How to Dispute a Child Tax Credit Denial
Did the IRS deny or reduce your Child Tax Credit? Learn how to respond to the notice, submit proof, request an appeal, use Form 8862, and find free tax help.
The Child Tax Credit is a tax credit, not a benefits program, so there's no benefits appeal. You dispute a denial by answering the IRS notice. If you still disagree, you can ask the IRS Independent Office of Appeals for a review, and in some cases petition the U.S. Tax Court.
Why would the IRS say my child doesn't qualify for the Child Tax Credit?
The IRS can deny or reduce the credit when its records don't show a child meets the rules. Most questions involve the areas on the IRS Child Tax Credit page:
- Age. Under 17 at the end of the tax year.
- Relationship. Your son, daughter, stepchild, foster child, sibling, or a descendant of one.
- Where the child lived. With you for more than half the year.
- Social Security number (SSN). Valid for work and issued before your return's due date.
- Another claim. Someone else, like the other parent, may have claimed the child.
The Additional Child Tax Credit is the refundable part, meaning it can be paid to you even if you owe no tax. It follows the same child rules plus earned income rules, so a denial often shows up as a smaller refund.
What does my IRS letter mean, and when do I have to respond?
Your letter explains what the IRS changed or wants to check, which records it needs, and your response deadline.
Some letters say the IRS already changed your return because of a math or clerical error, such as a mistyped SSN. Others start an audit, a review of your return, during which the IRS may hold part of your refund.
A statutory notice of deficiency, or 90-day letter, is a formal notice that the IRS plans to assess more tax. It opens a limited window to petition the U.S. Tax Court; the last day to file is printed on it.
How do I respond to the IRS with documents?
- Read the whole letter and list each item it asks for.
- Gather records that answer those items. A birth certificate shows relationship; school, medical, or childcare records with the child's name and your address show residency.
- Send copies, never originals, with your name and letter number on each page, plus any response form.
- Use the method the letter names and keep proof of the date you sent it.
- Keep a full copy of everything.
How do I disagree with the IRS decision?
If the IRS still denies the credit after reviewing your records, you'll get a letter explaining why. The IRS page on what to do if we deny your claim for a credit explains what a denial can mean next: paying back the credit with interest, filing Form 8862 when you claim it again, and possible bans or penalties.
You can request a review by the IRS Independent Office of Appeals, which is separate from the office that examined your return. Follow your letter's instructions and deadline.
If you receive a statutory notice of deficiency, you can petition the independent U.S. Tax Court by the date on that notice.
If you agree and owe money back, see our guide to IRS payment plan options.
What is Form 8862, and when do I need it?
Form 8862, Information To Claim Certain Credits After Disallowance, tells the IRS you now meet the rules after a credit was denied or reduced.
According to the IRS Instructions for Form 8862, you generally must attach it the next time you claim the credit if it was denied for a reason other than a math or clerical error.
A ban is rarer. The same Form 8862 instructions explain that reckless or intentional disregard of the rules brings a 2-year ban, and fraud a 10-year ban. You can't use Form 8862 during a ban.
You figure the credit itself on Schedule 8812; see these step-by-step instructions for completing Schedule 8812.
Where can I get free help with a Child Tax Credit dispute?
The Taxpayer Advocate Service (TAS) is a free, independent office inside the IRS that helps when a tax problem causes financial hardship or isn't getting solved normally. Its national line is 877-777-4778.
Low Income Taxpayer Clinics (LITCs) are independent of the IRS and help people with limited income with audits, appeals, and Tax Court cases for free or a small fee. The clinic list is on the TAS site.
The IRS Volunteer Income Tax Assistance (VITA) program offers free tax preparation for people with limited income, disabilities, or limited English, a good fit for your next return.
For more, see our Child Tax Credit guides and the turnout.co blog.
What this means for you
- Mark the response date on your IRS letter on your calendar today.
- Call the number on the letter if something is unclear or you need more time.
- Send copies of the exact records requested, and keep proof you sent them.
- If the IRS still disagrees, or a 90-day letter arrives, contact TAS or an LITC before the date on that notice.
FAQ
Why was my Additional Child Tax Credit denied? Usually for the same reasons as the main credit: age, relationship, residency, or SSN. Earned income rules also apply. Your letter names the specific reason.
Why is my Child Tax Credit refund being held? The IRS may hold part of a refund during review. Sending the records your letter requests by the response date lets the review move forward.
Do I have to pay back the Child Tax Credit after a denial? If the IRS already paid your refund and the denial stands, you'll generally owe that amount back, shown on your letter. You can ask about a payment plan.
Can the IRS ban me from claiming the Child Tax Credit? A denial alone isn't a ban. Bans follow only findings of reckless or intentional disregard (2 years) or fraud (10 years), and your letter would say so.
What if I missed the IRS deadline on my Child Tax Credit letter? Call the number on the letter. A 90-day letter's Tax Court date still applies, so contact TAS or an LITC.
Turnout is not a law firm and does not provide legal or tax advice
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