What Is IRS Form 8862?

Dec 14, 2023 By Triston Martin

IRS Form 8862 must be filed in your tax filing if you have previously been refused an earned income tax credit (EITC) or children's tax credits, additional credits for tax, additional dependents, and the American chance tax credit. The filing of this form will permit you to claim these credits. The IRS states that the majority of errors when making claims for EITC are due to children who do not meet the eligibility requirements, such as:

You must have an active Social Security number. Must be under the age of 19 or 24 when they were an active student for at least five months. If your kid becomes permanently completely disabled, they could be at any age. Are they linked to you or adopted legally. Reside in the same residence as you are in the United States for more than 50% of the tax year. Do not file a joint tax return, like with spouses.

For example, your son was 17 when he left your home at the end of May in 2020. You had claimed the EITC in the tax return; however, the IRS denied it because your son didn't meet the eligibility requirements. If your son, who's now 18, returned to his home in May 2021, you'll have to file Form 8862 and your tax return for 2021 to prove that you are again qualified to claim the credit.

Who Uses Form 8862?

Anyone who was previously disqualified from any tax credit listed above, other than a clerical or math error, and now can be eligible for the credit is required to complete Form 8862. The IRS stipulates that you'll be required to complete this form if: Your EITC claim was denied or reduced for an entire year following 1996. The claim for a tax credit for children, the additional tax credit or credit for dependents of other taxpayers, or the American tax credit for opportunity was either disallowed or reduced the year following the year 2015.

It is unnecessary to fill out Form 8862 if you've previously filed it following being refused one or more of these credits earlier in the year, but your claims haven't been decreased or denied from that point on. You're claiming EITC without having a qualifying child. The only reason why your EITC claim was rejected previously was due to a child who was not considered to be qualified.

Where to Get Form 8862

The easiest way to get Form 8862 can be downloaded from the IRS website. If you're working with an expert tax preparer or tax preparation service that can provide this form to you. If you're filing your own tax return on the internet, the tax software will automatically fill out this form based on your information.

How to Fill Out and Read Form 8862

  • All filers
  • Earned Income tax credit
  • Child Tax Credit/Additional Child tax credit/Credit for dependents of other children
  • American opportunity tax credit
  • Qualifying child of more than one

Every filer should complete Part 1. After that, you must only fill in those sections devoted to the specific credit or credits you're trying to claim. A small percentage of taxpayers will have to claim each of the credits; therefore, make sure that you do not fill in the form for a credit that you aren't entitled to. The final section pertains to children claimed by more than one person's taxes, like parents who have separated or divorced. In this instance, you'll need to consult the tiebreaker regulations to figure out who can be the one to claim the children.

Can Form 8862 Be E-Filed?

Yes, you can include this form and the rest of the tax return when you file it electronically. Most tax preparation softwares offer this form, but they might not have it in their free versions.

Where to Mail Form 8862?

If you've received a notification from the IRS telling you that you have to fill out such a form, the notice will also include the address to which you'll have to mail the form.

How to File Form 8862?

If you're making your tax return online, it is possible to add this document. If you've received a separate letter requesting to fill out this form, you may send it to the address mentioned in the notice. In either case, you don't have to sign Form 8862.

Benefits of Form 8862

In a way, the filing of Form 8862 permits taxpayers to re-engage in their relationship with IRS. The form indicates how the taxpayer has corrected the situation that led the IRS to refuse these credits and is now able to take them back.

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