The Earned Income Credit (EIC) provides low and moderate-income individuals and families with a proper, reimbursable fiscal credit. However, should your EIC be discredited or cut off for reasons other than math or clerical mistakes after 1996, you may need to complete Form 8862 before you may use the credit again with the Internal Revenue Service. The Information for Claiming Certain Credits after Disallowance Form is generally known as the IRS form 8862. If you would want to claim EIC, CTC, Additional Child Tax Credit (ACTC), Other Dependents Credit (ODC), or American Opportunity Tax Benefit, please complete this form under specific conditions (AOTC). There are many parts on the form for every loan type, but only under distinct conditions may each credit be claimed. If you have previously gotten a refusal and reapply in the following year, you will have to fill in this form. Read this blog to find out the answer to the questions what is form 8862 income tax?

Know more about TurboTax Form 8862 Income Tax

For causes other than mathematical mistakes or clerical errors, IRS Form 8862 is used to claim the credit (EITC), denied or decreased after 1996. For the TurboTax article, click here.

What is form 8862 income tax? Follow them to include your taxes. Follow these.

  • If you don’t have it open before, open your return.
  • (Sign up for TurboTax and click on the orange icon Take me back)
  • In the search box, enter 8862 and then search for the results by pressing the Jump link to 8862. You will find this under the section Earned Income Credit. Click Continue.
  • Answer any inquiries for you and browse the screen on your request. Are there any such unusual circumstances?
  • Check the box where we have received a letter from the IRS saying that I need to complete Form 8862 to claim the income credit earned.
  • Click Continue, then Full click.
  • Since we have an IRS notification, we must verify if these apply to your circumstance screen. No, none, and I have to fill out form 8862.
  • Click continues. 
  • Form 8862 appears. Click Continue to complete all essential info.

How do I enter Form 8862?

If math or clerical error is not permitted or is reduced to your income credit, you may need to file Form 7862 before the IRS permits you to use the credit again. You may need to utilize the credit again. This is how to file form 8862.

  • Sign up and open your return to TurboTax.
  • Search for 8862 in the search box and then pick Spring to connect to the top of the search.
  • You are going to come to the section on income credit. Continue to select.
  • Answer the questions, and you will ultimately be asked Are these unusual circumstances actual? Check the box where we have received a letter from the IRS saying that I need to complete Form 8862 to claim the income credit earned.
  • Choose Continue, and then Fulfill.
  • Since you have an IRS note, we have to pick the radio option next to a few items screen. No, none, and I have to fill out form 8862.
  • Continue to select.

Who Uses Form 8862?

Anyone who has previously been refused any of the tax credits listed above and who now complies with all the credit conditions will be required to complete Form 8862. The IRS states that this form must be filed if:

  • For one year after 1996, your EITC claim has been decreased or dismissed.
  • For a year after 2015, your child’s tax credit, additional tax credit, other dependents’ credit, or US chance tax credit was either decreased or rejected.

Where to Get Form 8862?

Form 8862 may be downloaded from the IRS website directly. You will be supplied with this document if you choose a professional tax preparer or tax preparation firm. The tax software should automatically complete this form based on the data you supply if you prepare your self-report online.

How to Fill Out and Read Form 8862?

Five components of Form 8862:

  • All filing partners
  • Credit for income tax
  • Credit for child tax, additional credit for children tax, and credit for others.
  • US Tax Credit Opportunity
  • More than one person’s qualifying kid

Part 1 should be completed by all filers. Then, just the areas of the credit or loans that you claim should be filled out. Very few taxpayers will have to recover all these credits, so don’t complete a credit section that you don’t have the right to. The last part pertains to kids who can claim more than one tax individual, such as divorced or separated parents. In this instance, the tiebreaker criteria are needed to decide who the children should claim.