Disallowance of the EIC: Earned Income Credit (2025 IRS Guide)
This guide covers “Disallowance of the EIC” within earned income credit. The following material presents the IRS treatment of this topic, including the qualifications, exceptions, and examples in the source section. Read the rules alongside the facts of your own situation before deciding what to report, deduct, or document.
Adapted from Publication 596 (2025), Earned Income Credit (EIC), published by the Internal Revenue Service. This guide retains the source edition’s years, amounts, deadlines, and examples. It is guidance for that edition, not a statement that the same figures apply to every tax year.
Disallowance of the EIC
.If your EIC for any year after 1996 was denied (disallowed) or reduced by the IRS, you may need to complete an additional form to claim the credit for 2025..
This chapter is for people whose EIC for any year after 1996 was denied or reduced by the IRS. If this applies to you, you may need to complete Form 8862, Information To Claim Certain Credits After Disallowance, and attach it to your 2025 return to claim the credit for 2025. This chapter explains when you need to attach Form 8862. For more information, see Form 8862 and its instructions.
This chapter also explains the rules for certain people who can’t claim the EIC for a period of years after their EIC was denied or reduced.
Form 8862
If your EIC for any year after 1996 was denied or reduced for any reason other than a math or clerical error, you must attach a completed Form 8862 to your next tax return to claim the EIC. You must also qualify to claim the EIC by meeting all the rules described in this publication.
Exception 1.
Don’t file Form 8862 if either (1) or (2) below is true.
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After your EIC was reduced or disallowed in the earlier year:
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You filed Form 8862 in a later year and your EIC for that later year was allowed, and
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Your EIC hasn’t been reduced or disallowed again for any reason other than a math or clerical error.
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You are claiming the EIC without a qualifying child for 2025 and the only reason your EIC was reduced or disallowed in the earlier year was because the IRS determined that a child listed on Schedule EIC wasn’t your qualifying child.
Exception 2.
Don’t file Form 8862 or take the EIC for:
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2 years after there was a final determination that your EIC claim was due to reckless or intentional disregard of the EIC rules, or
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10 years after there was a final determination that your EIC claim was due to fraud.
More information.
For details, see Are You Prohibited From Claiming the EIC for a Period of Years? in this chapter.
The date on which your EIC was denied and the date on which you file your 2025 return affect whether you need to attach Form 8862 to your 2025 return or to a later return. The following examples demonstrate whether Form 8862 is required for 2025 or 2026.
Example 1—Form 8862 required for 2025.
You filed your 2024 tax return in March 2025 and claimed the EIC with a qualifying child. The IRS questioned the EIC, and you were unable to prove the child was a qualifying child. In September 2025, you received a statutory notice of deficiency telling you that an adjustment would be made and tax assessed unless you filed a petition with the Tax Court within 90 days. You didn’t act on this notice within 90 days. Therefore, your EIC was denied in December 2025. To claim the EIC with a qualifying child on your 2025 return, you must complete and attach Form 8862 to that return. However, to claim the EIC without a qualifying child on your 2025 return, you don’t need to file Form 8862.
Example 2—Form 8862 required for 2026.
The facts are the same as in the previous example except that you received the statutory notice of deficiency in February 2026. Because the 90-day period referred to in the statutory notice isn’t over when you are ready to file your return for 2025, you shouldn’t attach Form 8862 to your 2025 return. However, to claim the EIC with a qualifying child for 2026, you must complete and attach Form 8862 to your return for that year. To claim the EIC without a qualifying child for 2026, you don’t need to file Form 8862.
Exception for math or clerical errors.
If your EIC was denied or reduced as a result of a math or clerical error, don’t attach Form 8862 to your next tax return. For example, if your arithmetic is incorrect, the IRS can correct it. If you don’t provide a correct SSN, the IRS can deny the EIC. These types of errors are called math or clerical errors.
Omission of Form 8862.
If you are required to attach Form 8862 to your 2025 tax return, and you claim the EIC without attaching a completed Form 8862, your claim will be automatically denied. This is considered a math or clerical error. You won’t be permitted to claim the EIC without a completed Form 8862.
Additional documents may be required.
You may have to provide the IRS with additional documents or information before a refund relating to the EIC you claim is released to you, even if you attach a properly completed Form 8862 to your return.
Are You Prohibited From Claiming the EIC for a Period of Years?
If your EIC for any year after 1996 was denied and it was determined that your error was due to reckless or intentional disregard of the EIC rules, then you can’t claim the EIC for the next 2 years. If your error was due to fraud, then you can’t claim the EIC for the next 10 years. The date on which your EIC was denied and the date on which you file your 2025 return affect the years for which you are prohibited from claiming the EIC. The following examples demonstrate which years you are prohibited from claiming the EIC.
Example 3—Cannot claim EIC for 2 years.
You claimed the EIC on your 2024 tax return, which you filed in March 2025. The IRS determined you weren’t entitled to the EIC and that your error was due to reckless or intentional disregard of the EIC rules. In September 2025, you received a statutory notice of deficiency telling you an adjustment would be made and tax assessed unless you filed a petition with the Tax Court within 90 days. You didn’t act on this notice within 90 days. Therefore, your EIC was denied in December 2025. You can’t claim the EIC for tax year 2025 or 2026. To claim the EIC on your return for 2027, you must complete and attach Form 8862 to your return for that year.
Example 4.
The facts are the same as in Example 3, except that your 2024 EIC wasn’t denied until after you filed your 2025 return. You can’t claim the EIC for tax year 2026 or 2027. To claim the EIC on your return for 2028, you must complete and attach Form 8862 to your return for that year.
Example 5—Cannot claim EIC for 10 years.
You claimed the EIC on your 2024 tax return, which you filed in February 2025. The IRS determined you weren’t entitled to the EIC and that your error was due to fraud. In September 2025, you received a statutory notice of deficiency telling you an adjustment would be made and tax assessed unless you filed a petition with the Tax Court within 90 days. You didn’t act on this notice within 90 days. Therefore, your EIC was denied in December 2025. You can’t claim the EIC for tax years 2025 through 2034. To claim the EIC on your return for 2035, you must complete and attach Form 8862 to your return for that year.
If you disagree with the final determination of the IRS that you are prohibited from claiming the EIC for a period of years and want to appeal this determination, see How to appeal the disallowance period in the Instructions for Form 8862.
Using the guidance
Keep the documents that establish the dates, amounts, and circumstances described above. References to other chapters, forms, worksheets, or earlier and later sections refer to the linked IRS publication. Check the full publication and its updates before relying on a rule for a different tax year or a situation not addressed here.
Sources and further reading
- Publication 596 (2025), Earned Income Credit (EIC): Disallowance of the EIC — Internal Revenue Service; 2025 edition.
The cited U.S. government text is in the public domain. Source accessed October 28, 2026. Fynoptic has organized this material for educational use and is independent of, and not endorsed by, the IRS.