What Form 8862 Is For

Form 8862 is your ticket back to claiming valuable tax credits after the IRS has previously denied or reduced them. Think of it as a "second chance" form that proves you're now eligible for credits you couldn't claim before. IRS.gov

For the 2019 tax year, Form 8862 applies to four major tax credits: the Earned Income Credit (EIC), the Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC), the Credit for Other Dependents (ODC), and the American Opportunity Tax Credit (AOTC) for college expenses. These credits can be worth hundreds or even thousands of dollars, so getting back on track matters.

You must file this form if the IRS previously reduced or disallowed any of these credits for reasons other than simple math or clerical errors. This typically happens after an audit or examination where the IRS determined you didn't meet the eligibility requirements at that time—perhaps a child didn't live with you long enough, or income limits were exceeded. The key point: Form 8862 isn't for fixing calculation mistakes; it's for situations where you legitimately didn't qualify before but do qualify now. IRS.gov

When You’d Use Form 8862 (Late/Amended Returns)

You need Form 8862 the very next time you want to claim any of these credits again after a disallowance. This applies whether you're filing your regular return on time, filing late, or filing an amended return. IRS.gov

However, there are important exceptions where you don't need to file Form 8862:

• If you already filed Form 8862 once after a previous disallowance and the IRS approved your credit, you don't need to file it again unless your credit gets denied again
• If you're claiming the EIC without a qualifying child and the only reason your EIC was denied before was that a child didn't meet the qualifying child test, you can skip Form 8862
• If you were banned from claiming the credit due to "reckless or intentional disregard" of the rules, you cannot file for 2 years
• If fraud was involved, you're banned for 10 years and cannot file Form 8862 during that period

For 2019 returns filed late or amended, the same rules apply. You attach Form 8862 to your return regardless of when you file it. IRS.gov

Key Rules or Details for 2019

Understanding the 2019-specific requirements helps you avoid common pitfalls. First and foremost, you must have proper taxpayer identification numbers issued by the return's due date (including extensions). IRS.gov

Identification Number Requirements

For the Earned Income Credit, you need a Social Security Number (SSN) that's valid for employment—an Individual Taxpayer Identification Number (ITIN) won't work for EIC. If you're claiming the credit with qualifying children, those children also need valid SSNs.

For the Child Tax Credit and Additional Child Tax Credit, your qualifying children must have SSNs valid for employment. Children with only ITINs or Adoption Taxpayer Identification Numbers (ATINs) don't qualify for CTC or ACTC. However, for the Credit for Other Dependents, dependents can have an SSN, ITIN, or ATIN.

For the American Opportunity Tax Credit, you or your student can have either an SSN or ITIN, making this credit more accessible to mixed-status families.

Ban Periods

Another critical 2019 rule: don't file Form 8862 if you're still within a ban period. The IRS can ban taxpayers for 2 years for reckless mistakes or 10 years for fraud. During these periods, you simply cannot claim the credits, and filing Form 8862 will result in automatic denial. IRS.gov

Step-by-Step (High Level)

Filing Form 8862 follows a logical progression through five main parts, though you only complete the sections relevant to the credits you're claiming.

Step 1: Part I (Everyone completes this)

Enter 2019 as the year you're claiming the credit and check the boxes for which credits you're reclaiming—EIC, CTC/ACTC/ODC, or AOTC. This tells the IRS what you're attempting to claim.

Step 2: Part II (If claiming EIC)

This section proves you meet the EIC requirements. You'll answer questions about whether you could be claimed as someone else's dependent, provide details about qualifying children (if any), including their ages, relationship to you, and how many days they lived with you. If claiming EIC without children, you'll confirm age requirements (you must be at least 25 but under 65) and that you lived in the United States for more than half the year.

Step 3: Part III (If claiming CTC/ACTC/ODC)

Here you document your qualifying children or dependents. You'll list each child's information and confirm they lived with you for more than half the year and meet the age requirements (under 17 for CTC, any age for dependents claimed for ODC). The form asks for specific day counts to verify residency requirements.

Step 4: Part IV (If claiming AOTC)

This section focuses on college students. You'll provide information about the eligible student, confirm they haven't completed four years of post-secondary education, were enrolled at least half-time in a degree program, and haven't had AOTC claimed for them in four previous years. You'll also certify the student hasn't been convicted of any drug-related felony.

Step 5: Part V (Qualifying child of more than one person)

If someone else might also claim one of your children for any credit, you complete this section to explain the "tiebreaker rules"—who has the stronger claim based on residency, relationship, and income.

Step 6: Attach to your return

After completing the relevant sections, attach Form 8862 to your 2019 Form 1040 along with any required supporting schedules (like Schedule EIC for the earned income credit). IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1: Not filing Form 8862 when required

The most frequent error is simply forgetting to attach the form. If you were previously denied one of these credits and try to claim it again without Form 8862, the IRS will automatically disallow it through a "math error notice." Always check your prior year correspondence from the IRS to see if credits were disallowed. IRS.gov

How to avoid it: Review all IRS notices from previous years before filing. Look for phrases like "disallowed," "reduced," or "denied" related to EIC, CTC, ACTC, ODC, or AOTC.

Mistake #2: Claiming credits during a ban period

Some taxpayers don't realize they're under a 2-year or 10-year ban from claiming credits due to previous reckless disregard or fraud. Filing Form 8862 during a ban period wastes time and delays your refund processing. IRS.gov

How to avoid it: Check IRS notices carefully for information about ban periods. Mark your calendar for when the ban period ends before attempting to claim credits again.

