Schedule 8812 Filing Checklist for Tax Year 2021
Overview and American Rescue Plan Act Changes
Schedule 8812 for tax year 2021 underwent a fundamental redesign following the expansion of the Child Tax Credit under the American Rescue Plan Act. The form became mandatory for all taxpayers claiming child tax credits or credits for other dependents, not just those claiming the Additional Child Tax Credit, as was the case in prior years.
The American Rescue Plan Act temporarily expanded the 2021 Child Tax Credit from $2,000 to $3,600 for children under age six and $3,000 for children ages 6 through 17. Approximately half of the estimated credit was distributed as advance payments from July through December 2021. Taxpayers who received advance payments must reconcile them using Schedule 8812.
For 2021 only, the earned income threshold for refundable credit eligibility was eliminated for taxpayers meeting U.S. or Puerto Rico residency requirements. This change allowed families with little or no earned income to claim the full refundable credit.
Key 2021 Form Changes
Mandatory Filing Requirement
Unlike in prior years, when Schedule 8812 was optional for many taxpayers and primarily used to calculate the Additional Child Tax Credit, the 2021 version serves as the sole calculation form for all Child Tax Credit, Additional Child Tax Credit, and Credit for Other Dependents amounts. All taxpayers claiming dependent credits must complete and attach Schedule 8812 to their returns.
Advance Payment Reconciliation
Letter 6419 reports advance Child Tax Credit payments received from July through December 2021. Taxpayers must reconcile these advance payments on Schedule 8812 by comparing the actual qualifying children and income to the preliminary amounts used for advance calculations. Discrepancies may result in additional credit or repayment of excess advance payments.
Publication 972 Discontinuation
For 2021, the IRS consolidated all Child Tax Credit worksheets and instructions previously published in Form 1040 instructions and Publication 972 into the Schedule 8812 instructions. Publication 972 was not published for the tax year 2021.
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.
Ten-Step Filing Checklist
Step 1: Obtain and Verify Letter 6419
Collect Letter 6419 showing advance Child Tax Credit payments received from July through December 2021. The letter reports total advance payments in box one and the number of qualifying children used for advance calculations in Box 2.
If married filing jointly, obtain both spouses’ Letter 6419. You will need both letters to accurately reconcile advance payments. If you did not receive Letter 6419 but received advance payments, contact the IRS at 800-908-4184 or access your information through the IRS Child Tax Credit Update Portal online.
Missing or mismatched Letter 6419 amounts may delay return processing. Verify the information matches your records for monthly payments received in 2021.
Step 2: Determine Residency Status
Identify your residency status for 2021 to select the correct Schedule 8812 calculation path.
Mark Box A on Schedule 8812 if your principal place of abode was in the United States for more than half of 2021. Select Box B if you were a bona fide resident of Puerto Rico for all of 2021.
Select only one box. If neither box applies, you will complete Part I-C instead of Parts I-A or I-B. Your residency determination affects the refundability of the credit and which calculation method applies.
Step 3: Count Qualifying Children Under Age 18
Enter on line 4a the number of qualifying children who were under age 18 on December 31, 2021, and have a Social Security number valid for employment issued before your return due date, including extensions.
Children must meet all qualifying child requirements, including a qualifying relationship, age, residency, and receipt of support, and not file a joint return except to claim a refund. Children who turned 18 on or before December 31, 2021, do not qualify for the Child Tax Credit regardless of meeting other requirements.
Step 4: Identify Children Under Age 6
Enter on line 4b the number of children from line 4a who were under age six on December 31, 2021. These younger children qualify for the enhanced $3,600 credit per child. Subtract line 4b from line 4a to determine the number of children ages 6 through 17. These older qualifying children receive $3,000 per child. Age determination is based solely on the child’s age as of December 31, 2021.
Calculate the tentative credit by multiplying line 4b by $3,600 and the difference between lines 4a and 4b by $3,000. Add these amounts together on line 5.
Step 5: Count Other Dependents
Enter the number of other dependents who do not qualify as children for the Child Tax Credit on line 6. This includes dependents age 17 or older at the end of 2021, qualifying children who lack the required Social Security number, and other qualifying relatives.
Each dependent listed on line 6 must have a Social Security number, Individual Taxpayer Identification Number, or Adoption Taxpayer Identification Number issued before your return due date, including any extensions. Multiply line 6 by $500 and enter on line 7.
The Credit for Other Dependents was not enhanced for 2021 and remains a nonrefundable credit at $500 per qualifying dependent.
Step 6: Calculate Modified Adjusted Gross Income
Enter adjusted gross income from Form 1040 or Form 1040-SR line 11 on Schedule 8812 line 1.
