The IRS says most errors in claiming the EITC are related to claiming children who don’t meet the qualifying rules. These rules include:
Having a valid Social Security numberBeing under age 19, under age 24 if they were a full-time student for at least five months of the year, or permanently and totally disabledBeing related to you, legally adopted, or placed in your foster care by a government agency, licensed organization, or court orderLiving in the same home as you in the United States for more than half the tax yearNot filing a joint return with their spouse
Example of Form 8862
Let’s say your 17-year-old child moved out of your home in May 2020. You claimed the EITC on that year’s tax return, but the IRS disallowed it because your child no longer met the qualifying rules. If your child, now 18, moved back home in May 2022, you would file Form 8862 with your 2022 tax return to show that you’re once again eligible to claim the credit.
Who Uses Form 8862?
Anyone who has previously been denied any of the tax credits listed above for anything other than a math or clerical error, and who now meets all the requirements to claim the credit, must file Form 8862. The IRS specifies that you’ll need to file this form if:
Your EITC claim was reduced or disallowed for a year after 1996. Your claim for the child tax credit, additional child tax credit, credit for other dependents, or American opportunity tax credit was reduced or disallowed for a year after 2015.
You don’t have to file Form 8862 if:
You have already filed it after being denied one or more of these credits in an earlier year, and your claims have not been disallowed or reduced since then.You’re claiming the EITC without a qualifying child, and the only reason your EITC claim was previously denied was because a listed child was determined not to be a qualifying child.
Where To Get Form 8862
The easiest way to get Form 8862 is to download it from the IRS website. A professional tax preparer or tax preparation company will furnish this document for you if you use one. The tax software should automatically complete this form based on the data you enter if you’re preparing your own return online.
How To Fill Out and Read Form 8862
Form 8862 has five parts:
Part 1: All filersPart 2: Earned income tax creditPart 3: Child tax credit/Additional child tax credit/Credit for other dependentsPart 4: American opportunity tax creditPart 5: Qualifying child of more than one person
All filers should fill out Part 1. You should only fill out the other sections that are dedicated to the particular credit or credits that you’re reclaiming. Very few taxpayers will have to reclaim all these credits, so make sure not to complete a section for a credit that you’re not entitled to. The final section applies to children who can be claimed on more than one person’s tax return, such as parents who are divorced or separated. You’ll need to refer to the IRS tiebreaker rules to determine who should claim the children in this case.
Can Form 8862 Be Filed Online?
Yes, you can include this form with the rest of your tax return when you e-file. Virtually all online tax preparation programs provide this form, although they may not include it in their free versions.
Where To Mail Form 8862
If you received a notice from the IRS saying that you must file this form, the letter will also include an address where you can send it.
How To File Form 8862
You can include this form if you’re filing your tax return electronically, or you can mail it to the address specified in the letter if you received a separate notice requiring that you complete the form. Either way, you don’t have to sign Form 8862.
Benefits of Form 8862
Filing Form 8862 allows taxpayers to start over with the IRS in a sense. It shows that the taxpayer has rectified the circumstances that caused the IRS to disallow these credits, and that they’re now eligible to claim them again.
