Form 1040A Schedule 8812: Child Tax Credit (2015)

What Form 1040A Schedule 8812 Is For

Schedule 8812 is an IRS tax form that helps families claim the Additional Child Tax Credit when they can't get the full benefit of the regular child tax credit. Think of it as a second chance to get money back for your qualifying children, even if you don't owe any taxes.

The form has two main purposes. First, Part I helps document that children identified with an Individual Taxpayer Identification Number (ITIN) meet the substantial presence test to qualify as U.S. residents. Second, Parts II through IV calculate the Additional Child Tax Credit, which can result in a refund even when your regular child tax credit was reduced or eliminated because your tax bill was too small.

The regular child tax credit can reduce your tax bill by up to $1,000 per qualifying child. However, it can only reduce your taxes down to zero—it won't create a refund. Schedule 8812 bridges this gap by potentially converting some of that unused credit into an actual refund check. This is particularly valuable for working families with lower incomes who may not owe much in taxes but have earned income from working.

You'll attach Schedule 8812 to your Form 1040A (or Form 1040) when filing your federal tax return. Not everyone needs this form—if your children all have Social Security Numbers or Adoption Taxpayer Identification Numbers and you received your full child tax credit, you can skip Schedule 8812 entirely.

Source: IRS 2015 Schedule 8812

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

You would complete Schedule 8812 when filing your original 2015 tax return if you meet certain conditions. The most common situation is when you have qualifying children but your regular child tax credit was limited because your tax liability was too low to absorb the full credit.

For late or amended returns, there's an important deadline rule you must understand. If you or your child didn't have the required taxpayer identification number (Social Security Number, ITIN, or Adoption Taxpayer Identification Number) by the due date of your 2015 return—including extensions—you cannot claim the child tax credit or additional child tax credit on either your original or amended return, even if you obtain the proper identification number later. This is a strict requirement with no exceptions.

If you're filing an amended return using Form 1040X to correct other issues on your 2015 return, you can add Schedule 8812 only if you originally qualified but forgot to claim it, and only if you had the proper identification numbers by the original deadline. You cannot use an amended return to claim these credits if you missed the identification number deadline.

The typical deadline for filing a 2015 tax return was April 18, 2016 (or October 17, 2016 with an extension). For refund claims, you generally have three years from the original filing deadline to file an amended return. This means for tax year 2015, the deadline to claim a refund would typically be April 18, 2019, though special circumstances can extend these deadlines.

Source: IRS 2015 Instructions for Schedule 8812

Key Rules

Several important rules govern Schedule 8812. Understanding these helps you determine whether you qualify and avoid common filing errors.

Qualifying Child Requirements

Your child must meet seven specific tests. They must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (like a grandchild or niece). The child must have been under age 17 at the end of 2015—a child who turned 17 on December 31, 2015 doesn't qualify. The child must not have provided over half of their own support during the year and must have lived with you for more than half of 2015. You must claim them as a dependent on your return, they cannot file a joint return (except to claim a refund), and they must be a U.S. citizen, national, or resident alien.

Income Thresholds and Phaseouts

The child tax credit begins to phase out when your modified adjusted gross income exceeds $110,000 for married couples filing jointly, $75,000 for single filers or heads of household, or $55,000 for married individuals filing separately. If your income exceeds these amounts, your credit is reduced by $50 for each $1,000 over the threshold.

The $3,000 Earned Income Threshold

To claim the additional child tax credit, you generally need earned income exceeding $3,000. Earned income includes wages, salaries, tips, and self-employment income. It can also include nontaxable combat pay if you choose to include it. This requirement ensures the credit benefits working families.

Foreign Earned Income Exclusion Restriction

If you file Form 2555 or Form 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, you cannot claim the additional child tax credit at all, though you may still qualify for the regular child tax credit. This was a new rule starting in 2015.

Three-or-More-Children Alternative Calculation

Families with three or more qualifying children can use an alternative calculation method in Part III that may result in a larger credit. This method looks at your Social Security and Medicare taxes withheld from wages, which can be beneficial for families with substantial withholding but limited tax liability.

Source: IRS Publication 972 (2015)

Step-by-Step (High Level)

Completing Schedule 8812 follows a logical progression through its different parts, though not everyone needs to complete every section.

Step 1: Start with Part I (If Applicable)

Only complete Part I if you're claiming a child who has an ITIN rather than a Social Security Number or Adoption Taxpayer Identification Number. For each such child, you'll answer yes-or-no questions about whether they meet the substantial presence test—essentially documenting they were physically present in the United States long enough to be considered a resident. Generally, this means the child was present for at least 31 days during 2015 and 183 days during the three-year period including 2015, 2014, and 2013. If all your children have Social Security Numbers or ATINs, skip Part I entirely.

