Form 8862, officially titled “Information To Claim Certain Credits After Disallowance,” is a vital tool for taxpayers seeking to reclaim tax credits that were previously disallowed. The IRS may deny refundable credits like the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), Credit for Other Dependents (ODC), or American Opportunity Tax Credit (AOTC) for various reasons—including errors, audits, or suspected fraud. To be eligible to claim them again in a future tax year, taxpayers must submit Form 8862 to demonstrate eligibility.
This detailed blog explains when and how to use Form 8862, who needs to file it, how to avoid common mistakes, and how it impacts your chances of receiving a refund.
What Is IRS Form 8862?
Form 8862 is used to reclaim one or more of the following refundable or partially refundable credits after the IRS has previously disallowed them for a taxpayer:
- Earned Income Tax Credit (EITC)
- Child Tax Credit (CTC) or Additional Child Tax Credit (ACTC)
- Credit for Other Dependents (ODC)
- American Opportunity Tax Credit (AOTC)
If the IRS previously disallowed your claim for any of the above credits due to intentional disregard of the rules or improper documentation, you may be required to file Form 8862 before you can claim those credits again on a future return.
When Is Form 8862 Required?
You must file Form 8862 if you are claiming one of the credits listed above and it was:
- Previously disallowed or reduced by the IRS
- You received a notice from the IRS stating that you are not eligible to claim the credit again without filing Form 8862
For example, if the IRS disallowed your EITC due to an audit or because you failed to meet eligibility requirements, you must file Form 8862 the next time you wish to claim it—assuming you’re now eligible.
When Is Form 8862 NOT Required?
- If the disallowance was due to a mathematical or clerical error (no audit or formal review)
- If you are claiming a credit for a different qualifying child than the one previously disallowed
- If you were previously banned from claiming the credit and the ban has not yet expired
- If the IRS has sent you a letter stating that you do not need to file Form 8862
Understanding the Credits Covered
Form 8862 may apply to one or more of the following credits, each with its own rules:
Earned Income Tax Credit (EITC)
The EITC helps low- and moderate-income workers reduce their tax liability or increase their refunds. Eligibility is based on income, filing status, and the number of qualifying children. If your EITC was disallowed due to ineligible children or income misreporting, Form 8862 is required to reclaim it.
Child Tax Credit (CTC) & Additional Child Tax Credit (ACTC)
The CTC is a partially refundable credit for taxpayers with qualifying children. If your claim was denied—perhaps due to a lack of proper documentation—Form 8862 will be necessary to reassert eligibility.
Credit for Other Dependents (ODC)
This credit applies to dependents who don’t qualify for the CTC, such as elderly parents or children over age 17. Incorrect information or invalid dependents may lead to disallowance, prompting the need for Form 8862.
American Opportunity Tax Credit (AOTC)
A credit for post-secondary education expenses, the AOTC has strict eligibility and documentation requirements. If previously denied, you’ll need Form 8862 to claim it again in a future year.
How to Complete Form 8862
Form 8862 is relatively short but must be completed accurately. The form contains several parts:
Part I – All Filers
- Questions about prior disallowance of any of the credits
- Confirmation that you’re now eligible to claim the credit again
- General eligibility questions (residency, income, child relationship)
Part II – Earned Income Credit (if applicable)
- Details about your qualifying children
- Residency, age, and relationship confirmations
Part III – American Opportunity Credit
- Verifies that the student meets the requirements
- Checks for four-year limit, felony drug conviction status, etc.
Parts IV–V – Child Tax Credit / ODC
- Verifies dependent status and eligibility
You only need to complete the parts that correspond to the credit(s) you’re trying to reclaim.
How to File Form 8862
Form 8862 must be attached to your tax return (Form 1040 or 1040-SR) for the year you are re-claiming the previously disallowed credit(s). It cannot be filed separately. If you’re e-filing your return, most major tax software platforms include Form 8862 as part of the filing process.
You can also download Form 8862 from the IRS here:
Download IRS Form 8862
Important Notes and Restrictions
- If your credit was disallowed due to fraud, you may be banned from claiming the credit for 10 years
- If the disallowance was due to reckless or intentional disregard of the rules (but not fraud), you may be banned from claiming the credit for 2 years
- Filing Form 8862 during a ban period does not restore eligibility
Common Mistakes to Avoid
- Claiming the same disallowed credit without including Form 8862
- Filing Form 8862 when it’s not needed (such as after a math error disallowance)
- Providing incorrect Social Security Numbers or dependent information
- Failing to update your filing status or address if it changed
Impact on Refund Timing
Claiming a previously disallowed credit with Form 8862 may cause the IRS to delay processing your return while it reviews the form and confirms eligibility. In some cases, additional documentation may be requested before a refund is issued. Be prepared for a longer wait than a typical return with credits.
Tips to Ensure Successful Reclaiming
- Double-check that your dependents meet all age, relationship, and residency requirements
- Keep school, medical, or legal records to support your eligibility claims
- Use IRS Publication 596 (for EITC) or IRS Publication 972 (for CTC) as references
- Consult a tax professional if you’re unsure why your credit was disallowed
Conclusion: Use Form 8862 to Regain Valuable Tax Benefits
Tax credits like the EITC, CTC, AOTC, and ODC can significantly reduce your tax burden and increase your refund. If the IRS has previously disallowed any of these credits, filing Form 8862 is your opportunity to demonstrate that you are now eligible and reclaim them legally. Although the process requires additional effort and documentation, the payoff can be substantial—especially for working families and students.
Make sure to file Form 8862 correctly and include all relevant documentation with your tax return to avoid further delays. If necessary, seek professional tax advice to ensure you meet all IRS requirements and maximize your refund potential.
