Form 1040(SP) Schedule 8812 – Crédito Tributario Adicional por Hijos (Additional Child Tax Credit) 2020
What the Form Is For
The Schedule 8812 (Form 1040(SP)) is used to calculate the Additional Child Tax Credit, or ""Crédito Tributario Adicional por Hijos"" (ACTC). This is a refundable tax credit that can put money back in your pocket even if you don't owe any federal income tax. Think of it as a second chance to benefit from the Child Tax Credit when your regular Child Tax Credit exceeds your tax liability.
The ACTC exists because the regular Child Tax Credit (CTC) can only reduce your taxes to zero—it can't create a refund by itself. But if you have qualifying children and earned income from working, the ACTC allows you to receive the unused portion of your Child Tax Credit as a refund. For 2020, the maximum Child Tax Credit was $2,000 per qualifying child, and up to $1,400 of that could be refunded through the ACTC.
This Spanish-language version of Schedule 8812 is the official IRS form for Spanish-speaking taxpayers to claim this valuable credit. It works exactly the same way as the English version and carries the same legal weight when filed with your tax return.
When You'd Use This Form (Late or Amended Returns)
You would complete Schedule 8812 (SP) when filing your original 2020 tax return if you meet certain conditions shown at the end of the Child Tax Credit worksheet in your Form 1040(SP) instructions. Specifically, you use this schedule when your Child Tax Credit is larger than your tax liability, and you want to claim the refundable portion.
For late or amended returns, the timing rules are strict. If you're filing an amended 2020 return using Form 1040-X, you can still claim the ACTC, but both you and your spouse (if filing jointly) must have had a Social Security Number or Individual Taxpayer Identification Number (ITIN) issued on or before the original due date of your 2020 return, including extensions. If you apply for an ITIN by the deadline and the IRS issues it as a result of your application, they'll consider it as issued on time.
Each qualifying child must have a valid Social Security Number issued before your return's due date. This SSN must be valid for employment—ITINs or other identification numbers don't qualify for the ACTC. If your child doesn't have the required SSN on either your original or amended 2020 return, you cannot claim the ACTC for that child.
One important timing note: if your Child Tax Credit or ACTC was previously denied or reduced for any year after 2015 for reasons other than math errors, you must attach Form 8862(SP) to your return to reclaim the credit, unless an exception applies. Additionally, refunds for returns claiming the ACTC are subject to a legal hold—the IRS cannot issue these refunds before mid-February of the year following the tax year, regardless of when you file.
Key Rules and Requirements
General Eligibility and Restrictions
The ACTC has several important requirements you must meet. First, you cannot claim this credit if you file Form 2555 related to foreign earned income exclusions. The credit is designed for working families with earned income, so you must have earnings from wages, salaries, self-employment, or certain other compensation.
Qualifying Child Rules
Your child must meet all the qualifications for the regular Child Tax Credit: under age 17 at the end of 2020, your son, daughter, stepchild, foster child, sibling, or descendant of any of these (like a grandchild or niece), claimed as your dependent, living with you for more than half the year, not providing over half their own support, a U.S. citizen or resident alien, and not filing a joint return (except to claim a refund). Most importantly for the ACTC, the child must have a Social Security Number valid for employment issued before your return's due date.
Earned Income and Prior-Year Election
The credit calculation is based on your earned income. For 2020, you could use either your 2020 earned income or elect to use your 2019 earned income if it was higher—a special provision to help families whose income dropped during the pandemic. Earned income includes wages, salaries, tips, self-employment income, and nontaxable combat pay (which you can choose to include).
Families with three or more qualifying children may calculate the credit using an alternative method based on their Social Security and Medicare taxes paid, which might result in a higher credit amount. The maximum refundable amount through the ACTC is $1,400 per qualifying child for 2020.
Taxpayer Identification Requirements
Taxpayer identification requirements are non-negotiable. You must have a valid SSN or ITIN by the return due date, and each qualifying child must have an SSN valid for employment. If your child was born and died in 2020 and you don't have an SSN, you must write ""DIED"" in the appropriate column and attach birth or death certificates.
Step-by-Step Process (High Level)
Step 1: Complete Your Form 1040(SP) and Child Tax Credit Section
The process for claiming the ACTC follows a logical sequence. First, complete your Form 1040(SP) through the Child Tax Credit section. You'll use the Child Tax Credit and Credit for Other Dependents Worksheet in your form instructions to calculate your regular Child Tax Credit and see if any portion remains unused because your tax liability is too low.