Mistake #3: Missing or incorrect Social Security Numbers

The IRS strictly enforces ID requirements. Using an ITIN when an SSN is required (especially for EIC) or listing SSNs that weren't issued by the return deadline will trigger denials. IRS.gov

How to avoid it: Verify that all SSNs were issued on or before the due date of your 2019 return (typically April 15, 2020, or October 15, 2020, with extension). Double-check that you're using SSNs, not ITINs, for EIC claims.

Mistake #4: Incorrect day counts for qualifying children

Many filers guess at the number of days a child lived with them rather than calculating accurately. The IRS may request school records, medical records, or other documentation to verify these numbers. IRS.gov

How to avoid it: Count carefully, including temporary absences for school, vacation, or medical care as time lived with you. Keep supporting documents like school enrollment records, medical bills with your address, and childcare provider statements.

Mistake #5: Filing for the wrong year

Form 8862 asks for the year you're claiming the credit (2019), not the year it was disallowed. Some taxpayers enter the disallowance year instead. IRS.gov

How to avoid it: On line 1, enter 2019—the current tax year you're filing—not the year mentioned in your IRS disallowance letter.

What Happens After You File

Once you submit your 2019 return with Form 8862 attached, expect closer scrutiny than a typical return. The IRS treats Form 8862 returns as higher-risk and may take additional time to process them. IRS.gov

Initial processing

The IRS will review your Form 8862 to verify that you now meet all eligibility requirements for the credits you're claiming. This review process ensures that the issues that led to the previous disallowance have been resolved.

Additional review

The IRS may conduct a more detailed review of your Form 8862 return, especially if you've been disallowed multiple times. You might receive requests for documentation such as:

• School records showing where your child attended school and your address
• Medical records with your address
• Landlord or mortgage statements proving residence
• Birth certificates or other proof of relationship
• Childcare provider statements
• Records from government agencies

The IRS instructions specifically mention that "documents you might want to keep for this purpose include school and child care records and other records that show your child's address." IRS.gov

Possible outcomes

If the IRS approves your Form 8862, you'll receive your full refund including the credits claimed. The agency may send you a letter confirming you're recertified and won't need to file Form 8862 in future years unless the credit is disallowed again.

If the IRS denies your Form 8862 claim, you'll receive a notice explaining why. At that point, you can provide additional documentation or request an appeal. Remember that being denied again could extend your ban period or trigger penalties if the IRS determines the claim was reckless or fraudulent. IRS.gov

Refund delays for EITC and ACTC

By law, the IRS cannot issue refunds for returns claiming the Earned Income Credit or Additional Child Tax Credit before mid-February, regardless of when you file. This applies to your entire refund, not just the credit portion. IRS.gov

FAQs

Q1: Do I need to file Form 8862 every year after a credit was disallowed?

No. Once you file Form 8862 and the IRS approves your credit, you don't need to file it again unless that credit is disallowed in a future year for reasons other than math errors. Think of it as a one-time recertification. IRS.gov

Q2: Can I e-file my return with Form 8862, or do I have to mail it?

You can e-file your return with Form 8862 attached. The IRS accepts electronically filed returns with Form 8862. E-filing is preferable because it processes faster than paper returns. IRS.gov

Q3: What if I was disallowed a credit several years ago but didn't know I needed Form 8862?

You should file Form 8862 as soon as you realize it's required. If you've already filed returns for subsequent years without it and had credits denied, you may need to file amended returns with Form 8862 attached for each year to claim those credits retroactively. Keep in mind you generally have three years from the original due date to claim refunds.

Q4: My circumstances genuinely changed—will the IRS believe me?

Yes, if you provide proper documentation. Life changes all the time: children move back home, divorces are finalized, custody arrangements change, and people become students. The IRS understands this. The key is providing clear evidence that your current situation meets all the credit requirements.

Q5: What's the difference between "reckless disregard" and "fraud" regarding the ban periods?

"Reckless or intentional disregard" means you ignored the rules or didn't make a reasonable effort to comply—perhaps you claimed a child who clearly didn't live with you or ignored income limits. This triggers a 2-year ban. "Fraud" involves deliberately falsifying information with intent to deceive, such as making up a child or forging documents. Fraud results in a 10-year ban and potential criminal penalties. IRS.gov

Q6: Can I get help filling out Form 8862?

Absolutely. Free tax preparation services through the IRS's Volunteer Income Tax Assistance (VITA) program can help eligible taxpayers complete Form 8862. VITA generally serves people who make $67,000 or less, people with disabilities, and limited English-speaking taxpayers. You can also consult with a tax professional, especially if your situation is complex. IRS.gov

Q7: What if I disagree with the IRS's denial of my credits in the first place?

If you believe the original disallowance was wrong, you should have appealed it when you first received the notice. However, if that time has passed, filing Form 8862 when your situation changes is your path forward. Focus on meeting all current requirements rather than relitigating past decisions. IRS.gov

Conclusion

The bottom line: Form 8862 represents a genuine opportunity to reclaim valuable tax credits that can make a significant difference in your finances. Success requires careful attention to eligibility requirements, thorough documentation, and accurate completion of the form. When in doubt, seek assistance from IRS-sponsored free tax preparation services or qualified tax professionals. The credits are worth the effort.

You have not enough Humanizer words left. Upgrade your Surfer plan.