EIC or Earned Income Credit is a refundable and valuable tax credit for moderate and low taxpayers. You must fill form 8862 TurboTax if your Earned Income Credit was reduced or disallowed. File the form 8862 before the IRS allows you to use the credit again, but first of all, you need to fulfill the EIC requirements. Read on to understand what exactly is Form 8872 and all the nitty-gritty of the same.
What is Form 8862 TurboTax?
Internal Revenue Service Form 8862 is used to claim earned income credit by low and moderate taxpayers. It includes Child Tax Credit, American Opportunity Tax Credit, Credit for Other Dependents, Additional Child Tax Credit, or Refundable Child Tax Credit. You could file form 8862 if the Internal Revenue Service denied your earned income tax credit because of any reason other than clerical error or calculation. Now you know what is form 8862 of Turbotax and how you can claim EIC or EITC?
How to Add Form 8862 TurboTax?
You can get the Internal Revenue Service Form 8862 TurboTax to add it to your tax return. Go through the steps to know how to add form 8862 TurboTax.
- Create a new account by visiting TurboTax official website.
- After that, log in to your TurboTax login account.
- Select the Take me to my Return tab.
- Type 8862 in the search bar and press the Enter key.
- Then, select Jump to 8862 and tap Continue.
- Answer the questions displayed on the webpage.
- Then, check the Earned Income Credit box and click Continue.
- Answer: I need to fill out the 8862 form and tap Continue.
- You will get the Form 8862 TurboTax webpage on your browser screen.
How to do Form 8862 TurboTax?
To enter form 8862 TurboTax, you will need a TurboTax account. If you have a TurboTax account, you can use it to fill out form 8862. Otherwise, you can follow the below stated steps to create a new TurboTax account and know how to do form 8862 TurboTax:
- Visit the Official TurboTax website from any updated browser.
- Then, select Create an Account from the Sign-in window.
- Enter the active Email in the preferred box and confirm the email address.
- After that, create your User ID and Password.
- If you want to receive messages or calls, enter the Phone number.
- Finally, select the Create Account option.
- Select the Returns tab from the menu.
- Follow the prompts and add form 8862 TurboTax.
- Fill out form 8862 TurboTax and complete the filing process.
How to Fill out Form 8862 TurboTax?
Form 8862 includes five parts. You will get the answer for how to fill out form 8862 TurboTax here:
- All Filers.
- Earned Income Credit.
- Filers With a Qualifying Child or Children.
- Filers Without a Qualifying Child or Children.
- Child Tax Credit/ Additional Child Tax Credit / Credit for Other Dependents.
- American Opportunity Tax Credit.
- Qualifying Child of More Than One Person.
‘All Filers’ is Part I of form 8862. It only requires some basic information. Type in the tax year for which you are filling the form 8862. If you fill the form 8862 for the year 2021, write down 2021 inside the box. After that, check the box or boxes that apply to the tax credit. Then, fill out the parts that match the requirement you marked.
For example, if you are filing for the Earned Income Credit, fill out Part II of Form 8862. If you are filing for American Opportunity Tax Credit, only complete Part IV. And if you are filing for both, fill out Part II and Part IV of the Internal Revenue Service Form 8862.
Earned Income Credit
Earned Income Credit is the second part of Form 8862. If the reason behind disallowed or reduced EIC was an incorrect report or investment income or earned income, check the Yes box. After that, attach form 8862 and claim the EIC. If your answer is Yes, you do not need to complete the rest of Part II of the form.
Section A is only for the filers claiming the Earned Income Credit with a qualifying child. Fill out the information like Children’s name, date of birth, date of death, etc. Fill out the rest of Part II if your answer is No.
Child Tax Credit / Additional Child Tax Credit / Credit for Other Departments
You need to enter the names of each child claiming the Credit for other departments/ additional child tax credit/ child tax credit. If there are more than four qualifying children, answer the rest of the questions. After that, answer the remaining questions.
American Opportunity Tax Credit
If you are claiming the American Opportunity Tax Credit or AOTC, answer the questions in Part IV. You just need to enter the names of students. After that, answer the remaining questions.
Qualifying Child of More Than One Person
You need to answer the questions on Part V for each qualifying child of any other person. After that, you need to attach a statement for questions 20 to 22 if more than four qualified children. You also need to enter your address, including Number, Street, Town or City, State, and Zip Code.
However, if any other person lives with the child, you need to provide the person’s name and relationship. After that, answer the remaining questions.
How to Fix Form 8862 TurboTax After Rejection
Make sure that you have entered the correct information without any mistakes. After that, file it whenever you are ready. If you want to know how to fix form 8862 TurboTax, you can follow these steps:
Fix your Entries
You can fix or correct your entries on Form 8862 TurboTax by following these basic steps:
- Complete the Sign-in process and select the Fix my return button.
- After that, click the Search icon and type EIC.
- Click on the Jump to link and check the fourth option for claiming EIC.
- Then, tap Continue and Select Done.
- Follow the prompts and answer the questions.
- Then, select the Review option and find the blank entries on Form 8862.
- Finally, correct your entries and fix them.
Refile the Form 8862 TurboTax
Before Refiling form 8862, make sure that you have completed the review. You are ready to refile it after the completion of the review. Select the file from the left panel and tap Continue. You need to follow the prompted instructions to save the file and refile your earned income credit return.
Internal Revenue Service Form 8862 balances the tax credit premium you can use to reduce the monthly premium. It also determines the correct premium for you. Complete Form 8862 TurboTax before the Internal Revenue Service authorizes you to reuse the money. Read our other blogs if you want to get more ideas to save taxes. Wire IT Solutions can help you expand your Enterprise with Individual Tax Preparations and Filing services, Professional Accounting Services, and Software Support.