Form 8862: Information To Claim Certain Credits After Disallowance (2019)
If the IRS has previously denied or reduced your Earned Income Credit (EIC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), or American Opportunity Tax Credit (AOTC), Form 8862 is your gateway to claiming these valuable credits again. This form serves as your formal recertification, proving to the IRS that you now meet all the requirements and deserve another chance at these credits that can put hundreds or even thousands of dollars back in your pocket.
What Form 8862 Is For
Form 8862 is a special IRS form that acts as your ""second chance"" document when you want to claim certain valuable tax credits after the IRS has previously reduced or denied them. Think of it as a formal way to tell the IRS, ""I understand what went wrong before, and here's why I qualify for these credits now.""
The form specifically applies to five important tax credits: the Earned Income Credit (EIC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), Credit for Other Dependents (ODC), and American Opportunity Tax Credit (AOTC). These credits can significantly reduce your tax bill or increase your refund, sometimes by thousands of dollars. However, if the IRS determined in a previous year that you claimed one of these credits incorrectly—not because of a simple math mistake, but because you didn't actually qualify—you must file Form 8862 before you can claim that credit again.
The form requires you to provide detailed information proving you now meet all the requirements for the credit you're claiming. It's essentially your opportunity to demonstrate that your circumstances have changed or that you now understand and meet the eligibility rules. IRS.gov
When You’d Use Form 8862
Late/Amended Returns
You must attach Form 8862 to your tax return when you're ready to claim a credit again after it was previously disallowed. This applies whether you're filing an on-time return, a late return, or even an amended return using Form 1040-X.
The key trigger is simple: if your EIC was reduced or disallowed for any tax year after 1996, or your CTC/ACTC/ODC or AOTC was reduced or disallowed for any tax year after 2015, and that disallowance was for reasons other than a simple math or clerical error, you need Form 8862 the next time you claim those credits.
However, there are important exceptions where you don't need to file Form 8862. You can skip it if you previously filed Form 8862 after a disallowance, the IRS then allowed your credit, and your credit hasn't been reduced or denied again (except for math errors). You also don't need it if you're claiming the EIC without a qualifying child and the only reason for the previous denial was that a child you listed wasn't actually your qualifying child. Additionally, you cannot file Form 8862 if you're currently serving a ban period: 2 years if your claim was denied due to reckless or intentional disregard of the rules, or 10 years if it was due to fraud. IRS.gov
Key Rules or Details for 2019
For the 2019 tax year, several critical rules governed Form 8862 eligibility. First and foremost, all taxpayer identification number requirements had to be met by the tax return's due date (including extensions). For the EIC, you needed a Social Security Number (SSN) valid for employment—ITINs weren't acceptable. For the CTC/ACTC, qualifying children needed SSNs, not ITINs or ATINs. However, for the AOTC and ODC, either an SSN or ITIN was acceptable.
The residency requirements were strict. For the EIC, both you and any qualifying children had to live in the United States for more than half the year. Qualifying children for the EIC had to meet four tests: relationship (son, daughter, sibling, or descendant), age (under 19, or under 24 if a full-time student, or any age if permanently disabled), residency (lived with you more than half the year), and they couldn't file a joint return except to claim a refund.
For the CTC/ACTC, qualifying children had to be under age 17, couldn't provide over half their own support, lived with you for more than half the year, were claimed as your dependent, and were U.S. citizens, nationals, or resident aliens. The AOTC had its own unique requirements: the student couldn't have had the credit claimed for more than four prior years, was enrolled at least half-time in a degree program, and hadn't been convicted of a drug felony. IRS.gov
Step-by-Step (High Level)
Completing Form 8862 follows a logical progression through several parts. Start with Part I, which applies to everyone. Enter 2019 on line 1 (the year you're claiming the credit, not the year it was denied), and check the box for each credit you're now claiming on line 2.
If you're claiming the EIC, complete Part II. You'll answer questions about whether you or your spouse could be claimed as a qualifying child of another taxpayer, your main home location, and age requirements. If you have qualifying children, you'll list each child's information and confirm they lived with you for more than half the year. If you're claiming the EIC without qualifying children, you'll verify you met the age requirements (at least 25 but under 65) and maintained your main home in the United States for more than half the year.
Part III addresses the CTC/ACTC/ODC. Section A is for those with qualifying children—you'll provide details about each child including their name, SSN, birth year, and confirm they lived with you for more than half the year. Section B is for those without qualifying children. Part IV covers the AOTC, where you'll list each eligible student, confirm they hadn't used the credit for four prior years, and verify they met the enrollment and educational requirements.
