Form 8862: Information To Claim Certain Credits After Disallowance (2011)
What Form 8862 Is For
Form 8862, Information To Claim Earned Income Credit After Disallowance, is essentially your second chance with the IRS after having a valuable tax credit denied. In 2011, this form applied specifically to the Earned Income Credit (EIC), which provides money back to working people with lower to moderate incomes. Think of Form 8862 as a "recertification" document—it tells the IRS that you're ready to claim the credit again and that you now meet all the requirements.
When the IRS disallows your EIC for reasons other than simple math errors, they're signaling that something substantive was wrong with your claim—perhaps you didn't actually qualify, you claimed a child who wasn't eligible, or your income was miscalculated. Form 8862 forces you to slow down, carefully review all the eligibility rules, and demonstrate to the IRS that you've corrected whatever went wrong before.
The form covers four sections of eligibility questions: basic information about which credit you're claiming and when it was disallowed, questions about qualifying children (if applicable), residency and relationship requirements, and age requirements if you're claiming the credit without children. By requiring you to answer these detailed questions, the IRS creates a paper trail proving you understand the rules and legitimately qualify this time around. IRS.gov
When You'd Use Form 8862 (Late/Amended Returns)
You must file Form 8862 with your 2011 tax return if the IRS reduced or disallowed your EIC for any year after 1996 for reasons other than a math or clerical error, and you now want to claim the credit again. The form attaches to your regular tax return—whether filed timely, late, or as an amended return on Form 1040X.
Math or clerical errors don't count. If your EIC was denied simply because you added numbers incorrectly or made a clerical mistake, you don't need Form 8862. Those errors don't trigger the recertification requirement. Similarly, if you previously filed Form 8862, had your credit allowed, and haven't had another substantive disallowance since, you're off the hook—no need to file it again.
There's also a special exception for people claiming EIC without a qualifying child: if your only prior problem was that the IRS determined your claimed child wasn't actually your qualifying child, and you're now claiming the credit without any children, you can skip Form 8862. The logic here is simple—if the child was the problem and you're no longer claiming a child, you've resolved the issue.
Automatic denial if you forget. Here's the catch: if Form 8862 is required and you fail to attach it to your return, the IRS will automatically deny your EIC claim. There's no negotiation, no second chance—it's treated as a math error and your claim is rejected on the spot. If you're filing late or amending a return to claim the EIC after a prior disallowance, Form 8862 must come along for the ride. IRS.gov
Key Rules for 2011
For 2011 specifically, several important rules governed Form 8862 and the EIC:
Income limits were higher. You could earn up to $13,660 ($18,740 if married filing jointly) without qualifying children, $36,052 ($41,132 married) with one child, $40,964 ($46,044 married) with two children, or $43,998 ($49,078 married) with three or more qualifying children. Your adjusted gross income had to fall below these thresholds to qualify.
Social Security numbers were mandatory. You, your spouse (if filing jointly), and any qualifying children needed valid Social Security numbers issued before the return's due date. Individual Taxpayer Identification Numbers (ITINs) didn't qualify for the EIC in 2011.
Investment income cap was $3,150. If you had more than $3,150 in investment income—interest, dividends, capital gains, rental income, etc.—you were automatically disqualified from the EIC, even if you otherwise qualified.
Disallowance ban periods. If your prior EIC denial was due to "reckless or intentional disregard" of the rules, you were banned from claiming the EIC for two years. If it was fraud, the ban lasted ten years. During these ban periods, you couldn't claim the EIC at all, and filing Form 8862 wouldn't help—you had to wait out the penalty period.
Age requirements for childless filers. If claiming the EIC without a qualifying child, you had to be at least 25 but under 65 at year's end. Married filers needed only one spouse to meet this requirement. IRS.gov
Step-by-Step (High Level)
Filing Form 8862 for 2011 followed a straightforward process:
Step 1: Determine if You Need the Form
Check whether your prior EIC was disallowed for substantive reasons (not math errors) after 1996. If yes, and you want to claim the EIC again, you need Form 8862—unless you fall under one of the exceptions described earlier.
Step 2: Complete Part I
Enter 2011 as the tax year (not the year your credit was disallowed) and check the box indicating you're claiming the EIC. This section is required for everyone filing the form.
Step 3: Complete Part II if You Have Qualifying Children
Answer detailed questions about each child: their relationship to you, whether they meet age requirements, whether they lived with you for more than half the year, and whether they're being claimed as your dependent. You'll need to verify each child meets all four tests: relationship, age, residency, and joint return.
Step 4: Complete Part II Section B if Claiming Without Children
Answer questions about your main home's location (must be in the U.S. for more than half the year), your age (between 25 and 64), and confirm you can't be claimed as someone else's dependent or qualifying child.
Step 5: Verify All Regular EIC Requirements
Form 8862 doesn't automatically qualify you for the credit—you must still meet all the standard EIC eligibility rules for 2011, including earned income requirements, filing status, citizenship, and income limits.
Step 6: Attach to Your Tax Return
Form 8862 must be physically attached to Form 1040 or 1040A (you couldn't use Form 1040EZ if claiming EIC with qualifying children). File everything together by the normal deadline or with your amended return. IRS.gov
Common Mistakes and How to Avoid Them
Mistake #1: Forgetting to Attach Form 8862
The most common error is filing your return claiming the EIC without attaching the required Form 8862. This triggers an automatic denial. Prevention: Create a physical checklist before mailing your return. If e-filing, your software should catch this, but always double-check the forms included in your submission.
