When You Should Use Form 8862

You must complete Form 8862 and attach it to your tax return if both of the following apply:

1. Your EIC was reduced or disallowed for any reason other than a math or clerical error for a year after 1996. 
2. You now want to take the EIC and you meet all the requirements. 

Exception 1. Do not file Form 8862 if either of the following applies. 

• After your EIC was reduced or disallowed in an earlier year (a) you filed Form 8862 (or other documents) and your EIC was then allowed, and (b) your EIC has not been reduced or disallowed again for any reason other than a math or clerical error. 
• You are taking the EIC without a qualifying child and the only reason your EIC was reduced or disallowed in the earlier year was because it was determined that a child listed on Schedule EIC was not your qualifying child. 

In either of these cases, you can take the EIC without filing Form 8862 if you meet all the EIC eligibility requirements. 

Exception 2. Do not file Form 8862 and do not take the EIC for the: 

• 2 years after the most recent tax year for which there was a final determination that your EIC claim was due to reckless or intentional disregard of the EIC rules, or 
• 10 years after the most recent tax year for which there was a final determination that your EIC claim was due to fraud.

Source: Internal Revenue Service

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When You Should Use Schedule EIC

If you are claiming Earned Income Credit and have one or more qualifying child(ren) use Schedule EIC to give the IRS information about your qualifying child(ren).

Qualifying Child Requirements for EIC Purposes

For purposes of the Earned Income Credit, your child must meet ALL four of the following tests to be considered a qualifying child.

1. Relationship – The child must be your son, daughter, stepchild, foster child, or a descendant of any of them (for example, a grandchild), brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, niece or nephew).
2. Age – The child must meet one of the following age requirements.
   • Under age 19 as of December 31^st of the current tax year, and younger than you or your spouse if filing joint;
   • Under age 24 at the end of the current tax year and younger than you or your spouse (if filing joint) and a full time student for 5 months or more;
   • Any age if your dependent is permanently and totally disabled.
3. Residency – Your child must have lived with you in the United States for more than half of the current tax year. If your dependent is a resident of Puerto Rico, Guam, or any other country outside the United States, they will not qualify for EIC. Children who were born or died during the year are treated as living with you for the entire year.
4. Support – Your child did not provide more than one-half of his/her own support during the year.

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(858)247-1680