What Form 8862 Is For

Form 8862 is your second-chance application for reclaiming valuable tax credits after the IRS has previously denied or reduced them. Think of it as a way to prove you're now eligible again. The form applies to five important tax credits that many families rely on:

• Earned Income Credit (EIC) – A refundable credit for low-to-moderate income working individuals and families
• Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), and Refundable Child Tax Credit (RCTC) – Credits for qualifying children under age 17
• Credit for Other Dependents (ODC) – For dependents who don't qualify for the CTC
• American Opportunity Tax Credit (AOTC) – An education credit for college students in their first four years

When the IRS denies one of these credits, it's not always permanent. If your credit was disallowed for reasons other than simple math errors—perhaps you didn't meet residency requirements that year, or your child didn't have the proper documentation—you must file Form 8862 when you're ready to claim that credit again and can prove you now meet all the requirements. IRS.gov

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

You must attach Form 8862 to your tax return the first time you try to claim one of these credits again after it was disallowed. You'll know you need this form if you received a notice from the IRS in a previous tax year stating your credit was reduced or denied (not just adjusted for math errors). The notice would have shown a smaller refund than you expected.

You DO need Form 8862 if:

• Your credit was disallowed after 1996 (for EIC) or after 2015 (for CTC/ACTC/ODC/AOTC)
• The denial wasn't just a math or clerical correction
• You now meet all eligibility requirements and want to claim the credit again
• You're filing either an original return for the current year or an amended return

You DON'T need Form 8862 if:

• You already filed Form 8862 once, the IRS accepted it, and you've successfully claimed the credit since then without issues
• You're claiming EIC without a qualifying child, and the only problem last time was that your claimed child didn't qualify (not other eligibility issues)
• You received an IRS CP74 notice saying you've been "recertified"

The form must be attached to your regular tax return—you cannot file it separately. If you're filing electronically, your tax software will include it with your return. For paper returns, attach it to your Form 1040. IRS Instructions

Key Rules for 2024

Social Security Number Requirements (Critical!)

The 2024 rules are strict about identification numbers. For the EIC, you and your qualifying children must have valid Social Security Numbers (SSNs) issued before your tax return's due date (including extensions). Individual Taxpayer Identification Numbers (ITINs) don't qualify for EIC. For the CTC/ACTC, your child must have an SSN valid for employment—ITINs and Adoption Taxpayer Identification Numbers (ATINs) won't work. However, for the ODC and AOTC, you can use an ITIN instead of an SSN.

Ban Periods to Watch

If the IRS determined your previous claim involved "reckless or intentional disregard of the rules," you're banned for 2 years. If it involved fraud, the ban is 10 years. During these ban periods, you cannot claim the credits at all, even with Form 8862. The only way to challenge these bans is through a formal appeal process after filing.

Age Requirements

For EIC without a qualifying child, you must be at least 25 but under 65 years old at year's end. For CTC/ACTC in 2024, qualifying children must be under age 17 (this was temporarily age 18 for 2021 only).

Residency Requirements

Qualifying children must live with you in the United States for more than half the year. For EIC filers without qualifying children, your main home must be in the United States for more than half the year. Military members on extended active duty count as having their main home in the U.S.

Refund Timing

Even if you file Form 8862 correctly, the IRS cannot issue refunds before mid-February for returns claiming EIC or ACTC. This applies to your entire refund, not just the credit portion—it's called the PATH Act delay and affects all early filers claiming these credits. IRS Instructions

Step-by-Step (High Level)

Step 1: Determine If You Need the Form

Check your previous year's correspondence from the IRS. If you received a letter saying your credit was disallowed (not just adjusted for math), and this is the first time you're claiming it again, you need Form 8862. Look for notices like CP75, CP79, or audit letters from previous years.

Step 2: Gather Your Documentation

Before starting, collect proof that you now meet all requirements: birth certificates, Social Security cards for everyone involved, school records showing your child lived with you, proof of your U.S. residency, and college enrollment documents if claiming AOTC.

Step 3: Complete Part I (All Filers)

Enter the tax year you're filing for (2024) and check the box for each credit you're reclaiming. You can check multiple boxes if more than one credit was previously disallowed.

Step 4: Complete Applicable Sections

• Part II (Earned Income Credit): If claiming EIC, complete either Section A (with qualifying children) or Section B (without qualifying children). You'll provide details about your qualifying children or confirm age/residency requirements if filing without children.
• Part III (Child Tax Credit/Additional Child Tax Credit/ODC): List each qualifying child's information, including their SSN, birth date, relationship to you, and months lived with you.
• Part IV (American Opportunity Tax Credit): Provide information about each eligible student, confirming they haven't completed four years of college and haven't had AOTC claimed for them in four previous years.

Step 5: Attach to Your Tax Return

Form 8862 must be attached to your complete tax return—you cannot file it alone. If filing electronically, your tax software handles this. For paper returns, attach it behind your other schedules. Make copies of everything for your records.

Step 6: File and Monitor

Submit your return by the regular deadline (typically April 15, or October 15 if you have an extension). Monitor your refund status using the IRS "Where's My Refund?" tool online. The IRS may request additional documentation before processing your refund. IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1: Filing Form 8862 When Not Required

Many taxpayers file this form unnecessarily because they see it mentioned in their tax software. If you successfully claimed the credit last year without problems, you don't need to file it again. Only file if this is your first attempt to reclaim a previously disallowed credit.

Mistake #2: Using ITINs Instead of SSNs for EIC and CTC/ACTC

This is a top error causing delays. Remember: EIC requires valid SSNs for everyone. CTC/ACTC requires SSNs valid for employment for qualifying children. Double-check that you and your children have the correct type of identification number before claiming these credits. The ODC and AOTC are more flexible and accept ITINs.