Mistake #2: Filing Form 8862 When You Don't Need To
Some taxpayers attach Form 8862 after a math error disallowance, which isn't necessary and can confuse the IRS. Prevention: Read your disallowance notice carefully. If it specifically says "math or clerical error," you don't need Form 8862.
Mistake #3: Attempting to Claim EIC During a Ban Period
If you're under a 2-year or 10-year ban due to reckless disregard or fraud, filing Form 8862 won't reinstate your eligibility—you must wait out the entire ban period. Prevention: Track your ban period carefully from the date of the "final determination." Mark your calendar for when eligibility resumes.
Mistake #4: Entering the Wrong Year on the Form
Part I asks for the year you're claiming the credit, not the year it was disallowed. For a 2011 return, you'd enter "2011" even if your credit was disallowed for 2009. Prevention: Read the form instructions carefully before entering dates.
Mistake #5: Not Responding to IRS Documentation Requests
Even with Form 8862 properly filed, the IRS may request additional proof—birth certificates, school records, residency documents. Ignoring these requests delays or denies your refund. Prevention: Keep supporting documents organized before filing. Respond promptly to any IRS correspondence.
Mistake #6: Assuming Form 8862 Guarantees Approval
The form only allows you to make your case—you must still meet all EIC requirements for 2011. Prevention: Use the EITC Assistant tool on IRS.gov to verify eligibility before filing. IRS.gov
What Happens After You File
Once you file your 2011 return with Form 8862 attached, several things occur:
Initial Processing
The IRS first checks whether Form 8862 is present when required. If it's missing, your EIC claim receives an immediate math error notice and denial. If present, your return moves forward for substantive review.
Enhanced Scrutiny
Returns with Form 8862 receive more detailed examination than typical returns. The IRS knows you had a prior problem, so they'll verify you now meet all requirements. This means longer processing times—expect delays compared to normal refund timelines.
Potential Documentation Requests
You may receive IRS Letter CP75, Letter 4800C, or similar correspondence requesting proof of eligibility. Common requests include: birth certificates proving child relationships, school records showing residency, Social Security cards, income verification, or proof of U.S. residency. You typically have 30-60 days to respond. Failure to provide requested documents results in denial.
Refund Delays
Even if everything checks out, refunds involving the EIC cannot be issued before mid-February due to the PATH Act (though this provision came after 2011, similar delays occurred for enhanced review cases). For 2011 returns with Form 8862, expect 8-12 weeks for processing, possibly longer if documentation is requested.
Three Possible Outcomes
- Approval—your EIC is allowed and any refund is issued;
- Partial approval—the IRS adjusts your credit amount based on their findings; or
- Denial—your claim is disallowed again, potentially with penalties if the IRS finds continued disregard of the rules.
Future Implications
If your 2011 Form 8862 results in an allowed credit, you won't need to file Form 8862 again for future years—unless your EIC is disallowed again for substantive reasons. However, keep excellent records going forward, as you're likely on the IRS's watch list for EIC compliance. IRS.gov
FAQs
What credits does Form 8862 cover for 2011?
For 2011, Form 8862 applied exclusively to the Earned Income Credit (EIC). In later years, the form expanded to cover Child Tax Credit, Additional Child Tax Credit, and American Opportunity Tax Credit, but the 2011 version focused solely on EIC recertification.
Can I e-file with Form 8862?
Yes, Form 8862 can be e-filed with your 2011 return using compatible tax software. The form must be electronically attached to your return just as it would be paper-clipped to a mailed return. Many tax preparation programs automatically detect when Form 8862 is required based on your answers about prior disallowances.
How long does the IRS keep records of EIC disallowances?
The IRS maintains records of EIC disallowances indefinitely. If your credit was disallowed for any year after 1996, that information remains in your taxpayer file permanently. This is why Form 8862 asks about disallowances going back to 1996—the IRS is checking their records against your disclosures.
What if I had EIC disallowed for multiple years?
You only need to file Form 8862 once for the first year you claim the credit again after any disallowance. You don't need separate forms for each disallowed year. However, you must meet all eligibility requirements for the year you're now claiming (2011).
Can I get professional help completing Form 8862?
Absolutely. Free tax preparation assistance is available through the IRS Volunteer Income Tax Assistance (VITA) program, specifically designed to help lower-income taxpayers. Paid preparers can also assist, though starting with 2011 returns, preparers must complete Form 8867 (Paid Preparer's Earned Income Credit Checklist) when preparing returns claiming the EIC with Form 8862.
What happens if I'm still in the middle of appealing my prior disallowance?
If you're actively appealing a prior EIC denial through Tax Court or IRS Appeals, you should continue that process rather than filing Form 8862 for a new year. Wait until the appeal concludes. If you win your appeal and the prior disallowance is overturned, you may not need Form 8862 at all.
Does Form 8862 cost anything to file?
No. Form 8862 is a standard IRS form with no filing fee. However, if you use paid tax preparation services, you'll pay for their time to complete it. The form adds complexity to your return, which may increase preparation fees.
Sources: All information derived from authoritative IRS sources including IRS.gov/Form8862, Publication 596 (2011), and Form 8862 Instructions.
