What Form 8862 Is For

Form 8862 is essentially a “second chance” form for taxpayers whose tax credits were previously denied or reduced by the IRS. If you’ve had certain valuable tax credits disallowed in a prior year—and it wasn’t just a simple math error—the IRS requires you to complete this form before claiming those credits again. It’s the IRS’s way of saying, “Prove to us you’re now eligible.”

Applicable Credits

The form applies to five specific credits:

• Earned Income Credit (EIC)
• Child Tax Credit (CTC) and related credits (Refundable Child Tax Credit, Additional Child Tax Credit)
• Credit for Other Dependents (ODC)
• American Opportunity Tax Credit (AOTC)

Think of Form 8862 as your formal application to reclaim these credits after being previously rejected. You're providing detailed information to demonstrate that you now meet all the requirements the IRS was concerned about before.

When You’d Use It (Original, Late, or Amended Returns)

You must file Form 8862 attached to your tax return if both of the following apply:

1. One of the listed credits was reduced or disallowed (for reasons other than math or clerical error) in a prior year.
2. You now want to claim that credit again because you believe you qualify.

When You Don’t Need It

You don’t need to file Form 8862 if:

• You already filed it once after a disallowance, the IRS allowed your credit, and it hasn’t been denied again (except for math errors).
• You’re claiming the EIC without a qualifying child and the previous denial was only because your child didn’t qualify.
• You received a CP74 notice from the IRS recertifying your eligibility.

Ban Periods

You cannot file this form—or claim these credits—if you are currently under an IRS ban:

• 2-year ban: For reckless or intentional disregard of rules.
• 10-year ban: For fraud.

These periods start from the most recent tax year with a final IRS determination of wrongdoing.

Key Rules for 2022

Return to Pre-2021 Rules

After temporary pandemic-era expansions, 2022 reverted to pre-2021 standards.

Earned Income Credit (EIC) Age Rules

For 2022, if you’re claiming the EIC without a qualifying child:

• You must be at least 25 but under 65.
• The 2021 lower minimum age (19 or 18 for certain youth) expired.
• The upper age limit (previously removed) was reinstated.

Child Tax Credit (CTC)

• The expanded 2021 version expired.
• For 2022, the refundable portion reverted to pre-2021 limits.
• Maximum Additional Child Tax Credit (ACTC): $1,500 per qualifying child.
• The 2021 fully refundable structure no longer applies.

Identification Requirements

All taxpayers and dependents must have the appropriate ID numbers issued by the return due date (including extensions):

• SSN for EIC eligibility.
• SSN, ITIN, or ATIN depending on the credit type.
• Late-issued numbers don’t qualify, even on amended returns.

Residency Rules

For the EIC, your main home (and your spouse’s, if joint) must be in the U.S. for more than half the year.
Active-duty military stationed abroad for over 90 days are treated as if their main home were in the U.S.

Step-by-Step Instructions (High Level)

Step 1: Determine If You Need the Form

Check whether one of the five credits was previously disallowed for reasons other than math errors. Verify that you don’t fall under any exceptions or ban periods.

Step 2: Gather Documentation

Collect:

• Proof of residency (school, medical, or landlord records)
• Birth certificates and Social Security cards
• Documents proving relationship or dependency status

You don’t submit these, but the IRS may request them later.

Step 3: Complete Part I – General Information

Enter the tax year you’re claiming (2022) and check the boxes for which credits you’re reclaiming.

Step 4: Part II – Earned Income Credit (EIC)

Answer whether you could be claimed as someone else’s qualifying child. Provide information about qualifying children (names, dates of birth, relationship, months lived with you). If claiming without children, confirm you meet the age requirements.

Step 5: Part III – CTC/ACTC/ODC

List each child or dependent and verify:

• They lived with you for more than half the year.
• They meet dependency and relationship tests.

Step 6: Part IV – American Opportunity Tax Credit (AOTC)

List each eligible student and verify:

• No more than four years of AOTC claimed.
• At least half-time enrollment in a degree program.
• No felony drug convictions.

Step 7: Part V – Tiebreaker Explanation

If a child could qualify for more than one person, explain which person is claiming the child based on IRS tiebreaker rules.

Step 8: Attach to Your Return

Attach Form 8862 to your Form 1040, along with related schedules:

• Schedule EIC
• Schedule 8812
• Form 8863 (for AOTC)

Common Mistakes and How to Avoid Them

Mistake 1: Filing When You Don’t Need To

If you’ve already been recertified and haven’t been disallowed again, skip Form 8862.

Mistake 2: Missing ID Number Deadlines

All SSNs or ITINs must be issued by the filing due date. Apply early.

Mistake 3: Miscounting Residency Time

Temporary absences (school, medical care, vacation, or detention) still count as time lived with you.

Mistake 4: Filing During a Ban Period

If you’re within a 2-year or 10-year ban, the IRS will deny the credits automatically.

Mistake 5: Incomplete Residency Evidence

Keep detailed records—leases, utility bills, or school documents—to prove residency duration.

Mistake 6: Misunderstanding Tiebreaker Rules

IRS rules determine who may claim a child when multiple people qualify. It’s not negotiable between family members.

What Happens After You File

Longer Processing Time

The IRS flags Form 8862 returns for review. Expect delays beyond standard refund timelines.

Delayed Refunds

By law, the IRS cannot issue refunds for returns claiming EIC or ACTC before mid-February, even for accurate filings.

Documentation Requests

You might receive Letter 566 or similar correspondence requesting verification documents such as:

• Birth certificates
• School or medical records
• Proof of relationship or residency

Respond promptly and completely.

Possible Outcomes

1. Full approval: Refund issued with credits.
2. Partial approval: Some credits accepted, others denied.
3. Denial: You’ll receive a notice explaining why and outlining appeal rights.

Future Impact

If your claim is approved, you won’t need to file Form 8862 again unless disallowed in the future (excluding math errors).
If denied for reckless disregard or fraud, new ban periods (2 or 10 years) begin.

FAQs

Q1: How do I know if my credit was disallowed before?

You would have received an IRS notice (CP09, CP27, etc.) explaining the denial. If unsure, call 1-800-829-1040 and request an account transcript for that year.

Q2: Can I e-file Form 8862?

Yes. It can be e-filed with your tax return via most software or the IRS Free File program.

Q3: Can I amend an old return if I actually qualified?

Yes—if within three years of filing. You can submit Form 1040-X and include Form 8862 for future claims.

Q4: I’m claiming EIC without a qualifying child this year. My child was disqualified before—do I need Form 8862?

No. If your only issue was a disqualified child, and you’re now claiming without children, Form 8862 isn’t required.

Q5: What if the IRS denies my Form 8862 claim again?

You’ll owe back the credit plus interest and may face a 2-year ban (reckless disregard) or 10-year ban (fraud). The IRS may also assess a 20% erroneous claim penalty.

Q6: My spouse had a credit denied when filing separately. Now we’re filing jointly—do we need Form 8862?

Yes. If either spouse had a prior disallowance, Form 8862 must be filed jointly when reclaiming the same credits.

Q7: Do I need Form 8862 for other credits like the Premium Tax Credit?

No. Form 8862 applies only to EIC, CTC/ACTC/RCTC, ODC, and AOTC.

Additional Resources

• IRS Form 8862
• Form 8862 Instructions
• IRS Publication 596: Earned Income Credit (EIC)
• IRS Publication 972: Child Tax Credit

This guide is based on the 2022 IRS Form 8862 and official publications. Always confirm current-year updates at IRS.gov or consult a tax professional for personalized guidance.