How do I appeal a disallowed credit?

If you believe that you qualify for a credit in a year after it was disallowed simply claim the credit on your return and include Form 8862. To do that follow these steps:

1. Answer Yes to the question asking if the credit was reduced or disallowed by the IRS in a previous year. (For some credits you'll need to click a link asking what to do if your credit was disallowed in a prior year to get to this question.)
2. Answer No to the question asking if you've claimed the credit since it was previously reduced or disallowed.
3. Make sure to fill out the Form 8862 information in the Misc section.
4. The IRS then requires you to choose to mail your tax return.

The IRS should then send you a math error notice. Once you have it, contact the IRS as described in the notice within 60 days of the date of the notice. After you challenge the math error notice, you'll receive a notice of deficiency that will provide you the ability to appeal the denial of the credit to the Tax Court.