Schedule 8812: Credits for Qualifying Children and Other Dependents (2023 Tax Year)

What the Form Is For

Schedule 8812 is the tax form you use to calculate tax credits for your children and other dependents when filing your 2023 tax return. This schedule helps you figure three different types of credits: the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC), and the Credit for Other Dependents (ODC). Think of it as a worksheet that determines how much money you can reduce from your tax bill or potentially receive as a refund based on who lives in your household.

The Child Tax Credit is a nonrefundable credit worth up to $2,000 per qualifying child under age 17. This means it can reduce the amount of tax you owe to zero, but you won't receive any leftover credit as cash. However, if the Child Tax Credit exceeds your tax liability, the Additional Child Tax Credit kicks in—this is a refundable credit worth up to $1,600 per child for 2023, meaning you can receive it as part of your tax refund even if you don't owe any taxes. Finally, the Credit for Other Dependents provides $500 for dependents who don't qualify for the child credits, such as older children or other relatives you support.

You must attach Schedule 8812 to your Form 1040, 1040-SR, or 1040-NR when claiming any of these credits. The form walks you through calculations that account for your income level, the number of qualifying dependents, and your overall tax situation.

When You'd Use This Form (Including Late or Amended Returns)

You'll use Schedule 8812 whenever you're claiming credits for qualifying children or other dependents on your tax return. For the 2023 tax year, you would typically file this schedule when you submit your original return by the April 15, 2024 deadline, or by October 15, 2024 if you requested an extension.

If you initially forgot to claim these credits or made an error on your original return, you can file an amended return using Form 1040-X along with a corrected Schedule 8812. However, there are important timing requirements: if your child or dependent doesn't have the required taxpayer identification number (Social Security Number, ITIN, or ATIN) issued by the due date of your return including extensions, you cannot use that person to claim the credit on either your original or amended return, even if they later receive the identification number.

There's also a critical rule about previously denied credits. If the IRS denied or reduced your CTC, ACTC, or ODC for any tax year after 2015 for reasons other than a simple math or clerical error, you must attach Form 8862 (Information to Claim Certain Credits After Disallowance) the next time you claim these credits. This recertification requirement ensures you meet all eligibility rules before receiving the credits again.

Key Rules You Need to Know

Several fundamental rules determine whether you can claim these credits. First, everyone involved must have proper identification: you and your spouse (if filing jointly) need a Social Security Number or Individual Taxpayer Identification Number issued by the return's due date, and each qualifying child for the CTC or ACTC must have a Social Security Number valid for employment issued before the return deadline. For the Credit for Other Dependents, the dependent needs an SSN, ITIN, or Adoption Taxpayer Identification Number.

For the Child Tax Credit and Additional Child Tax Credit, your child must meet specific conditions: they must be under age 17 at the end of 2023, be your dependent, be a U.S. citizen, U.S. national, or U.S. resident alien, and live with you for more than half the year. They also cannot provide more than half of their own financial support or file a joint return (except to claim a refund of withheld taxes).

The Credit for Other Dependents has different requirements—it's designed for dependents who don't qualify for the child credits. This could include a 17-year-old child, an aging parent, or a grandchild you're raising. The dependent must be claimed on your return and must be a U.S. citizen, U.S. national, or U.S. resident alien.

Income limits may reduce your credits. If your modified adjusted gross income exceeds $200,000 (or $400,000 for married couples filing jointly), the CTC and ODC begin to phase out. For the Additional Child Tax Credit, you generally need at least $2,500 in earned income to qualify, though special rules apply to families with three or more children and bona fide residents of Puerto Rico.

How to Complete Schedule 8812 (High-Level Steps)

The schedule is divided into distinct parts that guide you through the calculations. You'll start with Part I, which determines your Child Tax Credit and Credit for Other Dependents. Begin by entering your adjusted gross income and any excluded foreign income, then count how many qualifying children under 17 with required Social Security Numbers you have and how many other dependents qualify. Multiply each child by $2,000 and each other dependent by $500, then add these amounts together.

