Form 8862: Information To Claim Certain Credits After Disallowance (2010 Tax Year)

What Form 8862 Is For

Form 8862 is your "second chance" form when the IRS has previously denied or reduced certain valuable tax credits. Think of it as a recertification document that proves you now legitimately qualify for credits you couldn't claim before. For the 2010 tax year, this form specifically applied to the Earned Income Tax Credit (EITC or EIC), which could be worth up to $5,666 for families with three or more children.

When the IRS disallows your claim for the EITC—for any reason other than simple math errors—you must complete Form 8862 and attach it to your next tax return if you want to claim the credit again. The form asks detailed questions about your eligibility to ensure you meet all the requirements this time around. It's the IRS's way of making sure taxpayers understand the rules before they claim these credits again, protecting both taxpayers from making repeated mistakes and the government from improper payments. IRS.gov

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

You must file Form 8862 with your 2010 tax return (or any future return) if two conditions apply: (1) your EITC was previously reduced or disallowed for any year after 1996 for reasons other than math or clerical errors, and (2) you now meet all the eligibility requirements and want to claim the credit again.

However, you don't need to file Form 8862 in certain situations. If you previously filed Form 8862 and the IRS then allowed your credit—and it hasn't been denied again—you're exempt. You also don't need it if you're claiming EITC without a qualifying child and the only reason for the previous denial was that a child you listed wasn't actually your qualifying child under tax rules.

There's another critical exception: if the IRS made a "final determination" that your EITC claim was due to "reckless or intentional disregard of the rules," you cannot file Form 8862 or claim the credit for two years after that determination. If your claim was determined to be fraudulent, you're banned from claiming the credit for ten years. During these ban periods, you simply cannot claim the EITC, period—Form 8862 won't help. IRS.gov

Key Rules and Details for 2010

Several important provisions were in effect specifically for tax year 2010 that made Form 8862 especially relevant:

Enhanced EITC Benefits: The American Recovery and Reinvestment Act created a new, more generous EITC category for families with three or more qualifying children, with a maximum credit of $5,666. This expansion, extended through 2012, meant more families qualified for larger refunds—but also that eligibility rules were strictly enforced.

Income Limits: For 2010, your earned income and adjusted gross income both had to be under specific thresholds: $43,352 for single filers with three or more children ($48,362 for married filing jointly), dropping to just $13,460 for workers with no qualifying children ($18,470 married filing jointly).

Social Security Number Requirement: You, your spouse, and any qualifying children needed valid Social Security numbers issued by the tax return's due date (including extensions). This was non-negotiable—Individual Taxpayer Identification Numbers (ITINs) didn't qualify for EITC purposes in 2010.

Combat Pay Election: Military members could choose to include their tax-exempt combat pay when computing earned income for EITC, potentially increasing their credit—but it was all-or-nothing.

Investment Income Cap: Your investment income couldn't exceed $3,100 for the year, ensuring the EITC remained targeted to working families rather than investors. IRS.gov

Step-by-Step (High Level)

Filing Form 8862 for 2010 involved a straightforward but detail-intensive process:

Step 1: Determine Your Need to File
Check whether you actually need Form 8862 by reviewing your tax history. If the IRS previously disallowed your EITC for substantive reasons (not just math errors), and you're not currently under a 2-year or 10-year ban, you'll need the form.

Step 2: Complete Part I (All Filers)
Enter 2010 as the tax year you're claiming the credit for (not the year it was disallowed). Check the box indicating you're claiming the Earned Income Credit.

Step 3: Answer Basic Eligibility Questions
Confirm you weren't someone else's qualifying child, and verify your filing status wasn't "married filing separately" (which disqualifies you from EITC).

Step 4: Complete the Appropriate Section
If you have qualifying children, complete Section A of Part II, providing detailed information about each child—their names, Social Security numbers, birthdates, relationship to you, and the number of days they lived with you in the U.S. during 2010. If you're claiming EITC without qualifying children, complete Section B instead, documenting that you were between ages 25 and 64 and lived in the U.S. for more than half the year.

Step 5: Attach and File
Attach the completed Form 8862 to your Form 1040A or Form 1040 for 2010, along with Schedule EIC if you have qualifying children. Mail your return to the IRS address specified for your state—note that 2010 returns could only be filed by paper since prior-year returns cannot be e-filed. IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1: Filing When Banned
Some taxpayers file Form 8862 while still under a 2-year or 10-year ban period. If you received a notice stating your EITC was denied due to "reckless or intentional disregard" or "fraud," count carefully from that final determination date. Filing during the ban period will result in automatic denial and waste your time.

