Form 1040A Schedule 8812: Child Tax Credit (2017) – A Complete Guide
What Form 1040A Schedule 8812 Is For
Schedule 8812 serves two important purposes for taxpayers claiming benefits for their dependent children. First, if you have children identified with an IRS Individual Taxpayer Identification Number (ITIN) rather than a Social Security Number, Part I of this form documents that these children meet the substantial presence test to be U.S. residents. Second, and more commonly, Parts II through IV help you calculate the Additional Child Tax Credit (ACTC)—a refundable credit that can put money in your pocket even if you don't owe any federal income tax.
The regular Child Tax Credit reduces your tax bill by up to $1,000 per qualifying child under age 17. However, if your tax liability is less than the full credit amount you're entitled to claim, you might be leaving money on the table. That's where Schedule 8812 comes in. The Additional Child Tax Credit lets you claim the unused portion as a refund, based on your earned income or, for families with three or more children, your Social Security taxes paid during the year.
You'll attach Schedule 8812 to Form 1040A, Form 1040, or Form 1040NR. The form works in conjunction with the Child Tax Credit Worksheet in your tax return instructions. If that worksheet indicates you might qualify for additional money back, you'll complete Schedule 8812 to figure the exact amount.
When You'd Use Form 1040A Schedule 8812 (Late or Amended Returns)
For your 2017 taxes, you would have originally filed Schedule 8812 along with your tax return by the April 2018 deadline (or October 2018 if you filed an extension). However, life happens, and you might discover you were eligible for the Additional Child Tax Credit after you've already filed—or perhaps you never claimed it in the first place.
If you're filing a late return and haven't yet submitted your 2017 taxes, you can still claim the ACTC by including Schedule 8812 with your return. Keep in mind that there's a critical timing rule: you, your spouse, and your qualifying children must all have had valid taxpayer identification numbers (Social Security Number, ITIN, or Adoption Taxpayer Identification Number) by the due date of your return, including extensions. If anyone didn't have their number by that deadline—even if they get one later—you cannot claim the credit for that person, even on an amended return.
For amended returns, you'll need Form 1040X to correct your original filing. Generally, you have three years from the date you filed your original return, or two years from the date you paid the tax (whichever is later), to file an amended return claiming a refund. For most 2017 returns filed in April 2018, this means you would have until April 2021 to amend and claim the Additional Child Tax Credit you missed. If you're amending to claim the ACTC, complete a new Schedule 8812 and attach it to your Form 1040X.
One important caveat: if your Child Tax Credit or Additional Child Tax Credit was reduced or disallowed in 2016 for any reason other than a simple math error, you must also complete and attach Form 8862 (Information to Claim Certain Credits After Disallowance) when claiming these credits again.
IRS Instructions for Schedule 8812
Key Rules or Details for Tax Year 2017
Part I – Children With ITINs and the Substantial Presence Test
Understanding the eligibility requirements for Schedule 8812 will help you determine whether it's worth your time to complete this form. The rules differ slightly depending on which part of the schedule you're using.
For Part I (children with ITINs), you must demonstrate that each child identified by an ITIN is a U.S. resident by meeting the substantial presence test. Your child generally must have been physically present in the United States for at least 31 days during 2017 and at least 183 days during the three-year period of 2015-2017, counting all days in 2017, one-third of days in 2016, and one-sixth of days in 2015. If your child doesn't meet this test, you won't be able to claim the credit for that child—even if they're otherwise your dependent.
Parts II–IV – Rules for the Additional Child Tax Credit
For the Additional Child Tax Credit in Parts II-IV, several key rules apply. You cannot claim the ACTC at all if you're filing Form 2555 or 2555-EZ to exclude foreign earned income. Your qualifying children must be under age 17 at the end of 2017, which means a child who turned 17 on or before December 31, 2017, doesn't qualify. Each child must have lived with you for more than half the year and must not have provided more than half of their own support.
The credit calculation depends on your earned income—money you received from working, whether as an employee or self-employed. For most families, the Additional Child Tax Credit equals 15% of your earned income above $3,000. So if you earned $15,000, you'd subtract $3,000 to get $12,000, then multiply by 15% to get a potential credit of $1,800. This amount is then limited to whatever portion of your regular Child Tax Credit you couldn't use to reduce your tax bill.