Next, you'll compare this total credit amount with your actual tax liability and modified adjusted gross income. If your income exceeds the threshold for your filing status, you'll work through Credit Limit Worksheet A (found in the instructions) to determine any reduction in your credits. The result is your nonrefundable credit amount that directly reduces your tax liability.

If your Child Tax Credit exceeds the tax you owe, you'll move to Part II-A to calculate the Additional Child Tax Credit. This section requires you to figure your earned income, which typically includes wages, salaries, tips, and self-employment income. You'll multiply each qualifying child by $1,600, then calculate 15% of your earned income above $2,500. The refundable credit is based on the smaller of these two calculations.

Part II-B applies to families with three or more qualifying children or bona fide residents of Puerto Rico. This section uses an alternative calculation based on Social Security and Medicare taxes you paid. You'll compare the amounts from Part II-A and Part II-B and use the larger result. The final number becomes your Additional Child Tax Credit, which appears on your Form 1040 and contributes to your refund.

Common Mistakes and How to Avoid Them

One of the most frequent errors involves missing or incorrect Social Security Numbers. Each qualifying child for the CTC or ACTC must have an SSN valid for employment issued before your return's due date. Double-check that you've copied these numbers correctly from Social Security cards to your return. If a child doesn't have the required SSN but has an ITIN or ATIN, you may still claim the $500 Credit for Other Dependents for that child—don't leave money on the table.

Another common mistake is checking the wrong box in the Dependents section of Form 1040. You cannot check both the "Child tax credit" box and the "Credit for other dependents" box for the same person. Make sure children under 17 with required SSNs have only the "Child tax credit" box checked, while other dependents have only the "Credit for other dependents" box checked.

Many taxpayers overlook the earned income threshold for the Additional Child Tax Credit. If your earned income is $2,500 or less and you don't qualify under the three-or-more-children rules, you won't receive any refundable credit even if you qualified for the nonrefundable Child Tax Credit. Use the Earned Income Chart or Worksheet in the instructions to calculate this amount correctly, especially if you're self-employed or have nontaxable combat pay.

Filing errors can trigger serious consequences. If you claim these credits when you know you're not eligible, the IRS may ban you from claiming them for two years if you acted recklessly, or ten years if fraud is involved. You may also face a 20% penalty on excessive claims. Always verify that your child or dependent meets all requirements before claiming the credit.

Finally, don't forget to attach Schedule 8812 to your Form 1040. Some taxpayers complete the schedule but fail to include it with their return, which causes processing delays. If you're e-filing, your tax software should automatically attach it, but review your return carefully before submitting.

What Happens After You File

If you claimed the Additional Child Tax Credit, expect your refund processing to be delayed. By law, the IRS cannot issue refunds that include ACTC before mid-February for returns filed in January and early February. This delay applies to your entire refund, not just the portion related to the credit. For the 2024 filing season (2023 tax returns), most early filers who claimed ACTC and chose direct deposit received their refunds by early March if their returns had no issues.

You can track your refund status using the IRS's "Where's My Refund?" tool, which updates once daily. The tool should show an updated status by late February for most early ACTC filers. Generally, if you e-file your return, choose direct deposit, and have no issues with your return, you'll receive your refund within 21 days of filing—or by early March if you claimed ACTC, whichever is later. Paper returns take much longer, typically six weeks or more.

The IRS may review your return more closely if you claim these credits. If the IRS needs additional information to verify your eligibility—such as proof that a child lived with you or documentation of relationship—you'll receive a letter requesting specific documents. Respond promptly with the requested information to avoid delays or denial of your credit.

If the IRS denies your credit claim, you'll receive a letter explaining why and informing you of your right to appeal. If your credit is denied for reasons other than math or clerical errors, you must file Form 8862 the next time you claim these credits to demonstrate you now meet all requirements. You may also owe back the credit amount plus interest.

Your refund that includes the Additional Child Tax Credit cannot be counted as income when determining eligibility for federal assistance programs like TANF, Medicaid, SSI, or SNAP benefits. Additionally, the refund cannot be counted as a resource for at least 12 months after you receive it, providing important protection for families receiving public benefits.

