Form 1040A Schedule 8812: Child Tax Credit (2012)

What Form 1040A Schedule 8812 Is For

Schedule 8812 was introduced in 2012 as an attachment to your tax return (Form 1040, 1040A, or 1040NR) to help families claim the Additional Child Tax Credit. This credit puts money back in your pocket even if you don't owe any taxes—essentially, it's a refundable credit that can result in a refund check from the IRS.

The schedule has two distinct purposes. Part I handles special documentation requirements for children who have an Individual Taxpayer Identification Number (ITIN) rather than a Social Security Number. You must prove these children meet the ""substantial presence test,"" meaning they lived in the United States long enough to qualify as residents. Parts II through IV calculate the Additional Child Tax Credit itself, which is the portion of the regular Child Tax Credit that exceeds your tax liability and becomes refundable.

Think of it this way: the regular Child Tax Credit (worth up to $1,000 per qualifying child in 2012) can only reduce your tax bill to zero. Schedule 8812 helps you claim any leftover credit as a refund. For example, if you qualified for a $1,000 credit but only owed $300 in taxes, Schedule 8812 would help you claim up to $700 as a refund, depending on your earned income and family size.

When You'd Use Form 1040A Schedule 8812 (Late or Amended Filing)

You would use Schedule 8812 whenever you're claiming the Additional Child Tax Credit, whether filing on time, late, or amending a previous return. If you're filing your 2012 return late, you generally have three years from the original due date (April 15, 2013) to claim a refund—meaning the deadline to claim a 2012 refund would have been April 15, 2016. After that window closes, you lose the right to claim that refund.

If you need to amend your 2012 return because you forgot to claim the Additional Child Tax Credit, you'd file Form 1040X (Amended U.S. Individual Income Tax Return) and attach a completed Schedule 8812. Common reasons for amending include discovering you had qualifying children you didn't claim, obtaining a Social Security Number or ITIN for a child born during the tax year, or correcting earned income calculations that affect your credit amount.

The same three-year window applies to amended returns. You must file Form 1040X within three years of filing your original return, or within two years of paying the tax, whichever is later. For practical purposes, if you filed your 2012 return on time in April 2013, you'd have until April 2016 to amend it and claim the Additional Child Tax Credit. Remember that amended returns take longer to process than original returns—typically eight to twelve weeks—so patience is essential.

Key Rules or Details for the 2012 Tax Year

To claim the Additional Child Tax Credit on Schedule 8812, your child must meet seven requirements. The child must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (like a grandchild or niece). They must have been under age 17 at the end of 2012 and must not have provided more than half their own support. The child must have lived with you for more than half the year, though temporary absences for school, vacation, or medical care count as time living with you.

You must claim the child as a dependent on your return, and the child cannot file a joint return for the year unless it's only to claim a refund. Critically, the child must be a U.S. citizen, U.S. national, or U.S. resident alien. This last requirement is where the substantial presence test comes into play for children with ITINs.

The substantial presence test requires the child to be physically present in the United States for at least 31 days during 2012 and for at least 183 days during the three-year period covering 2010-2012. The calculation counts all days in 2012, one-third of days in 2011, and one-sixth of days in 2010. For example, if a child was present 100 days in 2012, 180 days in 2011, and 180 days in 2010, the calculation would be: 100 + (180/3) + (180/6) = 100 + 60 + 30 = 190 days, which meets the 183-day threshold.

Important exceptions exist. Children adopted by U.S. citizens who lived with you all year don't need to meet the substantial presence test. Similarly, if your child was present for at least 31 consecutive days in 2012 and meets the test for 2013, you might qualify for a ""first-year election"" to treat them as residents for part of 2012.

Your credit amount depends on your earned income. To get any Additional Child Tax Credit, your earned income must exceed $3,000. The credit equals 15% of your earned income above $3,000. If you have three or more qualifying children, there's an alternative calculation that might give you a larger credit based on your Social Security and Medicare taxes paid.

Step-by-Step (High Level)

Determining Whether You Need Part I

Start by determining whether you need to complete Part I. If any qualifying child is identified on your return with an ITIN (not a Social Security Number), and you checked the box in column 4 next to their name on your Form 1040, 1040A, or 1040NR, you must complete Part I for that child. For each such child, you'll answer whether they meet the substantial presence test by checking ""Yes"" or ""No."" If you check ""No"" for any child, that child won't qualify for the credit unless special circumstances apply. If you have more than four children with ITINs, you'll need to use an additional Schedule 8812.

