Instructions for Form 8862 Checklist: 2018 Tax Year
Form 8862 allows taxpayers to reclaim the earned income credit after the IRS previously
disallowed or reduced it. You must file this form with your 2018 tax return if your EIC was denied in a prior year and you do not qualify for an exception.
The form confirms that you now meet all eligibility requirements for the credit you are claiming.
In 2018, the IRS expanded Form 8862 to include the Credit for Other Dependents, a change that was the result of the Tax Cuts and Jobs Act.
When You Must File Form 8862
You must complete IRS Form 8862 and attach it to your return if your earned income credit,
Child Tax Credit, Additional Child Tax Credit, Credit for Other Dependents, or American
Opportunity Tax Credit was previously reduced or disallowed for any reason other than a math or clerical error. The requirement applies when you now want to claim the credit again, and you meet all current eligibility standards.
Important exceptions exist that relieve you from filing this form. Do not file Form 8862 if you previously filed it after a disallowance and your credit was then allowed, provided your credit has not been reduced or disallowed again for reasons other than math or clerical error.
Additionally, you are not required to submit a filing if you are claiming the EIC without a qualifying child and the sole explanation for your previous disallowance was that a child listed on Schedule EIC was not your qualifying child. These exceptions prevent unnecessary paperwork when recertification requirements do not apply to your situation.
Step-by-Step Guide to Completing Form 8862 for the 2018
Tax Year
Step 1: Verify Your Eligibility Requirements
Confirm you meet all 2018 EIC eligibility requirements before submitting Form 8862 with your return. Income thresholds for 2018 differ from prior years due to inflation adjustments, and your
2018 income must fall below IRS-specified limits.
Review your filing status, age, and dependent relationships using only the 2018 instructions to ensure accuracy. Locate the prior IRS notice that disallowed your credit, as it indicates the specific tax year and reason for denial.
Step 2: Complete Part I Basic Information
Line 1 requests the tax year for which you are filing this form to claim the credit. Enter the current year you are claiming the credit, such as 2018, not the year the credit was disallowed.
This distinction matters because the form recertifies your current eligibility rather than reviewing past denials. Line 2 asks you to check boxes for the credits you are now claiming, which may include multiple tax credits.
- Wages that are reported on Form W-2 are included as earned income for purposes of
- Self-employment income that is documented on Schedule C is treated as earned income
- Nonfarm business income derived from trade or business activities qualifies as earned
- Other compensation that is reported on Form 1099-MISC for nonemployee
Step 3: Address Prior Disallowance Issues in Part II
Respond to questions addressing the specific reason the IRS cited in your disallowance notice.
The 2018 form includes detailed questions about your eligibility circumstances that you must answer accurately.
Explain what factual error occurred in your prior claim and why your 2018 claim is now correct.
Verify that your 2018 income calculations match your filed tax return precisely.
Earned income includes the following categories: the earned income credit. when calculating eligibility for the earned income credit. income for earned income credit calculations. compensation in 2018 is included as earned income for the earned income credit.
Passive income does not count toward the Earned Income Credit calculation. Supporting documentation strengthens your claim and helps the IRS verify your reported figures.
Step 4: Verify Dependent Qualification Standards
Confirm your 2018 dependents meet the qualifying child or qualifying relative tests as defined by
IRS rules. For 2018, dependent age, residency, and relationship requirements receive strict enforcement under TCJA provisions.
Children identified by an ITIN or ATIN are no longer qualifying for the Child Tax Credit or
Additional Child Tax Credit, starting in 2018. Attach proof of dependent relationships, such as birth certificates, adoption papers, or court orders, to support your claim.
The IRS compares dependent information to Social Security Administration records to verify
Social Security number validity. Your filing status must match your household composition on the claim date for proper credit calculation.
Married filing jointly, head of household, and single status each carry different Earned Income
Credit amounts for 2018. Your status on December 31, 2018, determines your eligibility category and the credit amount you can claim.
Step 5: Attach Form 8862 to Your Tax Return
Attach Form 8862 to your 2018 Form 1040 and file both forms together by the April 15, 2019, deadline or your approved extension date. Do not mail Form 8862 separately from your tax return.
Failure to attach Form 8862 when required may result in EIC disallowance without further notice from the IRS. Include supporting documents that verify your eligibility for the credits you are claiming.
The IRS may request additional information during processing, and missing documents can delay your tax refund or trigger correspondence. Documents that have been scanned or photocopied are generally accepted by the IRS as valid evidence for your claim.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 6: Sign Your Return and Maintain Records
Sign and date your 2018 Form 1040 under penalty of perjury to certify that all information is true and complete. Your signature on the main return covers all attached forms, including Form
8862, which does not have a separate signature line.
If married filing jointly, both spouses must sign the return unless an authorized representative with power of attorney files on your behalf. Review the Worksheet for Computing Your Earned
Income Credit in the 2018 instructions to calculate the correct credit amount based on your income and dependent count.
Retain copies of Form 8862, all supporting documents, and the original IRS disallowance notice in your tax records for future reference. After filing, the IRS may request additional information.
Please respond within the timeframe specified in their correspondence.
Processing Timeline and Amended Returns
Processing times for returns with Form 8862 vary and may take longer than typical tax returns.
Incomplete filings extend processing time or trigger IRS requests for additional information.
If you file Form 8862 on an amended return using Form 1040-X, attach Form 8862 to the amended return rather than filing it separately. The same documentation and verification standards apply to amended returns as to original filings.
Key 2018 Tax Year Updates
Credit recertification requirements were expanded by the IRS in 2018 to encompass the Credit for Other Dependents, a $500 nonrefundable credit for dependents other than qualifying children. Maximum 2018 EIC amounts and income phase-out limits differ from 2017 due to inflation adjustments.
The 2018 tax year marked the first year under the Tax Cuts and Jobs Act, which enforced dependent Social Security Number matching and residency rules more strictly for all tax credits.
These changes affected who qualifies as a dependent for various tax benefits and credit calculations.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
