Form 8862: Information To Claim Certain Credits After Disallowance (2023)

What the Form Is For

Form 8862 is the IRS's way of giving you a second chance. If the IRS previously denied or reduced one of your major tax credits—not because of a simple math mistake, but for more substantial reasons—this form is your ticket to claiming that credit again. Think of it as a ""rehabilitation form"" that lets you prove you now meet all the requirements.

The form applies to five major tax credits that can significantly reduce your tax bill or increase your refund: the Earned Income Credit (EIC), Child Tax Credit (CTC) and its related credits (Refundable Child Tax Credit, Additional Child Tax Credit), Credit for Other Dependents (ODC), and the American Opportunity Tax Credit (AOTC) for college expenses. These credits can be worth thousands of dollars, so getting back on track matters.

Here's the key distinction: Form 8862 is only required when your credit was denied for substantive reasons—like you didn't meet eligibility requirements, couldn't prove a qualifying child lived with you, or provided incorrect information. If the IRS simply found an arithmetic error or typo and fixed it, you don't need this form.

When You'd Use It (Late/Amended Returns)

You must file Form 8862 when you want to claim any of these credits again after they've been disallowed. Specifically, attach Form 8862 to your current year's tax return (whether filed on time or late) when both conditions are true: (1) your credit was reduced or disallowed in a prior year for reasons other than math or clerical errors, and (2) you now meet all the requirements and want to claim that credit again.

There are important exceptions where you don't need to file Form 8862. You can skip it if you already filed Form 8862 once before, the IRS then allowed your credit, and it hasn't been denied again (except for simple math errors). Also, if you're claiming the Earned Income Credit without a qualifying child and the only reason it was denied before was because a child you listed wasn't actually your qualifying child, you don't need the form—just claim the credit without that child.

Crucially, there are situations where you cannot use Form 8862 at all. If the IRS made a ""final determination"" that your credit claim was due to reckless or intentional disregard of the rules, you're banned from claiming that credit for two years. If fraud was involved, the ban lasts ten years. During these ban periods, Form 8862 won't help—you simply cannot claim those credits.

Form 8862 works for both original returns filed after the deadline and amended returns (Form 1040-X). However, you cannot use it to retroactively claim credits on amended returns if you didn't have the required Social Security Numbers or Individual Taxpayer Identification Numbers by the original due date of that year's return.

Key Rules for 2023

For 2023 tax returns, several critical rules determine who can use Form 8862 and which credits they can claim. Understanding these requirements is essential before you invest time completing the form.

Social Security Number Requirements: For the Earned Income Credit, you must have a valid Social Security Number (SSN)—not an Individual Taxpayer Identification Number (ITIN)—issued on or before the due date of your 2023 return (including extensions). The same SSN requirement applies to any qualifying children you're claiming. For the Child Tax Credit and related credits, you need either an SSN or ITIN, but qualifying children must have SSNs specifically (ITINs don't count for children). For the American Opportunity Tax Credit and Credit for Other Dependents, either an SSN or ITIN works.

Age Requirements for 2023: If you're claiming the Earned Income Credit without a qualifying child, you must be at least 25 years old but under 65 at the end of 2023. If you're filing jointly, only one spouse needs to meet this age range. Note that for 2021 returns, different age rules applied, but for 2023, these limits are back in effect.

Residency Requirements: For most credits, qualifying children must have lived with you in the United States for more than half of 2023. For the Earned Income Credit without children, your main home (and your spouse's, if married) must have been in the United States for more than half the year. Active military duty abroad counts as time in the United States if the duty period exceeds 90 days.

Child Age Limits: For the Child Tax Credit and related credits in 2023, qualifying children must be under age 17 at the end of the year. For the Earned Income Credit, qualifying children must be under 19 (or under 24 if a full-time student), and younger than you or your spouse if filing jointly. There's no age limit if the child is permanently and totally disabled.

Refund Timing: If you file Form 8862 to reclaim the Earned Income Credit or Additional Child Tax Credit, federal law requires the IRS to hold your entire refund—not just the credit portion—until mid-February. This is a fraud prevention measure that affects all early filers claiming these credits, not just those using Form 8862.

Step-by-Step Filing Process (High Level)

Filing Form 8862 involves several clear steps, though the exact information you provide depends on which credit you're reclaiming.