Mistake #3: Incorrect "Months Lived With You" Calculations

Parents often miscalculate how long their child lived with them, especially in shared custody situations. Count temporary absences (school, vacation, medical care, military service) as time lived with you. If your child was born or died during the year, and your home was their home for more than half the time they were alive, enter 365 days.

Mistake #4: Not Providing Adequate Documentation

The IRS will likely scrutinize your Form 8862 carefully since you're reclaiming a previously denied credit. Proactively gather strong documentation: school records showing your address, medical records, landlord statements, or child care provider statements. Keep these ready—don't wait for the IRS to ask.

Mistake #5: Filing During a Ban Period

If you received a notice stating you're banned from claiming the credit for 2 or 10 years due to reckless disregard or fraud, filing Form 8862 during that period will trigger an automatic math error notice. If you believe the ban was wrong, you need to follow the formal appeal process, not just file the form again.

Mistake #6: Forgetting to Attach Other Required Forms

Form 8862 doesn't replace other forms—it's an addition. You still must attach Schedule EIC if claiming EIC with qualifying children, Form 8863 for AOTC, and Schedule 8812 for the child tax credits. Missing these supporting forms will delay your refund. IRS Processing Errors Guide

What Happens After You File

Initial Processing (2-3 weeks)

After you file, the IRS will acknowledge receipt of your return. E-filers usually see acceptance within 24-48 hours. Your return will enter the processing queue, but returns with Form 8862 typically receive additional scrutiny.

Enhanced Review

Because you're reclaiming a previously denied credit, the IRS will review your return more carefully than average returns. Expect this to add time to your processing. The IRS may verify your information against Social Security Administration records, school records, and other databases.

Possible Documentation Requests

In many cases, the IRS will send you a letter (often CP75 or a similar notice) asking you to provide documentation proving you meet the eligibility requirements. You'll typically have 30 days to respond. Common requests include proof of residency, birth certificates, school records, or custody agreements. Respond promptly with clear, organized documentation—this speeds up the process considerably.

Refund Timing

If everything checks out and you claimed EIC or ACTC, remember the PATH Act prevents refunds before mid-February regardless of when you filed. The IRS issues more than 9 out of 10 refunds within 21 days for taxpayers who file complete, accurate returns with no issues requiring additional review.

If Denied Again

If the IRS denies your credit again, you'll receive a notice explaining why. You have the right to appeal this decision within 60 days. The notice will explain your appeal options, which may include audit reconsideration or Tax Court if the IRS issues a formal deficiency notice. IRS Refund Information

FAQs

1. How do I know if my credit was previously disallowed?

You would have received a formal notice from the IRS in the mail, and your actual refund would have been less than what your tax return showed. If you're unsure, call the IRS at 1-800-829-1040 and ask whether you've been disallowed from claiming EIC, CTC, or AOTC in previous years. Keep records of any audit letters or adjustment notices.

2. Can I file Form 8862 electronically?

Yes. All major tax software programs include Form 8862 and will attach it electronically to your e-filed return. You cannot file Form 8862 separately—it must be part of your complete tax return. If you paper file, attach it to the front of your return package.

3. Will filing Form 8862 automatically delay my refund?

Not necessarily. The form itself doesn't cause delays, but the IRS scrutiny that comes with it often does. Processing times vary based on the IRS's workload and whether they need to verify your information. If the IRS needs to request additional documentation, this can extend processing by several additional weeks.

4. What if I forgot to attach Form 8862 to my return?

If you claimed EIC, CTC/ACTC, ODC, or AOTC after a previous disallowance and forgot Form 8862, the IRS will send you a math error notice disallowing your credit claim. You can respond to this notice within 60 days to request a manual review, or you can file an amended return (Form 1040-X) with Form 8862 properly attached. The amended return route is usually cleaner.

5. Can I claim some credits but not others on Form 8862?

Yes. Check only the boxes in Part I for the credits you're actually claiming this year. For example, if your EIC was disallowed years ago but you're only claiming the child tax credit this year (not EIC), just check the CTC box and complete Part III. You don't need to check boxes for credits you're not claiming.

6. What's the difference between "reckless disregard" and "fraud" that leads to ban periods?

Reckless disregard (2-year ban) means the IRS determined you carelessly or intentionally ignored the rules but without fraudulent intent—like repeatedly claiming a niece as your child when you knew she didn't live with you. Fraud (10-year ban) involves deliberately lying or falsifying information to get credits you knew you didn't deserve—like creating fake documents or claiming imaginary children.

7. Do I need to complete all parts of Form 8862?

No. After completing Part I (which everyone fills out), only complete the parts that correspond to the credits you're claiming: Part II for EIC, Part III for CTC/ACTC/ODC, and Part IV for AOTC. If you're only claiming one credit, you'll only complete one additional part beyond Part I. Read the instructions carefully to determine which sections apply to your situation.

Key Takeaway

Form 8862 is your pathway back to claiming valuable tax credits after a previous denial. Success requires having the proper identification numbers, meeting all eligibility requirements, providing solid documentation, and patiently working through the IRS review process. Keep detailed records, respond promptly to any IRS requests, and don't hesitate to seek help from a tax professional if your situation is complex. The credits are worth the effort—they can mean thousands of dollars for eligible families.

Sources

Sources: All information sourced from official IRS publications:

• IRS Form 8862 About Page
• Instructions for Form 8862 (Rev. October 2024)
• What to Do If We Deny Your Claim for a Credit
• IRS Handling Processing Errors
• When to Expect Your Refund (EITC/ACTC)