Form 1040A Schedule 8812: Child Tax Credit (2013)

What the Form Is For

Schedule 8812 was a companion form attached to Form 1040A, Form 1040, or Form 1040NR that helped taxpayers claim two distinct but related benefits: the Additional Child Tax Credit and documentation for children identified with Individual Taxpayer Identification Numbers (ITINs).

The form had two main purposes. Part I was specifically for taxpayers who claimed a child tax credit for children identified with an ITIN (rather than a Social Security Number) and needed to document that these children met the substantial presence test to qualify as U.S. residents. Parts II through IV calculated the Additional Child Tax Credit—a refundable credit that could result in money back even if you owed no taxes. While the regular Child Tax Credit could only reduce your tax bill to zero, the Additional Child Tax Credit allowed certain families to receive the remaining value as a refund, up to $1,000 per qualifying child.

The Additional Child Tax Credit was particularly valuable for working families with lower incomes who earned enough to qualify but didn't owe enough taxes to benefit fully from the regular credit. This portion of the credit was based on earned income and could help offset payroll taxes, providing real financial relief to families raising children.

When You'd Use This Form (Including Late or Amended Returns)

You would use Schedule 8812 when filing your 2013 tax return if you had qualifying children and either needed to document ITIN-identified children or believed you qualified for the Additional Child Tax Credit. Most taxpayers only needed to complete Parts II through IV after discovering they met specific conditions in their standard Child Tax Credit Worksheet—specifically, if their regular child tax credit was reduced because their tax liability was too low to use the full credit amount.

For late or amended returns related to 2013, you would still attach Schedule 8812 if the same conditions applied. If you filed your original 2013 return without claiming the Additional Child Tax Credit but later realized you qualified, you could file Form 1040X (Amended U.S. Individual Income Tax Return) with an attached Schedule 8812 to claim the credit. The general statute of limitations allowed three years from the original filing deadline (or two years from when you paid the tax, whichever was later) to file an amended return and claim a refund you were entitled to receive.

Part I was only necessary if you had dependents identified with ITINs (not Social Security Numbers) for whom you were claiming the child tax credit, and you needed to verify they met residency requirements under the substantial presence test.

Key Rules and Eligibility Requirements

Requirements for a Qualifying Child

To claim the Additional Child Tax Credit in 2013, several requirements had to be met. Your child must have been a qualifying child for the regular Child Tax Credit, meaning they were under age 17 at year-end, your son, daughter, stepchild, foster child, sibling, or descendant of these (like a grandchild), claimed as your dependent, did not provide over half their own support, lived with you for more than half the year, and was a U.S. citizen, national, or resident alien.

The maximum Child Tax Credit was $1,000 per qualifying child. However, this credit could only reduce your tax liability to zero. The Additional Child Tax Credit allowed you to receive some or all of the unused credit as a refund. To qualify for this refundable portion, you needed earned income exceeding $3,000 for the year. Earned income included wages, salaries, tips, self-employment income, and certain other compensation—but not investment income, Social Security benefits, or unemployment compensation.

Alternative Calculation for Three or More Children

For families with three or more qualifying children, there was an alternative calculation method that might yield a larger credit. This method compared your unused credit against your Social Security and Medicare taxes withheld (minus certain other credits), potentially allowing more of your credit to become refundable.

Income Phase-Out Rules for the Regular Child Tax Credit

The regular Child Tax Credit itself began phasing out for higher-income taxpayers: at $110,000 for married couples filing jointly, $75,000 for single or head of household filers, and $55,000 for married filing separately. The credit reduced by $50 for each $1,000 of income above these thresholds.

ITIN Children and the Substantial Presence Test

For Part I requirements, children with ITINs needed to meet the substantial presence test: physically present in the U.S. for at least 31 days during 2013 and 183 days during the three-year period of 2011-2013 (counting all days in 2013, one-third of 2012 days, and one-sixth of 2011 days).

Step-by-Step Process (High Level)

Step 1: Determine Whether You Need Schedule 8812

The process of completing Schedule 8812 began with determining whether you needed to use the form at all. First, you calculated your regular Child Tax Credit using the Child Tax Credit Worksheet in your Form 1040A instructions. If that worksheet indicated at the end that you might qualify for the Additional Child Tax Credit—typically because your tax liability was less than your total potential credit—you would then complete Schedule 8812.