Step 2: Calculate Your Starting Point (Part II, Lines 1–3)

On line 1, enter the amount from your Child Tax Credit Worksheet (found in your Form 1040A instructions). This represents the total child tax credit you would receive if there were no limitations. On line 2, enter the amount of child tax credit you actually claimed on your Form 1040A, line 35. Subtract line 2 from line 1 and enter the result on line 3. This is your "unused" credit that might become a refund through the additional child tax credit. If line 3 is zero, stop—you received your full credit and don't need to continue.

Step 3: Determine Your Earned Income (Part II, Lines 4–6)

Line 4a requires you to calculate your earned income using the chart in the instructions, which varies based on your situation. Include wages, self-employment income, and certain other compensation, while excluding items like scholarships and pension distributions. On line 4b, enter any nontaxable combat pay. If your line 4a amount exceeds $3,000, subtract $3,000 and enter the result on line 5, then multiply line 5 by 15 percent and enter this on line 6. This represents your potential additional credit based on earned income.

Step 4: Choose Your Path

At this point, the form asks whether you have three or more qualifying children. If no, and your line 6 is greater than zero, you enter the smaller of line 3 or line 6 on line 13—this is your additional child tax credit. If yes and you have three or more qualifying children, you might get a larger credit by completing Part III.

Step 5: Use Part III for Larger Families (Lines 7–12)

This section applies only if you have three or more qualifying children and haven't yet established your final credit amount. Enter your withheld Social Security, Medicare, and Additional Medicare taxes on line 7. Add certain other taxes on line 8, then combine these amounts on line 9. Subtract specific credits you've already claimed on line 10, then subtract line 10 from line 9 to get line 11. Line 12 asks you to enter the larger of line 6 or line 11, representing the maximum additional credit you can claim under either calculation method.

Step 6: Determine Your Final Amount (Part IV, Line 13)

Enter the smaller of line 3 (your unused credit) or line 12 (your calculated refundable amount) on line 13. Transfer this amount to Form 1040A, line 43, where it will create or increase your refund.

Source: IRS 2015 Schedule 8812

Common Mistakes and How to Avoid Them

Many taxpayers make preventable errors when completing Schedule 8812. Being aware of these pitfalls helps ensure you receive the correct credit amount without delays or audit issues.

Missing Identification Numbers

The most serious error is attempting to claim the credit without having proper taxpayer identification numbers by the filing deadline. Double-check that each qualifying child has a valid Social Security Number, ITIN, or ATIN before filing. If applying for these numbers, do so well in advance of the tax deadline. Remember that getting these numbers after the deadline, even on an amended return, won't allow you to claim the credit for that tax year.

Age Calculation Errors

Parents sometimes mistakenly claim children who turned 17 during 2015. The child must be under age 17 on December 31, 2015. If your child's 17th birthday was December 31, 2015 or earlier in the year, they don't qualify, even if they were 16 for most of the year. Mark your calendar and plan ahead for the year your child ages out of eligibility.

Earned Income Calculation Mistakes

The earned income calculation is complex and varies depending on your situation. Many filers incorrectly include scholarship income, pension distributions, or other non-earned income. Others forget to subtract Medicaid waiver payments or deferred compensation. Use the detailed Earned Income Worksheet in IRS Publication 972 if you have any self-employment income, are claiming the Earned Income Credit, or have unusual income sources. Don't rush through this calculation—errors here directly reduce your additional child tax credit.

Skipping Part III When Beneficial

Families with three or more qualifying children often skip Part III and accept the Part II calculation, missing out on a potentially larger refund. If you have three or more qualifying children, always complete both calculations and use the method that gives you the larger credit. The Part III method can be especially beneficial for families with substantial Social Security and Medicare tax withholding but low income tax liability.

Foreign Earned Income Filers Making Claims

If you file Form 2555 or Form 2555-EZ, you cannot claim the additional child tax credit—this is a firm rule starting in 2015. However, you might still claim the regular child tax credit that reduces your tax liability. Don't automatically assume you're ineligible for all child tax benefits; just know you can't get the refundable portion.

Incorrect Form Attachment

Forgetting to attach Schedule 8812 to your Form 1040A is surprisingly common. Your additional child tax credit claim on Form 1040A, line 43, must be supported by an attached Schedule 8812. Without the schedule, the IRS will likely reject your credit claim and either delay your refund or send you a notice requiring the missing form.

Substantial Presence Test Documentation Errors

For children with ITINs, Part I questions must be answered accurately. Some parents check "yes" for children who don't actually meet the substantial presence test, creating audit risk. Carefully track the days your child was physically present in the United States. Not all days count—see IRS Publication 519 for the detailed rules about which days qualify and which don't.

Source: IRS 2015 Instructions for Schedule 8812

What Happens After You File

Once you submit your Form 1040A with attached Schedule 8812, the IRS processes your return and credit claim through several stages.

Processing Timeline and PATH Act Hold

Your return enters the IRS processing system, typically within a few days of electronic filing or a few weeks for paper returns. The IRS computers automatically check your Schedule 8812 calculations and verify that your claimed credit matches the amounts you entered on the schedule. Simple mathematical errors are often corrected automatically, and you'll receive a notice explaining any changes.

