Form 8862: Information To Claim Certain Credits After Disallowance (2025)

What Form 8862 Is For

Form 8862 is a special IRS form you need when you want to claim certain valuable tax credits again after the IRS previously denied or reduced them. Think of it as a ""second chance"" form that proves to the IRS you now qualify for credits you couldn't claim before.

The form applies to several major tax credits that can put thousands of dollars back in your pocket: the Earned Income Credit (EIC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), Credit for Other Dependents (ODC), and the American Opportunity Tax Credit (AOTC) for college expenses. These credits weren't denied because you made simple math mistakes—the IRS determined you didn't meet the eligibility requirements for substantive reasons, such as not proving your child lived with you or failing to establish your relationship to a qualifying child.

Form 8862 requires you to provide detailed information demonstrating you now meet all the requirements for these credits. It's essentially your opportunity to recertify your eligibility and show the IRS that your circumstances have changed or that you can now properly substantiate your claim.

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

You must file Form 8862 attached to your current year's tax return—not as a standalone document—when two conditions are met: (1) the IRS reduced or disallowed your credit in a previous year for reasons other than math or clerical errors, and (2) you now meet all requirements and want to claim that credit again.

Situations Where You Don’t Need Form 8862

You DON'T need Form 8862 if:

• You're claiming the Earned Income Credit without a qualifying child, and the only reason your credit was denied before was because a child you listed wasn't actually your qualifying child
• You already filed Form 8862 once, your credit was then allowed, and it hasn't been denied again for non-math reasons
• You received a CP74 notice from the IRS saying you've been successfully recertified

Ban Periods and Timing Restrictions

Special timing restrictions apply:

• If the IRS determined your claim involved ""reckless or intentional disregard of the rules,"" you cannot claim the credit for 2 years after that final determination
• If fraud was involved, you're banned for 10 years
• You cannot file Form 8862 during these ban periods, though you can appeal the ban itself by following special procedures outlined in the instructions

For amended returns, the same rules apply—if you're amending to claim a previously disallowed credit, you'll need to include Form 8862 with your Form 1040-X.

Key Rules for 2025

Taxpayer Identification Requirements: You must have your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) issued on or before the due date of your 2025 return (including extensions) to claim most credits. For the EIC specifically, you must have a valid SSN—ITINs don't qualify. Children you're claiming must also have their required identification numbers by the return due date.

Age Requirements: For filers claiming the Earned Income Credit without a qualifying child, you must be at least age 25 but under age 65 at the end of 2025. (Note: 2021 had different rules, but those have reverted to the standard requirements for 2025.)

Child Tax Credit Age Limits: A qualifying child for the CTC, Refundable CTC, and Additional CTC must be under age 17 at the end of 2025. This is crucial—once your child turns 17, they no longer qualify for these credits, though they might qualify you for the Credit for Other Dependents instead.

Residency Requirements: For the EIC with a qualifying child, the child must have lived with you in the United States for more than half of 2025. For EIC filers without a qualifying child, your main home must be in the United States for more than half the year. Temporary absences for school, vacation, medical care, or military service count as time living together.

Delayed Refunds: The IRS cannot issue refunds before mid-February for any return claiming the EIC or ACTC, even if you file in January. This applies to your entire refund, not just the portion related to these credits.

Important: Form 8862 can only be filed with a paper return when appealing a disallowance period. Check the current IRS guidance if you're in this situation.

Step-by-Step (High Level)

Step 1: Determine if You Need the Form

Determine if you need the form. Review any IRS letters about previously denied credits. You need Form 8862 only if your credit was denied for substantive reasons (not math errors) and you haven't successfully recertified since then.

Step 2: Gather Your Documentation

Gather your documentation. Collect records proving your eligibility: school records showing your child's address, lease agreements, medical records, birth certificates, and any other documents demonstrating you meet all credit requirements. The IRS may request these later.

Step 3: Complete Part I

Complete Part I. Enter the tax year you're claiming the credit for (2025 if you're filing your 2025 return) and check the boxes for which credits you're reclaiming—EIC, CTC/ACTC/ODC, or AOTC.

Step 4: Complete the Relevant Parts

Complete the relevant parts. If claiming the EIC, fill out Part II. For child tax credits, complete Part III. For the American Opportunity Tax Credit, fill out Part IV. Each section asks specific questions about your qualifying children or students, their relationship to you, where they lived, and how long.

Step 5: Attach to Your Return

Attach to your return. Form 8862 must be attached to your Form 1040, 1040-SR, or 1040-NR. You'll also need to attach the regular forms for claiming these credits (like Schedule EIC for the Earned Income Credit or Form 8863 for the American Opportunity Credit).

