Form 8867 Paid Prepaper's Earned Income Credit Checklist

Form

8867

Paid Preparer’s Earned Income Credit Checklist

(Rev. December 2009)
Department of the Treasury
Internal Revenue Service

©

OMB No. 1545-1629

Do not send to the IRS. Keep for your records.

For the definitions of the following terms, see Pub. 596 for the year for which you are completing this form.
● Investment Income
● Qualifying Child
● Earned Income
● Full-time Student

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A

Taxpayer’s name

B

If joint return, spouse’s name

Part I

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All Taxpayers

1

Year after 2008 for which you are completing this form

2

Is the taxpayer’s filing status married filing separately?

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Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

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If you checked “Yes” on line 2, stop; the taxpayer cannot take the EIC. Otherwise,
continue.

3

Does the taxpayer (and the taxpayer’s spouse if filing jointly) have a social security number
(SSN) that allows him or her to work or is valid for EIC purposes? See the instructions before
answering
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If you checked “No” on line 3, stop; the taxpayer cannot take the EIC. Otherwise,
continue.

4

Is the taxpayer filing Form 2555 or Form 2555-EZ (relating to the exclusion of foreign earned
income)?
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If you checked “Yes” on line 4, stop; the taxpayer cannot take the EIC. Otherwise,
continue.

5a Was the taxpayer a nonresident alien for any part of the year on line 1?
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If you checked “Yes” on line 5a, go to line 5b. Otherwise, skip line 5b and go to line 6.

b Is the taxpayer’s filing status married filing jointly?
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If you checked “Yes” on line 5a and “No” on line 5b, stop; the taxpayer cannot take
the EIC. Otherwise, continue.
6

Is the taxpayer’s investment income more than the limit that applies to the year on line 1? See
Pub. 596 for the limit
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If you checked “Yes” on line 6, stop; the taxpayer cannot take the EIC. Otherwise,
continue.
7

Could the taxpayer, or the taxpayer’s spouse if filing jointly, be a qualifying child of another
person for the year on line 1?
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If you checked “Yes” on line 7, stop; the taxpayer cannot take the EIC. Otherwise, go
to Part II or Part III, whichever applies.
For Paperwork Reduction Act Notice, see page 4.

Cat. No. 26142H

Form

8867

(Rev. 12-2009)

Form 8867 (Rev. 12-2009)

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9
10

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12

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Taxpayers With a Child

Part II

Caution. If there is more than one child, complete lines 8 through 14 for one
child before going to the next column.
Child’s name
Is the child the taxpayer’s son, daughter, stepchild, foster child, brother,
sister, stepbrother, stepsister, or a descendant of any of them?
Is either of the following true?
● The child is unmarried, or
● The child is married, can be claimed as the taxpayer’s dependent, and
is not filing a joint return (or is filing it only as a claim for refund).
Did the child live with the taxpayer in the United States for over half of the
year? See the instructions before answering
Was the child (at the end of the year on line 1)—
● Under age 19 and younger than the taxpayer (or the taxpayer’s spouse,
if the taxpayer files jointly),
● Under age 24, a full-time student, and younger than the taxpayer (or the
taxpayer’s spouse, if the taxpayer files jointly), or
● Any age and permanently and totally disabled?
© If you checked “Yes” on lines 9, 10, 11, and 12, the child is the
taxpayer’s qualifying child; go to line 13a. If you checked “No” on line
9, 10, 11, or 12, the child is not the taxpayer’s qualifying child; see the
instructions for line 12 on page 4.

13a Could any other person check “Yes” on lines 9, 10, 11, and 12 for the child?

Child 1

Child 2

Child 3

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

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If you checked “No” on line 13a, go to line 14. Otherwise, go to
line 13b.
b Enter the child’s relationship to the other person(s)
c Under the tiebreaker rules, is the child treated as the taxpayer’s qualifying
child? See the instructions before answering
© If you checked “Yes” on line 13c, go to line 14. If you checked
“No,” the taxpayer cannot take the EIC based on this child and cannot
take the EIC for taxpayers who do not have a qualifying child. If there
is more than one child, see the Note at the bottom of this page. If you
checked “Don’t know,” explain to the taxpayer that, under the
tiebreaker rules, the taxpayer’s EIC and other tax benefits may be
disallowed. Then, if the taxpayer wants to take the EIC based on this
child, complete lines 14 and 15. If not, and there are no other qualifying
children, the taxpayer cannot take the EIC, including the EIC for
taxpayers without a qualifying child; do not complete Part III. If there
is more than one child, see the Note at the bottom of this page.
14 Does the qualifying child have an SSN that allows him or her to work or is
valid for EIC purposes? See the instructions before answering
© If you checked “No” on line 14, the taxpayer cannot take the EIC
based on this child and cannot take the EIC for taxpayers who do not
have a qualifying child. If there is more than one child, see the Note at
the bottom of this page. If you checked “Yes” on line 14, continue.
15

