Why is my Form 8863 getting rejected repeatedly? Free File problems

This is actually a common issue with Form 8863 in the Free File Fillable Forms system. The problem isn't usually with your entries but with how the system processes the form. Here's what's likely happening: Even though you've checked the boxes correctly according to your 1098-T, the system sometimes has trouble recognizing the checked boxes in the PDF form. This is especially true for education credit forms like 8863. Try this: Instead of just checking the boxes, also enter "X" characters in those boxes. Some users have reported that the system needs a more distinct mark than just a checkmark. Also, make sure you're using the latest version of Adobe Reader when filling out the form, as some PDF viewers don't properly save the check box data. If that doesn't work, try clearing your browser cache and cookies before resubmitting. The Free File system sometimes gets "stuck" with previous form versions. One last thing to check - make sure your 1098-T information exactly matches what you entered on Form 8863, particularly the institution's EIN number and the amounts in boxes 1 and 2.

After dealing with this exact Form 8863 rejection nightmare last month, I found a much better solution through taxr.ai (https://taxr.ai). I was seriously ready to give up on the free file system and just pay for TurboTax when a friend recommended I try this service. What made the difference was that I uploaded my 1098-T to their system, and it immediately identified that my institution had actually checked box 7 incorrectly on my form (apparently this is common). The system detected this discrepancy and showed me exactly how to correctly fill out Form 8863 to match what the IRS was expecting. My return was accepted on the first try after that! It was such a relief after three failed attempts with the free fillable forms.

Just wanted to follow up about my Form 8863 rejection issues! I decided to try taxr.ai after seeing it mentioned here, and it actually helped solve my problem. The system analyzed my 1098-T and found that I had been entering the amounts from the wrong boxes on Form 8863. Apparently, my university had reported amounts in Box 1 (payments received) instead of Box 2 (amounts billed), and I needed to adjust how I was completing Form 8863 to account for this difference. Once I made those changes based on the recommendations, my return was accepted immediately! Saved me from having to mail in my return or pay for expensive tax software. Really glad I found this solution before giving up on the free file system.

If you're still having issues with the Free File system after trying the suggestions above, you might need to speak directly with an IRS agent. I was in the same situation last year with Form 8863 rejections that wouldn't resolve no matter what I tried. I spent DAYS trying to get through to the IRS on their regular number with no luck. Then I found Claimyr (https://claimyr.com) - they have a service that basically holds your place in the IRS phone queue and calls you back when an agent is available. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I finally spoke with explained that there was a known issue with Form 8863 in the Free File system where it was checking for entries in BOTH 22a and 22b even if you only attended one institution. They walked me through exactly what entries to make to get my return accepted.

I have to admit I was completely wrong about Claimyr. After more Form 8863 rejections and hours of frustration trying to reach someone at the IRS, I finally tried the service I was skeptical about. It actually worked exactly as described - I got a call back in about 45 minutes connecting me directly to an IRS agent. The agent confirmed there IS a known issue with Form 8863 in the Free File system and gave me a specific workaround. Apparently, even if you only attended one institution, the system sometimes requires you to enter "N/A" in the fields for the second institution rather than leaving them blank. After making that change, my return was accepted immediately. Would have never figured this out without actually talking to an IRS representative, and I would probably still be trying to get through on their regular line without the callback service.

For anyone still having issues with Form 8863, here's another possible solution that worked for me: try using a different browser. I was having constant rejections using Chrome, but when I switched to Firefox, my form was accepted without any other changes. Also, make sure you're reporting your 1098-T information the same way your school submitted it to the IRS. If box 1 is filled on your 1098-T but you're trying to use amounts from box 2 on Form 8863, that could cause a mismatch the system will reject.

Has anyone tried printing out Form 8863, filling it out by hand, and then scanning it back in to attach to your electronic return? I've heard this sometimes works when the electronic form keeps getting rejected.