Mr. Kimble: Who knew this could happen to a guy like me? I mean they aren’t even my kids, but I’m paying for them. If this doesn’t work, I may have to hawk my ride.
Preparer: Mr. Kimble? Been expecting you. Have a seat.
Mr. Kimble: I’ll cut to the chase. I’m looking for money, any kind of money you can get me back on my taxes.
Preparer: Well, let’s walk through some questions to see if you can qualify for the Earned Income Tax Credit. Tell me about yourself, Mr. Kimble.
Mr. Kimble: OK, well, um, I’m 25, I’m single and I make $12,000 a year fixing bikes. I live to ride.
Preparer: And when you called, you said something about children at home?
Mr. Kimble: My sister’s kids. Eugene, named after me—he’s five, and Hannah—she’s 4. They’ve been living with me since last April.
Preparer: And did the kids live with any other family member for more than half the year last year?
Mr. Kimble: My sister and my mom, we all live in the same house together with the kids.
Preparer: And how much did your sister make last year?
Mr. Kimble: Hey, I thought you were working for me! What’s with all these nosy questions?
Preparer: Calm down, Mr. Kimble.
Standard procedure. Nothing personal. I’m required by law to meet certain due diligence requirements. You did get the brochure I sent you in the mail?
Mr. Kimble: Hummpf.
Preparer: The IRS can penalize me if I don’t ask, so …
Mr. Kimble: OK. I guess you gotta give a little to get a little. I don’t exactly know how much my sister makes. But she said it was okay to claim the kids.
Preparer: Do you know if she makes more or less than you?
Mr. Kimble: More. What difference does it make?
Preparer: It matters because the law regarding who can claim a child changed the last few years. Now, if a parent—in this case your sister—could claim the children for EITC, but another adult who is not a parent wants to claim the kids—then your income must be higher than your sister’s.
Mr. Kimble: Wait. I think I make more than she does.
Preparer: Mr. Kimble, I’d advise you to check with her and make sure. If you claim the credit in error, you could be audited. That means you’d have to pay back the money with interest and maybe some penalties.
Mr. Kimble: Great, there goes my bike.
Preparer: What?
Mr. Kimble to Preparer: I’ll call her.
Preparer: Oh. Wait! Also ask her if she plans to claim the children for the EITC.
Mr. Kimble: Hey Sis. Hey, I’m over here getting my taxes done. Need to know how much income you made last year. Hold up. Go ahead.
Sis: Almost $11,000.
Mr. Kimble: And are you sure you’re cool with me claiming the kids for the EITC?
Sis: Yeah. Go ahead.
Mr. Kimble to Preparer: So, how much do you think I’m gonna get?
Preparer: Well, let’s go online and check using the EITC assistant. We’ll finish your paperwork and then talk about your filing status.
Smith: Ok, numbers man. Whatever you say.
Preparer: I’m sorry?
Mr. Kimble: Nothing.