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.
- What is form 8862? Form 8862 is the form the IRS requires to be filed when the Earned Income Credit or EIC has been disallowed in a prior year. TurboTax can help you fill out your 8862 form, see below for instructions on how to find this form in TurboTax and on how to complete it.
How do I know if I need to file Form 8862?
Form 8862 is required to be filed with a taxpayer’s tax return if both of the following apply: The taxpayer’s claim for the Earned Income Credit was reduced or disallowed for any reason other than a math or clerical error.
Why would I have to file Form 8862?
Form 8862 is required when the IRS has previously disallowed one or more specific tax credits. Filing this form allows you to reclaim credits for which you are now eligible. You can download Form 8862 from the IRS website, and can file it electronically or by mail.
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.
Can I fill out Form 8862 online?
Can Form 8862 be filed electronically? The short answer is yes. Any legal document, job application, lease agreement or any other form (including a fillable 8862), can be filled out electronically through PDFfiller’s online platform. Simply go to the website and select Form 8862 in the online library of fillable forms.
Where can I get Form 8862?
▶ 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.
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 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 is the penalty for fraudulently claiming the earned income credit?
Penalties for EITC Fraud You will need to pay back the EITC credit plus interest. You will need to re-file to claim the EITC again. In the case that you committed fraud by error, the IRS may ban you from claiming the EITC for the next 2 years.
What does it mean when the IRS disallows a claim?
The “Claim Disallowance” IRS Letter 105C or Letter 106C is your legal notice that the IRS is not allowing the credit or refund you claimed.
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.
Who can claim the additional child tax credit?
Who can claim the Additional Child Tax Credit? The Child Tax Credit and the Additional Child Tax Credit are meant to help working parents with low to moderate incomes. For that reason, families must have a minimum of $2,500 of earned income to claim the ACTC.
Do I have to pay back earned income credit?
You must pay back any EIC amount you’ve been paid in error, plus interest. You might need to file Form 8862, “Information to Claim Earned Income Credit After Disallowance,” before you can claim the EIC again.
What is disallowance?
1. To refuse to allow: “[The government] disallowed his aging and dying parents any reunion with their only child” (John Simon). 2. To reject as invalid, untrue, or improper.
How do I claim EIC after disallowance?
File Form 8862 If we denied or reduced your EITC for a tax year after 1996 (CTC, ACTC, ODC or AOTC for a tax year after 2015) for any reason other than a math or clerical error, you must include Form 8862, Information to Claim Certain Credits After Disallowance with your next tax return.