What the Form Is For

Form 8862 is your ticket back to claiming valuable tax credits after the IRS has previously reduced or denied them. Think of it as your "recertification form" that proves you now meet all the requirements for credits you couldn't claim before.

This form applies to five important tax credits that can significantly reduce what you owe or increase your refund: the Earned Income Tax Credit (EIC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), Credit for Other Dependents (ODC), and the American Opportunity Tax Credit (AOTC). If the IRS disallowed any of these credits in a previous year—for reasons beyond simple math errors—you'll need to complete Form 8862 and attach it to your tax return when you claim the credit again. IRS.gov

The form essentially tells the IRS: "I understand why my credit was denied before, but my situation has changed, and I now meet all the eligibility requirements." It requires you to provide detailed information about your qualifying children, income, residency, and other factors that determine eligibility for these credits.

When You'd Use It (Late/Amended Returns)

You must file Form 8862 attached to your tax return—whether it's your original return filed on time, a late return, or an amended return—whenever you want to claim EIC, CTC, ACTC, ODC, or AOTC after a previous disallowance. The key timing issue is understanding when you're required to use the form and when you're exempt from filing it.

You MUST File Form 8862 If

• Your EIC was reduced or disallowed for any year after 1996 (not due to math/clerical errors)
• Your CTC, ACTC, ODC, or AOTC was reduced or disallowed for any year after 2015 (not due to math/clerical errors)
• You now meet all requirements and want to claim these credits again

You DON'T Need to File Form 8862 If

• You already filed Form 8862 previously, the IRS allowed your credit, and it hasn't been denied again (except for math errors)
• You're claiming EIC without a qualifying child and the only reason for the previous denial was that a child you listed wasn't your qualifying child
• You received a CP74 notice from the IRS saying you've been recertified IRS.gov

Critical Exception — The Ban Periods

You CANNOT file Form 8862 or claim these credits during ban periods:

• 2-year ban: If the IRS determined your claim was due to "reckless or intentional disregard" of the rules
• 10-year ban: If the IRS determined your claim was due to fraud

After these ban periods expire, you must file Form 8862 to reclaim the credits. IRS.gov

Key Rules for 2023

For tax year 2023, several important eligibility rules govern Form 8862:

Taxpayer Identification Numbers

All taxpayers and dependents must have valid Social Security Numbers (SSNs), Individual Taxpayer Identification Numbers (ITINs), or Adoption Taxpayer Identification Numbers (ATINs) issued on or before the due date of your return (including extensions). For the EIC specifically, you must have a valid SSN—an ITIN won't qualify you. Similarly, children must have SSNs to count as qualifying children for CTC, ACTC, or RCTC; children with only ITINs or ATINs don't qualify for these credits (though they may qualify you for the Credit for Other Dependents).

Age Requirements

For the EIC without a qualifying child, you must be at least 25 but under 65 years old at the end of 2023. For qualifying children to count toward the CTC, ACTC, or RCTC, they must be under age 17 at the end of 2023.

Residency Requirements

Qualifying children generally must have lived with you in the United States for more than half of 2023. For taxpayers claiming EIC without qualifying children, you must have lived in the U.S. for more than half the year. IRS.gov

Refund Timing

The IRS cannot issue refunds before mid-February for returns claiming the EIC or ACTC—this applies to your entire refund, not just the portion related to these credits.

Step-by-Step Filing Process (High Level)

Filing Form 8862 involves these essential steps:

Step 1: Identify Which Credits Apply

Complete Part I by entering the tax year (2023) and checking the boxes for each credit you're claiming—EIC, CTC/ACTC/ODC, or AOTC.

Step 2: Complete Relevant Sections Based on Your Credits

• Part II (Earned Income Credit): If claiming EIC, answer questions about whether you or your spouse could be claimed as someone else's qualifying child. If you have qualifying children, complete Section A with details about each child (name, SSN, relationship, dates of birth, months lived with you). If claiming EIC without children, complete Section B (residency days in the U.S., age confirmation).
• Part III (Child Tax Credit/Additional Child Tax Credit/Credit for Other Dependents): For each qualifying child or dependent, provide their information and confirm they lived with you more than half the year and that you're claiming them as dependents.
• Part IV (American Opportunity Tax Credit): For each eligible student, confirm they haven't used the credit for more than four tax years, haven't completed four years of post-secondary education, were enrolled at least half-time, and have no felony drug convictions.
• Part V (Qualifying Child of More Than One Person): If a child could be claimed by multiple people, explain why you're the proper claimant based on IRS tiebreaker rules.

Step 3: Attach Required Documentation

Gather and attach all necessary schedules and forms: Schedule EIC for the EIC, Schedule 8812 for child tax credits, Form 8863 for the AOTC, and any supporting documentation the IRS might request.

Step 4: Submit with Your Tax Return

Form 8862 must be filed as an attachment to your Form 1040 or 1040-SR. You cannot e-file if you're claiming credits during a ban period (the system will reject it), and you'll need to mail a paper return instead. IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1: Filing When You Don't Need To

Many taxpayers file Form 8862 unnecessarily. Remember, if you already filed it once and the IRS allowed your credit, you don't need to file it again unless your credit is disallowed another time. Keep copies of previous correspondence and notices to verify whether you need the form.

