Form 1040 Schedule 8812 Child Tax Credit Rules for 2022

Tax Credit and Credit for Other Dependents on line 19. The American Rescue Plan Act expanded the Child Tax Credit in 2021 only, and 2022 reverted to pre-expansion rules established under the Tax Cuts and Jobs Act.

This form prohibits nonresident aliens from claiming dependent credits and requires a Schedule

8812 attachment when the credit exceeds tax liability or when claiming the refundable Additional

Child Tax Credit. Enhanced credit amounts, increased income phase-out thresholds, and advance payment mechanisms that applied in 2021 expired at the end of that year.

Filing Requirements and Taxpayer Eligibility

You must gather Forms W-2, 1099 series documents, and Schedule K-1, if applicable, before beginning your federal income tax return. All filers must be United States citizens or resident aliens because nonresidents cannot claim the Child Tax Credit or dependent credits on Form

1040.

Resident aliens may qualify for certain tax treaty benefits, and you should consult IRS

Publication 519 for specific guidance on residency status and treaty provisions. Married taxpayers filing jointly report combined income and deduct combined allowable expenses on one return, and both spouses remain generally responsible for tax, interest, or penalties due.

Dependent Information and Identification Requirements

Required information includes the dependent’s full legal name, date of birth, Social Security number or other taxpayer identification number, relationship to you, and residency status during

2022. You enter this information in the Dependents section on page 1 of Form 1040, which includes columns for name, Social Security number, relationship, and checkbox selections for credit types.

Each dependent must possess a valid taxpayer identification number issued on or before the due date of your 2022 return, including extensions. For the Child Tax Credit and Additional Child

Tax Credit, the qualifying child must have a Social Security number that is valid for employment and issued before the return’s due date.

Qualifying Child Residency and Citizenship Tests

Your dependent must have lived with you for more than half of 2022, and temporary absences count as time lived with you. Temporary absences include time away for school, vacation, business, medical care, military service, or detention in a juvenile facility.

Exceptions to the residency requirement apply in cases of birth, death during the tax year, kidnapping, or military station overseas. Each dependent must be a United States citizen,

United States national, or resident alien because nonresident aliens cannot be claimed as dependents for credit purposes on Form 1040 unless specific treaty provisions apply.

Age and Relationship Requirements

The qualifying child must meet specific age and relationship criteria to qualify for the Child Tax

Credit

• The child must be under age 17 at the end of 2022 to qualify as a qualifying child for the

Child Tax Credit.

• An adopted child always qualifies as your own child, and this category includes children

lawfully placed with you for legal adoption.

• Children age 17 and older at the end of 2022 may qualify for the Credit for Other

Dependents instead of the Child Tax Credit.

• The child must be your son, daughter, stepchild, eligible foster child, brother, sister,

stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these individuals.

Child Tax Credit Calculation

You calculate the Child Tax Credit by multiplying $2,000 by the number of qualifying children under age 17 at the close of 2022. Each qualifying child must have a valid Social Security number, not an individual taxpayer identification number or adoption taxpayer identification number.

Credit for Other Dependents

The Credit for Other Dependents provides $500 per qualifying dependent age 17 and older or other relatives who do not meet Child Tax Credit requirements. This credit applies to dependents who meet relationship, support, and citizenship tests but fall outside the age limit for the Child Tax Credit.

Income Phase-Out Thresholds

Both credits begin to phase out when modified adjusted gross income exceeds specific thresholds based on your filing status. Single filers, head of household filers, and married filing separately filers face a phase-out beginning at $200,000 of modified adjusted gross income.

Married filing jointly and qualifying surviving spouse filers face a phase-out beginning at

$400,000 of modified adjusted gross income. The credit reduces by $50 for each $1,000 of income above the applicable threshold until it phases out completely.

Schedule 8812 Attachment Requirements

You must complete Schedule 8812 when the Child Tax Credit exceeds your tax liability or when claiming the refundable Additional Child Tax Credit. The maximum Additional Child Tax Credit amount for each qualifying child increased to $1,500 for tax year 2022.

Schedule 8812 Part I calculates the nonrefundable Child Tax Credit and Credit for Other

Dependents for all filers claiming these credits. When modified adjusted gross income surpasses phase-out thresholds, you might need to fill out Credit Limit Worksheet A to figure out the correct credit amount.

Credit Limit Worksheet B becomes necessary when you claim certain other credits, including the mortgage interest credit, adoption credit, residential clean energy credit, or District of

Columbia first-time homebuyer credit. Part II-A of Schedule 8812 calculates the Additional Child

Tax Credit for all filers who qualify for this refundable portion.

Puerto Rico Residents and Additional Requirements

Bona fide residents of Puerto Rico may be eligible to claim the Additional Child Tax Credit if they have one or more qualifying children. The previous requirement for three or more qualifying children no longer applies for the tax year 2022.

Part II-B of Schedule 8812 provides additional calculations for filers who have three or more qualifying children and for bona fide residents of Puerto Rico. These taxpayers follow specific earned income and tax withholding rules outlined in the Schedule 8812 instructions.

Advance Child Tax Credit Payment Clarification

No advance Child Tax Credit payments were issued during 2022 because the advance payment program operated only from July through December 2021. Taxpayers who received advance payments in 2021 reconciled those amounts on their 2021 tax returns filed during the 2022 filing season, not on 2022 tax returns.

Tax year 2022 operates under standard credit calculation rules without advance payment mechanisms or reconciliation requirements related to advance payments. Letter 6419 provided information about 2021 advance payments for reconciliation on 2021 returns only.

Filing Procedures and Documentation

You must sign and date Form 1040 on the designated signature line and attach Form W-2 copies to your return. Schedule 8812 should only be attached when necessary, based on refundable credit claims and credit calculation results.

Filing addresses vary based on filing status, state of residence, and whether you include payment with your return. The IRS updates filing addresses periodically, and you should verify current addresses at IRS.gov/form1040 before mailing your return to ensure proper processing.

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