Families with three or more qualifying children have an alternative calculation method. You can compare the earned income method with an amount based on your Social Security and Medicare taxes paid during the year, and use whichever gives you the larger credit. This alternative can be especially beneficial for families with higher incomes who paid substantial payroll taxes.
The IRS takes improper claims seriously. If you claim the credit without being eligible and the IRS determines your error was due to reckless or intentional disregard of the rules, you'll be banned from claiming the credit for two years. If fraud is involved, the ban extends to ten years, plus potential penalties.
IRS Publication 972 - Child Tax Credit
Step-by-Step (High Level)
How Schedule 8812 Fits With the Child Tax Credit Worksheet
Completing Schedule 8812 follows a logical progression that builds on calculations you've already made elsewhere on your return. Think of it as a series of checkpoints that ensure you're claiming every dollar you're entitled to receive.
Your journey begins before you even touch Schedule 8812. You'll first complete the Child Tax Credit Worksheet found in your Form 1040A, 1040, or 1040NR instructions. This worksheet calculates your regular child tax credit based on the number of qualifying children you have and your modified adjusted gross income. At the end of this worksheet, it will tell you whether you should complete Schedule 8812. If your regular credit fully offsets your tax liability and there's nothing left to claim, you're done—no need for Schedule 8812. But if there's potentially more credit available, that's your cue to proceed.
Part I – Residency Questions for Children With ITINs
Part I only applies if you have children identified by ITINs. For each such child, you'll answer questions about their physical presence in the United States. This documentary trail proves these children meet the residency requirement. Most taxpayers whose children have Social Security Numbers will skip this part entirely.
Part II – Earned Income Method
Part II is where the Additional Child Tax Credit calculation begins. You'll enter the amount from your Child Tax Credit Worksheet, then subtract the actual credit you claimed on your return. The difference represents the unused portion that might be refundable. Next, you'll calculate your earned income—this includes wages, salaries, tips, and net self-employment income, but not investment income, Social Security benefits, or unemployment compensation. If you received nontaxable combat pay, you'll enter that separately. The form then applies the 15% formula to your earned income over $3,000.
Part III – Three or More Qualifying Children (Alternative Method)
If you have three or more qualifying children, you'll continue to Part III, which offers an alternative calculation based on Social Security and Medicare taxes. You'll add up the amounts withheld from your W-2 forms (boxes 4 and 6), plus any self-employment taxes you paid. From this total, you'll subtract certain other credits you're claiming, such as the earned income credit. The form guides you through comparing this alternative calculation with your earned income calculation and using the larger amount.
Part IV – Final Credit Amount
Part IV is the simplest—it's just one line where you enter the smaller of your unused credit amount or your calculated Additional Child Tax Credit. This is the refund you'll receive, and you'll transfer this number to the appropriate line on your main tax return (Form 1040A line 43, Form 1040 line 67, or Form 1040NR line 64).
Common Mistakes and How to Avoid Them
Not Filing Schedule 8812 When You Qualify
Even careful taxpayers can stumble on Schedule 8812, often leaving money unclaimed or triggering IRS notices. Being aware of these pitfalls will help you navigate the form successfully.
The most costly mistake is simply not filing the schedule at all. Many taxpayers who don't owe any tax assume they're done once they've completed their basic return. They never realize that the Additional Child Tax Credit could generate a refund even with zero tax liability. Always complete the Child Tax Credit Worksheet in your return instructions all the way to the end—it will specifically tell you whether you should file Schedule 8812. Don't leave money on the table by stopping too soon.
Taxpayer Identification Number Problems
Identification number problems create another common stumbling block. Remember that everyone involved—you, your spouse if filing jointly, and all qualifying children—must have had valid taxpayer identification numbers by your return's due date, including extensions. If your child received their Social Security Number in May 2018 but you were supposed to file in April 2018, you cannot claim that child for the 2017 credit, even if you filed an extension until October. Plan ahead by applying for necessary numbers well before tax season. If you're applying for an ITIN or Adoption Taxpayer Identification Number, submit the application on or before your filing deadline, and the IRS will consider it timely even if the actual number is issued later.
