Schedule 8812 (Form 1040) Tax Year 2020: Checklist
Year Uniqueness
Schedule 8812 for 2020 introduces an election to use prior-year (2019) earned income when 2019 income exceeds 2020 income, reflecting COVID-related hardship. The maximum ACTC per child is $1,400 per the 2020 calculation. Filers must have an SSN or ITIN issued by the return due date; Form 2555 filers remain ineligible.
Year-Specific Programs Affecting This Form
The Consolidated Appropriations Act of 2021 authorized filers to elect the use of 2019 earned income for the 2020 ACTC calculation if 2019 earned income exceeded 2020 earned income. No stimulus (EIP) reconciliation occurs on Schedule 8812. The IRS imposed delayed refund processing (no refunds before mid-February 2021) for returns claiming ACTC.
Mandatory Checklist: 10 Steps
Step 1: Verify Eligibility Before Filing
Complete the Child Tax Credit and Credit for Other Dependents Worksheet (Publication 972) first. If line 1 result is zero, stop—you cannot claim ACTC on Schedule 8812.
Step 2: Confirm Social Security Number Requirements
Each qualifying child must have a valid SSN issued for employment before your 2020 return due date (including extensions). You and your spouse (if filing jointly) must each have an SSN or ITIN issued on or before the due date. If any required SSN is missing, you cannot claim the ACTC. Form 8862 is only needed if this credit was previously denied or reduced for reasons other than math or clerical error.
Step 3: Gather Required Documents
Collect Form 1040, 1040-SR, or 1040-NR (completed through line 19); all Form(s) W-2 showing boxes 4 and 6 (Social Security and Medicare withholding); Publication 972 worksheet results; and prior-year (2019) tax return if electing to use 2019 earned income.
Step 4: Determine Earned Income for Line 6a
Enter earned income from wages, salaries, self-employment (Schedule C or F), Schedule K-1, or nontaxable combat pay. If you elected to use 2019 earned income, consult the Earned Income Chart in the 2020 instructions to verify which amount to enter.
Step 5: Calculate Part I (All Filers)
Line 1: Enter the amount from Child Tax Credit Worksheet line 10 (Publication 972) or line 8 (Form 1040 instructions).
Line 2: Enter line 19 from your Form 1040, 1040-SR, or 1040-NR.
Line 3: Subtract line 2 from line 1. If the value is zero or negative, stop—you cannot claim ACTC.
Line 4: Count qualifying children under 17 with a valid SSN; multiply by $1,400. If zero, stop.
Line 5: Enter the smaller of line 3 or line 4.
Line 6a: Enter earned income (or elected 2019 earned income).
Line 6b: If applicable, enter nontaxable combat pay.
Line 7: If line 6a exceeds $2,500, subtract $2,500; otherwise, leave blank and enter zero on line 8.
Line 8: Multiply line 7 by 15% (0.15).
Step 6: Determine Which Parts to Complete
If you have fewer than three qualifying children and line 8 is greater than zero, skip Part II and enter the smaller of line 5 or line 8 on line 15. If you have three or more qualifying children and the line 4 amount is $4,200 or more, proceed to Part II.
Step 7: Complete Part II (Filers with Three or More Qualifying Children)
Line 9: Enter Social Security and Medicare taxes withheld from Form(s) W-2, boxes 4 and 6. Include a spouse’s amount if filing jointly.
Line 10: Enter total amounts from Schedule 1 (Form 1040) line 14 and Schedule 2 (Form 1040) line 5, plus taxes coded “UT.”
Lines 11–13: Complete calculations as instructed.
Line 14: Enter the larger of line 8 or line 13.
Step 8: Account for Form 2555 Restriction
If you filed Form 2555 (Foreign Earned Income Exclusion), you cannot claim ACTC. Stop and enter zero on line 15.
Step 9: Complete Line 15 and Attach Required Schedules
Line 15: Enter your final ACTC (smaller of line 5 or applicable line from above). Attach Publication 972 worksheets. If your CTC, ACTC, or Credit for Other Dependents was denied or reduced after 2015 for any reason other than math or clerical error, you must attach Form 8862.
Step 10: File Schedule 8812 with Form 1040, 1040-SR, or 1040-NR
Enter the line 15 amount on line 28 of your Form 1040, 1040-SR, or 1040-NR. Mail the completed return with Schedule 8812 attached to the IRS filing address for your state. Do not file Schedule 8812 if line 1 is zero or line 4 is zero.
Form Changes for 2020
Line 6a and 6b (Earned Income Election): Prior-year wording: Earned income entry without election option. The 2020 wording: “You can make this election if your 2019 earned income was greater than your 2020 earned income.” Change type: Added.
General (Prior-Year Earned Income): Prior-year: No mention of election to use prior-year earned income. The 2020 change: Consolidated Appropriations Act 2021 permits the use of 2019 earned income. Change type: Added.
Refund Processing: Prior-year: Standard refund timeline. The 2020 wording: “Delayed refund for returns claiming ACTC. The IRS cannot issue refunds before mid-February 2021.” Change type: Clarified.
Form 8862 Requirement: Prior-year: Standard rules. The 2020 change: No substantive change to the 8862 requirement language from 2019. Change type: No change.
Restrictions and Limitations
Nonresident aliens filing Form 1040-NR must meet all the exact requirements; certain tax benefits are limited for nonresident aliens, except those from Canada, Mexico, India, and South Korea. Filers claiming Form 2555 (foreign earned income) are completely barred from ACTC. Filers with no earned income cannot claim ACTC (line 6a must exceed zero). If modified AGI exceeds $200,000 (all filing statuses except joint) or $400,000 (married filing jointly), the nonrefundable Child Tax Credit is reduced; this may affect eligibility for ACTC.
Need Help With Your Tax Filing?
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
We offer:
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Call now before filing: (888) 260-9441
Fast transcript pull available
This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
