Other Dependent Credit was disallowed

[David94]

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.

[Terry53029]

That is not an automatic rule The IRS COULD disallow for 2 - 10 years. Did your client receive a letter from IRS ?

[TaxGuyBill]

I think you are misunderstanding those rules.

Look at Form 8862 and its Instructions.

https://www.irs.gov/forms-pubs/about-form-8862

[David94]

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,

[David94]

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.

[Terry53029]

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.

[David94]

I have one more question.

If the client receive the notice from IRS, how do I report it?

Thank you.

[Terry53029 · Accepted solution]

No need to report. Just would not take the credit

[David94]

Thank you for your advise.