Step 6: File Your Return

File your return. Mail your paper return with Form 8862 attached. Keep copies of everything and your supporting documentation in case the IRS requests additional information.

Step 7: Respond Promptly to IRS Requests

Respond promptly to IRS requests. If the IRS sends you a letter asking for proof of eligibility, respond within the timeframe specified (usually 30 days) with clear, organized documentation.

Common Mistakes and How to Avoid Them

Mistake #1: Filing Form 8862 When You Don't Need It

Many taxpayers file this form unnecessarily. If your credit was denied only due to a math error, or if you've already been recertified, you don't need Form 8862. This can delay processing. Solution: Carefully read any IRS letters about denied credits to understand the reason for denial.

Mistake #2: Missing Identification Number Deadlines

Your SSN or ITIN, and those of your dependents, must be issued by your return's due date (including extensions). Solution: Apply for missing SSNs or ITINs well before tax season. If a child's SSN hasn't arrived by the filing deadline, consider filing for an extension.

Mistake #3: Confusing “Lived With You” Requirements

Parents often miscalculate the time a child lived with them, especially in shared custody situations. Solution: Count all nights the child slept at your home, including temporary absences for camp, vacation, or school. Keep calendars or custody agreements as documentation.

Mistake #4: Claiming Children Who Are Too Old

Forgetting that qualifying children for the CTC must be under 17 (not 18 or 19) is a frequent error. Solution: Check your child's age as of December 31, 2025. If they turn 17 during 2025, they may qualify you for the ODC instead.

Mistake #5: Not Keeping Adequate Records

The IRS may audit your claim, and without documentation, you'll lose the credit. Solution: Maintain school records, medical records, landlord statements, and other documents showing your child lived with you and you supported them.

Mistake #6: Filing During a Ban Period

If you're under a 2- or 10-year disallowance period, you cannot claim the credit. Solution: Review your IRS letters to determine if you're in a ban period. If you believe the ban was incorrectly imposed, follow the appeal procedures in the Form 8862 instructions.

Mistake #7: Incomplete or Inconsistent Information

Providing information on Form 8862 that contradicts your main return or previous returns raises red flags. Solution: Ensure all names, SSNs, addresses, and dates are consistent across all forms and match your records.

What Happens After You File

Initial Processing (4-6 weeks): The IRS will process your return and Form 8862. During this time, they'll verify the information you provided and check it against their records. If you're claiming the EIC or ACTC, remember your refund cannot be issued before mid-February, regardless of when you file.

Possible Review or Audit (30-90 days): Returns with Form 8862 often receive additional scrutiny. The IRS may send you a letter requesting documentation to support your claims. Common requests include school records, medical records, landlord statements, or other proof that your qualifying child lived with you. You'll typically have 30 days to respond with organized, legible copies (not originals).

Decision (90 days to 6 months): After reviewing your documentation, the IRS will either approve your credits, partially approve them, or deny them. If approved, you'll receive your refund, including the credits claimed. If denied again, you'll receive a letter explaining why and informing you of your appeal rights.

Recertification Success: If the IRS approves your Form 8862 and allows your credits, you're considered ""recertified."" This means you won't need to file Form 8862 again in future years—unless your credits are denied again for non-math reasons.

CP74 Notice: If successful, you may receive a CP74 notice confirming your recertification. Keep this letter with your tax records; it proves you don't need Form 8862 for future returns.

If Denied Again: If the IRS denies your credits even after you filed Form 8862, you'll receive a notice of deficiency. You have 90 days to petition the U.S. Tax Court if you disagree. Consider consulting a tax professional or seeking help from the Taxpayer Advocate Service at this stage.

Ongoing Obligations: Even after successful recertification, you must continue meeting all eligibility requirements each year. If your circumstances change (your child moves out, you separate from a spouse, your income increases above credit limits), your eligibility may change.

FAQs

1. Can I e-file my return with Form 8862, or must I file on paper?

2. How long will it take to get my refund if I include Form 8862 with my return?

3. What if I can't find the IRS letter explaining why my credit was denied in the first place?

4. Do I need to file Form 8862 every year going forward, or just once?

5. If I'm claiming multiple credits that were all denied, do I need separate Form 8862s for each?

6. Can I still file Form 8862 if I'm under a 2-year or 10-year ban from claiming credits?

7. What documentation should I keep on hand in case the IRS asks for proof after I file Form 8862?

For more information and to download the form, visit the official IRS page: IRS.gov/Form8862

This summary is based on IRS guidance current as of 2025. Tax laws change frequently, so always verify information with official IRS resources or consult a qualified tax professional for your specific situation.