- Form 8862 allows taxpayers to reclaim tax credits that were disallowed on previous tax returns due to circumstances with the IRS that have now been resolved. This form can simplify the lives of taxpayers who are once again eligible to claim one of the credits listed above.
Do I need to fill out Form 8862?
Form 8862 does not need to be filed if you meet certain exceptions. If you already filed Form 8862, you do not need to file it again unless your EIC been reduced or denied again after the original filing. In other words, you only need to file Form 8862 once for each time the credit is disallowed.
Will Form 8862 delay my refund?
Filing form 8862, Information To Claim Earned Income Credit After Disallowance, should not delay your refund processing. Once you are accepted, you are on the IRS payment timetable. The IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days last year.
What does disallowance mean for taxes?
What Does a Disallowance Mean? A disallowance is simply a denial. Sometimes, when you file for one of these tax credits, the IRS either disallows the application or reduces the amount. If this happens, you then must fill out form 8862 when reapplying for one of these credits in the future.
Why was my earned income credit disallowed?
If the IRS determined a taxpayer claimed the credit(s) due to reckless or intentional disregard of the rules (not due to math or clerical errors) the taxpayer can’ t claim the credit(s) for 2 tax years. If the error was due to fraud, then the taxpayer can’t claim the credit(s) for 10 tax years.
Can IRS form 8862 be filed electronically?
Can Form 8862 Be E-Filed? Yes, you can include this form with the rest of your tax return when you e-file. Virtually all online tax preparation programs provide this form, although they may not include it in their free versions.
Who Must File 8862?
Taxpayers complete Form 8862 and attach it to their tax return if: Their earned income credit (EIC), child tax credit (CTC)/additional child tax credit (ACTC), credit for other dependents (ODC) or American opportunity credit (AOTC) was reduced or disallowed for any reason other than a math or clerical error.
How do I file Form 8862 electronically?
Simply go to the website and select Form 8862 in the online library of fillable forms. Then, type in the required information in the appropriate fields and place check marks where needed. You can then save all changes and electronically send the completed document to the IRS via email.
Where can I get a 8862 form?
▶ Go to www.irs.gov/Form8862 for instructions and the latest information. You must complete Form 8862 and attach it to your tax return to claim the EIC, CTC/ACTC/ODC, or AOTC if both of the following apply.
How can I get Form 8862?
To access Form 8862, from the Main Menu of TaxSlayer Pro select:
- Miscellaneous Forms.
- Information to Claim EIC after Disallowance (8862)
- Ask the taxpayer each of the questions on the Form 8862 Menu.
Which expenses are disallowed?
Expenditures disallowed for payment in cash
- Payment to banks, financial institutions, etc.
- Payment to government.
- Payment made by book adjustments.
- Payment for purchase of agricultural products.
- Payment made to cottage industries which are producing without the aid of power.
How do I know if my EIC was disallowed?
If you are unsure if you have been previously disallowed for EIC, you would need to contact the IRS at 1-800-829-1040 to find out.
What is a disallowed credit?
If the IRS rejected one or more of these credits: EITC, CTC, ACTC or AOTC, you may have received a letter stating that the credit was disallowed. If you wish to take the credit in a future tax year, you must recertify by filing Form 8862 with your tax return.
How do I add Form 8862 to TurboTax?
You can use the steps below to help you get to where to fill out information for Form 8862 to add it to your tax return.
- Log into your account and click Take me to my return.
- Go to Search box in top right cover and click there to type in 8862 and hit enter.
- Then click on Jump to 8862 that appears in search results.
How do I file 8862 on TurboTax?
Sign in to TurboTax and continue to open your return. In the search box, search for 8862 and then select the Jump to link at the top of the search results. You’ll come to the Earned Income Credit section. Select Continue.
What disqualifies you from earned income credit?
Eligibility is limited to low-to-moderate income earners Taxpayers must file as individuals or married filing jointly. If married, you, your spouse and your qualifying children must have valid Social Security numbers. You must also be at least 19 or older with no upper age limit.