Form 8862: Information To Claim Certain Credits After Disallowance (2013)

If the IRS previously denied or reduced your tax credits, Form 8862 is your pathway to claiming them again. This form acts as a "recertification" document, showing the IRS that you now meet all the requirements for credits that were previously disallowed. Understanding when and how to use this form properly can mean the difference between receiving thousands of dollars in refundable credits or having your claim automatically rejected.

What Form 8862 Is For

Form 8862, "Information To Claim Certain Credits After Disallowance," is a special IRS form that taxpayers must complete when they want to reclaim specific tax credits that were previously denied or reduced. For tax year 2013, this form applied to the Earned Income Credit (EIC), the Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), and the American Opportunity Tax Credit (AOTC).

Think of Form 8862 as a fresh start application. When the IRS denies your credit claim, they're essentially saying you didn't prove you qualified. Form 8862 gives you the opportunity to demonstrate that you now meet all eligibility requirements. The form requires you to provide detailed information about your qualifying children, income, residency, and other eligibility factors depending on which credit you're claiming.

The form is not optional if you previously had credits denied—if you're required to file it and don't, the IRS will automatically reject your credit claim, no questions asked. This automatic denial is treated as a math or clerical error, meaning you won't even get the opportunity to dispute it without first submitting the proper Form 8862.

When You'd Use Form 8862 (Original, Late, or Amended Returns)

For the 2013 tax year, you needed to attach Form 8862 to your tax return if your EIC, CTC, ACTC, or AOTC was denied or reduced for any year after 1996 for any reason other than a simple math or clerical error. This means if the IRS examined your return and determined you didn't qualify—perhaps because you couldn't prove a child lived with you or didn't meet income requirements—you must complete Form 8862 the next time you claim that credit.

Filing With Your Original Return

If you're filing your 2013 return by the April 15, 2014 deadline and you had a credit denied in a previous year (say, 2012), you must attach Form 8862 to that original 2013 return. Don't wait—the form must be included with your return when you first file it.

Filing Amended Returns

If you filed your 2013 return without Form 8862 when it was required, you can file an amended return using Form 1040X. However, you'll need to attach Form 8862 to the amended return and provide all the documentation the IRS requires. This process will delay your refund significantly, so it's always better to get it right the first time.

Late Returns

Even if you're filing your 2013 return late (after the April deadline), you still must attach Form 8862 if you had credits previously disallowed and want to claim them again. The requirement doesn't go away just because you're filing late.

The timing of when the IRS's final determination occurred matters. If you received a statutory notice of deficiency in 2013 but the 90-day period to challenge it hadn't expired when you filed your 2013 return, you wouldn't file Form 8862 until your next year's return (2014).

Key Rules for 2013

Several important rules governed Form 8862 usage in 2013. Understanding these rules is critical because violating them could result in losing your credits for years.

The Core Requirement: If your EIC, CTC, ACTC, or AOTC was denied for any year after 1996 for reasons other than math or clerical errors, you must file Form 8862 the next time you claim those credits. Period. The only exceptions are specific and limited.

Important Exceptions: You don't need to file Form 8862 if: (1) you already filed it after a previous denial, the IRS allowed your credit, and you haven't had another denial since (except for math errors); or (2) you're claiming the EIC without a qualifying child in 2013, and the only reason your credit was denied before was because the IRS determined your child wasn't a qualifying child. These exceptions are narrow, so when in doubt, file the form.

Math or Clerical Error Exception: If the IRS simply caught an arithmetic mistake or a missing/incorrect Social Security number, that doesn't trigger the Form 8862 requirement. These minor corrections don't require recertification.

The Ban Periods: This is crucial. If the IRS determined your error was due to "reckless or intentional disregard" of the rules, you're banned from claiming the credit for 2 years after the final determination. If your error was due to fraud, you're banned for 10 years. During these ban periods, you cannot claim the credits at all—and filing Form 8862 won't help until the ban period ends.

Income and Other Eligibility Requirements: For 2013, to claim the EIC, your adjusted gross income had to be less than $46,227 ($51,567 if married filing jointly) with three or more qualifying children, $43,038 ($48,378 married filing jointly) with two children, $37,870 ($43,210 married filing jointly) with one child, or $14,340 ($19,680 married filing jointly) without a qualifying child. Investment income couldn't exceed $3,300. All the standard eligibility rules still applied—Form 8862 doesn't waive those requirements; it just allows you to claim the credit again after a denial.

Step-by-Step (High Level)

Completing Form 8862 requires careful attention to detail and thorough documentation. Here's the high-level process for 2013:

Step 1: Determine Which Credit(s) You're Reclaiming

Check the appropriate boxes on the form indicating whether you're claiming the EIC, CTC/ACTC, AOTC, or multiple credits. Each credit has different documentation requirements.

Step 2: Gather Your Documentation

Before starting the form, collect birth certificates, school records, medical records, lease agreements, and any other documents proving your qualifying children lived with you and meet age, relationship, and residency tests. For education credits, gather Form 1098-T and receipts.

Step 3: Complete Part I (All Filers)

This section requires basic information confirming you meet the requirements for the credit(s) you're claiming. Answer all questions honestly and completely.

Step 4: Complete Part II (If Claiming EIC With Qualifying Children)

If you're claiming the Earned Income Credit based on having qualifying children, you must provide detailed information about each child: name, Social Security number, birth date, and the number of months they lived with you in 2013. The child must have lived with you more than half the year (more than 6 months).

