Preparer: Mr. Samuels. You’re early. What’s on your mind?
Mr. Samuels: I heard that uh Earned Income Tax Credit. Sure, could use the money.
Preparer: Nice you could make it. Have a seat. Tell me a little about yourself. What kind of work do you do?
Mr. Samuels: Bus driver.
Preparer: And how much did you make last year?
Mr. Samuels: $12,000.
Preparer: Do you live alone?
Mr. Samuels: With my son.
Preparer: Tell me about him.
Mr. Samuels: Well, his name is Charlie. He’s 35. I take care of him.
Preparer: Did Charlie work last year or have any income?
Mr. Samuels: Part of the year. Around $9,000.
Preparer: What about the rest of the year?
Mr. Samuels: He stayed at home. He’s disabled.
Preparer: Oh, tell me what happened to him?
Mr. Samuels: Do we really have to go through all this for my taxes?
Preparer: I know it seems like I am prying into your personal life, Mr. Samuels. But as your paid preparer, I am required by the IRS to do what is called due diligence. I have to get certain information to make an accurate assessment of your EITC eligibility. Of course, all of your information will be kept confidential and secure. That’s also part of my due diligence responsibility.
Mr. Samuels: I see.
Preparer: Now, have the doctors said anything about Charlie’s situation? Is this a permanent disability?
Mr. Samuels: Well Charlie had a car accident last October. The doctor says the pins in his two broken legs should be out early next month. With physical therapy … a month or so…later he could be walking.
Preparer: I’m glad to hear that Charlie will recover, Mr. Samuels, but I am sorry, you can’t claim Charlie for the EITC. You see, the tax law requires him to be disabled for more than 12 months.
Mr. Samuels: So, I can’t get the EITC?
Preparer: Not for Charlie… But it does look like you qualify for a smaller credit, even without a child, based on income, age and all the other requirements.
Mr. Samuels: Really? That’s great.
Preparer: So, Mr. Samuels, tell me about your son Charlie.
Mr. Samuels: After the car accident last October, he can’t walk. He’s in a chair.
Preparer: Has the doctor said his condition is permanent?
Mr. Samuels: Short of a miracle, yes.
Preparer: Can you get a doctor’s written statement to that effect?
Mr. Samuels: Already did that for Social Security disability because he can’t work.
Preparer: Mr. Samuels, based on what you’ve told me, you can claim Charlie for the EITC.
Mr. Samuels: Even though he’s 35?
Preparer: His age doesn’t matter because his permanent disability keeps him from being gainfully employed. And you meet all the other requirements for EITC.
Mr. Samuels: Really?
Preparer: And since you’ve never claimed the EITC before for yourself, let’s take a look at your returns for the last couple of years. Maybe you qualified then too.
Mr. Samuels: That would be great.