she is legally separated or did not live with her spouse for last 6 months of year (allowing her to be “considered unmarried” for head of household purposes)
**Qualifying Child Residency Requirement**
- The father might come into play here
- The preparer should determine whether the child lived with the client for more than half the year
- Since there is another parent involved, the preparer should ask questions to determine if there is a possibility the father might claim the child as well. The preparer has a responsibility to inform the client what will happen in a duplicate claim situation and how the IRS will apply the EITC tie breaker rules if she and her spouse both claim the child
- If the parents are separated, they may also have qualifying child issues between them

- What Issues Should You Take Notice Of?

## Questions and Answers -

- Take 1

## What Questions Should You Ask?	

*She says...*
- Yes, I’m still married but separated

*You ask...*
- Are you still married?

## What Questions Should You Ask?	

*She says...*
- January of last year

*You ask...*
- When did you separate from your husband?

## What Questions Should You Ask?	

*She says...*
- Yes, in January of last year

*You ask...*
- Did you move to separate homes, and if so, when?

## What Questions Should You Ask?	

*She says...*
- My child lived with me every day except every other weekend and two weeks in the summer

*You ask...*
- How long during the year did your child live with you?

## What Questions Should You Ask?	

*She says...*
- No, I did not

*You ask...*
- Did you live with anyone else?

## It looks like you may qualify for EITC. I’ll go through the rest of the questions and do the computations to make sure

- You Say...

## Questions and Answers -

- Take 2

## What Questions Should You Ask?	

*She says...*
- Yes, I’m still married but separated

*You ask...*
- Are you still married?

## What Questions Should You Ask?	

*She says...*
- November of last year

*You ask...*
- When did you separate from your husband?

## What Questions Should You Ask?	

*She says...*
- I moved out when we separated in November

*You ask...*
- When did you stop living in the same home?

## What Questions Should You Ask?	

*She says...*
- No, I want my own refund

*You ask...*
- Are you going to file a tax return with your husband?

## No
Her filing status is: 
Married Filing Separate

- Her filing status is:
- Married Filing Separate

- Does She Qualify For EITC?