Calculating the Additional Child Tax Credit

Next, move to Part II to begin calculating your Additional Child Tax Credit. On line 1, enter the amount from line 6 of your Child Tax Credit Worksheet (found in your Form 1040, 1040A, or 1040NR instructions). On line 2, enter the amount of child tax credit you're actually claiming on your main tax form—this is the amount that reduced your tax liability. Subtract line 2 from line 1 to get line 3. If line 3 is zero, you stop here because you already received your full credit as a tax reduction.

If you have an amount on line 3, calculate your earned income on line 4a. This includes wages, salaries, tips, and self-employment income, but you must subtract certain items like scholarships, prison wages, and pension distributions from nonqualified plans. Add any nontaxable combat pay to this amount. On line 5, determine whether your earned income exceeds $3,000. If it doesn't, you cannot claim the Additional Child Tax Credit. If it does, subtract $3,000 and multiply the result by 15% to get line 6.

Special Rules for Three or More Qualifying Children

Now check if you have three or more qualifying children. If you don't, you skip Part III and enter the smaller of line 3 or line 6 on line 13—that's your Additional Child Tax Credit. If you do have three or more children, complete Part III to see if you qualify for a larger credit based on your payroll taxes. Add your Social Security and Medicare taxes withheld from Forms W-2 to any taxes you paid that weren't refunded or credited, subtract any refundable credits you already claimed, and compare this to the 15% calculation. Use whichever gives you the larger credit.

Transferring the Credit to Your Main Return

Finally, enter your Additional Child Tax Credit from line 13 on the appropriate line of your Form 1040 (line 65), Form 1040A (line 39), or Form 1040NR (line 63).

Common Mistakes and How to Avoid Them

One of the most frequent errors is failing to complete Part I when required. If your child has an ITIN and you checked the qualifying child box on your return, Part I is mandatory. Skipping it or incorrectly checking ""No"" on the substantial presence test questions will reduce or eliminate your credit. Carefully count the days your child was physically present in the United States, using the weighted formula for the three-year period, and remember that temporary absences for school or vacation count as days of presence.

Many taxpayers overlook special circumstances that can help them qualify. If your child was adopted by a U.S. citizen and lived with you all year, they don't need to meet the substantial presence test—but you still must complete Part I and indicate this special situation by checking both ""Yes"" and ""No"" boxes. Similarly, first-year elections and certain treaty provisions can affect eligibility, but these require careful review of IRS Publication 519.

Earned income calculations trip up many filers, especially those who are self-employed. Don't simply copy your wages from Form 1040 line 7 onto Schedule 8812 line 4a. You may need to subtract scholarships, prison wages, or certain deferred compensation amounts. Self-employed individuals must use the detailed Earned Income Worksheet in Publication 972 to properly calculate this amount. If you're also claiming the Earned Income Credit, your earned income for that credit might differ from your earned income for the Additional Child Tax Credit.

Another common mistake involves the three-or-more-children calculation in Part III. Some taxpayers incorrectly include taxes that were refunded or credited elsewhere, which inflates the calculation. Only include Social Security and Medicare taxes actually withheld from your paychecks and not refunded through other credits. Railroad employees must remember to include Tier 1 railroad retirement taxes in their calculations.

Failing to keep proper documentation is a critical error. Save all Forms W-2, records of your child's presence in the United States, adoption papers if applicable, and worksheets used to calculate earned income. The IRS may request this documentation during processing, and you'll need it if you're audited.

What Happens After You File

After mailing your return with Schedule 8812, the IRS will process it within their normal timeframe—typically four to six weeks for paper returns, or about three weeks if you e-filed. The IRS will verify the information on your schedule against their records, including matching your child's ITIN or Social Security Number with their database and confirming your reported wages against Forms W-2 filed by employers.

If the IRS accepts your return as filed, you'll receive your refund (including any Additional Child Tax Credit amount) via direct deposit or paper check, depending on your choice. The refund you receive from the Additional Child Tax Credit generally doesn't count as income for purposes of determining eligibility for federal benefits like Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security Income (SSI), food stamps, or low-income housing assistance. However, you should check with your local benefits coordinator to confirm how the refund affects your specific situation.

