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.
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.
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.
Do I have to file Form 8862 every year?
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.
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 you file Form 8862 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 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.
How do I attach Form 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.
How do I add Form 8862 to TurboTax?
How do I file form 8862??
- 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.
- This takes you to the screen Looks like the Earned Income Credit may put more money in your pocket.
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.
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.
What does disallowed Fed EIC mean?
@Frooty It means that you filed for EIC and were disqualified.