Reject Code: IND-165-01
Form 8862 must be present in the return with Child Tax Credit/Additional Child Tax Credit/Credit for Other Dependents Claimed Indicator checked. The e-File database indicates the taxpayer must file Form 8862 to claim Child Tax Credit or Other Dependent Credit or Additional Child Tax Credit after disallowance.
Reject Code IND-165-01 occurs when a tax return containing the Child Tax Credit, the Additional Child Tax Credit, or the Credit for Other Dependents is electronically filed, and the IRS database has flagged the taxpayer as having been disallowed to claim one of these credits in a prior year. To be able to claim one of these credits in the current year, Form 8862 must be completed and included with the tax return.
To complete Form 8862, from the Main Menu of the tax return (Form 1040) select:
- Miscellaneous Forms
- Information to Claim Certain Refundable Credits After Disallowance
-
Questions for Claiming Child Tax Credit - Read each menu item and answer the questions accordingly, then exit this menu.
OR - Questions for Claiming Other Dependent Credit - Read each menu item and answer the questions accordingly, then exit this menu.
If the qualifying child was also the qualifying dependent of more than one person:
- Select Questions for Qualifying Child of More Than One Person
- Select New and Enter all information for the qualifying child.
After all information has been filled out on Form 8862, the return can be filed electronically.
Additional Information:
IRS Instructions for Form 8862 - Information to Claim Certain Credits After Disallowance