Schedule 8812 (2017) Instructions: Additional Child
Tax Credit Guide
The 2017 Form 1040 allows the child tax credit under IRC Section 24, subject to phase-out based on modified adjusted gross income thresholds. Schedule 8812 calculates the Additional
Child Tax Credit (refundable portion) for taxpayers with qualifying children under age 17.
No Tax Cuts and Jobs Act provisions apply to 2017 tax returns because TCJA became effective for tax years beginning after December 31, 2017. In 2017, the maximum child tax credit was
$1,000 per qualifying child, as opposed to the $2,000 amount that was made available in subsequent years.
Understanding 2017 Child Tax Credit Basics
The credit phases out when modified adjusted gross income exceeds $110,000 for married filing jointly, $75,000 for single or head of household filers, and $55,000 for married filing separately.
The credit reduces by $50 for each $1,000 (or fraction thereof) of income above these thresholds.
The credit operates in two parts: a nonrefundable portion that reduces tax liability and a refundable portion called the Additional Child Tax Credit. You can claim the refundable portion even if you owe no tax, making it particularly valuable for lower-income working families.
Step-by-Step Guide to Claiming the 2017 Additional Child
Tax Credit
- The child must not have provided over half of their own support during 2017.
- The child must have lived with you for more than half of 2017, with exceptions for
- You must claim the child as a dependent on your 2017 return.
- The child cannot file a joint return for the year unless filing only to claim a refund of
- The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
Step 1: Verify Qualifying Child Requirements
Each qualifying child must meet seven specific conditions. The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these individuals.
Age and residency requirements apply strictly for 2017 eligibility. On December 31, 2017, the child must have been under the age of 17, which means that a child who turned 17 on
December 30, 2017, is ineligible.
Additional requirements include: temporary absences such as school, vacation, or medical care. withheld taxes.
Step 2: Gather Required Documentation
Collect Social Security cards or SSN documentation for each qualifying child before preparing your return. Birth certificates establishing that each child was under age 17 on December 31,
2017, serve as proof of age eligibility.
Each qualifying child must have a valid Social Security number, Individual Taxpayer
Identification Number, or Adoption Taxpayer Identification Number issued before the return due date, including extensions. Proof of relationship documents, such as birth certificates showing parent-child relationships or adoption papers showing legal placement, must be retained for IRS verification purposes.
Step 3: Complete Form 1040 Lines 1 Through 47 First
You must complete Form 1040 through at least line 47 (tax liability) before calculating Schedule
8812. Modified adjusted gross income and tax liability calculations on the 1040 determine your eligibility for both the nonrefundable credit and the Additional Child Tax Credit.
The Child Tax Credit Worksheet in your form instructions determines whether you need
Schedule 8812. You complete Schedule 8812 only when claiming the Additional Child Tax
Credit or when you have children identified by ITIN.
Step 4: Calculate Modified Adjusted Gross Income
Modified adjusted gross income for 2017 equals your adjusted gross income plus specific exclusions. Form 1040 filers find AGI on line 38, Form 1040A filers on line 22, and Form
1040NR filers on line 37.
Add any excluded income from Puerto Rico, amounts from Form 2555 or Form 2555-EZ (foreign earned income), and amounts from Form 4563 (American Samoa income exclusion). Your
MAGI determines whether phase-out limitations reduce your available credit amount.
Step 5: Determine Phase-Out Limitation
Calculate whether your MAGI exceeds the threshold for your filing status. Married filing jointly filers face a phase-out beginning at $110,000, while single, head of household, and qualifying widow(er) filers begin a phase-out at $75,000.
Married filing separately filers begin phase-out at $55,000 MAGI. Reduce your total credit by
$50 for each $1,000 (or fraction thereof) of MAGI above your applicable threshold using the formula specified in Schedule 8812 Part I.
Step 6: Complete Schedule 8812 Part I for ITIN Children
Part I applies only to dependents identified with an ITIN. Answer questions about whether each
ITIN child meets the substantial presence test for U.S. residency, which generally requires physical presence in the United States for at least 31 days during 2017 and 183 days during the three years including 2017, 2016, and 2015.