Part V handles situations where a child might be the qualifying child of more than one person, requiring you to explain why you're the proper person to claim the credit under IRS tiebreaker rules. Once completed, attach Form 8862 to your Form 1040, 1040-SR, or other applicable tax return. IRS.gov
Common Mistakes and How to Avoid Them
One of the most frequent errors is filing Form 8862 when it's not actually required. If your credit was denied only due to a math or clerical error, you don't need this form—just correct the error and claim the credit normally. Similarly, if you're in a ban period (2 or 10 years), submitting Form 8862 won't help because you're legally prohibited from claiming the credit during that time.
Another common mistake involves confusing which year to enter on line 1. You should enter the tax year you're currently filing for (2019), not the year your credit was disallowed. Many taxpayers also fail to provide complete documentation for each qualifying child, particularly proof of residency. Keep school records, medical records, and other documents showing your child's address matched yours for more than half the year.
Social Security Number issues frequently cause problems. Parents sometimes try to claim children who only have ITINs for the CTC/ACTC, but these credits specifically require SSNs. Double-check that all identification numbers are correct and were issued before your filing deadline. For the EIC, remember that your SSN must be valid for employment—there's no exception.
The ""qualifying child of more than one person"" rules in Part V trip up many filers. If you and another person (like an ex-spouse or grandparent) both could claim the same child, you must follow the IRS tiebreaker rules carefully. Don't assume you automatically get to claim the child because you have custody—the rules consider who the child lived with longer and income levels.
Finally, taxpayers often overlook the importance of proving changed circumstances. If your credit was denied because you didn't meet certain requirements, Form 8862 requires you to show you now meet them. Simply claiming you qualify isn't enough—be prepared to document the changes in your situation. IRS.gov
What Happens After You File
After you submit your tax return with Form 8862 attached, the IRS will review your claim more carefully than a typical return. Because you previously had a credit denied, your return may be subject to additional scrutiny to ensure you now meet all requirements. This review process can take longer than normal tax return processing, so expect potential delays in receiving any refund.
The IRS may send you a letter requesting additional documentation to support your claim. This is standard procedure and doesn't necessarily mean your claim will be denied. Common requests include proof of residency for qualifying children (school records, medical records, official correspondence), proof of relationship (birth certificates, adoption papers), or proof of income (W-2s, 1099s, or other wage statements). Respond promptly and completely to these requests to avoid further delays or potential denial.
If the IRS approves your claim, you'll receive your refund including the credit amount. This approval also means you've been ""recertified"" for that credit—you won't need to file Form 8862 again in future years unless that credit is reduced or disallowed again. However, you must still meet all eligibility requirements each year you claim the credit.
If the IRS denies your claim again, you'll receive a letter explaining the reasons. You have the right to appeal this decision. Additionally, depending on the reason for denial, you may face penalties or an extended ban period if the IRS determines the claim involved reckless disregard or fraud. The IRS can also impose a 20% penalty on excessive refund claims that lack reasonable cause.
One important note: the IRS cannot issue refunds before mid-February for returns claiming the EIC or ACTC. This ""refund hold"" applies to your entire refund, not just the portion related to these credits, even if you filed Form 8862. This is a fraud prevention measure that affects all taxpayers claiming these credits. IRS.gov
FAQs
Do I need Form 8862 if my credit was denied due to a math error?
No. Form 8862 is only required when credits are reduced or disallowed for reasons other than math or clerical errors. If your credit was denied due to a simple mathematical mistake, just correct the error and claim the credit normally.
Can I file Form 8862 electronically?
Yes. Form 8862 can be filed electronically when you e-file your tax return. Most tax preparation software will include the form and prompt you to complete it if necessary.
What if I don't remember which credit was denied or when?
Check your IRS correspondence. The denial letter you received should specify which credit was disallowed and for which tax year. You can also call the IRS at the number provided in their letters or contact the Taxpayer Advocate Service for help locating this information.
If I'm serving a 2-year or 10-year ban, can I claim other credits that weren't disallowed?
The ban only applies to the specific credit that was disallowed due to reckless disregard or fraud. For example, if your EIC was banned but your CTC wasn't disallowed, you can still claim the CTC during the ban period.
What counts as ""reckless or intentional disregard"" versus an honest mistake?
Reckless or intentional disregard typically means you ignored clear rules, made no effort to understand requirements, or knowingly provided false information. An honest mistake might be misunderstanding a complex rule despite making a good-faith effort to comply. The IRS determines this based on the facts of each case.
Do I need to attach supporting documents with Form 8862?
You should attach the form to your return, but generally don't need to send supporting documents unless the IRS specifically requests them. However, keep all documentation (birth certificates, school records, proof of residency) in case the IRS asks for it later.
If I received a CP79 notice, do I still need Form 8862?
It depends on the specific situation described in your CP79 notice. Some CP79 notices indicate you've been recertified and don't need Form 8862, while others may still require it. Read the notice carefully or contact the IRS if you're unsure.
All information sourced from official IRS publications and guidance available at IRS.gov
