Form 8862: Information To Claim Earned Income Credit After Disallowance (2012)

What the Form Is For

Form 8862 is a special IRS form that taxpayers must file when they want to claim the Earned Income Credit (EIC) again after the IRS has previously reduced or denied their claim. Think of it as a ""recertification"" form—it's the IRS's way of making sure that taxpayers who previously had problems with their EIC claim now understand the rules and truly qualify for the credit.

In 2012, Form 8862 specifically addressed the Earned Income Credit, which is a valuable tax credit designed to help low-to-moderate income working individuals and families. The form requires taxpayers to provide detailed information proving they meet all the EIC requirements, particularly regarding qualifying children, residency, and income. The IRS uses this form to verify that past errors or issues have been corrected before allowing the credit again.

The form is mandatory in specific situations—you cannot simply claim the EIC again on your regular tax return if your credit was previously disallowed for substantive reasons. By requiring Form 8862, the IRS aims to reduce improper payments while giving legitimate taxpayers a clear path to reclaim their rightful credits.

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

You must complete and attach Form 8862 to your 2012 tax return if two conditions apply: First, your EIC was reduced or disallowed for any reason other than a simple math or clerical error in a tax year after 1996. Second, you now want to claim the EIC for 2012 and believe you meet all the requirements.

It's important to understand that this form is required whether you're filing your original 2012 return on time, filing late, or filing an amended return. The key trigger is the previous disallowance—not when you file. If you're filing an amended 2012 return (Form 1040X) to claim the EIC and you had a prior disallowance, Form 8862 must be attached.

However, there are exceptions. You don't need to file Form 8862 if you previously filed the form (or similar documentation), had your EIC allowed afterward, and haven't had another disallowance since then. Additionally, if you're claiming the EIC without a qualifying child and your prior disallowance was only because a child on Schedule EIC wasn't your qualifying child, you don't need Form 8862—you can simply claim the childless EIC if you otherwise qualify.

Key Rules for 2012

For tax year 2012, several critical rules governed Form 8862. Most importantly, taxpayers subject to ban periods could not file the form or claim the EIC at all. If your EIC claim was denied due to ""reckless or intentional disregard"" of the rules, you were banned from claiming the credit for the following two years. If the denial was due to fraud, the ban extended to ten years. These ban periods were strictly enforced—violating them could result in additional penalties.

The form focused heavily on proving qualifying child requirements. For a child to qualify, they had to live with you in the United States for more than half of 2012—specifically, at least 183 days (or 184 days since 2012 was a leap year). Temporary absences for school, vacation, medical care, or detention counted as time lived at home. If claiming the EIC without a qualifying child, you yourself needed to live in the United States for more than half the year.

Another key rule: you could not be claimed as someone else's qualifying child. If you were under age 19 (or 24 if a student) and could be claimed on another person's return, you couldn't claim the EIC—even if that person chose not to claim you. The form also required disclosure of anyone else who lived with your qualifying child, as the IRS wanted to verify that another person wasn't entitled to claim the same child.

Step-by-Step (High Level)

Filing Form 8862 involves several straightforward steps, though the information required can be detailed.

Part I — Everyone Must Complete

Start by completing Part I, which applies to everyone filing the form. Here you'll enter the tax year you're claiming (2012), indicate whether your prior disallowance was only due to incorrectly reported earned or investment income, and confirm that you cannot be claimed as someone else's qualifying child.

Part II — If You Have Qualifying Children

If you're claiming the EIC with one or more qualifying children, proceed to Part II. This is the most detailed section. For each child (up to three), you must:

• Enter the number of days the child lived with you during 2012
• Provide birth and/or death dates if the child was born or died during the year
• List every address where you and the child lived together
• Identify any other person (besides your spouse and minor dependents) who lived with each child for more than half the year, along with their relationship to the child

Part III — If You’re Claiming EIC Without a Qualifying Child

If you're claiming the EIC without a qualifying child, skip to Part III instead. Here you simply report the number of days you (and your spouse, if married filing jointly) lived in the United States during 2012. Remember, you need at least 183 days (184 for 2012's leap year) to qualify.

Filing Your Return

After completing the appropriate sections:

• Attach Form 8862 to your Form 1040 or 1040A
• If you have qualifying children, also attach Schedule EIC
• File your return by mail or electronically if supported by the software

Common Mistakes and How to Avoid Them

Mistake 1: Failing to File Form 8862 When Required

Some taxpayers, after having their EIC disallowed, simply claim the credit again on their next return without realizing they need this special form. The IRS will automatically deny the EIC again—potentially triggering math-error notices and delaying your refund.

Mistake 2: Miscounting Days of Residency (Leap Year Trap)

Taxpayers often miscalculate how many days a child lived with them, forgetting that 2012 was a leap year with 366 days. The qualifying threshold was 184 days, not 183.

Temporary absences count as time at home, but you need to be able to document the total days.

Mistake 3: Not Listing All Household Members

You must list anyone else who lived with the child for more than half the year—
even if they have no claim to the child.

Failing to disclose another adult in the household can appear misleading and can trigger additional IRS scrutiny or denial.

Mistake 4: Filing Form 8862 During a Ban Period

If you were previously denied for reckless disregard or fraud, you may be under a 2-year or 10-year ban.

Filing during the ban won't just result in denial—it can trigger penalties and deeper IRS review.

Mistake 5: Incomplete Information in Part II

Vague or missing dates, addresses, or household members often result in IRS requests for clarification, delaying your refund.

What Happens After You File

Once you file your 2012 return with Form 8862 attached, expect additional processing time. Returns with Form 8862 undergo enhanced review to verify residency, income, and child-related information.

IRS Requests for Additional Documentation

The IRS may request documents such as:

• School or medical records
• Landlord or lease statements
• Utility bills
• Birth certificates or Social Security cards

Respond promptly to avoid further delays.

Possible Outcomes

• If approved: You receive your refund including the EIC.
• If denied: You receive a notice explaining why the EIC was denied again.
• In some cases: The IRS may audit prior years for consistency.

Maintaining accurate records and responding quickly to IRS correspondence is essential.

FAQs

Do I need Form 8862 if my EIC was denied only because of a math error?

Will Form 8862 delay my refund?

Can I e-file my 2012 return with Form 8862 attached?

What if my child lived with me and my ex-spouse in different homes during 2012?

Do I need Form 8862 every year after a disallowance?

What happens if I file for the EIC without Form 8862 when it’s required?

Can I file Form 8862 if I'm currently under a ban period?

This summary is based on official IRS guidance for tax year 2012. For complete details, refer to the official Form 8862 instructions and Publication 596 from IRS.gov.