Step 2: Complete Part I of Schedule 8812 (SP)
Next, if the worksheet directs you to Schedule 8812 (SP), you'll complete Part I of that schedule, which applies to all filers. This is where you'll calculate your earned income using the detailed chart provided in the instructions. You'll need to figure out which type of income you have—whether you're an employee receiving W-2 wages, self-employed with Schedule C or F income, or claiming the Earned Income Credit (which requires coordinating your earned income calculation with that credit's requirements). If you're using the 2019 prior-year election, you'll indicate this by writing ""PYEI"" and the 2019 amount on the dotted line next to Form 1040(SP) line 28.
After calculating earned income, Part I walks you through several mathematical steps to determine your credit amount. You'll subtract $2,500 from your earned income, multiply the result by fifteen percent, and compare this to your unused Child Tax Credit amount. The smaller of these two figures becomes your tentative ACTC.
Step 3: Complete Part II for Three or More Qualifying Children (If Applicable)
If you have three or more qualifying children, you'll also complete Part II of Schedule 8812 (SP). This section uses an alternative calculation based on your Social Security taxes, Medicare taxes, and certain other payroll taxes you paid during the year. You'll use a special worksheet if Additional Medicare Tax or Railroad Retirement Tax applies to you. The IRS allows you to use whichever calculation method gives you the larger credit.
Step 4: Report the Credit on Form 1040(SP)
Finally, you'll enter your ACTC amount from Schedule 8812 (SP) line 15 onto your Form 1040(SP) line 28. This credit will either increase your refund or reduce any balance due. Unlike the regular Child Tax Credit, the ACTC can create or increase a refund even if you don't owe any tax.
Common Mistakes and How to Avoid Them
Using an ITIN Instead of an SSN for a Qualifying Child
One of the most common errors is using an ITIN instead of a Social Security Number for a qualifying child. The ACTC specifically requires an SSN valid for employment—no exceptions. Before filing, verify that each child's Social Security card doesn't have the phrases ""Not Valid for Employment"" or ""Valid for Work Only with DHS Authorization"" (unless the DHS authorization is still valid). If the card has these restrictions, contact the Social Security Administration to get a new card if your child's immigration status has changed.
Miscalculating Earned Income
Many taxpayers incorrectly calculate earned income, especially when self-employed or using optional methods on Schedule SE. Pay close attention to the Earned Income Chart in the instructions—it has different paths depending on your situation. If you're also claiming the Earned Income Credit, you must coordinate the two calculations carefully. Don't include amounts that aren't actually earned income, such as taxable scholarships, retirement distributions, or Medicaid waiver payments (unless you elect to include the latter).
Forgetting the Prior-Year Earned Income Election
Forgetting about the prior-year earned income election is another missed opportunity. For 2020, if your 2019 earned income was higher than 2020, you can elect to use the 2019 amount. Calculate both ways to see which benefits you more. Remember to write ""PYEI"" and the 2019 amount on the dotted line next to Form 1040(SP) line 28 to make this election official, and use 2019 amounts consistently throughout Schedule 8812 (SP).
Failing to Attach Form 8862(SP) When Required
Failing to attach Form 8862(SP) when required will delay your refund or result in denial of the credit. If your credit was reduced or denied in any year after 2015 (except for simple math errors), you must file this form with your return unless an exception applies. Check the Form 8862(SP) instructions carefully to see if you're exempt from this requirement.
Confusing ACTC with the Credit for Other Dependents
Some taxpayers mistakenly try to claim the ACTC when they only qualify for the Credit for Other Dependents. The ACTC is only available if you're claiming the Child Tax Credit for children under 17 with valid SSNs. The Credit for Other Dependents (for other family members or children without SSNs) cannot generate an ACTC.
Filing Form 2555 and Expecting to Claim ACTC
Finally, don't file Form 2555 if you want to claim the ACTC. The foreign earned income exclusion and the ACTC are mutually exclusive—you must choose one or the other. If you're living abroad, carefully consider which option provides greater tax benefits before filing.
What Happens After You File
Once you file your return with Schedule 8812 (SP), the IRS processes your claim through several verification steps. By law, the IRS cannot issue refunds on returns claiming the ACTC before mid-February of the following year. This applies to your entire refund, not just the ACTC portion. This delayed refund timeline was established to give the IRS additional time to verify eligibility and prevent fraudulent claims, so plan accordingly when expecting your refund.
The IRS will verify that each qualifying child has a valid Social Security Number and matches the information in Social Security Administration records. They'll check that the child meets age requirements and wasn't claimed by another taxpayer. If there are discrepancies, you'll receive a notice requesting additional documentation, such as birth certificates, school records, or medical records proving the child lived with you.
