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Hello,
My client's ODC (Other Dependent Credit) was disallowed in their 2021 tax return.
I am aware that in such cases, my client cannot claim ODC for the next 2 years.
My question is how to report the disallowed ODC in their 2022 tax return.
If I check the "not qual credit other dep" box in the dependent information section, would this be the proper procedure to report a disallowed ODC in 2022 tax return?
Thank you.
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No need to report. Just would not take the credit
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That is not an automatic rule The IRS COULD disallow for 2 - 10 years. Did your client receive a letter from IRS ?
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I think you are misunderstanding those rules.
Look at Form 8862 and its Instructions.
https://www.irs.gov/forms-pubs/about-form-8862
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Thank you for your helpful response.
No, my client did not receive the IRS letter yet.
And then can I claim ODC in 2022 tax return?
Thank you,
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Thank you for your helpful response.
If my client does not want to claim 2021 credit, does client not need to file form 8862 in 2022 tax return?
Thank you.
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If client did not receive notice from IRS informing him the credit is being disallowed, and he/she otherwise qualifies, then your client should take the credit. If client does not want to take the credit then just leave dependent off tax return.
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I have one more question.
If the client receive the notice from IRS, how do I report it?
Thank you.
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No need to report. Just would not take the credit
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Thank you for your advise.