Mistake #2: Claiming Non-Qualifying Children
The most common EITC error is claiming a child who doesn't meet all four tests: relationship, age, residency, and joint return. For 2010, qualifying children had to live with you in the United States for more than half the year—181 days minimum. Temporary absences for school or vacation counted as time living with you, but if your child spent most of the year with someone else, they're not your qualifying child regardless of financial support.

Mistake #3: Incorrect Social Security Numbers
Enter SSNs exactly as they appear on Social Security cards. Even a single transposed digit will cause rejection. For 2010, ITINs couldn't be used for EITC—only valid SSNs issued for employment purposes qualified.

Mistake #4: Miscalculating Days of U.S. Residency
When counting the 181+ days a child lived with you, be precise. If your child was born or died during 2010, special rules applied—you entered 365 days (366 in leap years) if your home was the child's home for more than half the time they were alive.

Mistake #5: Not Keeping Documentation
Form 8862 signals to the IRS that your EITC claim needs extra scrutiny. Have documentation ready: school records showing your child's address, medical records, child care provider statements, or other evidence proving residency and relationship. The IRS may request these documents before issuing your refund. IRS.gov

What Happens After You File

Once you mail your 2010 return with Form 8862 attached, expect extended processing times compared to routine returns. The IRS flags these returns for additional review—sometimes manual review by an examiner—which can add weeks or even months to your refund timeline.

You may receive correspondence from the IRS requesting documentation to support your EITC claim. Common requests include proof that qualifying children lived with you (school records, medical records showing your address), birth certificates or other relationship verification, and proof of U.S. residency. Respond immediately to these requests with complete documentation to avoid delaying your refund further or having your credit denied again.

If the IRS approves your claim, you'll receive your refund including the EITC amount—up to $5,666 for 2010 for qualifying families. For subsequent years, you won't need to file Form 8862 again unless your credit is disallowed once more. The recertification is complete, and you're back to claiming EITC normally.

If the IRS denies your claim despite filing Form 8862, you'll receive a notice explaining why. You have the right to appeal this decision, typically within 30 days of the denial notice. The notice will explain your appeal rights and the process to contest the determination. If you disagree, act quickly—missing the response deadline can forfeit your appeal rights.

Interest accrues on any unpaid tax from the original due date of the return (April 18, 2011 for most 2010 filers). If you owed additional tax beyond the EITC and filed late, penalties may also apply. IRS.gov

FAQs

Do I file Form 8862 for the year my credit was denied or for the current year?

File it for the current year you're claiming the credit (2010 in this case), not the year the credit was disallowed. The form asks what year you're now claiming, not what year it was denied.

If I had EITC denied for 2008, do I need Form 8862 every year going forward?

No—you only need to file Form 8862 once after a denial, assuming the IRS approves your claim. If approved, you can claim EITC in future years without Form 8862 unless it gets denied again for non-mathematical reasons.

Can I e-file my 2010 return with Form 8862?

For the 2010 tax year specifically, no—prior-year returns must be filed on paper and mailed to the IRS. Current-year returns with Form 8862 can be e-filed with most tax software.

What if I didn't know I needed Form 8862 and already filed my 2010 return without it?

You should file an amended return (Form 1040X) with Form 8862 attached, though this may complicate processing. The IRS might catch the issue and request the form, or they may simply deny your EITC claim for failure to file the required documentation.

Will filing Form 8862 guarantee I get my EITC?

Not automatically. The form signals your awareness of the rules and provides information for the IRS to verify your eligibility. If you legitimately qualify under all the rules, you should receive the credit, but the IRS may request additional documentation and will scrutinize your claim carefully.

What counts as "reckless or intentional disregard" versus simple mistakes?

Simple mistakes—like accidentally entering the wrong Social Security number or miscalculating income by a small amount—don't trigger the 2-year ban. "Reckless disregard" means you should have known the rules but ignored them, such as claiming a child you knew didn't live with you. The IRS considers the circumstances and whether you made a good-faith effort to comply.

If I'm under a 2-year ban for 2008-2009, can I file Form 8862 for 2010?

Yes, if your ban period has ended by the time you're filing for 2010. Count two full tax years from the final determination. If the IRS issued a final determination in 2008, you couldn't claim EITC for 2008 or 2009, but you could recertify and claim it for 2010 using Form 8862.

All information sourced from official IRS.gov publications, instructions, and guidance documents for the 2010 tax year.