Earned Income Calculation Errors
Earned income calculations trip up many filers, especially those who are self-employed or have uncommon income sources. Remember that earned income includes only money from working—wages, salaries, tips, and net self-employment income. It does not include interest, dividends, capital gains, pensions, Social Security benefits, unemployment compensation, or alimony. If you have any self-employment income, even from a side gig, you'll need to use the Earned Income Worksheet in Publication 972 rather than simply using your Form 1040A line 7. The worksheet makes necessary adjustments for items that appear on line 7 but aren't actually earned income for credit purposes.
Errors in the Three-or-More-Children Calculation
For families using the three-or-more-children calculation in Part III, a frequent error is including the wrong tax amounts. Only include Social Security and Medicare taxes withheld (Form W-2 boxes 4 and 6) and self-employment taxes paid. Do not include federal income tax withholding, state taxes, or Additional Medicare Tax on high earners. If you paid Additional Medicare Tax or railroad retirement taxes, you'll need to use a special worksheet to adjust your line 7 amount correctly. Many tax software programs help with this, but if you're preparing your return by hand, follow the Line 7 Worksheet in the Schedule 8812 instructions carefully.
Misunderstanding Refund Timing
Timing matters for refunds. The IRS cannot issue refunds before mid-February for any return claiming the Additional Child Tax Credit, and they estimate that refunds won't reach bank accounts until late February at the earliest. This isn't a delay caused by errors—it's a mandatory waiting period imposed by law to give the IRS time to verify claims and combat fraud. Don't panic if your refund doesn't arrive immediately after filing in January; the wait is normal for ACTC claims.
What Happens After You File
IRS Processing, Checks, and Timing
Once you've mailed your return with Schedule 8812 attached (or filed electronically), the IRS processing machinery takes over. Understanding what to expect can ease anxiety during the waiting period.
For 2017 returns claiming the Additional Child Tax Credit, the IRS is prohibited by law from issuing any refund—even the portion unrelated to the ACTC—before mid-February 2018. This protection against fraud means your entire refund is held until this date. The IRS has stated that for taxpayers who filed early, chose direct deposit, and had no other issues with their returns, refunds should reach bank accounts by approximately February 27, 2018. Paper check refunds take several additional weeks.
Notices, Adjustments, and Audits
During processing, the IRS computers check your Schedule 8812 calculations against the information they have on file. They'll verify that the Social Security Numbers or ITINs you entered for your children match their records. They'll compare your earned income against the W-2 forms your employer submitted. If everything matches and your math is correct, your refund processes smoothly.
However, if the IRS computer systems detect a discrepancy, you might receive a notice. Common triggers include math errors on the schedule, mismatches between the taxpayer identification numbers you entered and IRS records, earned income figures that don't align with reported W-2 wages, or missing documentation like Form 8862 if it was required from a prior year disallowance. A notice doesn't necessarily mean you've done something wrong—it might simply request clarification or additional information.
If the IRS adjusts your Additional Child Tax Credit, you'll receive a notice explaining the change and showing your corrected refund amount (or balance due if the credit was reduced significantly). You have the right to disagree with the adjustment. The notice will include instructions for responding if you believe the IRS made an error. Keep copies of your return, Schedule 8812, and all supporting documents for at least three years in case questions arise.
In some cases, the IRS might select your return for a more thorough examination or audit, particularly if you're claiming a substantial credit. This is more common for self-employed individuals or those with complex financial situations. If selected, you'll need to provide documentation proving your children's eligibility, your earned income, and any other items the IRS questions. Organized records—birth certificates, school records showing residence, pay stubs, 1099 forms—make this process much smoother.
How the ACTC Refund Affects Other Benefits
Your Additional Child Tax Credit refund is protected from offset for most federal and state debts, though it can be taken to pay past-due child support. Under federal law, this refund also cannot count as income when determining your eligibility for federal benefit programs like Medicaid, food stamps, or Supplemental Security Income, and for at least 12 months, it won't count as a resource either.
