Form 8862: Getting Back Tax Credits After a Disallowance

If you’ve ever been denied a tax credit like the Earned Income Credit (EIC) or the Child Tax Credit (CTC), you may have been told that you need to file Form 8862 before you can claim that credit again. That form can seem a little intimidating, especially if you don’t know why it’s required or how to use it.

Don’t worry, Form 8862 isn’t as complicated as it looks, and it plays a crucial role in helping you get back on track with certain tax credits. Let’s walk through what it is, why it exists, and how you can use it correctly when filing your taxes in 2025.

What is Form 8862?

Form 8862 is officially called the "Information to Claim Certain Credits After Disallowance." Quite the mouthful, but, the IRS uses it to make sure that if you were previously denied a refundable tax credit like the EIC, CTC, Additional Child Tax Credit (ACTC), Other Dependent Credit (ODC), or American Opportunity Credit (AOC), you actually qualify to claim it again in the future.

You’ll typically need to file Form 8862 if the IRS previously disallowed one of those credits due to something they considered reckless or erroneous. Basically, the IRS wants to see that you're now eligible and that the mistake or issue from the past won’t be repeated.

When Do You Need to File Form 8862?

If the IRS denied your credit and told you that you can’t claim it again without first filing Form 8862, then this form becomes part of your return the next time you want to take that credit. It usually applies in the year after the denial, or whenever you’re ready to try again. For instance, if you were denied the Earned Income Credit for tax year 2023, you’d need to include Form 8862 with your 2024 tax return, which you file in 2025, if you want to claim the EIC again.

You don’t have to file Form 8862 every year after the disallowance, just once, and only if you meet all the qualifications for the credit again. Once it’s accepted and the IRS allows the credit, you can go back to filing without the extra form in future years (unless the IRS denies you again).

Credits That Trigger Form 8862

Here’s where Form 8862 usually comes into play:

• You were previously denied the Earned Income Credit

• You were denied the Child Tax Credit or the Additional Child Tax Credit

• You tried to claim the Other Dependent Credit and it was disallowed

• You claimed the American Opportunity Credit for education expenses and the IRS rejected it

Keep in mind that if your denial was due to a math error or something you didn’t have to explain (like forgetting a Social Security number), Form 8862 might not be required. But if the IRS sent you a notice saying you can't claim the credit without it, then it's definitely necessary.

What Form 8862 Does (and Doesn’t Do)

Form 8862 gives you the opportunity to show the IRS that you now qualify for the credit and that your past filing error isn’t going to happen again. It’s kind of like a second chance. However, it’s not an automatic green light—you still have to meet all the eligibility rules for the credit you’re claiming.

Also, Form 8862 doesn’t speed up your refund or guarantee that you’ll get the credit back. The IRS will still review your entire return, and they may take longer to process it if they need to verify anything. If there are any new issues or questions, you may be contacted again before the credit is approved.

How to Fill It Out

The good news is that Form 8862 is relatively short. Most people just need to check the boxes that apply to their situation and provide some simple information. You’ll be asked things like whether your situation has changed since the denial, if you’ve reviewed the credit requirements, and if you still meet the eligibility rules.

You can fill out Form 8862 using tax software, or your tax preparer can do it for you. If you’re filing by paper, make sure you attach it to your tax return. Otherwise, if you’re e-filing, your software should include it automatically when needed.

Schedule EIC

Before finishing this section, there’s an addendum that we feel it’s important to share first. To claim the Earned Income Credit (EIC) with a qualifying child, you must first complete Schedule EIC before filing Form 8862. The IRS defines a "qualifying child" as a biological or adopted child, an eligible foster child, or a sibling (including half-siblings) or descendant of the taxpayer's child or sibling.

To meet the criteria, the child must be younger than the taxpayer (or their spouse, if filing jointly), under age 19, or under age 24 if they are a full-time student. Alternatively, the child can be of any age if they are permanently and totally disabled. The child must have lived with the taxpayer for more than half of the year and cannot file a joint return with someone else. You can claim up to three qualifying children for the EIC.

What Happens After You File It

After you file Form 8862 with your return, the IRS will process it as part of your normal tax review, which should come as a big relief after all that work. If everything looks good and you qualify for the credit, it will be approved just like any other tax credit.