Step 5: Complete Part III (If Claiming CTC/ACTC)

This section requires information about qualifying children for the Child Tax Credit. Similar to the EIC section, you'll list each child's identifying information.

Step 6: Complete Part IV (If Claiming AOTC)

For the American Opportunity Tax Credit, you'll need to provide information about the eligible student, including name, Social Security number, and confirmation that they meet the education requirements.

Step 7: Attach Form 8862 to Your Return

Don't file it separately—it must be attached to Form 1040 or 1040A (you cannot use Form 1040EZ when claiming these credits with qualifying children). Also attach Schedule EIC if claiming the Earned Income Credit with a qualifying child.

Step 8: Be Prepared for Additional Verification

Even with Form 8862 properly completed, the IRS may request additional documentation before releasing any refund. Respond promptly to any IRS requests.

Common Mistakes and How to Avoid Them

Many taxpayers make preventable errors when dealing with Form 8862, resulting in denied claims and delayed refunds.

Mistake #1: Not Filing the Form When Required

This is the most common and most costly error. If you're required to file Form 8862 but claim the credit without it, your claim will be automatically denied as a math error. Always check whether you've had credits denied in previous years before filing your 2013 return. If yes, include the form.

Mistake #2: Filing the Form When You Shouldn't

Some taxpayers file Form 8862 unnecessarily. If your credit was denied only due to a math or clerical error, or if you've already successfully recertified and haven't had another denial, you don't need to file it again. Read the exceptions carefully.

Mistake #3: Incomplete or Inaccurate Information

Leaving blank spaces, providing incorrect Social Security numbers, or miscounting the months a child lived with you will delay processing or result in denial. Triple-check every entry against official documents like birth certificates and Social Security cards.

Mistake #4: Claiming Credits During Ban Periods

If you're under a 2-year or 10-year ban due to reckless disregard or fraud, filing Form 8862 during that period won't work. You must wait until the ban expires. Review any IRS letters carefully to determine if you're under a ban.

Mistake #5: Inadequate Documentation

The IRS often requests additional proof even when Form 8862 is filed. Keep organized records: school records showing addresses, medical records, daycare records, utility bills, and lease agreements—anything proving the child lived with you for more than half of 2013.

Mistake #6: Using the Wrong Form Version

Always use the form designated for the tax year you're filing. For 2013 returns, use the 2013 version of Form 8862. Using the wrong year's form can cause processing delays.

Mistake #7: Not Responding to IRS Requests

If the IRS sends you letters requesting additional information, respond immediately with complete documentation. Ignoring these requests will result in automatic denial of your credit claim.

What Happens After You File

Once you file your 2013 return with Form 8862 attached, the process differs significantly from a standard tax return filing.

Extended Processing Time

Your return will take longer to process than a typical return. The IRS must manually review Form 8862 and verify all the information you provided. While a normal refund might be issued within three weeks, returns with Form 8862 can take 8-12 weeks or longer.

Additional Documentation Requests

In many cases, the IRS will send you a letter requesting additional proof of eligibility. This might include requests for birth certificates, school records, medical records, landlord statements, or other documents proving your qualifying children lived with you. You typically have 30-60 days to respond. Submit everything they ask for, with copies (not originals), sent via certified mail with tracking.

Three Possible Outcomes

After reviewing your Form 8862 and supporting documents, the IRS will: (1) approve your credit claim and issue your refund; (2) partially approve your claim, adjusting the amount; or (3) deny your claim entirely. You'll receive a notice explaining their decision.

Receiving CP74 Notice

If the IRS approves your Form 8862, you'll receive a CP74 notice confirming successful recertification. This is good news—it means you've proven eligibility and should receive your refund within 6 weeks (assuming you don't owe other debts the IRS must collect). Keep this notice for your records. Once you receive it, you won't need to file Form 8862 again unless credits are denied in the future.

If Your Claim Is Denied

If the IRS denies your credit claim after reviewing Form 8862, you'll receive a letter explaining why. You have appeal rights. You can respond with additional documentation or file a formal appeal within the timeframe specified in the notice (usually 30-60 days). If you don't respond or appeal, the denial becomes final, and you'll need to file Form 8862 again the next time you try to claim the credit.

Refund Offsets

Even if your credit is approved, your refund may be reduced or completely offset if you owe back taxes, child support, student loans, or other government debts. The IRS will send a separate notice explaining any offsets.

Future Returns

If your 2013 Form 8862 is successful and your credits are allowed, you typically won't need to file Form 8862 on your 2014 return—unless your credits are denied again for reasons other than math or clerical errors.

FAQs

Do I need Form 8862 if my credit was denied due to a missing Social Security number or math error?

If I filed Form 8862 last year and my credit was approved, do I need to file it again this year?

Can I claim the Earned Income Credit without a qualifying child if my credit was previously denied because the IRS said my child didn't qualify?

What if I'm still within the 90-day period to challenge the IRS's determination—should I file Form 8862 with my 2013 return?

How long will my refund take if I file Form 8862?

What happens if I file my return without Form 8862 when it's required?

Can I file Form 8862 if I'm banned from claiming credits for 2 or 10 years due to reckless disregard or fraud?

This summary is based on authoritative IRS sources including Publication 596 (2013) and official IRS guidance available at IRS.gov. Tax rules are complex, and individual circumstances vary. When in doubt, consult the official IRS instructions or a qualified tax professional.

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