If your Child Tax Credit claim was denied but you believe it should have been approved, there are specific steps you can take to challenge the decision.
The Child Tax Credit offers up to $2,000 per qualifying child under 17 to assist families with the expenses of raising children. Denials of claims may result from issues such as missing documentation or eligibility mistakes.
According to experts, here are three actions to consider if your Child Tax Credit claim is denied:
1. Confirm Eligibility Requirements: Misunderstandings about eligibility criteria for the Child Tax Credit are a common cause for claim denials. For instance, exceeding the income limits set by the IRS or custody issues resulting from a divorce can impact eligibility.
2. Find the Error: Before appealing the IRS decision, pinpoint the specific problem. The IRS typically provides a notice detailing why a claim was denied, such as missing or incorrect information or offsets from other debts.
3. Submit a Response: Taxpayers can seek to reverse the IRS’s decision by submitting Form 8862, “Information to Claim Certain Credits After Disallowance,” along with supporting documents to substantiate entitlement to the credit. Working with a tax professional who understands the claiming rules is advised, especially in situations involving divorce and custody agreements.
Remember to follow these steps diligently to challenge a denied Child Tax Credit claim effectively.
“The claiming co-parent steps in,” Luscombe explained. For more financial insights, check out these articles on GoBankingRates: 3 Ways to Prevent Your Tax Software From Sneakily Doing These Things, How Your Tax Refund Could Increase in 2025, Tax-Saving Techniques Employed by Wealthy Individuals, and Financial Strategies Practiced by Successful Wealthy Individuals. This content was first published on GOBankingRates.com: Expert Advice on What to Do If Your Claim for the Child Tax Credit is Denied.
