If the IRS has ever denied or reduced your tax credits—like the Earned Income Credit (EIC), Child Tax Credit (CTC), or American Opportunity Tax Credit (AOTC)—you know how frustrating it can feel. The good news? Form 8862 is your ticket to reclaiming those credits once you've sorted out whatever went wrong. Think of it as your "second chance" form, a way to prove to the IRS that you now meet all the requirements and deserve those valuable tax benefits. This guide will walk you through everything you need to know about using Form 8862 for the 2020 tax year, in plain English.

What Form 8862 Is For

Form 8862—officially titled "Information To Claim Certain Credits After Disallowance"—is a special IRS form you must file when you want to claim specific tax credits after the IRS previously reduced or disallowed those same credits on a past return. It's essentially a recertification process where you demonstrate that you now qualify for credits that were previously denied.

For the 2020 tax year, Form 8862 applies to five major credits:

• Earned Income Credit (EIC) – A refundable credit for low-to-moderate income working individuals and families
• Child Tax Credit (CTC) – A credit for taxpayers with qualifying dependent children under age 17
• Additional Child Tax Credit (ACTC) – The refundable portion of the CTC
• Credit for Other Dependents (ODC) – A credit for dependents who don't qualify for CTC
• American Opportunity Tax Credit (AOTC) – An education credit for qualified college expenses during the first four years of higher education

You only need Form 8862 if your credit was reduced or disallowed for reasons other than simple math or clerical errors. If the IRS denied your credit because of missing information, eligibility questions, or compliance issues—not just because you added wrong—that's when Form 8862 comes into play. IRS.gov

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

Most taxpayers file Form 8862 with their regular annual tax return for the year they want to reclaim the credit. However, there are situations where you might need to file it with a late or amended return:

Filing with Your Original Return

If your 2020 credits were disallowed on a previous year's return (say, 2018 or 2019), you'd attach Form 8862 to your 2020 return when claiming those credits again.

Amended Returns

If you originally filed your 2020 return without claiming a credit that was previously disallowed—perhaps because you forgot or weren't ready—you can file an amended return (Form 1040-X) with Form 8862 attached to claim it retroactively, provided you meet the deadline requirements.

Important Timing Notes

You cannot file Form 8862 during certain ban periods. If the IRS determined your previous claim was due to "reckless or intentional disregard of the rules," you're banned from claiming the credit for 2 years. If fraud was involved, that ban extends to 10 years. During these periods, you cannot use Form 8862 at all—you must wait until the ban expires. IRS.gov

Exceptions (No Form 8862 Needed)

• You previously filed Form 8862, your credit was allowed, and it hasn't been denied again (except for math errors)
• You're claiming EIC without a qualifying child, and the only reason it was denied before was a dispute about whether a child qualified

Key Rules or Details for 2020

Several important rules governed Form 8862 for the 2020 tax year:

Social Security Number Requirements

For 2020, you and your qualifying children needed valid Social Security Numbers (SSNs) issued on or before the due date of your return (including extensions) to claim EIC, CTC, or ACTC. Individual Taxpayer Identification Numbers (ITINs) weren't acceptable for EIC but could be used for CTC, ACTC, ODC, and AOTC. This meant that if you or your child didn't have a proper SSN by the filing deadline, you couldn't claim certain credits even with Form 8862.

Refund Delays

The 2020 instructions specifically warned that the IRS couldn't issue refunds before mid-February for returns claiming EIC or ACTC. This applied to your entire refund, not just the portion related to these credits—a frustrating but important reality to plan around.

Qualifying Child Rules

For 2020, a qualifying child for EIC purposes had to meet four tests: relationship (son, daughter, sibling, or their descendants), age (generally under 19, or under 24 if a full-time student), joint return (not filing jointly, except to claim refund), and residency (lived with you in the United States for more than half the year). The CTC had similar but slightly different requirements, including that the child be under age 17 and a U.S. citizen, national, or resident alien.