However, you should be prepared for the possibility of delays. If the IRS decides they need to double-check the information or request more documentation, they may take additional time to review your return. That’s why it’s important to keep any records that support your claim—like income documentation, proof of a qualifying child, or school transcripts for the AOC.

When You Don’t Need Form 8862

There are a few cases where you don’t have to file Form 8862, even if you were previously denied a credit:

• The credit was disallowed because you didn’t file a complete return (like forgetting to attach a required schedule or form)

• You didn’t claim the credit at all after the denial

• You’re not planning to claim that credit again

• You received a final determination from the IRS or Tax Court saying you engaged in fraud (in which case, you can’t claim the credit again at all)

Why It Matters

Form 8862 might seem like a hassle, but it actually gives you a real opportunity to clear up past mistakes and prove you’re eligible for valuable tax credits. These credits can provide major financial relief, especially if you’re supporting children, paying for education, or working on a limited income. Taking the time to complete this form properly can make a big difference in your refund and financial situation.

The Final Word on Form 8862…

If you’ve been turned down for a tax credit in the past, Form 8862 is your path to redemption. It lets the IRS know you’ve taken the time to understand the rules and that you’re now playing by them. As long as you qualify again and provide the right information, you’re back in the game.

Don’t ignore it if the IRS tells you to file it—doing so can delay your refund or lead to more problems down the road. Whether you’re working with a tax pro or doing your taxes yourself, pay close attention to any credit disallowance notices and use Form 8862 as needed. It’s a small form, but it plays a big role in getting your full refund.

Form 8862: FAQ

1. Why was I told to file Form 8862 in the first place?

The IRS typically requires Form 8862 if you claimed a refundable credit like the Earned Income Credit or Child Tax Credit in a previous year and your claim was denied. When that happens, you lose the ability to claim the same credit again unless you file this form. The IRS wants to verify that you're now eligible and that whatever mistake or issue happened before won’t happen again. It's kind of like saying, "Hey, I've got everything straight this time—here’s proof."

2. What credits does Form 8862 apply to?

This form is tied to a handful of specific tax credits. Most commonly, it relates to the Earned Income Credit, the Child Tax Credit and the Additional Child Tax Credit, the Other Dependent Credit, and the American Opportunity Credit. If you were denied any of these and told not to claim them again without providing additional documentation, Form 8862 is the follow-up paperwork the IRS requires. It does not apply to nonrefundable credits or other benefits like the Premium Tax Credit.

3. Do I have to file Form 8862 every year now?

No, thankfully you don’t. You only need to file it once—specifically, the first year after the credit was denied and you’re trying to claim it again. Once the IRS accepts your return and allows the credit, you can go back to claiming it like usual in future years. However, if the IRS denies the credit again in the future, you’ll have to repeat the process and file another Form 8862.

4. Can I e-file my return with Form 8862?

Yes, most tax preparation software includes Form 8862 and will file it electronically as part of your return. In fact, if the IRS previously disallowed one of your credits and you’re trying to claim it again, the software will usually prompt you to complete the form. If you're doing things by hand and mailing your return, you’ll just print it and attach it to your paper tax return. Either way, the IRS treats it the same—they just want to see that the form is included and filled out accurately.

5. What kind of info does Form 8862 ask for?

It’s not a long form, but it does ask some key questions. It’s mostly yes-or-no items related to the credit you're trying to claim. For example, if you're claiming the Earned Income Credit, it will ask if you meet the qualifications now, whether your situation has changed since the last time you were denied, and whether you've reviewed the eligibility rules. You’re essentially giving the IRS reassurance that you're eligible and that you're filing honestly this time around.

6. What happens if I don’t include Form 8862 when I’m supposed to?

If the IRS told you that you need to file Form 8862 in order to claim a credit again and you skip it, they’ll just reject that part of your return. That means you won’t get the credit, and depending on the situation, it could delay your refund or even trigger additional IRS letters or reviews. So if you’ve been told to include it, don’t ignore that message. Make sure the form is attached and filled out correctly. It's your key to getting that credit back.