For refunds including the additional child tax credit, the IRS typically issues payment within 21 days for electronically filed returns and six to eight weeks for paper returns. However, by law, the IRS cannot issue refunds that include the Earned Income Credit or Additional Child Tax Credit before mid-February, even if you file in January. This "PATH Act" hold allows time for additional fraud prevention screening on these refundable credits.

Reviews, Notices, and Documentation Requests

The IRS may select your return for additional review if anything appears unusual or inconsistent. Common triggers include mismatched Social Security Numbers, income that doesn't match employer reports (Forms W-2), or claiming children who were also claimed on another taxpayer's return. If selected for review, you'll receive a letter asking for documentation such as birth certificates, school records, or medical records proving your children lived with you and meet the qualifying child requirements.

If the IRS determines you received more credit than you're entitled to, you'll receive a notice explaining the discrepancy and requesting payment of the excess amount plus interest. Respond promptly to these notices—you typically have 30 days to either pay the amount due or explain why you disagree. Ignoring IRS notices leads to additional penalties and potential collection actions.

Interaction with Public Benefits

Your refund containing the additional child tax credit cannot be counted as income when determining eligibility for federal assistance programs like TANF (Temporary Assistance for Needy Families), Medicaid, Supplemental Security Income, or SNAP (food stamps). The refund also cannot be counted as a resource for at least 12 months after you receive it. This protection ensures tax credits help working families without jeopardizing other assistance they may need.

Source: IRS 2015 Instructions for Schedule 8812

FAQs

Can I claim the additional child tax credit if I don't owe any taxes?

Yes, that's exactly what makes this credit "additional" or refundable. Unlike the regular child tax credit which only reduces your tax liability to zero, the additional child tax credit can be paid to you as a refund even if you owe no taxes. You still need earned income exceeding $3,000 to qualify for the additional credit.

My child turned 17 in December 2015. Does she qualify for the 2015 child tax credit?

No. Your child must be under age 17 on December 31, 2015 to qualify. If she turned 17 at any point during 2015, including on December 31st itself, she doesn't meet the age requirement for the child tax credit or additional child tax credit for tax year 2015. You may still be able to claim her as a dependent for other tax benefits like the dependency exemption.

I have five qualifying children. Do I need to complete Schedule 8812 multiple times?

Part I has lines for four children (A through D). If you have more than four children with ITINs who need Part I completed, check the box after line D and use page 1 of another Schedule 8812, relabeling the lines as E through H. However, Parts II through IV calculate your total credit for all qualifying children combined—you don't complete separate calculations for each child. You only calculate your credit once regardless of how many qualifying children you have.

What counts as earned income for line 4a?

Earned income includes wages, salaries, tips, and other employee compensation shown on Form W-2, as well as net earnings from self-employment. It also includes certain income from operating a business, even as a statutory employee. You must exclude scholarship or fellowship income, payments received while an inmate in a penal institution, pension or annuity payments from nonqualified deferred compensation plans, and Medicaid waiver payments. Nontaxable combat pay can be included if you choose to include it. If you have self-employment income or claim the Earned Income Credit, use the detailed worksheet in Publication 972 to calculate earned income correctly.

I got married in 2015 and my spouse and I both claimed our son on separate returns before we married. Can we both get the child tax credit?

No. Only one taxpayer can claim a child for the child tax credit in any given tax year. If your son was claimed on two separate returns for different parts of the year before your marriage, the IRS will investigate and apply tiebreaker rules to determine who was entitled to claim him. Generally, the parent with whom the child lived longest during the year has priority. If both parents lived with the child equal time, the parent with the higher adjusted gross income gets the credit. Once you're married and filing jointly, you would claim the child together on your joint return.

We received a much larger refund than expected. Could this be the additional child tax credit?

Possibly. Review your Form 1040A, line 43 to see if you claimed the additional child tax credit and your Schedule 8812, line 13 to see the amount. Your refund is the total of all refundable credits and overpaid taxes, minus any tax you owe. It could include the additional child tax credit, the Earned Income Credit, withheld taxes that exceeded your liability, and other refundable credits. Your Form 1040A shows the calculation. If the refund seems wrong, contact the IRS or review the detailed explanation that came with your refund check or direct deposit.

My ex-spouse claims our children on her tax return per our divorce decree. Can I still claim the additional child tax credit?

Generally, no. To claim the child tax credit or additional child tax credit, the child must be your qualifying child, which includes the requirement that you claim them as a dependent on your return. If your divorce decree allocates the dependency exemption to your ex-spouse and she claims the children, she would be entitled to these credits, not you. However, divorce decrees sometimes allocate different tax benefits to different parents. Review your decree carefully and consult a tax professional if you're uncertain about who can claim which credits.

Source: IRS Publication 972 (2015)

This summary is based on authoritative IRS sources for tax year 2015. Tax laws change frequently, so consult current IRS publications or a tax professional for guidance on tax years other than 2015.

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