This reject is due to the taxpayer claiming a credit listed on the form and being determined by the IRS to have been ineligible for it. You will need to complete this form by asking your taxpayer the questions on this form and resubmit the IRS for the customer to be able to claim the credits on the return for tax year 2020.
Steps to Complete form 8862:
1. Add Form 8862
2. Check the applicable boxes depending on what credit the taxpayer is claiming on the return
3. Complete Part II Questions 3 and/or 4
- If You answer #3 “Yes” you will need to go to Question 17 and verify the dependents are US Citizens.
- If you answer #3 “No” you will need to answer #4.
- If you answer #4 “Yes” STOP. You are ineligible to claim the credits.
- If you answer #4 “No”, you will then need to go to Question 17 and verify the dependents are US Citizens.