Rule Number: F1040-164-01

Rule Number: F1040-164-01

Rule Text: Form 8862 must be present in the return with Earned Income Credit Claimed Indicator checked. The e-File database indicates the taxpayer must file Form 8862 to claim Earned Income Credit after disallowance.

To correct the error, reference the DataValue (this indicates what person or number the rejection is related to). For more information, regarding how to view the details and data values related to rejections and refusals reference Viewing Reject and Refusals.

Cause: The taxpayer has been disallowed EIC, CTC, ACTC, ODC, or AOTC at some point in their lifetime.

• This could be at any point in their life if they were audited and then the credit was taken from them.

• This does not mean they will not get the credits this year just that we must ask extra due diligence questions.

Resolution:

1. Select Add Form.

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2. Locate and highlight Form 8862 in the All Forms & Schedules Menu. Double-click to add.
   
   

3. Complete Part I - All Filers.

   1. Place an "X" in the boxes for the credits being claimed on this return. If you do not mark all applicable credit boxes, and submit with only one credit marked, you will receive another reject for the next credit.

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4. Follow the verify and complete all questions prompted by the verify. The questions that must be answered vary based on the taxpayers return.