IRS Instruction 8862 – If you’ve had tax credits like the Earned Income Credit (EIC) or Child Tax Credit (CTC) disallowed in the past, navigating IRS rules to reclaim them can feel overwhelming. IRS Form 8862, officially titled “Information To Claim Certain Credits After Disallowance,” is the key document that helps eligible taxpayers restore their access to these valuable refunds. This SEO-optimized guide breaks down the instructions for Form 8862, including who must file, how to complete it, and recent changes for the 2025 tax year. Whether you’re dealing with a prior disallowance due to eligibility issues or other non-clerical errors, understanding this form can help maximize your tax benefits.
What Is IRS Form 8862?
Form 8862 is a required attachment to your tax return when you’re attempting to claim specific refundable credits after they’ve been reduced or denied in a previous year. The form verifies that you now meet all the eligibility criteria for the credits in question, ensuring compliance with IRS standards. It’s not needed for every tax filer—only those with a history of disallowance for reasons beyond simple math or clerical mistakes.
The purpose of Form 8862 is to provide the IRS with detailed information about your situation, including qualifying children or students, residency details, and age requirements. By submitting this form, you’re essentially proving your entitlement to credits like the EIC, CTC, Additional Child Tax Credit (ACTC), Credit for Other Dependents (ODC), or American Opportunity Tax Credit (AOTC). Without it, your claim for these credits could be rejected again, delaying or reducing your refund.
Who Needs to File Form 8862?
Not every taxpayer who claims these credits must file Form 8862. You’re required to submit it if:
- Your EIC was disallowed after 1996 for any reason other than a math or clerical error.
- Your CTC, ACTC, ODC, or AOTC was disallowed after 2015 for similar reasons.
- You now meet all eligibility rules and want to claim the credit(s) on your current return.
However, there are exceptions where filing isn’t necessary:
- If you previously filed Form 8862, had the credit allowed, and it hasn’t been disallowed again (except for math or clerical errors).
- For EIC claims without a qualifying child, if the prior disallowance was solely because a child didn’t qualify.
- During a 2-year ban for reckless or intentional disregard of rules, or a 10-year ban for fraud—though you can appeal these bans by filing Form 8862 with supporting evidence.
If you’re under a ban, e-filing may be rejected, so mail your return instead. Always attach relevant schedules (like Schedule EIC or Form 8863 for AOTC) when claiming these credits.
Credits You Can Claim Using Form 8862
Form 8862 applies to several key tax credits designed to support families, workers, and students. Here’s a breakdown:
| Credit | Description | Key Eligibility Notes |
|---|---|---|
| Earned Income Credit (EIC) | A refundable credit for low- to moderate-income workers. | Requires a valid SSN issued for employment (not just benefits). Age 25-64 if no qualifying child; child must be under 19 (or 24 if student) or disabled. |
| Child Tax Credit (CTC) | Non-refundable credit for qualifying children under 17. | Child must have a valid SSN; one spouse on joint returns needs an SSN (other can have ITIN starting 2025). |
| Additional Child Tax Credit (ACTC) | Refundable portion of CTC. | Same as CTC; refunds delayed until mid-February. |
| Credit for Other Dependents (ODC) | For dependents who don’t qualify for CTC (e.g., over 17). | Dependent can have ITIN or ATIN; taxpayer needs SSN or ITIN by due date. |
| American Opportunity Tax Credit (AOTC) | For qualified education expenses in the first four years of postsecondary education. | Student must be enrolled half-time, no prior AOTC claims for four years, no felony drug conviction. |
These credits can significantly reduce your tax liability or boost your refund, but strict SSN/ITIN rules apply—all must be issued by the return due date (including extensions).
Step-by-Step Guide to Filling Out Form 8862
Completing Form 8862 involves providing specific details about your eligibility. Here’s how to navigate each part:
Part I: All Filers
- Line 1: Enter the tax year you’re claiming the credit for (e.g., 2025).
- Line 2: Check the boxes for each credit you’re claiming (EIC, CTC/ACTC/ODC, AOTC).
Part II: Earned Income Credit (EIC)
- If claiming with a qualifying child: List the child’s name, SSN, relationship, and days lived with you (use 365/366 if the child was born or died in the year).
- Without a qualifying child: Confirm U.S. residency for over half the year and age between 25 and 64.
- Note: You can’t claim EIC if you or your spouse was someone else’s qualifying child.
Part III: Child Tax Credit/ACTC/ODC
- Line 14: Confirm if the child lived with you over half the year (exceptions for temporary absences, divorce, or kidnapping).
- Line 15: Detail the child’s relationship, age (under 17 for CTC/ACTC), support, residency, dependency status, and U.S. citizenship.
- Line 16: Affirm the child is your dependent.
Part IV: American Opportunity Tax Credit (AOTC)
- Line 19a: Verify the student hasn’t claimed AOTC/Hope credit for four prior years, hasn’t completed four years of postsecondary education, is enrolled half-time, and has no felony drug conviction.
- Line 19b: Confirm no AOTC claims for the student in any of the four prior tax years.
If you need more space, attach a separate statement with your name and SSN. Sign the form and attach it to your tax return.
Common Mistakes to Avoid When Filing Form 8862
- Forgetting to attach supporting schedules (e.g., Schedule EIC).
- Using an invalid SSN (must be for employment and issued timely).
- Ignoring residency requirements—keep records like school or childcare documents.
- Filing during a ban without appealing properly.
- Claiming credits for non-qualifying dependents or students.
Recent Changes for the 2025 Tax Year
For 2025, SSN requirements have been updated for CTC and ACTC: A valid SSN (issued for employment by the due date) is now mandatory for qualifying children—no ITIN or ATIN allowed. On joint returns, at least one spouse must have an SSN, while the other can use an ITIN. Refunds for EIC and ACTC claims are still delayed until mid-February. These changes aim to tighten eligibility and prevent fraud.
Frequently Asked Questions About IRS Form 8862
What if my credit was disallowed due to a math error?
You don’t need Form 8862—math or clerical errors don’t trigger the requirement.
Can I e-file with Form 8862?
Yes, unless you’re appealing a ban, in which case mail your return.
What documents should I keep?
Proof of residency, age, relationship, and SSN/ITIN issuance dates.
How do I appeal a 2- or 10-year ban?
File Form 8862 with your return, provide evidence, and potentially petition the U.S. Tax Court.
Conclusion
IRS Form 8862 is essential for reclaiming disallowed tax credits, but accuracy is key to avoiding further issues. By following these instructions and using the latest 2025 version from the IRS website, you can confidently claim the EIC, CTC, ACTC, ODC, or AOTC. For personalized advice, consult a tax professional or visit IRS.gov for the official form and instructions. Stay updated on tax rules to maximize your benefits and ensure compliance.