FAQs
Can I claim the Additional Child Tax Credit if I don't owe any taxes?
Absolutely—that's precisely what makes the Additional Child Tax Credit valuable. Unlike the regular Child Tax Credit, which only reduces the tax you owe, the ACTC is refundable. If you qualify for $1,500 in child tax credits but only owed $300 in taxes, the regular credit covers your $300 tax bill, leaving $1,200 unused. Schedule 8812 lets you claim some or all of that remaining $1,200 as a refund check, even though you don't owe anything more to the IRS. The amount you actually receive depends on your earned income or, for families with three or more children, your Social Security taxes paid.
My child turned 17 in December 2017. Can I still claim them on Schedule 8812?
Unfortunately, no. The age cutoff is strict: your child must be under age 17 at the end of the tax year. If your child turned 17 on December 31, 2017, or any earlier date during the year, they don't qualify as a child for purposes of the Child Tax Credit or Additional Child Tax Credit for 2017. However, you can still claim them as a dependent and potentially benefit from the dependency exemption on other parts of your return.
I have two jobs and my spouse works too. How do we calculate earned income?
Add together all wages, salaries, tips, and net self-employment income for both you and your spouse shown on your tax return. Include amounts from all W-2 forms you both received and any profit from self-employment shown on Schedule C, C-EZ, or F. Don't include unemployment benefits, Social Security benefits, interest, dividends, or other investment income—these aren't earned income for ACTC purposes. If you have self-employment income or certain unusual income types, use the Earned Income Worksheet in Publication 972 to calculate the precise figure. Your combined earned income from working is what goes on Schedule 8812, line 4a.
What's the difference between the regular Child Tax Credit and the Additional Child Tax Credit?
The regular Child Tax Credit (calculated on the Child Tax Credit Worksheet, not on Schedule 8812) is nonrefundable, meaning it can reduce your tax to zero but can't create a refund by itself. Once your tax hits zero, any unused regular credit simply disappears. The Additional Child Tax Credit makes that unused portion refundable, turning it into money the IRS will send you. Think of the regular credit as an eraser for your tax bill, while the additional credit is actual money that can come back to you. You must first calculate your regular Child Tax Credit before you can figure your Additional Child Tax Credit—that's why the schedule asks for information from your Child Tax Credit Worksheet.
My child has an ITIN instead of a Social Security Number. Does that affect my credit?
You can still claim both the Child Tax Credit and Additional Child Tax Credit for children with ITINs, but you'll need to complete Part I of Schedule 8812 to prove your child meets the substantial presence test for U.S. residency. This means documenting that the child was physically in the United States for at least 31 days during 2017 and at least 183 days during the three-year period of 2015-2017 (counting all 2017 days, one-third of 2016 days, and one-sixth of 2015 days). If your child doesn't meet this test, you cannot claim the credit for that child. Keep careful records of when your child was in the U.S., such as school records, medical records, and any other documentation showing physical presence.
I made a mistake on my original return and didn't claim Schedule 8812. Can I file an amended return to claim it now?
Yes, you can file Form 1040X (Amended U.S. Individual Income Tax Return) to claim the Additional Child Tax Credit you missed, but timing is crucial. You generally have three years from the date you filed your original return, or two years from the date you paid the tax (whichever is later), to file an amendment claiming a refund. For a 2017 return filed in April 2018, you would have until April 2021 to amend. However, there's a catch: everyone who needs a taxpayer identification number—you, your spouse, and your qualifying children—must have had valid numbers by your original return's due date, including extensions. If someone didn't have their number by that deadline, you can't claim the credit for them even on an amended return.
We have four children. Should we definitely use the three-or-more-children calculation in Part III?
Not necessarily—complete both calculations and use whichever gives you the larger credit. The form walks you through this comparison. Generally, the Social Security tax method in Part III benefits families with higher wages who paid substantial payroll taxes but have limited tax liability after other deductions and credits. The earned income method in Part II often works better for families with lower to moderate incomes. The beauty of having three or more qualifying children is that you get to choose the method that maximizes your refund, so it's worth calculating both ways.
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