Form 8862, Information to Claim Certain Credits after Disallowance

jamimaj

After filing electronically w/FreeTaxUSA back in February, finally heard about the refund. It was adjusted/lowered for this reason:
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We didn't allow the amount claimed as Earned Income Credit, nonrefundable Child Tax Credit, additional Child Tax Credit, refundable Child Tax Credit, credit for other dependents, and/or American Opportunity Tax Credit on your tax return. We have no record of receiving Form 8862, Information to Claim Certain Credits after Disallowance. You must submit a completed Form 8862 to recertify your eligibility for any of the credits claimed.

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Has anyone come across this? Don't know why the forms would not have been with the electronic file as I claimed the credit.

Appreciation in advance to advise!

rachels

Hi jamimaj,

It looks like the IRS has record of having disallowed a refundable credit (Earned Income Credit, nonrefundable Child Tax Credit, additional Child Tax Credit, refundable Child Tax Credit, credit for other dependents, and/or American Opportunity Tax Credit) on one of your prior year tax returns. When that happens, the IRS requires that you file Form 8862 with your tax return if you wish to claim one of those refundable credits again.

You would go to Misc > Deductions/Credits > Credits After Disallowance (Form 8862) in your FreeTaxUSA account in order to file that form and claim the refundable credit(s). You can still prepare that form in your account with us.

1. Log into your FreeTaxUSA account.
2. Click the "Account" link at the top of your screen.
3. Choose the option to amend your tax return.
4. When amending, the first few screens will ask about your original refund amounts and original tax owed. Please make sure to enter that information.
5. You can then go to Misc > Deductions/Credits > Credits After Disallowance (Form 8862) to enter the necessary information.
6. When you are done making changes, go to Final Steps > Order Products and Services.
7. Continue through the screens. If you ONLY need to submit Form 8862, rather than file the full amendment, make sure to choose the option to mail your amendment instead of e-file. If the IRS wants you to file a full amendment, you can choose to e-file your amendment.
8. Continue to get to the final screen under the Final Steps tab. If you e-filed the amendment, you generally won't need to do anything else. If you chose to mail the amendment because you only need to file Form 8862, click the "View" or "Download" buttons for your "As Amended" Supporting forms and print Form 8862.
9. Send Form 8862 to the IRS according to the instructions in the IRS letter you received.