Step 2: Start with Part II — Unused Credit and Earned Income

Starting with Part II, you entered the amount from your Child Tax Credit Worksheet and the amount of child tax credit you actually claimed on your return. The difference represented the unused credit that might become refundable. Next, you calculated your earned income using the detailed chart in the instructions, which accounted for wages, self-employment income, and potentially nontaxable combat pay. If your earned income exceeded $3,000, you subtracted $3,000 and multiplied the remainder by 15 percent—this became your potential additional credit.

If you had fewer than three qualifying children, you typically stopped here and entered the smaller of your unused credit or your calculated 15 percent amount as your Additional Child Tax Credit on line 13. However, if you had three or more qualifying children, you continued to Part III for an alternative calculation.

Step 3: Complete Part III (for Three or More Qualifying Children)

Part III required gathering information from multiple tax forms: your Social Security and Medicare taxes withheld from Form W-2, certain other credits claimed, and your tax liability. This section calculated whether using your withheld payroll taxes as the basis for the refundable credit produced a better result than the earned income formula. The form automatically directed you to use whichever method gave you the larger credit.

Step 4: Transfer the Credit to Your Main Tax Form

After completing the calculations, you entered your Additional Child Tax Credit on line 13 and transferred this amount to the appropriate line on your main tax form—line 39 on Form 1040A—where it joined other refundable credits that could generate a refund even with zero tax owed.

Common Mistakes and How to Avoid Them

Mistake 1: Not Claiming the Additional Child Tax Credit When Eligible

One frequent error was failing to claim the Additional Child Tax Credit when eligible. Many taxpayers assumed that because their Child Tax Credit reduced their taxes to zero, they'd received the full benefit—not realizing the unused portion could become a refund. Always follow the instructions at the end of your Child Tax Credit Worksheet, which specifically directs you to Schedule 8812 when appropriate.

Mistake 2: Incorrect Earned Income Calculations

Another common mistake involved incorrectly calculating earned income. Taxpayers often included types of income that didn't count, such as Social Security benefits, unemployment compensation, interest, or dividends. The instructions provided a detailed chart showing exactly what to include and exclude. Earned income primarily meant wages from Form W-2 and net self-employment income. Failing to include nontaxable combat pay (when it would increase your credit) was also an oversight—military families could choose to include this tax-free income specifically for calculating this credit.

Mistake 3: Skipping Part III for Families with Three or More Children

For families with three or more children, some taxpayers stopped after Part II without completing Part III, potentially missing out on a larger credit. The form's flow chart clearly indicated when to continue, but it required careful reading. If you had three or more qualifying children and your earned income calculation didn't eliminate your unused credit entirely, you should always complete Part III to see if the alternative method benefited you.

Mistake 4: Confusion Over Qualifying Child Rules

Confusion about qualifying children created problems as well. A qualifying child for the Child Tax Credit had to be under 17 at the end of 2013—turning 17 during the year made them ineligible. Additionally, the child had to meet all the relationship, residency, support, and citizenship requirements. Some taxpayers claimed children who were dependents but didn't meet all the specific Child Tax Credit qualifications.

Mistake 5: Errors with ITIN Children and the Substantial Presence Test

For Part I filers with ITIN-identified children, the substantial presence test calculations proved challenging. Days of presence had to be counted correctly using the one-third and one-sixth fractions for prior years, and certain days didn't count (such as days as an exempt individual for certain visa categories). Checking ""No"" on any Part I question could reduce or eliminate your child tax credit for that child, so understanding the requirements thoroughly was essential.

What Happens After You File

Once you filed your tax return with Schedule 8812 attached, the IRS processed both forms together. If you claimed an Additional Child Tax Credit, this amount was included in your total refund calculation along with any tax overpayments and other refundable credits. For electronically filed returns, you could typically check your refund status within 24 hours using the ""Where's My Refund?"" tool on IRS.gov, and most refunds were issued within 21 days.

The IRS subjected refundable credits to careful scrutiny because they resulted in payments from the Treasury. If the IRS had questions about your Additional Child Tax Credit claim, they might send you a letter requesting documentation. This could include proof of your children's ages and relationships (birth certificates), proof of residency (school records, medical records), or verification of your earned income (copies of W-2s or self-employment documentation). Responding promptly and completely to any IRS requests helped avoid delays.

