Tax basics Filing my Return

What do I do if my return is being rejected for not including Form 8862, Information to Claim Certain Credits after Disallowance?

Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro and RachelS, FreeTaxUSA Agent, Tax Pro

After filing electronically, you may get a notice or rejection from the IRS about your refund or tax return stating it was either adjusted/lowered or rejected for this reason:

“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.”

Why did you get this notice?

You received this notice because the IRS has a record of disallowing or adjusting a refundable credit on one of your prior year tax returns, and you must recertify you qualify to claim the credit(s).

What is your next step?

Since a refundable credit was previously disallowed, you'll need to file Form 8862 to claim the credit this year.

Scenario 1: The IRS accepted and processed your tax return

If your tax return was accepted and you get either a notice in the mail or on the IRS’, “Where’s my Refund?” page, follow these steps in FreeTaxUSA to file Form 8862:

Log into your FreeTaxUSA account.
Click the "Account" link at the top of your screen.
Choose the option to amend your tax return.
When amending, the first few screens will ask about your original refund amounts and original tax owed. Please make sure to enter that information.
Follow this menu path: Misc > Deductions/Credits > Credits After Disallowance (Form 8862) to enter the necessary information.
When you are done making changes, follow this menu path: Final Steps > Order Products and Services.
Continue through the screens. If you ONLY need to submit Form 8862, choose the option to mail your amendment instead of e-file.
1. If however, the IRS wants you to file a full amendment, you can choose to e-file your amendment (in the current tax year).
Continue to the final screen under the Final Steps tab.
1. If you e-filed the amendment, you generally won't need to do anything else.
2. 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.
Send Form 8862 to the IRS according to the instructions in the IRS letter you received. Be sure to keep a copy for your records.

Scenario 2: Your tax return was rejected

If your return was rejected and NOT accepted by the IRS, follow these steps to submit your return with Form 8862.

Log into your FreeTaxUSA account.
Follow this menu path: Misc > Deductions/Credits > Credits After Disallowance (Form 8862) to enter the necessary information.
When you are done making changes, go to Final Steps tab and click on Step 3.
Follow the screens to resubmit your return by e-file.
Check back in 24 hours to see if the IRS has accepted your tax return.

For more information about Form 8862 or why the IRS may have disallowed your credits, visit the IRS Form 8862 Information webpage.