If the IRS finds discrepancies or needs additional information, they'll send you a letter. Common issues include mismatched Social Security Numbers or ITINs, questions about a child's residency status, or requests to verify earned income amounts. Respond promptly to these letters with the requested documentation. In some cases, the IRS may adjust your credit amount if they determine you made calculation errors or if your child doesn't meet all qualifying requirements.

If the IRS denies your claim for the Additional Child Tax Credit, you'll receive a notice explaining why and informing you of your right to appeal. You typically have 30 days from the notice date to respond. If you disagree with the determination, gather supporting documentation and file a written protest or request for reconsideration.

Keep copies of your return, Schedule 8812, and all supporting documents for at least three years from the filing date, or longer if you're making installment payments or have other special circumstances. You'll need these records if the IRS questions your credit claim or if you discover errors and need to amend your return.

FAQs

Can I claim the Additional Child Tax Credit if my child has an ITIN but we only lived in the United States for part of 2012?

Yes, but your child must still meet the substantial presence test. They need at least 31 days of U.S. presence during 2012 and at least 183 days over the three-year period from 2010-2012, counting all 2012 days, one-third of 2011 days, and one-sixth of 2010 days. If your child was in the U.S. for less than half of 2012, they also cannot have had a closer connection to a foreign country. Special exceptions exist for adopted children and first-year elections, which are detailed in IRS Publication 519.

What counts as ""earned income"" for calculating my Additional Child Tax Credit?

Earned income includes wages, salaries, tips, and net earnings from self-employment—basically, money you earn from working. However, you must subtract certain amounts like taxable scholarships not reported on Form W-2, wages earned while incarcerated, and pension payments from nonqualified deferred compensation plans. You add back any nontaxable combat pay shown in box 12 of your W-2 with code Q. Self-employed individuals and clergy members must use the special Earned Income Worksheet in Publication 972 because their calculations are more complex.

I only have two qualifying children and my earned income is $8,000. How much Additional Child Tax Credit can I get?

First, subtract $3,000 from your earned income: $8,000 - $3,000 = $5,000. Then multiply by 15%: $5,000 × 0.15 = $750. Your Additional Child Tax Credit is $750, assuming you qualified for at least that much in unused Child Tax Credit. If your regular Child Tax Credit completely offset your tax liability and left less than $750 unused, your Additional Child Tax Credit would be limited to the unused amount.

What happens if I claimed the Child Tax Credit but forgot to file Schedule 8812 to get the refundable portion?

You can file an amended return using Form 1040X and attach Schedule 8812 to claim the Additional Child Tax Credit. You must file the amended return within three years of your original filing date or two years from when you paid the tax, whichever is later. For a 2012 return filed in April 2013, you'd have until April 2016 to amend. After that deadline, you lose the right to claim the refund.

My child was born in December 2012. Can I still claim them for the Additional Child Tax Credit even though they lived with me less than half the year?

Yes. Special rules apply to children born or who died during the tax year. Your child is considered to have lived with you for more than half of 2012 if your home was their home for more than half the time they were alive during the year. A child born in December who lived with you from birth through December 31 meets this requirement. Make sure you obtained a Social Security Number or ITIN for the child and listed them on your return as a dependent.

I have four children with ITINs who meet the substantial presence test. Do I need separate Schedule 8812 forms?

No, a single Schedule 8812 has room for four children with ITINs in Part I (lines A through D). You'll complete all four lines on the same schedule. However, if you have more than four children with ITINs who qualify for the credit, you must use an additional Schedule 8812. Check the box at the end of Part I of your main schedule, use a second schedule's Part I page, and relabel the lines as E through H to continue documenting additional children.

Does the Additional Child Tax Credit affect my eligibility for food stamps or other government assistance?

Generally, no. Federal law specifies that refunds from the Additional Child Tax Credit should not be counted as income when determining eligibility for programs like TANF, Medicaid, SSI, SNAP (food stamps), and low-income housing assistance. However, state and local programs may have different rules, so it's wise to check with your local benefits coordinator to understand how your specific benefits might be affected. Keep documentation showing that your refund came from this tax credit.

Sources: All information in this guide comes from official IRS documents including the 2012 Schedule 8812 instructions, 2012 Publication 972, and related IRS guidance available at IRS.gov.

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