Instructions for Form 8862 Checklist – 2019 Tax Year
Form 8862 allows taxpayers to reclaim the Earned Income Tax Credit or Additional Child Tax
Credit after the Internal Revenue Service disallowed a prior-year claim. The 2019 instructions reflect post-Tax Cuts and Jobs Act requirements and establish specific procedures for addressing the reason for prior disallowance and demonstrating current-year eligibility.
Understanding Form 8862 Filing Requirements
Taxpayers must file Form 8862 before the IRS will allow EITC or ACTC claims if a prior-year credit was reduced or disallowed for any reason other than a math or clerical error. Important exceptions apply to this requirement, and understanding these exceptions helps you determine whether you must file this form with your 2019 tax return.
You do not need to file Form 8862 if your credit was disallowed solely due to a math or clerical error, if you previously submitted Form 8862 and had your credit allowed without subsequent disallowance, or if you are within a ban period that prevents filing. Ban periods prevent taxpayers from filing Form 8862 under specific circumstances determined by the nature of the prior disallowance.
The IRS imposes a two-year ban if your claim was disallowed due to reckless or intentional disregard of the rules. A ten-year ban applies if the disallowance resulted from fraud, and you cannot claim the credit or file Form 8862 during these ban periods.
Step-by-Step Guide to Completing Form 8862 for the 2019
Tax Year
Step 1: Verify 2019 Income Limits
Earned income and adjusted gross income must fall within the applicable EITC phase-out range for your filing status and number of qualifying children. Use the 2019 tax table or instructions to identify your maximum allowable credit amount before submitting Form 8862.
Step 2: Review Investment Income Thresholds
Investment income requirements differ between EITC and ACTC, and meeting the correct threshold is essential for claiming your credit. If you claim EITC, your investment income must
not exceed $3,600 for 2019, and exceeding this threshold disqualifies you from claiming the credit regardless of your earned income level. If you claim ACTC, you must have earned income of at least $2,500 for the year, and no separate investment income limitation applies to claiming the Additional Child Tax Credit.
- Improper qualifying child status
- Income calculation error
- Filing status issue
- Taxpayer identity problem
Step 3: Identify the Prior Disallowance Reason
Locate the IRS notice that denied your EITC or ACTC claim in a previous year. The notice identifies the specific disallowance reason you must address on Form 8862. Common disallowance reasons include:
Complete Form 8862 Part I by entering the tax year of the disallowed claim and selecting the box that corresponds to the disallowance reason from your IRS notice. Use only the exact language or category the IRS cited in your notice to ensure accurate processing.
Step 4: Explain Your Current Eligibility
Form 8862 Part II requires you to explain why you now qualify for EITC or ACTC by addressing the specific reason cited in the prior disallowance. Provide factual explanations tied directly to your current-year circumstances that demonstrate you satisfy all eligibility requirements for
2019.
Step 5: Prepare Supporting Documentation
Organize copies of documents that support your explanation for each qualifying child claimed under EITC. Keep documentation available because the IRS may request verification after you file, and the 2019 instructions note you may be asked to provide information before any refund is issued.
Documents you should prepare include birth certificates for children, lease agreements or mortgage statements for residency, employment records for income verification, and court orders for custody or guardianship.
Keep documentation ready to submit only if the IRS requests it after you file. Do not send original documents if requested because they will not be returned.
Step 6: Complete Schedule EIC
Schedule EIC must accompany Form 1040 or Form 1040-SR when you claim EITC with a qualifying child. Enter the child’s name, Social Security number, relationship, and birth date on
Schedule EIC for each qualifying child.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 7: Attach Form 8862 to Your Tax Return
Attach Form 8862 to your 2019 Form 1040, Form 1040-SR, or Form 1040-NR along with all required schedules. The IRS will not process your EITC or ACTC claim without Form 8862 present when required.
Verifying Social Security Numbers
Verify that the Social Security number for yourself, your spouse (if filing jointly), and each qualifying child matches Social Security Administration records exactly. The 2019 instructions emphasize Social Security number accuracy as critical to processing your claim, and errors in
Social Security numbers trigger correspondence from the IRS, rejected tax returns, or denied tax credits.
Each qualifying child you use for the Child Tax Credit or Additional Child Tax Credit must have a
Social Security number valid for employment issued before the due date of your 2019 return, including extensions.
Key 2019 Tax Year Updates
The 2019 EITC phase-out income thresholds and credit amounts reflect post-Tax Cuts and Jobs
Act tax law. Use only 2019 IRS tables and worksheets to calculate eligibility, not prior-year amounts.
Schedule EIC became mandatory for dependent-related EITC claims because the 2019 instructions removed the option to claim EITC on Form 1040-EZ. This form is no longer available for the 2019 tax year.
When the prior disallowance involved a qualifying child dispute, the 2019 instructions require a specific explanation of how the child meets each element of the qualifying child test. Address relationship, age, residency, and support requirements directly in Part II of Form 8862 with factual details about your 2019 circumstances.
Qualifying Child Test Elements
A child qualifies you for the Earned Income Credit when the child meets all four required elements under the qualifying child test. The child must have the required relationship to you as your son, daughter, stepchild, foster child, sibling, or descendant of any of these relatives.
Age requirements specify the child must be under age 19 at the end of 2019, or under age 24 if a full-time student, or permanently disabled at any age. Residency requirements mandate that the child live with you in the United States for more than half of 2019, and temporary absences for school, medical care, or detention count as time lived with you.
Support requirements prohibit the child from providing more than half of their own support during 2019. Meeting all four elements establishes the child as your qualifying child for purposes of claiming the Earned Income Tax Credit on your recertification filing with Form 8862.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
