What IRS Form 1040A (Schedule 8812) (2014) Is For
IRS Form 1040A (Schedule 8812) (2014) is used to calculate the Child Tax Credit and the Additional Child Tax Credit for qualifying children in the 2014 tax year. It helps determine whether taxpayers can receive refundable credit amounts when their regular credit exceeds their tax liability on a federal income tax return. The form also documents eligibility for children with an Individual Taxpayer Identification Number when the IRS requires confirmation of residency and qualifying child status.
To learn more about the main form, see our guide on the IRS Form 1040A – Simplified Individual Return.
When You’d Use IRS Form 1040A (Schedule 8812) (2014)
Taxpayers use this form when their child tax credits require additional calculations or when their federal income tax liability is lower than the available credit amount.
- Original federal income tax return filing: Taxpayers complete this schedule when the child tax credit exceeds their federal income tax liability and they need to claim the additional child tax credit for the same tax year.
- Late submission after the due date: Eligible taxpayers still complete Schedule 8812 when filing a delayed federal income tax return so they can claim refundable credit amounts that may increase their total credit or refund.
- Filing an amended Form 1040A or Form 1040: Taxpayers use this form when correcting child tax credits for dependent children, such as qualifying children or an adopted child who was not originally included on the return.
Key Rules or Details for Tax Year 2014
- Qualifying child requirement: A qualifying child must meet age, residency, relationship, and support rules, and they must have lived with the taxpayer for more than half of the tax year. They must also have a Social Security Number or an individual taxpayer identification number when required.
- Income thresholds and modified adjusted gross income rules: The credit phases out when modified adjusted gross income exceeds filing status limits, which affects the maximum credit amount a taxpayer may claim for dependent children.
- Earned income and self-employment income criteria: Earned income must exceed the required threshold to generate additional credit calculations, and self-employment income must be included when determining the taxpayer’s total earned income.
- Rules for taxpayers with three or more qualifying children: Certain taxpayers use an alternative calculation based on Social Security taxes paid and other tax credits that apply to the same child or dependent.
- Special rules apply to ITIN children and bona fide residents: Families must document presence tests for any child with an Individual Taxpayer Identification Number (ITIN), including bona fide residents of Puerto Rico or other locations.
If you need assistance finding or completing IRS tax forms, visit our IRS Form Help Center for detailed resources.
Step-by-Step (High Level)
The form follows a structured process that helps taxpayers determine eligibility and calculate their total credit accurately.
- Start with the child tax credit worksheet: Taxpayers first compute the full child tax credit to determine whether any unused amount remains that may qualify for the additional child tax credit.
- Complete Part I for ITIN-qualifying children: The taxpayer must confirm whether any child with a taxpayer identification number satisfies the substantial presence requirements and meets all qualifying child rules for the tax year.
- Enter earned income and nontaxable combat pay in Part II: Taxpayers calculate earned income, including wages, tips, and self-employment income, and decide whether to include nontaxable combat pay to increase the potential credit amount.
- Determine the calculated credit amount: The form computes a percentage of income earned above the required threshold, and taxpayers compare this result with unused regular credits to identify the eligible refundable credit.
- Complete Part III if required: Families with three or more qualifying children complete the alternative worksheet using Social Security taxes to determine whether this calculation results in a larger total credit.
- Report final credit on the federal income tax return: The taxpayer transfers the final credit amount to the appropriate line on Form 1040A or Form 1040 and includes the supporting tax forms when submitting the return.
If you need guidance on filing an unfiled federal income tax return for previous years, read our article on filing an unfiled federal income tax return.
Common Mistakes and How to Avoid Them
Errors on IRS Form 1040A (Schedule 8812) (2014) often occur when taxpayers overlook key aspects of the eligibility rules or rely on incorrect income figures.
- Incorrect earned income calculation: Taxpayers avoid this mistake by using the earned income definitions in the instructions and ensuring they do not rely on adjusted gross income or other income types that do not qualify.
- Missing nontaxable combat pay: Taxpayers avoid this issue by reviewing their wage statements and including nontaxable combat pay when it increases the additional child tax credit amount.
- Overlooking Part I for ITIN children: Taxpayers can avoid this mistake by confirming the substantial presence rules for any child with an Individual Taxpayer Identification Number (ITIN), ensuring the IRS evaluates eligibility accurately.
- Skipping Part III for families with three or more children: Taxpayers can avoid this error by completing Part III whenever they have three or more qualifying children, as the alternative method may provide a larger refundable credit.
- Improper claims or intentional disregard of rules: Taxpayers avoid penalties by ensuring that every child meets all eligibility criteria, thereby avoiding penalties tied to reckless or intentional disregard.
What Happens After You File
Once the taxpayer submits IRS Form 1040A (Schedule 8812) (2014), the IRS reviews the federal income tax return and determines whether the child tax credit or additional child tax credit was calculated correctly. The IRS may request documents to confirm eligibility, and refunds are issued by direct deposit or paper check when approved. Refund amounts do not affect programs such as food stamps.
FAQs
Does a child born late in 2014 qualify for the Child Tax Credit and the Additional Child Tax Credit?
Yes, a child born at any point in 2014 can meet the qualifying child requirement. They must have lived with the taxpayer for more than half of the time they were alive during the tax year and met all other eligibility criteria.
Should taxpayers with three or more qualifying children always complete Part III?
Yes, taxpayers with three or more qualifying children should complete Part III, as the alternative calculation may sometimes provide a higher refundable credit than the earned income calculation in Part II.
Does receiving the earned income tax credit affect eligibility for the Additional Child Tax Credit?
No, taxpayers may receive both credits, and receiving the earned income tax credit does not prevent them from qualifying for the additional child tax credit.
Can a child with an ITIN qualify for the Child Tax Credit?
Yes, a child with an ITIN may qualify if the child meets the substantial presence test and all qualifying child requirements for the 2014 tax year.
Can taxpayers amend previous tax years to claim the Child Tax Credit or the Additional Child Tax Credit?
Yes, taxpayers may file an amended return for eligible tax years to claim missed Child Tax Credits, as long as the amendment is filed within the allowable period set by the IRS.