Question

Aurora, a self-employed taxpayer, reports all her income on Schedule C. During the tax interview, Aurora's Tax Professional determines that Aurora may qualify for the Earned Income Credit. The Tax Professional must

Answer 1

Answer:

The correct answer is letter "B": Explain to Aurora that she must report all her business income and expenses.

Explanation:

The Internal Revenue Service (IRS) offers tax credits to taxpayers in different situations to benefit them with discounts and promote the proper filing of their yearly income. In front of a possibility on a tax credit for Earned Income, the taxpayer must include all the information on revenues and expenses incurred during the period. This typically applies to self-employed taxpayers.