Frequently Asked Questions

My child turned 17 in December 2023. Can I still claim the Child Tax Credit for them?

Unfortunately, no. To qualify for the Child Tax Credit or Additional Child Tax Credit, your child must be under age 17 at the end of the tax year—meaning December 31, 2023. If your child turned 17 during 2023, even on December 31st, they don't qualify for these credits. However, you can still claim the $500 Credit for Other Dependents for them if they meet the requirements: being your dependent, having a required taxpayer identification number, and being a U.S. citizen, U.S. national, or U.S. resident alien.

What's the difference between the Child Tax Credit and the Additional Child Tax Credit?

The Child Tax Credit is a nonrefundable credit that reduces the tax you owe, dollar for dollar, up to $2,000 per qualifying child. However, once your tax liability reaches zero, you stop benefiting from this credit. The Additional Child Tax Credit is the refundable portion—worth up to $1,600 per child for 2023—that you can receive as a tax refund even if you don't owe any taxes. To get the ACTC, you generally need at least $2,500 in earned income. Think of the CTC as reducing your tax bill, while the ACTC can put money in your pocket even if you didn't owe anything.

My dependent is 19 years old and a full-time college student. Can I claim any credit for them?

Yes, but not the Child Tax Credit or Additional Child Tax Credit since they're 17 or older. If your college student meets the requirements to be your dependent and has a valid taxpayer identification number (SSN, ITIN, or ATIN), you can claim the $500 Credit for Other Dependents for them. Additionally, you might qualify for education credits like the American Opportunity Tax Credit, which is worth up to $2,500 and is claimed on a different form (Form 8863), not Schedule 8812.

I'm self-employed. How do I calculate my earned income for the Additional Child Tax Credit?

Self-employed individuals need to use the Earned Income Worksheet found in the Schedule 8812 instructions. Your earned income includes your net earnings from self-employment shown on Schedule C or Schedule F, minus one-half of your self-employment tax. If you used optional methods to figure your net earnings from self-employment on Schedule SE, you must use the worksheet regardless of whether you're also claiming the Earned Income Tax Credit. Don't use the simplified Earned Income Chart—that's only for wage earners and people not using optional methods.

The IRS denied my Child Tax Credit last year due to a missing Social Security Number. Do I need to do anything special to claim it this year?

Yes, you must attach Form 8862 (Information to Claim Certain Credits After Disallowance) to your tax return. This form requires you to provide information demonstrating that your child now meets all the requirements, including having a valid Social Security Number. However, there's an important timing rule: the SSN must have been issued on or before the due date of your return, including extensions. If your child didn't have an SSN by that deadline, you cannot claim the CTC or ACTC even with Form 8862. Make sure the SSN is valid for employment and was issued before your filing deadline.

Can I claim these credits if I file Form 2555 to exclude foreign earned income?

If you file Form 2555 to exclude foreign earned income, you cannot claim the Additional Child Tax Credit at all. However, you can still claim the nonrefundable Child Tax Credit and the Credit for Other Dependents. You'll need to add your excluded foreign income back to your adjusted gross income when determining your modified AGI, which may reduce or eliminate these credits if your income exceeds the phase-out thresholds. Use lines 2a through 2d on Schedule 8812 to account for excluded foreign income from Form 2555 and Form 4563.

I received a large tax refund that included the Additional Child Tax Credit. Will this affect my food stamps or Medicaid?

No. Federal law specifically protects tax refunds that include the Additional Child Tax Credit from being counted as income when determining eligibility for federal benefit programs including TANF (Temporary Assistance for Needy Families), Medicaid, SSI (Supplemental Security Income), and SNAP (food stamps). Additionally, the refund cannot be counted as a resource for at least 12 months after you receive it. However, you should check with your local benefits coordinator because state rules for state-funded programs may vary.

Sources: All information in this guide comes from official IRS publications including the 2023 Schedule 8812 form, 2023 Instructions for Schedule 8812, and related IRS guidance on child tax credits.

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