Your earned income calculation will be matched against your W-2 forms, 1099 forms, and Schedule SE if applicable. If you elected to use 2019 earned income, the IRS will verify both years' income information. Make sure you kept copies of all relevant documents to respond to any inquiries.
If the IRS approves your ACTC claim, the credit amount from Schedule 8812 (SP) line 15 will either reduce your tax owed or increase your refund. This is ""real"" money deposited to your bank account or sent as a paper check, not just a reduction in taxes owed. The refund won't be counted as income for federal assistance programs like TANF, Medicaid, SSI, or SNAP benefits, and it can't be treated as a resource for at least twelve months after receipt.
If your claim is denied or reduced, you'll receive a detailed notice explaining why. Common reasons include missing or invalid Social Security Numbers, children who don't meet all qualifying criteria, or earned income calculation errors. You have the right to appeal within the timeframe specified in the notice. If your credit is denied due to reckless disregard of the rules, you'll be barred from claiming the CTC, ODC, or ACTC for two years; if fraud is determined, the ban extends to ten years. Penalties may also apply.
FAQs
Can I claim the Additional Child Tax Credit if I had no income tax withheld from my paychecks?
Yes, absolutely. The Additional Child Tax Credit is refundable, meaning you can receive it as a refund even if you had zero tax liability and no withholding. As long as you have earned income and meet all the other requirements, you can receive this credit. This is what makes the ACTC so valuable for lower-income working families—it provides cash refunds, not just tax reduction.
What if my child was born in December 2020 and I haven't received their Social Security Number yet?
Your child must have an SSN valid for employment issued before the due date of your 2020 return, including extensions. If you file an extension until October 15, 2021, you have until that date to obtain the SSN. Apply for your child's SSN as soon as possible after birth. If you haven't received it by the filing deadline, consider filing an extension to give yourself more time. Without the valid SSN, you cannot claim the ACTC for that child.
Can I use this credit if I'm self-employed or work as an independent contractor?
Yes, self-employment income counts as earned income for the ACTC. However, calculating your earned income is more complex. You'll need to complete the self-employment sections of the Earned Income Worksheet in IRS Publication 972(SP). Use your net earnings from self-employment after expenses, but before the deduction for self-employment tax. If you used optional methods on Schedule SE to calculate self-employment tax, follow the special instructions in the Earned Income Chart carefully.
My 2020 income dropped significantly due to COVID-19. How does the prior-year income election help me?
If your earned income was higher in 2019 than 2020, you can elect to use your 2019 earned income to calculate the ACTC, potentially giving you a larger credit. Calculate your ACTC both ways—once with 2019 earned income and once with 2020 earned income—and choose whichever gives you the better result. To make the election, write ""PYEI"" (Prior Year Earned Income) and your 2019 earned income amount in the space next to Form 1040(SP) line 28. This special provision was created to help families whose income declined during the pandemic.
What's the difference between the Child Tax Credit and the Additional Child Tax Credit?
The Child Tax Credit (up to $2,000 per child) reduces your tax liability but can't reduce it below zero. If your credit is larger than your tax bill, the unused portion just disappears—unless you qualify for the Additional Child Tax Credit. The ACTC lets you receive up to $1,400 per child of that unused credit as a cash refund. Think of the CTC as a discount on taxes owed, and the ACTC as actual money back in your pocket.
I received a letter saying my credit from a previous year was denied. What do I need to do to claim it this year?
You must complete and attach Form 8862(SP), ""Información Para Reclamar Ciertos Créditos Después de Haber Sido Denegados,"" to your 2020 return. This form requires you to demonstrate that you now meet all the requirements for the credit. There are some exceptions to this requirement—for example, if your income changed or if you have a different qualifying child this year. Read the Form 8862(SP) instructions carefully to see if an exception applies. Without this form, your ACTC claim will be denied again.
If I have two qualifying children, can I use Part II of the schedule instead of Part I?
No, Part II is only for taxpayers with three or more qualifying children. This alternative calculation method is based on your Social Security and Medicare taxes and was designed to help larger families who might benefit more from this approach. If you have fewer than three qualifying children, you can only use the standard calculation in Part I. If you do have three or more qualifying children, complete both parts and use whichever calculation gives you a larger credit.
Sources
Sources: All information derived from official IRS publications including 2020 Schedule 8812 (Form 1040(SP)) Instructions, Publication 972(SP) – Crédito Tributario por Hijos y Crédito por Otros Dependientes, and related 2020 IRS guidance available at IRS.gov.