Documentation Requirements

While the form itself asks relatively straightforward questions, the IRS emphasized that they might request documentation to verify you lived with qualifying children, such as school records, medical records, or other documents showing the child's address matched yours. IRS.gov

Step-by-Step (High Level)

Filing Form 8862 isn't overly complicated, but it does require careful attention to detail. Here's the general process:

Step 1: Determine If You Need the Form

Check whether your credit was denied for reasons other than math errors, and confirm you're not in a ban period. Review any IRS notices you received about the previous denial.

Step 2: Gather Your Information

Collect details about the year your credit was disallowed, information about your qualifying children (names, SSNs, dates of birth, time lived with you), and documentation proving you meet the credit requirements.

Step 3: Complete Part I

Enter the tax year you're claiming credits for (2020 in this case, not the year they were disallowed), and check which credit(s) you're now claiming.

Step 4: Complete Applicable Sections

Fill out the relevant parts based on which credit(s) you're claiming:

• Part II for Earned Income Credit (questions about age, filing status, and qualifying children)
• Part III for Child Tax Credit/Additional Child Tax Credit/Credit for Other Dependents
• Part IV for American Opportunity Tax Credit
• Part V if a child qualifies more than one person for credits (tiebreaker rules)

Step 5: Attach to Your Tax Return

Form 8862 must be attached to your Form 1040 or 1040-SR for 2020. You'll also need to include the standard forms for the credits you're claiming (Schedule EIC for EIC, Form 8863 for AOTC, etc.).

Step 6: File and Wait

Submit your complete return package. Be prepared for possible additional IRS review or requests for documentation.

Common Mistakes and How to Avoid Them

Even with the best intentions, taxpayers frequently make errors when filing Form 8862. Here are the most common pitfalls and how to sidestep them:

Mistake 1: Filing During a Ban Period

Some people try to claim credits while still banned from doing so. Always check the IRS notice that disallowed your previous credit to see if a 2-year or 10-year ban applies. If you're banned, filing Form 8862 won't work; you'll just receive another denial notice.

How to Avoid: Carefully read any CP79A, CP79B, or similar notices you received. They'll specify if and when you can claim the credit again.

Mistake 2: Entering the Wrong Year on Line 1

Line 1 asks for the year you're claiming the credit, but many people mistakenly enter the year their credit was disallowed. For a 2020 return, you should enter "2020," not "2018" or whenever the denial occurred.

How to Avoid: Remember, you're claiming credits for the current tax year, not explaining what happened in the past.

Mistake 3: Missing Required Documentation

Form 8862 asks specific questions about your qualifying children and circumstances, and the IRS may follow up requesting proof. Taxpayers who can't provide school records, medical records, or other documentation proving residency often face denial again.

How to Avoid: Before filing, gather and organize documents showing where your children lived throughout 2020. Keep these readily accessible for at least three years after filing.

Mistake 4: Not Including Other Required Forms

Form 8862 doesn't stand alone. You must also attach the standard credit forms (like Schedule EIC for Earned Income Credit or Form 8863 for education credits). Forgetting these will delay processing.

How to Avoid: Create a checklist of all required forms before mailing your return. Double-check that everything is included and properly filled out.

Mistake 5: Claiming Credits for Children Without Valid SSNs

For 2020, timing matters. If your child didn't have a valid SSN issued by the filing deadline (including extensions), you couldn't claim EIC, CTC, or ACTC for that child, even with Form 8862.

How to Avoid: Apply for SSNs well before tax time. If a child won't have their SSN by the deadline, don't claim credits requiring it—doing so will result in another denial.

Mistake 6: Incorrectly Applying Tiebreaker Rules

When a child could qualify more than one person for credits, Part V requires you to apply specific tiebreaker rules. Many taxpayers skip this or answer incorrectly, causing compliance issues.

How to Avoid: Carefully read the instructions for Part V and IRS Publication 501. When in doubt, consult a tax professional.

What Happens After You File

Once you've submitted your return with Form 8862 attached, here's what you can typically expect:

Initial Processing

Your return enters the IRS processing queue. Because returns with Form 8862 require additional scrutiny, they often take longer to process than standard returns. For 2020 returns claiming EIC or ACTC, remember that refunds couldn't be issued before mid-February regardless of when you filed.

