It’s common for many people to make a little mistake on their tax return. In doing so, it can delay your refund. However, if you make a mistake when claiming the Earned Income Tax Credit, you may wait months to receive that portion of your refund. Depending on the situation, some errors can lead to a denial of the full credit.
If this happens, you may face some penalties such as repayment of the credit amount you’ve received with interest. You may have to file Form 8862, “Information to Claim Earned Income Credit After Disallowance” before you can claim the EITC again on a tax return.
Should the IRS determine the mistake was reckless or intentional, you’ll be blocked from claiming the EITC again for two more years following. If it’s determined fraud was a factor in filing, you’ll be denied ability to claim the EITC for the next ten years.
Check your return carefully to ensure accurate filing.