What Form 8862 Is For
Form 8862 helps you reclaim the Child Tax Credit, Additional Child Tax Credit, Earned Income Credit, American Opportunity Tax Credit, or Credit for Other Dependents after the IRS previously disallowed them for reasons apart from a math or clerical error. It confirms you meet all the requirements for certain credits in the tax year and ensures eligibility based on residency, age, valid Social Security Numbers, temporary absences, and the rules for qualifying children.
When You’d Use Form 8862
You use Form 8862 when a credit was previously disallowed, and you want to claim the earned income credit or other credits again for the most recent tax year. You attach the completed form to an original, late, or amended tax return, including a joint return when filing jointly. The IRS requires it whenever a previously reduced or formerly disallowed credit needs recertification.
Key Rules or Details for 2020
- Identification requirements: You need a valid Social Security Number for yourself and any qualifying child, and the number must be issued by the due date for the tax year. This ensures the IRS can confirm eligibility for refundable credits and child-related rules.
- Eligibility verification: Form 8862 verifies eligibility when reckless or intentional disregard leads to disallowance, and you must demonstrate that qualifying children meet the residency and age requirements. This ensures the dependent meets more than half of the required qualification tests.
- Ban-period restrictions: A final determination of fraud or intentional disregard results in a two-year or ten-year ban, and Form 8862 cannot override those bans. This means taxpayers must wait before reclaiming certain refundable credits.
- Qualifying child rules: A qualifying child must show the child lived with you for at least half the year, unless temporary absences or kidnapped children exceptions apply. This prevents credits from being claimed by someone who does not meet all the requirements.
- Multiple-claim rules: When more than one person claims the same qualifying child, tie-breaker rules determine the correct filer under Part II or Part IV. This ensures only one filer receives income credit through Schedule EIC.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Confirm you need the form
Check the IRS notice and confirm the only reason for denial is not a math or clerical error, because Form 8862 only applies when certain credits require recertification.
Step 2: Gather your documentation
Collect records showing qualifying children meet residency, age, or half-time education rules, including support records or post-secondary education documents for an eligible student.
Step 3: Enter the correct tax year
Use the correct tax year so the IRS can match the completed form with due dates and prior-year records, ensuring proper evaluation for the credit you want to reclaim.
Step 4: Complete the relevant parts
Fill out Part II, Part IV, or other sections based on the credit you are reclaiming, making sure your spouse's information is included when filing jointly so the IRS can evaluate either you or your spouse.
Step 5: Attach the form to your return
Attach Form 8862 to the tax return, including an amended return or late filing, so the IRS can verify you meet child-related and support requirements for the credits claimed.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Incorrect tax year: Some filers enter the previous year instead of the correct tax year, and you can avoid delays by confirming the year matches the credit you want to claim. This supports correct IRS processing.
- Missing identification: Many filers use an ITIN instead of a valid Social Security Number, and you can prevent rejection by ensuring every qualifying child has the required identification. This protects eligibility for the refundable Child Tax Credit.
- Incomplete dependency rules: Errors occur when taxpayers overlook requirements showing the child lived with them for at least half the year, and you can avoid issues by confirming residency and temporary absence rules. This supports compliance with child-related tests.
- Wrong filing status: Conflicts appear when more than one person claims the same dependent, and you can prevent processing issues by reviewing tie-breaker rules. This ensures only one filer claims other dependents.
- Ignoring IRS instructions: Errors happen when taxpayers skip step-by-step directions and complete the wrong part of the form, and you can avoid problems by reviewing each section carefully. This ensures your credit request is correctly evaluated.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
The IRS reviews your return more carefully because Form 8862 signals a previously disallowed credit. The agency may request additional statements or documentation to verify that the child meets the age, residency, and identification requirements. Refund timing may be delayed, especially when refundable child tax credit or earned income credit rules apply, and the IRS verifies the accuracy of withheld income tax and estimated tax paid information.
FAQs
What does Form 8862 2020 require when reclaiming earned income credit (EIC)?
Form 8862 requires confirmation of residency, age, and identification rules for qualifying children, ensuring that no ban applies due to reckless or intentional disregard of the rules. It verifies that the dependent meets the required EIC standards.
How does Form 8862 help me reclaim the Child Tax Credit (CTC)?
The form verifies that a qualifying child meets age, support, and residency standards. It also ensures that the credit was not denied due to a math or clerical error before recertifying your eligibility.
When do I need to file Form 8862 if more than one person claims the same child as a dependent?
You file it after the IRS denies your credit because another filer claimed the same child. The form helps establish whether your dependent meets the tie-breaker rules for the year.
Can Form 8862 help restore my refundable Child Tax Credit that was previously disallowed?
Yes, it reestablishes eligibility for certain refundable credits when the IRS requires recertification. It confirms you meet residency, dependency, and identification requirements for the child.
Do I use Form 8862 to claim certain credits related to income tax or earned income?
Yes, the form is required to claim certain credits after a previous disallowance has been made. It applies to earned income, income credit rules, and multiple education-related and child-related credits.
How does the 8862 information for the claim apply to the credit for other dependents?
The form verifies residency and identification standards for dependents, including the correct requirements for taxpayer identification numbers. It supports eligibility when claiming Credit for Other Dependents.
Why does Schedule EIC matter when I file Form 8862?
Schedule EIC lists each qualifying child used for the earned income credit. The details must match those on Form 8862, as both forms confirm residency, age, and identification requirements.