Mistake #2: Wrong or Missing Taxpayer Identification Numbers

This is the top processing error. Every person listed—you, your spouse, children, students, dependents—must have a valid SSN, ITIN, or ATIN issued before your return's due date. Double-check each number before filing. For EIC and CTC/ACTC, only SSNs work—ITINs won't qualify.

Mistake #3: Incorrect Relationship or Residency Information

The IRS scrutinizes whether children truly lived with you for more than half the year. Count carefully, including temporary absences (school, vacation, medical care, military service). Don't round up or guess—use exact dates. Keep school records, medical records, and other documentation proving the child's address.

Mistake #4: Claiming Credits During a Ban Period

If you're under a 2-year or 10-year ban, you cannot claim the credits, period. Filing Form 8862 during a ban will result in automatic denial, wasted time, and potentially more scrutiny. Wait until the ban expires.

Mistake #5: Not Attaching Supporting Schedules

Form 8862 alone isn't enough. You must attach Schedule EIC (for EIC with qualifying children), Schedule 8812 (for child tax credits), Form 8863 (for AOTC), and any other required forms. Missing schedules will delay processing or trigger a rejection.

Mistake #6: Incomplete or Inconsistent Information

Answer every applicable question on the form. Leaving items blank or providing information that contradicts other parts of your return raises red flags. The IRS cross-references Form 8862 with your main return, W-2s, and other tax documents. IRS.gov

What Happens After You File

After you submit your return with Form 8862 attached, several things may occur:

Extended Processing Time

Returns with Form 8862 typically face additional scrutiny and longer processing times than standard returns. The IRS may review your eligibility more carefully, especially if your credit was previously denied due to concerns about qualifying children or residency. Additionally, refunds for returns claiming EIC or ACTC cannot be issued before mid-February, regardless of when you filed.

Potential IRS Verification Requests

The IRS may send you letters requesting additional documentation to prove your eligibility. Common requests include school records showing your child's address, medical records, landlord statements, or signed statements from third parties confirming residency. Respond promptly with the requested documents to avoid further delays or denial.

Three Possible Outcomes

1. Approval: The IRS accepts your Form 8862 and allows your credit. You'll receive your refund (if applicable), and you won't need to file Form 8862 again unless the credit is disallowed in a future year.
2. Partial Approval: The IRS may allow some but not all of the credits you claimed, or adjust the amount based on their review.
3. Denial: If the IRS determines you still don't meet the requirements, they'll deny your credit again. You'll receive a notice explaining the reasons. If the denial is due to reckless or intentional disregard, you could face a 2-year ban; if it's due to fraud, a 10-year ban applies. You may also face a 20% "erroneous claim" penalty if the IRS determines you claimed an excessive amount without reasonable cause. IRS.gov

Audit Possibility

Filing Form 8862 increases your chances of being selected for a full audit, especially for the EIC. The IRS may examine not just the credits but your entire return.

FAQs

Q1: Do I need to file Form 8862 every year?

No. You only file it once after each disallowance. If the IRS allows your credit after you file Form 8862, you don't file it again unless your credit is disallowed in a future year for non-mathematical reasons.

Q2: Can I e-file my return with Form 8862?

Usually, yes. However, if you're claiming credits after a ban period has expired, e-file systems may reject your return, and you'll need to mail a paper return. Check with your tax software or preparer.

Q3: What if I lost my IRS notice about the disallowance?

You can request a transcript of your account from the IRS showing the disallowance. Call the IRS at 1-800-829-1040 or use the "Get Transcript" tool on IRS.gov to obtain copies of notices.

Q4: What counts as a "math or clerical error"?

Math errors include incorrect addition or subtraction, wrong tax table amounts, or claiming credits you clearly don't qualify for based on the information provided (like claiming EIC when your income exceeds the maximum limit). If your credit was reduced only due to these types of errors, you don't need Form 8862 to claim it again—just file correctly next time. IRS.gov

Q5: My spouse and I are separated but not divorced. Can I still claim EIC with my child?

Possibly. If you lived apart from your spouse for the last six months of the year and your child lived with you for more than half the year, you may qualify to claim EIC even if you're married filing separately. Form 8862 requires you to provide this information if you're claiming credits while married but not filing jointly.

Q6: What if my child lived with multiple people during the year?

The IRS has "tiebreaker rules" for situations where a child qualifies for more than one person. Generally, the parent has priority, but if both parents could claim the child and don't file jointly, the parent with whom the child lived longest (or the parent with higher adjusted gross income if time was equal) gets to claim the child. Part V of Form 8862 addresses this scenario. IRS.gov

Q7: How long does it take the IRS to process my return with Form 8862?

There's no standard timeframe, but expect longer delays than typical returns—often several months. The mid-February refund hold for EIC and ACTC applies first, and additional verification can add more time. Check "Where's My Refund?" on IRS.gov for status updates, but be patient with the process.

Important Resources

• Form 8862 and instructions: IRS.gov/Form8862
• Publication 596 (Earned Income Credit): IRS.gov
• Publication 970 (Tax Benefits for Education): IRS.gov
• Publication 972 (Child Tax Credit): IRS.gov

This summary is for informational purposes only and is based on 2023 tax year rules. Tax laws change frequently, so always verify current requirements or consult a tax professional for your specific situation.