Step 1: Determine Eligibility. Before starting, confirm you actually need Form 8862. Check whether your credit was truly denied for substantive reasons (not just math errors), whether you're still within the ban period if applicable, and whether any exceptions apply that let you skip the form. If you received a CP74 notice saying the IRS ""recertified"" you, you don't need Form 8862.

Step 2: Complete Part I (All Filers). This section requires basic information everyone must provide. Enter the tax year you're currently filing for (not the year the credit was denied—if you're filing your 2023 return, enter ""2023""). Check the boxes for all credits you want to claim. If multiple credits were denied, you can check multiple boxes and reclaim them all at once using a single Form 8862.

Step 3: Complete Credit-Specific Sections. Depending on which credits you checked in Part I, you'll complete different sections. Part II is for the Earned Income Credit. If claiming EIC with qualifying children (Section A), you'll provide detailed information about each child—their name, birth year, Social Security Number, relationship to you, and number of days they lived with you. If claiming EIC without children (Section B), you'll confirm you weren't someone else's dependent, provide days your home was in the United States, and verify you met the age requirements. Part III is for the Child Tax Credit and related credits, where you'll list qualifying children and confirm they lived with you. Part IV is for the American Opportunity Tax Credit, covering college students' information. Part V addresses situations where a child could be claimed by multiple people (divorced parents, extended family, etc.).

Step 4: Gather Supporting Documentation. While you don't mail documentation with Form 8862, you must keep records that prove your eligibility. This includes school records showing where your child attended school, medical records with your address, child care provider statements, landlord or utility records proving residency, and any other documents showing your qualifying children lived with you. The IRS may request these during processing.

Step 5: Attach to Your Tax Return. Form 8862 must be physically attached to your Form 1040 or 1040-SR. You cannot e-file a return with Form 8862 for most situations—you'll need to mail a paper return. Attach the form behind your tax return but in front of other schedules and supporting forms.

Step 6: File and Wait. Mail your return to the appropriate IRS address listed in Form 1040 instructions. Processing takes longer than normal returns—often several months—because the IRS manually reviews Form 8862 to verify you now meet eligibility requirements.

Common Mistakes and How to Avoid Them

Taxpayers frequently make errors with Form 8862 that lead to continued denial or processing delays. Understanding these pitfalls helps ensure your credit gets approved.

Filing When Not Required: Many taxpayers file Form 8862 unnecessarily. If your credit was previously denied solely because of a math error, or you already successfully filed Form 8862 once and had your credit allowed with no subsequent denials (except math errors), you don't need to file it again. Unnecessary filings slow processing. Carefully review the exceptions in the form instructions before deciding to file.

Wrong Tax Year on Line 1: Line 1 asks for ""the year for which you are filing this form."" This is the current tax year you're claiming credits for, not the year your credit was denied. If you're filing your 2023 return to reclaim credits, enter ""2023,"" even if the denial happened in 2019. This is one of the most common errors.

Insufficient Documentation of Child Residency: The IRS frequently denies credits again because taxpayers can't prove qualifying children lived with them for more than half the year. Before filing, gather concrete evidence: school enrollment records showing the child's address matching yours, medical records from doctors in your area, child care provider statements, and similar documents. Keep these even if not submitted with the return—the IRS may request them.

Missing Social Security Numbers or Wrong Number Types: Using an ITIN instead of an SSN for the Earned Income Credit guarantees denial—only SSNs work for EIC. Similarly, children claimed for Child Tax Credit need SSNs, not ITINs. Verify you have the correct type of taxpayer identification number, and that it was issued by the original due date of the return.

Claiming Children Who Qualify Someone Else: If your child could be a qualifying child for multiple people (common in cases of divorce, separation, or extended family living together), only one person can claim that child for credits. Part V of Form 8862 addresses this, and ignoring the tiebreaker rules leads to denial. If you're not the custodial parent, understand whether you have the legal right to claim the child through a divorce decree or Form 8332.

Filing During a Ban Period: Some taxpayers attempt to file Form 8862 while still under a two-year or ten-year ban from previous reckless disregard or fraud determinations. The form will be rejected. Check any previous IRS correspondence to determine if a ban applies and when it ends.

Incomplete Forms: Leaving sections blank that apply to your situation causes processing delays. If you're claiming EIC with qualifying children, every question in Part II Section A must be answered for each child. Missing information triggers IRS follow-up letters, delaying your refund by months.