Yes
No
Don’t know

Yes No
Don’t know

Yes
No
Don’t know

Yes

Yes

Yes

No

Yes

No

No

No

Are the taxpayer’s earned income and adjusted gross income each less
than the limit that applies to the taxpayer for the year on line 1? See Pub.
596 for the limit
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If you checked “No” on line 15, stop; the taxpayer cannot take the
EIC. If you checked “Yes” on line 15, the taxpayer can take the EIC.
Complete Schedule EIC and attach it to the taxpayer’s return. If there
are two or three qualifying children with valid SSNs, list them on
Schedule EIC in the same order as they are listed here. If the taxpayer’s
EIC was reduced or disallowed for a year after 1996, see Pub. 596 to
see if Form 8862 must be filed. Go to line 20.
Note. If you checked “No” on line 13c or 14 but there is more than one
child, complete lines 8 through 14 for the other child(ren) (but for no more
than three qualifying children). Also do this if you checked “Don’t know” on
line 13c and the taxpayer is not taking the EIC based on this child.
Form

8867

(Rev. 12-2009)

Form 8867 (Rev. 12-2009)

Part III
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Taxpayers Without a Qualifying Child

Was the taxpayer’s main home, and the main home of the taxpayer’s spouse if filing jointly, in the
United States for more than half the year? (Military personnel on extended active duty outside the
United States are considered to be living in the United States during that duty period. See Pub. 596.)

Yes

No

Yes

No

Yes

No

Yes

No

Did you complete Form 8867 based on information provided by the taxpayer or reasonably obtained
by you?

Yes

No

Did you complete the EIC worksheet found in the Form 1040, 1040A, or 1040EZ instructions (or your
own worksheet that provides the same information as the 1040, 1040A, or 1040EZ worksheet)?

Yes

No

Did you comply with the knowledge requirements? (To comply with the knowledge requirements, you
must not know or have reason to know that any information used to determine the taxpayer’s eligibility
for, and the amount of, the EIC is incorrect. You may not ignore the implications of information furnished
to or known by you, and you must make reasonable inquiries if the information furnished appears to
be incorrect, inconsistent, or incomplete. At the time you make these inquiries, you must document in
your files the inquiries you made and the responses you received.)

Yes

No

Did you keep the following records?
● Form 8867 (or your own form or files),
● The EIC worksheet(s) or your own worksheet(s), and
● A record of how, when, and from whom the information used to prepare the form and worksheet(s)
was obtained

Yes

No

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If you checked “No” on line 16, stop; the taxpayer cannot take the EIC. Otherwise,
continue.
17

Was the taxpayer, or the taxpayer’s spouse if filing jointly, at least age 25 but under age 65 at
the end of the year on line 1?
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If you checked “No” on line 17, stop; the taxpayer cannot take the EIC. Otherwise,
continue.
18

Is the taxpayer, or the taxpayer’s spouse if filing jointly, eligible to be claimed as a dependent on
anyone else’s federal income tax return for the year on line 1?
©

If you checked “Yes” on line 18, stop; the taxpayer cannot take the EIC. Otherwise,
continue.
19

Are the taxpayer’s earned income and adjusted gross income each less than the limit that
applies to the taxpayer for the year on line 1? See Pub. 596 for the limit
©

If you checked “No” on line 19, stop; the taxpayer cannot take the EIC. If you checked
“Yes” on line 19, the taxpayer can take the EIC. If the taxpayer’s EIC was reduced or disallowed
for a year after 1996, see Pub. 596 to find out if Form 8862 must be filed. Go to line 20.

Part IV
20

21

22

23

Due Diligence Requirements

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If you checked “Yes” on lines 20, 21, 22, and 23, and keep the records described on line
23 for 3 years (see instructions), you have complied with all the due diligence requirements.
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If you checked “No” on line 20, 21, 22, or 23, you have not complied with all the due
diligence requirements and may have to pay a $100 penalty for each failure to comply.

General Instructions
Do not use this form for a year before 2009. For
2006, 2007, or 2008, use the December 2006
version of this form.
CAUTION

What’s New
● A column for a third child has been added to Part II.
● The definition of qualifying child has changed. See lines 10
and 12.

● The tiebreaker rules have also changed. See the
instructions for line 13c.

Purpose of Form
Paid preparers of federal income tax returns or claims for
refund involving the earned income credit (EIC) must meet
the due diligence requirements in determining if the taxpayer
is eligible for, and the amount of, the EIC. Failure to do so
could result in a $100 penalty for each failure. See Internal
Revenue Code section 6695(g) and Part IV of this form.

Form

8867

(Rev. 12-2009)

Form 8867 (Rev. 12-2009)

Specific Instructions
Line 2
If the taxpayer was married at the end of the year, he or she
must usually file a joint return to take the EIC. However, if the
taxpayer and his or her spouse did not live together for the
last 6 months of the year, the taxpayer may be eligible to use
the head of household filing status. See Pub. 501 for details.

