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.
Why do I need a 8862 form?
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.
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.
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.
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.
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 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.
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.
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.
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 get rid of my earned income tax credit?
How do I take off earned income credit that I’m not eligible for
- Go to My Account in the top right corner.
- Click on Tools.
- Under Tools Center click Delete a Form.
- Navigate to Form 8862 and select Delete next to it.