In this case, you’ll skip Parts II-A and II-B, and enter ‘0’ on Line 27. This represents the tax credit you might receive for other dependents. You must complete Form 1040 through line 27 and Schedule 3, line 11 before working on this section of Schedule 8812.

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2. You can claim the Child Tax Credit as part of filing your annual tax return with Form 1040.
3. Instructions for both credit limit worksheets are outlined in the worksheets section, below.
4. However, for tax year 2020, taxpayers may elect to use 2019 earned income amounts to figure the credit.
5. If your qualifying child was born and died in 2023 and you do not have an SSN for the child, attach a copy of the child’s birth certificate, death certificate, or hospital records.

This is where difference between a refundable vs. non refundable tax credit matters. The maximum refundable portion of the Additional Child Tax Credit is limited to https://turbo-tax.org/ $1,600 per qualifying child. Simply stated, the Child Tax Credit (CTC) is a tax credit for those with dependent children under age 17 at the end of the tax year.

Schedule 8812 Instructions

Taxpayers must have a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) issued on or before the due date of their return (including extensions) to use Schedule 8812. If either you and/or your spouse (if filing jointly) do not have one, you cannot claim the CTC, ODC, or ACTC. IRS Schedule 8812 is used to figure the Child Tax Credit (CTC), Credit for Other Dependents (ODC), and the Additional Child Tax Credit (ACTC) for qualifying taxpayers who use Form 1040, 1040-SR, or 1040-NR. For the purpose of this credit, your modified adjusted gross income (MAGI) is your AGI plus excluded foreign earned income, possession income, and foreign housing.

Whether you file taxes online or with an H&R Block tax pro, we’ll help you uncover every last credit and deduction you deserve. If you are a U.S. citizen or U.S. national and your adopted child lived with you all year as a member of your household in 2023, that child meets condition (3), earlier, to be a qualifying person for the ODC. Your sibling’s 10-year-old child lives in Mexico and qualifies as your dependent.

Eligible families should receive advance payments, either by direct deposit or check. In Line 16b, enter the number of qualifying children under the age of 17 with the required Social Security number. The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal 1040 (Schedule 8812) from the Internal Revenue Service in January 2024. Schedule 8812 (Child Tax Credit) is used to claim the Child Tax Credit (CTC), Credit for Other Dependents (ODC), and Additional Child Tax Credit (ACTC).

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Don’t include income earned in Puerto Rico, which you exclude from U.S. tax as a bona fide resident of Puerto Rico. On line 21, include all your withheld social security, Medicare, and Additional Medicare taxes, including those taxes withheld by Puerto Rican employers that are shown on Puerto Rico Form(s) 499R-2/W-2PR. Use Schedule 8812 (Form 1040) to figure your child tax credit (CTC), credit for other dependents (ODC), and additional child tax credit (ACTC). Principal abode” refers to the main home where a child lived for more than half of the tax year. This is a determining factor in qualifying for the additional child tax credit as it helps establish the child’s residency and the extent of financial support provided by the taxpayer.

The child is not a U.S. citizen, U.S. national, or U.S. resident alien. If your qualifying child was born and died in 2023 and you do not have an SSN for the child, attach a copy of the child’s birth certificate, death certificate, or hospital records. The maximum amount of ACTC for each qualifying child increased to $1,600.

More In Forms and Instructions

Accountants should advise clients to thoroughly read and follow the schedule 8812 instructions to avoid errors and ensure accurate tax credit calculations. From July 2021 to December 2021, taxpayers may have received an advance payment of the Child Tax Credit equal to 50% of the IRS estimate of the Child Tax Credit. In Line 2, multiply the number of children under age 17 with a Social Security number by $1,500.

If filing a joint return, include the nontaxable combat pay for both spouses, if both spouses are on active duty. For Line 18a, enter the amount of earned income, based on the form instructions. Let’s start with a step by step walkthrough of this tax form.

While the CTC directly reduces the amount of taxes owed, the ACTC ensures that families can receive a refund even if they owe no tax. Essentially, the ACTC complements the CTC by providing potential refunds to eligible families, ensuring they benefit fully from child-related tax provisions. The two credits work in tandem to support families, but the ACTC specifically aids those with lower taxes owed. Taxpayers use Schedule 8812 to calculate the child tax credit, additional child tax credit, and tax credit for other dependents.

The Child Tax Credit has been expanded by the American Rescue Plan Act, that was enacted in March of 2021. Part of this expansion is to advance the 2021 tax credit to families by sending them direct payments during the last half of 2021 rather than having them wait until they prepare their 2021 taxes in 2022. Most families do not need to do anything to get their advance payment. Normally, the IRS will calculate the payment amount based on your 2020 tax return.

For most taxpayers, the credit may be reduced if you have adjusted gross income that’s higher than the threshold that applies to your filing status. You may have heard about a possible change to the Child Tax Credit, but don’t worry. TurboTax has you covered and is up to date with the latest tax laws so you can file your taxes with confidence and accurately claim the Child Tax Credit if you are eligible. Should tax laws change, TurboTax will be updated quickly as with previous tax law changes and will help ensure that you receive the maximum refund you’re eligible for.