Children identified by Social Security number or Adoption Taxpayer Identification Number skip
Part I entirely. If all your children have SSNs or ATINs and you are not claiming the Additional
Child Tax Credit, you do not need to complete or attach Schedule 8812.
Step 7: Complete Schedule 8812 Parts II Through IV
Parts II through IV calculate the Additional Child Tax Credit using your earned income. Earned income includes wages, salaries, tips, and net self-employment earnings but excludes investment income and certain government benefits.
Families with three or more qualifying children can compare two calculation methods and use the method producing the larger refundable credit. Puerto Rico residents with three or more
qualifying children may elect to use 2016 earned income or 2016 Social Security taxes if certain conditions apply.
You may elect to use your 2016 earned income if it exceeds your 2017 earned income and your main home was located in certain presidentially declared disaster areas. Enter “PYEI” and the
2016 earned income amount in the space next to the appropriate line on your return.
Step 8: Report Credit Amounts on Form 1040
Enter the nonrefundable child tax credit on Form 1040, line 52; Form 1040A, line 35; or Form
1040NR, line 49. This amount reduces your tax liability but cannot exceed the tax you owe before applying the credit.
Enter the Additional Child Tax Credit (refundable portion) on Form 1040, line 67; Form 1040A, line 43; or Form 1040NR, line 64. Nonresident aliens filing Form 1040NR can claim the credit if the qualifying child is a U.S. citizen, U.S. national, or U.S. resident alien and meets all other requirements.
Step 9: Attach Schedule 8812 When Required
Attach Schedule 8812 to your return when you claim the Additional Child Tax Credit or when you have qualifying children identified by ITIN. Schedule 8812 is not required solely because the MAGI phase-out applies or because you claim only the nonrefundable portion of the child tax credit.
Returns properly claiming the Additional Child Tax Credit cannot receive refunds before mid-February 2018 due to IRS fraud prevention measures. The earliest ACTC-related refunds that become available in bank accounts or on debit cards are February 27, 2018, assuming you chose direct deposit and your return has no other issues.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 10: Sign, Date, and File Complete Return
The return must be signed and dated by the taxpayer and spouse if married filing jointly. Attach
Form 8862 if your 2016 child tax credit or Additional Child Tax Credit was reduced or disallowed for any reason other than a math or clerical error.
Attach Schedule 8812 immediately after Form 1040 in your return package. File according to the IRS Where to File instructions for 2017 Form 1040, which vary based on your state of residence and whether you are enclosing a payment.
Frequently Asked Questions
What is the maximum child tax credit amount for 2017?
The maximum child tax credit for 2017 is $1,000 per qualifying child under age 17. This amount differs from the $2,000 per child credit available under the Tax Cuts and Jobs Act, which became effective for tax years beginning after December 31, 2017.
When must I attach Schedule 8812 to my 2017 Form 1040?
You must attach Schedule 8812 if you are claiming the Additional Child Tax Credit (refundable portion) or if you have a child identified with an Individual Taxpayer Identification Number.
Schedule 8812 is not required solely because your income exceeds phase-out thresholds or because you claim only the nonrefundable credit portion.
What income thresholds trigger the phase-out of the 2017 child tax credit?
Phase-out begins at $110,000 modified adjusted gross income for married filing jointly, $75,000 for single or head of household filers, and $55,000 for married filing separately. The credit reduces by $50 for each $1,000 or fraction thereof of MAGI above these thresholds.
Can nonresident aliens claim the child tax credit on Form 1040NR?
Nonresident aliens filing Form 1040NR can claim the child tax credit if the qualifying child is a
U.S. citizen, U.S. national, or U.S. resident alien and meets all other qualifying child requirements. Enter the credit on Form 1040NR, line 49, and the Additional Child Tax Credit on line 64.
What identification numbers qualify children for the 2017 child tax credit?
Qualifying children must have a valid Social Security number, Individual Taxpayer Identification
Number, or Adoption Taxpayer Identification Number issued before the return due date, including extensions. Children identified with ITIN require completion of Schedule 8812 Part I to document U.S. residency through the substantial presence test.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