Possible Additional Review

The IRS may flag your return for additional verification. This doesn't necessarily mean something's wrong—it's part of the recertification process. You might receive a notice requesting documentation to support your credit claim, such as:

• Birth certificates or custody documents proving relationships
• School enrollment records showing where children attended school
• Medical or child care provider records
• Lease agreements or utility bills showing addresses

Response Timeline

If the IRS requests documentation, they'll typically give you 30-60 days to respond. Respond promptly and include everything they ask for. Missing the deadline can result in automatic credit denial.

Three Possible Outcomes

• Approval (CP74 Notice): The IRS accepts your Form 8862 and allows the credit. You'll receive your refund, and you won't need to file Form 8862 again in future years (unless the credit is disallowed again). You might receive a CP74 notice confirming your recertification.
• Partial Approval: The IRS might allow some credits but not others, or reduce the credit amount. You'll receive a notice explaining the adjustment.
• Denial: If the IRS determines you still don't meet requirements, they'll deny the credit and send a notice explaining why. You have appeal rights, which will be outlined in the notice.

Processing Time

Normal processing can take 6-8 weeks for paper returns or 3 weeks for e-filed returns, but returns with Form 8862 often experience longer delays—sometimes several months—due to the additional verification involved. IRS.gov

FAQs

Q1: Do I need to file Form 8862 every year after my credit was denied?

No. You only need to file Form 8862 once to recertify your eligibility after a credit denial. Once the IRS approves your Form 8862 and allows the credit, you don't need to file it again in subsequent years—unless your credit is reduced or denied again for reasons other than math errors. If you continue qualifying, just claim the credit normally on future returns.

Q2: Can I e-file my return with Form 8862, or must I mail it?

For the 2020 tax year, most tax software supported e-filing with Form 8862 attached. However, some situations may require paper filing—particularly if you're in a ban period and trying to appeal. Check with your tax software or preparer to confirm e-filing capability.

Q3: What if I missed filing Form 8862 with my 2020 return?

If you already filed your 2020 return and forgot to include Form 8862, the IRS will likely send you a notice disallowing the credit due to the missing form. At that point, you have two options: (1) respond to the notice by sending Form 8862 with supporting documentation, or (2) file an amended return (Form 1040-X) with Form 8862 attached, if you're still within the amendment deadline.

Q4: Will filing Form 8862 trigger an audit?

Form 8862 itself doesn't automatically trigger an audit, but it does flag your return for additional verification. The IRS may request documentation to support your credit claim, which is a normal part of the recertification process—not a full audit. However, if inconsistencies appear, a more thorough examination could follow.

Q5: Can I claim some credits without Form 8862 and others with it?

Yes. If only some of your credits were previously disallowed, you'd file Form 8862 only for those specific credits. For credits that were never denied, you'd claim them normally without Form 8862. Just check the appropriate boxes in Part I of Form 8862 to indicate which credits you're recertifying.

Q6: What if my circumstances changed and my child now lives with me?

This is a common reason people need Form 8862. If your credit was denied because a child didn't live with you in a previous year, but the child does live with you for 2020, Form 8862 allows you to explain the changed circumstances and provide documentation of the child's 2020 residency with you.

Q7: Where can I get help if I'm confused about Form 8862?

The IRS offers several resources:

• IRS.gov/Form8862 for the latest forms and instructions
• Publication 596 (for EIC questions)
• Publication 972 (for CTC questions)
• Publication 970 (for education credit questions)
• Free tax help through the Volunteer Income Tax Assistance (VITA) program if you qualify
• Calling the IRS helpline, though wait times can be significant
• Consulting a tax professional, especially if your situation is complex

Final Thoughts

Form 8862 might seem daunting at first, but it's really just your opportunity to show the IRS that you qualify for valuable tax credits you were previously denied. Take your time, gather solid documentation, answer questions carefully, and don't hesitate to seek professional help if needed. These credits can make a meaningful difference in your financial situation—they're worth the extra effort to get them right. For the most current information and all official forms, always visit IRS.gov.

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Sources

• IRS.gov - About Form 8862
• IRS Form 8862 Instructions (Rev. December 2020)
• IRS - What to Do If We Deny Your Claim for a Credit