IRS denied my EITC last year, but I qualify this year, what should I do?

A) If the IRS denied your Earned Income Tax Credit (EITC) claim last year, but you believe you qualify for the credit this year, you should claim the credit on your current year tax return.

When claiming the EITC, you will need to complete and attach Schedule EIC (Earned Income Credit) to your tax return. You will also need to provide documentation to prove that you meet the eligibility requirements for the credit, such as proof of earned income and the number of qualifying children.

If the IRS denied your EITC claim last year because you made an error on your tax return, you should review your previous tax return to identify any mistakes that were made and ensure that your current year tax return is accurate. If the IRS denied your EITC claim due to fraud or intentional disregard of the rules, you may be subject to penalties and interest.

It’s important to note that the eligibility requirements for the EITC can change from year to year, so even if you were denied the credit in a previous year, you may still qualify for the credit in the current year. If you have any questions or concerns about claiming the EITC on your tax return, you should consult a tax professional or contact the IRS for assistance.