Form 8862: Information To Claim Certain Credits After Disallowance

Form 8862, titled "Information To Claim Certain Credits After Disallowance," is an official Internal Revenue Service (IRS) document used to reclaim tax credits that were previously reduced or disallowed. It specifically applies to four credits:

  • Earned Income Credit (EIC)
  • Child Tax Credit (CTC)
  • Additional Child Tax Credit (ACTC)
  • American Opportunity Credit (AOTC)

What's the Purpose of Form 8862?

The primary purpose of Form 8862 is to help taxpayers reclaim these credits if they meet the following criteria:

  • Their claimed credit was reduced or disallowed in a previous tax year (after 1996) for reasons other than a simple math or clerical error.
  • They believe they are now eligible to claim the credit and meet all the current requirements.

Who Needs to File Form 8862?

You only need to file Form 8862 if both of the following apply:

  • Your EIC or another listed credit was reduced or disallowed on a tax return for a year after 1996. This disallowance must have been for a reason other than a simple math or clerical error.
  • You believe you are now eligible to claim the credit you were previously denied and meet all the current requirements for that credit.

When Not to File Form 8862?

There are a few situations where filing Form 8862 is unnecessary:

Math or Clerical Error: If the IRS disallowed your credit due to a mistake in your calculations or how you reported income, you don't need Form 8862. Simply file an amended return to correct the error.

Previously Allowed Credit: If you already filed Form 8862 (or similar documentation) in a prior year and your credit was subsequently allowed, you generally don't need to file it again unless the credit was disallowed again for a reason other than a math or clerical error.

What documents should I attach with Form 8862?

Attach any documentation that supports your eligibility for the EIC this year. This might include proof of income, qualifying child information (if applicable), and documentation related to the reason for the previous disallowance (if helpful for your case).

Can I amend my previous return instead of using Form 8862?

An amendment is only applicable for math/clerical errors. Use Form 8862 if the disallowance stemmed from other reasons.

What if I'm unsure about the reason for disallowance?

Contact the IRS for clarification on the reason for the credit disallowance in your previous tax year.

How long does it take to receive a refund after filing Form 8862?

Processing can take longer due to additional verification needed for the credit claim. Expect a longer waiting period compared to a regular tax return.

Can I claim multiple credits on a single Form 8862?

No, you can only claim one credit per Form 8862. If you need to reclaim multiple credits, submit a separate Form 8862 for each credit.