Add amounts from lines 2a through 2c if applicable, including excluded income for bona fide residents of Puerto Rico, foreign earned income from Form 2555 lines 45 and 50, and excluded income for bona fide residents of American Samoa from Form 4563 line 15.
Total lines 1 through 2c and enter the modified adjusted gross income on line 3. This amount determines whether income phase-outs reduce your credit.
Step 7: Apply 2021 Income Phase-Out Rules
Two separate phase-out thresholds apply for 2021. The first threshold reduces only the enhanced portion of the credit. The second threshold reduces the base $2,000 credit.
Enter the appropriate first threshold on line 9 based on filing status: $75,000 for single or married filing separately, $112,500 for head of household, or $150,000 for married filing jointly or qualifying widow(er). If the modified AGI on line 3 exceeds line 9, the enhanced portion is reduced by $50 for each $1,000 or fraction thereof above the threshold.
The enhanced portion equals $1,600 for each child under age 6 and $1,000 for each child ages 6 through 17. Once the enhanced portion is fully phased out, the base $2,000 credit per child applies.
The second threshold is $200,000 for single, head of household, and married filing separately, or $400,000 for married filing jointly and qualifying widow(er). Exceeding this threshold reduces the remaining $2,000 base credit by $50 for each $1,000 or fraction thereof above the threshold.
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.
Step 8: Reconcile Advance Child Tax Credit Payments
Enter the total advance Child Tax Credit payments from Letter 6419 box 1 on the appropriate line. For taxpayers checking Box A or Box B, enter the amount on line 14f. For taxpayers completing Part I-C, enter the amount on line 15e.
If married filing jointly, add the total amounts from both spouses’ Letter 6419, Box 1, and enter the combined total. If you did not receive Letter 6419 or did not receive advance payments, enter zero.
Calculate your actual 2021 Child Tax Credit based on your qualifying children and income. Compare this amount to advance payments received. If your calculated credit exceeds advance payments, you accept the difference as additional credit. If advance payments exceed your calculated credit, you may need to repay some or all of the excess.
Step 9: Calculate Repayment Amount and Protection
Suppose advance payments exceed your calculated Child Tax Credit. Complete Part III to determine the repayment amount. Enter the number of qualifying children shown on Line 30 of Letter 6419, Box 2. This number may differ from your actual qualifying children for 2021.
Calculate excess advance payments on line 29 by subtracting your calculated credit from total advance payments received. Apply repayment protection based on modified adjusted gross income and filing status.
Repayment protection caps limit the amount you must repay if your modified AGI is below certain thresholds. Complete the Repayment Protection Worksheet to determine your cap amount. The worksheet accounts for changes in qualifying children, income, and filing status between the advance payment calculations and your actual 2021 circumstances.
Enter the repayment amount on line 38 and transfer to Schedule 2 Form 1040 line 19 as additional tax. If protected from full repayment, enter the capped amount instead.
Step 10: Claim Additional Child Tax Credit
Complete Part II to calculate the Additional Child Tax Credit, which is the refundable portion of the Child Tax Credit. This credit is available if your Child Tax Credit exceeds your tax liability after other credits.
You cannot claim the Additional Child Tax Credit if you file Form 2555 claiming the foreign earned income exclusion. For 2021, taxpayers meeting U.S. or Puerto Rico residency requirements do not need earned income to claim the refundable credit, though earned income calculations still apply in certain situations.
If you have three or more qualifying children, you may use an alternative calculation based on Social Security and Medicare taxes paid. Complete the applicable worksheet to determine which calculation provides the larger refundable credit.
Filing Requirements and Deadlines
Attach completed Schedule 8812 to your 2021 Form 1040, Form 1040-SR, or Form 1040-NR. The form must be included with your return to claim any Child Tax Credit, Additional Child Tax Credit, or Credit for Other Dependents.
File your 2021 return by April 18, 2022. Request an extension using Form 4868 if you need additional time to file, though the extensions do not extend the time to pay any tax owed.
If your Child Tax Credit, Additional Child Tax Credit, or Credit for Other Dependents was denied or reduced in any tax year after 2015 for reasons apart from math or clerical error, attach Form 8862 to recertify your eligibility for the credits.
Special Situations
Nonresident Aliens
Nonresident aliens filing Form 1040-NR generally cannot claim the Child Tax Credit or Additional Child Tax Credit. Exceptions apply to residents of Canada, Mexico, and South Korea, as well as taxpayers eligible under applicable tax treaties. Nonresident aliens may claim the Credit for Other Dependents under limited circumstances as specified in the instructions.
Separated or Divorced Parents
Noncustodial parents may claim the Child Tax Credit for a child only if the custodial parent releases the claim using Form 8332 or a substantially similar statement. Neither parent can claim the same child for credits in the same year.
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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.
