Form 8862 TurboTax | Guide On How To File & Other Information

Form 8862 TurboTax is required if your EIC or Earned Income Credit was reduced or disallowed. You need to file form 8862 if the EIC was disallowed or reduced because of other than mathematical error. The IRS allows you to use your earned income credit again, so you must file form 8862 before it.

The IRS 8862 form has five parts:

• All Filers
• Earned Income Credits (EIC)
• Child Tax Credit (CTC) / Additional Child Tax Credit (ACTC) / Other Credits
• American Opportunity Tax Credit (AOTC)
• Qualifying Child of more than one person.

The blog includes steps to file the 8862 form Turbotax, earned income credits requirements, exceptions, and how to add it to your TurboTax account

Form 8862 TurboTax- Steps To File It

Here is how to file form 8862 on TurboTax:

• Firstly, launch the TurboTax application and sign in to your TurboTax account
• Secondly, open your Return section and tap the Search icon
• Type 8862 form in the text field and press the Enter key
• After that, click on the Search results
• Then, go to the EIC section and tap Continue
• Answer the required questions and tap the Continue option again
• Then, click the Done tab and locate the Radio icon
• Finally, select the Continue option and answer the remaining questions.

Form 8862 TurboTax- Earned Income Credits Requirements

You must follow several standards to file the EIC. Some of the requirements are given below:

• You must be a certified citizen of the United States (Active SSN)
• You must live in the United States for more than the half-year
• Must have the earned income for the tax year
• Must have a valid social security number
• You can not be a qualifying child on another return
• You can not use the MFS or Marriage Filing Separate filing status

Read More:- TurboTax Reject Code Ind-031-04 | Guide & Tips To Fix It

Form 8862 TurboTax- Exceptions

Here are a few exceptions related to form 8862 TurboTax:

• If EIC was denied because you claimed a child who was not qualified
• If you are claiming the Earned Income Credits without a child
• You do not need to file it again if you already filed the 8862 form on TurboTax

In short, you only need to file the 8862 form TurboTax once if your EIC is reduced or disallowed.

Form 8862 TurboTax- Add It To Your Form

Follow these steps to add 8862 Form TurboTax:

• Firstly, launch the TurboTax application
• Secondly, tap the Take Me To My Return option
• Then, open the Return section on your TurboTax app
• Tap the Search icon and type 8862 form in the text field
• After that, press the Enter key and navigate to the EIC section
• Finally, add the form to your TurboTax account.

Form 8862 TurboTax- e-Sign 8862 form

Follow these simple steps to e-sign the 8862 form on TurboTax:

• Firstly, tap the Get form option from the main menu
• Secondly, type in your required information and fill up the required fields
• After that, select your answers in the checkboxes
• Then, utilize the circle icon for Yes or No questions
• Ensure that all fields are completed with correct information
• Go to the Sign section and tap the Add New Signature option
• Then, choose the type, draw, or upload option from the menu
• After that, tap Done to finish the filing process
• Finally, download the 8862 form on your device or save it to the cloud.

Form 8862 TurboTax- General Instructions

Here are the general instructions to fill out the IRS form 8862 on TurboTax:

Form 8862 TurboTax- Part 1

All filers need to fill out part 1 of the form. In line 1, you need to enter the year in which credits were disallowed. Check the boxes if your credits were disallowed or reduced in line 2.

Form 8862 TurboTax- Part 2

Part 2 is to enter earned income credits details. You can not claim the EIC if you are a qualifying child for a taxpayer. You can only claim the tax return for a refund.

Form 8862 TurboTax- Section A

If you are married and not filing a joint return and own a child, you may qualify to claim earned income credits. Here are the criteria for a qualifying child:

• Daughter, son, stepchild, brother, sister, foster child, half-brother, half-sister, stepbrother, stepsister, adopted child, nephew, niece, or grandchild
• If not filing a joint return
• Not claiming the refund of estimated tax paid
• The child has lived in the US with you for more than six months.

You will also need school records, child care records, and other details. Here are the particular circumstances that count as the time child lived with you:

• Detention in a juvenile facility
• Military Service
• Medical care
• Business
• Vacation
• School.

Form 8862 TurboTax- Section B

If you do not have a qualifying child, you need to fill out Section B. You will also have to enter the number of days you were in the United States. The United States will be your home if you are on active duty outside the US.

Form 8862 TurboTax- Part 3

Part 3 is for the Child Tax CreditThe child tax credit is fully refundable if you meet all the requirements. To claim the credit, a child must live more than six months with you. However, a temporary absence by you or your child counts as the time the child lived with you.

You can not claim the ODC/ACTC/ RCTC/CTC for the child who is not one of your dependents.

Form 8862 TurboTax- Part 4

Part 4 is for the American opportunity tax credit (AOTC). Students should fulfil the following requirements:

Expenses used to figure out AOTC

The students have not completed the first four years of the post-secondary education

Join at least one academic period.

Form 8862 TurboTax- Part 5

You can determine who should treat the child as a qualified child. Here are some rules-

If the child has only one of their parents

If parents are filing the joint return and claim the child as a qualifying child

None of the parents are filing a joint return, but both are claiming the child, then the child will be a qualified child with whom they have spent more than six months

If the spent time is equal, the IRS will consider adjusted gross income to decide.

Conclusion

Filing Form 8862 TurboTax allows you to reclaim the credits again. You can go through the steps mentioned above to file the 8862 form on TurboTax. Consult our experts to fix the error code immediately if you have any issues while filing the 8862 form and are looking for professional help. Wire-it Solutions offers advanced accounting services and software support.