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Filing form 8862, Information To Claim Earned Income Credit After Disallowance, should not delay your refund processing. Once you are accepted, you are on the IRS payment timetable. The IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days last year.
If the IRS determined a taxpayer claimed the credit(s) due to reckless or intentional disregard of the rules (not due to math or clerical errors) the taxpayer cant claim the credit(s) for 2 tax years. If the error was due to fraud, then the taxpayer cant claim the credit(s) for 10 tax years.
For sole proprietors, net income from your pass-through business appears on Line 31 of the Schedule C that accompanies Form 1040. Personal net income is not explicitly identified on Form 1040, but you can calculate it by subtracting Line 24, Total Tax, from Line 15, Taxable Income.
You must complete Form 8862 and attach it to your tax return to claim the EIC, CTC/RCTC/ACTC/ODC, or AOTC if both of the following apply. Your EIC, CTC/RCTC/ACTC/ODC, or AOTC was previously reduced or disallowed for any reason other than a math or clerical error.
You can include IRS Form 8862 when filing your tax return electronically. If the IRS sent you a notice requesting that you complete the form, mail it to the address provided in the letter.
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Taxpayers complete Form 8862 and attach it to their tax return if: Their earned income credit (EIC), child tax credit (CTC)/additional child tax credit (ACTC), credit for other dependents (ODC) or American opportunity credit (AOTC) was reduced or disallowed for any reason other than a math or clerical error.
Schedule 3: Supporting documentation for tax form 1040 if box 12b is checked. This Schedule is used to declare your capital gains or losses for items such as real estate, shares and mutual funds in addition to any other capital properties you have disposed of.
The worksheet is used to determine the maximum amount of the credit that the taxpayer is eligible to claim based on their income and the amount of qualifying education expenses they paid during the tax year.