What Happens After You File

Once you mail your tax return with Form 8862 attached, the processing timeline differs significantly from normal returns. Because the IRS must verify you now meet eligibility requirements after a previous denial, your return receives additional scrutiny.

Initial Processing: Your return goes through standard data entry, where IRS systems record the information. Unlike most e-filed returns that process within 21 days, paper returns with Form 8862 typically take 6 to 16 weeks just for basic processing. The form flags your return for manual review by an IRS examiner.

Manual Review and Verification: An IRS employee examines your Form 8862 responses against eligibility requirements for the credit(s) you're claiming. They verify Social Security Numbers are valid and of the correct type, confirm qualifying children meet age and relationship tests, check that residency requirements appear satisfied, and ensure you're not within a ban period. If anything seems inconsistent or questionable, they may request additional documentation.

Documentation Requests: Many Form 8862 filers receive IRS letters requesting proof of eligibility, particularly evidence that qualifying children lived with them. You'll typically have 30 to 60 days to respond with documents like school records, medical records, landlord statements, or child care provider letters. Failure to respond, or providing insufficient documentation, results in denial of the credit. Always respond by the deadline stated in the letter.

Refund Delays: By law, if you're claiming the Earned Income Credit or Additional Child Tax Credit, the IRS cannot issue any part of your refund before mid-February (typically around February 15), even if you file in January. This applies to your entire refund, not just the credit amount. This delay is statutory and affects all early filers claiming these credits, not just Form 8862 users. If your return requires additional review, expect further delays of several months.

Approval or Denial: If the IRS approves your Form 8862, you'll receive your refund including the claimed credit(s). No special notification is sent—you simply receive the refund. If denied, you'll receive a notice explaining the reason, your appeal rights, and whether you're subject to a ban period that prevents claiming the credit for a specified number of years. In some cases, the IRS may allow part of your claim (such as EIC without qualifying children when the qualifying children didn't meet requirements).

Potential Audits: Filing Form 8862 may increase audit risk for the current year. Because you previously had credits denied, the IRS may scrutinize your current return more carefully. Maintain thorough documentation and ensure all information is accurate and supported by records.

FAQs

How long does it take to get my refund if I file Form 8862?

Processing takes significantly longer than normal returns—typically 3 to 6 months from when the IRS receives your paper return. The mid-February refund hold adds additional time for early filers claiming EIC or ACTC. If the IRS requests documentation, expect several more months beyond that.

Can I e-file my return with Form 8862?

Generally no. Most tax software will reject e-filing attempts when Form 8862 is required. You must print and mail a paper return with Form 8862 attached. However, in some circumstances where the IRS has issued specific guidance, limited e-filing may be available—check the current year's instructions.

What if I forgot to attach Form 8862 and already filed my return?

If you filed without Form 8862 when it was required, the IRS will likely deny your credit claim and send you a notice. You'll need to respond to the notice or file an amended return (Form 1040-X) with Form 8862 attached. This significantly delays your refund.

Do I need a tax professional to complete Form 8862?

While not legally required, many taxpayers benefit from professional help, especially if previous denials involved complex situations like determining which parent can claim a child, proving residency, or understanding SSN requirements. Free assistance is available through IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.

What if I disagree with the IRS's previous denial of my credit?

If you believe the original denial was incorrect, you have appeal rights explained in the denial notice. However, you can also simply file Form 8862 with your next return, providing correct information and documentation. If your circumstances have changed to meet requirements, this is often simpler than appealing the old denial.

Can I file Form 8862 for multiple years at once?

Each Form 8862 applies to one tax year only—the year you're currently filing. If you need to claim credits for multiple years where they were previously denied, you must file a separate Form 8862 with each year's tax return (including amended returns for prior years). However, on a single Form 8862, you can reclaim multiple credits for that one year.

Will filing Form 8862 trigger an audit?

Filing Form 8862 itself doesn't automatically trigger an audit, but your return will receive closer scrutiny than average. The IRS may request documentation to verify eligibility, which is less intensive than a full audit but requires you to provide supporting evidence. Maintain thorough records and ensure all information is accurate to minimize examination risk.

This guide is based on official IRS guidance for the 2023 tax year. For the most current information and to access Form 8862 and its instructions, visit IRS.gov/Form8862. For information about credit denials and what steps to take, see the IRS page on What to do if we deny your claim for a credit.