Line 3
For purposes of taking the EIC, an SSN issued by the Social
Security Administration (SSA) is not valid if “Not Valid for
Employment” is printed on the social security card and the
number was issued solely to apply for or receive a federally funded
benefit. Any other SSN issued by the SSA is valid for EIC
purposes. You may find it useful to look at the social security card.

Line 8
Enter only the child’s first name unless more than one child
has the same first name. In that case, enter other identifying
information to distinguish between the two children.

Line 9
An adopted child is treated as the taxpayer’s child by blood.
An adopted child is a legally adopted child of the taxpayer,
or an individual who is lawfully placed with the taxpayer for
legal adoption by the taxpayer.
A descendant usually refers to a grandchild or
great-grandchild of the taxpayer, or to a child, grandchild, or
great-grandchild of the taxpayer’s brother, sister,
stepbrother, or stepsister.
A foster child is a child placed with the taxpayer by an
authorized placement agency or by judgment, decree, or
other order of any court of competent jurisdiction.

Line 10
If the child is married but is not filing a joint return (or is filing it
only as a claim for refund) and the child’s other parent claimed
him or her as a dependent under the special rules for children
of divorced or separated parents, check “Yes.”

Line 11
Even if the child did not live with the taxpayer for the
required time, check “Yes” if the exception for a child who
was born or died during the year applies. Also, temporary
absences may count as time lived at home. Military
personnel on extended active duty outside the United States
are considered to be living in the United States during that
duty period. For details, see Pub. 596.

Line 12
If you checked “No” on line 9, 10, 11 or 12, but there is
more than one child, complete lines 8 through 14 for the
other child(ren) (but for no more than three qualifying
children). If the taxpayer does not have a qualifying child, go
to Part III to see if the taxpayer can take the EIC for
taxpayers who do not have a qualifying child.

Line 13c
If you checked “Yes” on line 13a, the child meets the
conditions to be a qualifying child of both the taxpayer and
at least one other person. However, only one of those
persons can treat the child as a qualifying child and take, if
otherwise eligible, all of the following tax benefits using that
child: the child’s dependency exemption, the child tax credit,
head of household filing status, the credit for child and
dependent care expenses, the exclusion for dependent care
benefits, and the EIC. The other person(s) cannot take the
EIC for people who do not have a qualifying child. In
addition, the other person cannot take any of the six tax
benefits listed above unless he or she has a different

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qualifying child. (There is an exception to this rule if the
special rule for divorced or separated parents applies,
because the noncustodial parent can claim an exemption
and the child tax credit for the child; see Rule 9 in Pub. 596.)
Tiebreaker rules. To determine which person can treat the
child as a qualifying child, the following tiebreaker rules apply.
● If only one of the persons is the child’s parent, the child is
treated as the qualifying child of the parent.
● If the parents do not file a joint return together but both
parents claim the child as a qualifying child, the IRS will treat
the child as the qualifying child of the parent with whom the
child lived for the longer period of time during the year
entered on line 1. If the child lived with each parent for the
same amount of time, the IRS will treat the child as the
qualilfying child of the parent who had the higher adjusted
gross income (AGI) for the year entered on line 1.
● 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 for the year entered on line 1.
● If a parent can claim the child as a qualifying child but no
parent does so claim the child, the child is treated as the
qualifying child of the person who had the highest AGI for
the year entered on line 1, but only if that person’s AGI is
higher than the highest AGI of any of the child’s parents who
can claim the child.
For examples and details, see Pub. 596.
In most cases, the taxpayer should be able to tell you whether
his or her AGI is higher than the AGI of the child’s parents or other
person. If you answer “Don’t know,” you may not have met the
due diligence requirements described in Part IV of this form.

Line 14
See the line 3 instructions for the definition of a valid SSN. If
the child does not have a valid SSN because he or she was
born and died during the year entered on line 1, check “Yes.”

Line 23
You must keep the records described on line 23 for 3 years.
The 3-year period begins the June 30th following the date
you give the return or claim to the taxpayer to sign. These
records may be kept on paper or electronically in the manner
described in Revenue Procedure 97-22 (or later update).
Revenue Procedure 97-22 is on page 9 of Internal Revenue
Bulletin 1997-13, which is available at
www.irs.gov/pub/irs-irbs/irb97-13.pdf.
Paperwork Reduction Act Notice. We ask for you to obtain
the information on this form to carry out the Internal Revenue
laws of the United States. You are required to obtain this
information.
You are not required to obtain the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books
or records relating to a form or its instructions must be
retained as long as their contents may become material in
the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
Internal Revenue Code section 6103.
The time needed to complete this form will vary depending
on individual circumstances. The estimated average time is:
Recordkeeping, 10 min.; Learning about the law or the
form, 14 min.; and Preparing the form, 48 min.
If you have comments concerning the accuracy of these
time estimates or suggestions for making this form simpler,
we would be happy to hear from you. You can write to the
Internal Revenue Service, Tax Products Coordinating
Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave.
NW, IR-6526, Washington, DC 20224. Do not send the form
to this address. Instead, keep it for your records.
Form

8867

(Rev. 12-2009)