Any Additional Child Tax Credit you received didn't count as income when determining eligibility for federal benefit programs like Temporary Assistance for Needy Families, Medicaid, Supplemental Security Income, or food assistance. The refund also couldn't be counted as a resource for at least 12 months after receipt. These protections ensured the credit served its intended purpose of supporting working families without affecting their access to other assistance programs.

If the IRS discovered an error in your Schedule 8812 calculations, they would typically correct it automatically if it was a mathematical mistake and adjust your refund accordingly. However, if you claimed the credit incorrectly—perhaps for a child who didn't qualify or with incorrect earned income figures—you might receive a notice denying or reducing the credit, potentially requiring repayment if the refund had already been issued. In cases of repeated errors or suspected fraud, the IRS could ban taxpayers from claiming the credit for up to 10 years, making accurate filing critical.

FAQs

My child tax credit was $1,000 but my tax was only $400. Can I get the other $600 back?

Possibly, and that's exactly what Schedule 8812 determines. If you had at least $3,000 in earned income, you multiply your earned income minus $3,000 by 15 percent. If this calculation produces at least $600, and you meet all other requirements, you can claim the Additional Child Tax Credit for that amount (subject to the $600 unused credit limit). With three or more qualifying children, an alternative calculation method might give you even more.

What counts as earned income for Schedule 8812 purposes?

Earned income includes wages, salaries, and tips reported on Form W-2, as well as net profit from self-employment. It also includes certain strike benefits and disability payments received before minimum retirement age. Notably, you can choose to include nontaxable combat pay if doing so increases your credit. Earned income doesn't include Social Security benefits, unemployment compensation, alimony, child support, welfare benefits, workers' compensation, interest, dividends, or pension income.

I have three qualifying children. Do I automatically get more Additional Child Tax Credit?

Not automatically, but you have an additional opportunity. With three or more qualifying children, you complete Part III of Schedule 8812, which calculates your potential credit using your Social Security and Medicare taxes withheld instead of the earned income formula. The form then compares both methods and gives you whichever produces the larger credit. This alternative calculation particularly helps lower-income families who had significant payroll taxes withheld but limited tax liability.

My child has an ITIN instead of a Social Security Number. Can I claim the Child Tax Credit?

You can claim the Child Tax Credit for a child with an ITIN if the child meets all qualifying child requirements and satisfies the substantial presence test for U.S. residency. You must complete Part I of Schedule 8812 to document that your child was physically present in the United States for the required number of days. Note that lawful permanent residents are eligible for Social Security Numbers, so children with green cards should be identified by SSN rather than ITIN.

Can I claim this credit if I don't owe any taxes at all?

Yes, that's the purpose of the ""additional"" child tax credit—it's refundable. Even if your tax liability is zero, you can receive a refund check for the Additional Child Tax Credit as long as you meet the earned income and other requirements. This distinguishes it from the regular Child Tax Credit, which can only reduce taxes you actually owe. The Additional Child Tax Credit effectively provides a payment to working families even when they owe no federal income tax.

I forgot to file Schedule 8812 with my 2013 return. Can I still claim it?

Yes, by filing an amended return using Form 1040X. You generally have three years from the original filing deadline to file an amended return claiming a refund. For 2013 returns originally due April 15, 2014, you would have until April 15, 2017, to amend and claim the Additional Child Tax Credit. Attach Schedule 8812 to your Form 1040X and explain in Part III that you're claiming the Additional Child Tax Credit you were eligible for but didn't originally claim.

Does receiving the Additional Child Tax Credit affect my eligibility for other government benefits?

No, federal law protects your Additional Child Tax Credit refund from affecting benefit eligibility. The refund cannot be counted as income when determining if you or anyone else qualifies for benefits under federal programs or programs financed with federal funds, including Medicaid, food assistance, housing assistance, or Temporary Assistance for Needy Families. Additionally, the refund cannot be counted as a resource for at least 12 months after you receive it.

All information sourced from official IRS publications: 2013 Schedule 8812 Instructions, 2013 Schedule 8812 Form, and Publication 972 (2013).

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