Form 8862 TurboTax: A Quick Way To Resolve The Reduced EIC Problem

The IRS Form 8862 is attached with the tax return if your American Opportunity Credit, Credit For Other Dependents, Additional Child Tax Credit, Child Tax Credit, or Earned Income Credit was rejected or reduced due to any other reason than clerical or maths error. Ensure that you meet all the requirements. You can file the IRS form 8862 on online tax filing tools like TurboTax. Form 8862 TurboTax is easy to file, and you can submit it electronically. 

TurboTax is one of the widely used tax preparation and filing software in the US. It allows you to e-file the tax forms from anywhere. There are a lot of IRS tax forms to report income and expenses. Read the article carefully to learn how to fill out form 8862 in TurboTax.

What Is Form 8862 TurboTax?

TurboTax offers tax filing and preparation services. You will get several tax forms in the software to report your expenses or income. TurboTax Form 8862 is attached with the tax forms if EIC, CTC, CDC, or AOTC is disallowed or reduced. Earned Income Credit is a valuable and refundable tax credit for low or moderate taxpayers. 

Form 8862 TurboTax Requirements

Here are the EIC requirements to file Form 8862:

1. A US citizen is allowed to fill out the form.

2. You must have a valid SSN or Social Security Number

3. Must have earned income for the current tax year.

4. You must not be a qualified child on any other return.

5. Do not use MFS status.

Parts Of TurboTax Form 8862

Form 8862 TurboTax includes five parts:

1. All Filers.

2. EIC or Earned Income Credits.

3. Child Tax Credit / Additional Child Tax Credit / Other Credits.

4. American Opportunity Tax Credit.

5. Qualifying Child of more than one person.

Exceptions For Form 8862 in TurboTax

Here are the exceptions for Form 8862 TurboTax:

1. If your EIC is denied because you claimed an unqualified child.

2. If you are claiming EIC without a child

3. Do not refile after Form 8862 TurboTax Rejection.

How To Add Form 8862 TurboTax?

Here are the steps to add  TurboTax form 8862:

• Firstly, open the TurboTax software.

• Locate and select the Take Me To My Return tab.

• Then, go to the Return section.

• Click on the Search icon and enter Form 8862 in the text field.

• After that, hit the Enter key on your keyboard.

• Moreover, go to the EIC section and follow on-screen prompts.

• Finally, add Form 8862 TurboTax to your account.

How To Fill Out Form 8862 TurboTax?

If you are not aware of how to fill out Form 8862 on TurboTax and need to fill out the form, you can follow the process mentioned here:

• Firstly, open 8862 Form TurboTax.

• Sign in to the TurboTax account.

• After that, go to the Return section.

• Tap the Search box and search for Form 8862.

• Then, click on the Jump To Link tab from the search results.

• Navigate to the Earned Income Credit section.

• Go to the first line and enter the current tax year.

• After that, navigate to the second line.

• Click on the boxes related to the credits.

• Then, fill out the other required details.

How To e-Sign 8862 Form TurboTax?

Follow the simple steps to e-Sign the 8862 form TurboTax:

• Firstly, click on the Get tab from the Dashboard menu.

• Fill out the required fields and information to continue.

• Then, tick or untick the checkboxes.

• Fill out the correct details in all tabs.

• After that, navigate to the Sign section.

• Click on the Add New Signature tab.

• Then, select a method between Upload, Draw, or Type.

• Click Done to finish the filing process.

• Finally, download the 8862 form and Save it.

General Instructions For 8862 Form TurboTax

Follow the general instructions to fill out TurboTax Form 8862 

Part-1: All Filers

Part 1 of the form must be filled out by all filers. First of all, you need to enter the tax year in which tax credits were disallowed. After that, tick the boxes next to the reduced or rejected tax credits.

Part-2: EIC

Part 2 is used to enter the details related to EIC or Earned Income Credits. You will not be able to claim the Earned Income Credits if you are a qualifying child for any taxpayer. 

Section A

You will be able to qualify for earned income credits if you are married but not filing any joint return and own a child. Here are the eligibility criteria-

• Grandchild, Niece, Nephew, Adopted child, Stepsister, Stepbrother, Half-sister, Half-brother, Foster Child, Sister, Brother, Stepchild, Son, or Daughter.

• The child lived in the US with you.

• If you are not filing a joint return

• Not claiming an estimated tax refund.

Section B

Section B is only filed by those who have a qualifying child. Enter the details like the number of days you stayed in the US. You can count the days on active duty outside the nation.

Part 3: CTC/RCTC/ACTC/ODC

Part 3 is for Child Tax Credits. It is a fully refundable tax credit. A child must live for more than 6 months to claim the child tax credits. 

Part 4: AOTC

Students can file the American Opportunity Tax Credits if they fulfill these requirements:

1. Joined one academic period.

2. Have not completed 4 years of post-secondary.

Part 5: Qualifying Child

Here are the rules for a qualified child:

1. If he has only one of their parents 

2. If parents are filing a joint return

3. Spent time should be more than 6 months with the parents.

4. In case of equal spent time, adjusted gross income will be considered.

Final Words

Filing Form 8862 TurboTax provides the ability to claim the tax credits. You can claim the American Opportunity Credit, Credit For Other Dependents, Additional Child Tax Credit, Child Tax Credit, or Earned Income Credit with the form. Go through the steps and general instructions above to file 8862 Form TurboTax without any issues. 

If you have filed the form once, do not refile it after Form 8862 TurboTax Rejection. Consult our experts if you encounter any issues while running the TurboTax software. MWJ Consultancy offers software support for TurboTax, QuickBooks, Sage, Quicken, TurboCASH, Xero, etc.

Call Instant Free Consultation +1-877-469-0298   

FAQs

What Is Form 8862 TurboTax?

8862 Form TurboTax is a form that the IRS offers to claim tax credits like American Opportunity Credit, Credit For Other Dependents, Additional Child Tax Credit, Child Tax Credit, or Earned Income Credit. You must file form 8862 TurboTax if the earned income tax credits were reduced or rejected.

How To Add Form 8862 On TurboTax?

Here are the steps to add form 8862 on TurboTax:

• Firstly, log in to your TurboTax account.

• After that, click on the Take Me To My Return tab.

• Then, type 8862 in the Search field and press Enter.

• Moreover, tap the Jump link from the search results.

• After that, go to the EIC section and add the form.

How To File Form 8862 On TurboTax?

You can fill out any tax forms online provided by the IRS with the help of TurboTax accounting software. Fill out Form 8862 on TurboTax by adding it to your account. After that, you will have to fill out the required section of the form. Finally, submit the form online.

How To Get Form 8862 On TurboTax?

You can get the form by following these steps:

• Firstly, launch the TurboTax tool.

• After that, locate and select the Federal tab from the left panel.

• Moreover, tap the Search option on the top navigation bar.

• Then, enter 8862 Form TurboTax in the text field and click the Search icon.

• After that, tap the Jump To 8862 option.

• Finally, answer the questions accordingly to include Form 8862.