How to Solve ACTC Reject Code IND-165-02 Issued by the IRS.

conectier-Reject code IND-165-02

Receiving a reject code IND-165-02 means that the IRS authorities have denied processing your tax documents because you have been told to submit form 8862 along with it. 

conectier-Reject code IND-165-02

This denial code IND-165-02 usually occurs when you try to claim credits such as the ACTC or the additional child tax credit on your current tax papers, which you were not allowed to do so previously.

To stop receiving the IRS code IND-165-02 you need to fill up form 8862 and submit it along with your tax returns. It is vital to follow all instructions as given. Once you have done so, you can resubmit your documents to the authorities to process the same. 

Steps to Follow for Fixing reject code IND-165-02 in TurboTax

If you want to e-file your tax documents and are trying to claim earned tax credit, then you must also attach form 8862 to resolve IND-165-02 TurboTax errors. Follow the procedure below to attach the mentioned form. 

  • Access TurboTax
  • Go to Fix my returns and click on it. 
  • In the upper right corner, click on the search box 
  • Type EIC (earned income credit) 
  • You will see the link Jump to EIC, click it. 
  • Keep going on the EIC section till you come across a question do any of these unusual situations apply? 
  • On the fourth box, click on it where it says you received a letter requesting form 8862 to be attached. This is mainly to solve IND-165-02 reject code and claim EIC. 
  • After that, click continue. 
  • On the tax break screen, click done on the congrats.
  • You will be asked to provide additional information as you received the IRS reject code. 
  • Choose No and then Continue. 
  • With respect to EIC, answer all questions. 
  • On the tax break screen, pick review. 
  • Check for any blanks or errors on form 8862, and fix any issues before submitting. 

What are the Other EIC errors that Relate to reject code IND-165-02?

Other error codes that relate to the reject code IND-165-02 concerning EIC are as follows:

  • IND-167 ― cannot claim EIC as it must be zero
  • F1040-459 ― EIC claimed with marital status as Married filing separately. 
  • SEIC-F1040-535-04 ― SSN and date of birth of dependent do not match with IRS

Reject code IND-165-02 simply requires you to submit a form 8862 to the IRS with your tax documents in order to receive any additional child tax credit. If you are eligible, you must do as required, otherwise, you can contact the authorities for any queries that you may have concerning this particular denial code. 

Frequently Asked Questions

What is Form 8862?

Form 8862 is the Information to Claim Earned Income Credit After Disallowance form.

What is the ACTC?

The ACTC is the Additional Child Tax Credit.

Who needs to file Form 8862?

Taxpayers who had their Earned Income Credit (EIC) disallowed due to incorrect or incomplete information on their tax return must file Form 8862 to claim the EIC in future years.

What is Reject Code IND-165-02?

Reject Code IND-165-02 is an error code that indicates that the taxpayer cannot claim the additional child tax credit (ACTC) because the IRS has not yet received form 8862. 

What should I do if I receive Reject Code IND-165-02?

If you receive this reject code, you should verify that you have entered all information correctly and rightfully claim the ACTC with form 8862.

Can I still claim the EIC if I receive Reject Code IND-165-02?

Yes, you can still claim the Earned Income Credit (EIC) if you receive this reject code.

How do I correct a rejected return with Reject Code IND-165-02?

To correct a rejected return with this code, you should update returns with form 8862

How long does it take for the IRS to process Form 8862?

It typically takes the IRS about 8 weeks to process Form 8862.

Can I file Form 8862 electronically?

Yes, you can file Form 8862 electronically.

Can I claim the ACTC in future years if I receive Reject Code IND-165-02?

Yes, you can claim the Additional Child Tax Credit (ACTC) if you correct the issue causing the rejected code

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