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Individual Tax Part Five – Understanding Tax Credits

Once a taxpayer has calculated his income tax liability, he or she may be entitled to tax credits that either reduce the tax liability to zero (non-refundable credit) or offer the taxpayer a refund (refundable credit).  This course will discuss the various non-refundable and refundable credits available to individuals filing Form 1040.


By the end of this course, Individual Tax Part Four– Understanding Credits,  participants will be able to:

  • Distinguish between a non-refundable and refundable tax credit
  • Describe how to claim a child tax credit as well as the credit for other dependents
  • Explain the requirements for claiming child and dependent care credits
  • Determine who qualifies for an education credit
  • Decide which education credit the taxpayer should claim
  • Determine if a taxpayer qualifies for the retirement savings contributions credit
  • Calculate the credit for the elderly or the disabled
  • Describe the residential energy credits
  • Recognize who is eligible for the earned income credit
  • Know the added requirements for claiming the additional child tax credit
  • Calculate the refundable portion of the American opportunity credits
  • Understand who can claim a premium tax credit
  • Know who is entitled to claim the sick and family leave credit for self-employed persons
  • Understand and identify which additional credits the taxpayer may be entitled to claim
  • Know who is entitled to employee family and sick leave credits for 2020 and 2021
  • Identify the procedures paid preparers must follow to comply with the due diligence requirements relating to the earned income credit, child tax credit, the additional child tax credit, the other dependent credit and the American opportunity credit.

Course Guidelines

  • The self-study format allows you to access the material online 24/7 and study at your own pace
  • All Self-Study courses are to be completed, and the final exam submitted, within 1 year from the date of purchase as shown on your invoice. No extensions will be allowed.
  • To obtain CE credit, the participant must obtain a passing score of at least 70%.  Test takers will not be provided feedback on incorrect answers
  • Complete your final exam at any time and get graded instantly. You can retake the exam up to three times at no additional charge.
  • Upon passing the exam, you will be able to print your own certificate of completion.


This course material deals with complex matters and may not apply to particular facts and circumstances.  As well, the material contained reflects laws and practices which are subject to change.  For these reasons, the course material should not be relied upon as a substitute for specialized professional advice