Schedule 3 (Form 1040) Filing Checklist for Tax Year 2022
Overview and 2022-Specific Features
Schedule 3 reports nonrefundable credits in Part I and other payments and refundable credits in Part II. The 2022 version reflects the expiration of American Rescue Plan Act provisions that affected prior-year credits. Lines 13b and 13h carry forward credits for 2021 qualified sick and family leave wages paid in 2022 with explicit date restrictions. Lines 13c, 13e, and 13g are reserved for future use.
The child and dependent care credit reverted to nonrefundable status for 2022 after the temporary ARPA refundability expired. Premium tax credit reconciliation on line 9 requires Form 8962 with advance payment amounts from Form 1095-A if you had Marketplace health insurance coverage.
Key 2022 Programs
Premium tax credit reconciliation on line 9 is mandatory if advance premium tax credit payments were made to your health insurer for 2022 Marketplace coverage. You must complete Form 8962 using information from Form 1095-A provided by the Marketplace.
Qualified sick and family leave credits on lines 13b and 13h apply only to wages paid in 2022 for leave taken within specified 2021 date ranges. These credits expired after 2021 and are not available for leave taken in 2022 or later years.
Excess Social Security and tier 1 RRTA tax withheld is reportable on line 11 if you had multiple employers and the combined withholding exceeded the annual Social Security wage base limits.
Ten-Step Completion Checklist
Step 1: Gather Required Documentation
Collect all Forms W-2 from employers showing wages and withholding. Obtain Schedule K-1 forms if you received income from partnerships, S corporations, or trusts. Collect Form 1095-A if you purchased health insurance through the Marketplace. Gather Forms 1099 for foreign income if applicable. Obtain any prior-year carry-forward documentation for credits being continued.
Do not file Schedule 3 without all supporting forms referenced on the lines you plan to complete. Missing documentation will result in credit disallowance or processing delays.
Step 2: Determine Part I Nonrefundable Credit Eligibility
Review your eligibility for nonrefundable credits before completing Part I. For foreign tax credit on line 1, determine if you paid income taxes to foreign countries and whether Form 1116 is required, or if a simplified election applies.
For child and dependent care expenses on line 2, verify that you incurred qualifying expenses that enable you to work and have qualifying individuals. The maximum credit is 35 percent of qualifying expenses, up to $3,000 for an individual or $6,000 for two or more individuals—complete Form 2441 to calculate the credit.
For education credits on line 3, determine if you paid qualified education expenses for yourself, spouse, or dependents—complete Form 8863 for the American Opportunity Credit or Lifetime Learning Credit. For the retirement savings contributions credit on line 4, verify you made qualifying contributions to IRAs or employer retirement plans and meet income limits—complete Form 8880.
For residential energy credits on line 5, determine if you installed qualifying energy-efficient improvements. Complete Form 5695. Review all other nonrefundable credits listed on lines 6a through 6z to identify any additional credits you are eligible for.
Step 3: Complete Residential Energy Credit Form
If claiming residential clean energy credit or energy-efficient home improvement credit, complete Form 5695 before entering amounts on Schedule 3. For 2022, the energy property credit for nonbusiness use allows 10 percent of qualifying expenses with a lifetime aggregate cap of $500 across all years. This credit was expanded beginning in 2023, but the 2022 limitation remains $500 lifetime.
Qualifying improvements include insulation, exterior doors, windows, metal roofs, central air conditioners, natural gas water heaters, and biomass stoves. Document all expenditures and maintain receipts. Attach completed Form 5695 to Schedule 3.
Step 4: Calculate Part I Total Nonrefundable Credits
Enter foreign tax credit from Form 1116 on line 1. Enter the child and dependent care expenses credit from Form 2441 line 11 on line 2. Enter education credits from Form 8863 line 19 on line 3. Enter the retirement savings contributions credit from Form 8880 on line 4. Enter residential energy credits from Form 5695 on line 5.
Complete lines 6a through 6z for other nonrefundable credits, including general business credit from Form 3800, prior year minimum tax credit from Form 8801, adoption credit from Form 8839, credit for elderly or disabled from Schedule R, qualified motor vehicle credits from Forms 8910 or 8936, mortgage interest credit from Form 8396, District of Columbia first-time homebuyer credit from Form 8859, qualified electric vehicle credit from Form 8834, alternative fuel vehicle refueling property credit from Form 8911, credit to holders of tax credit bonds from Form 8912, and section 965 net tax liability from Form 8978 line 14.
Add lines 1 through 5 and line 7 and enter the total on line 8. Transfer line 8 total to Form 1040, 1040-SR, or 1040-NR line 20 in the Tax and Credits section.
Step 5: Complete Premium Tax Credit Reconciliation
If you enrolled in health insurance coverage through the Health Insurance Marketplace for 2022 and advance premium tax credit payments were made to your insurer, you must reconcile these payments. Obtain Form 1095-A from the Marketplace, which shows monthly enrollment information and advance payment amounts.
Complete Form 8962 to calculate your actual 2022 premium tax credit based on your final income and compare it to advance payments received. Enter the net amount of your premium tax credit from Form 8962 on Schedule 3, line 9. If advance payments exceeded your allowable credit, you must repay the excess on Schedule 2. Attach Form 8962 to your return.
Step 6: Report Extension Payments
If you filed Form 4868 to request an automatic six-month extension to file your 2022 return and paid any portion of anticipated tax with that extension request, enter the amount spent on line 10. This payment reduces taxes owed or increases your refund when you file your return.
Verify the payment amount matches your extension payment records. Include payments made by check, electronic funds withdrawal, credit card, or other approved payment methods when you file Form 4868.
Step 7: Calculate Excess Social Security and RRTA Tax
If you had two or more employers during 2022 and your combined wages from all employers exceeded the Social Security wage base, calculate excess Social Security and tier 1 RRTA tax withheld. For 2022, the Social Security wage base is $147,000. If your combined withholding exceeded the maximum annual amount, please report the excess on line 11.
Calculate separately for yourself and your spouse if filing jointly. Single-employer over-withholding cannot be claimed on Schedule 3. If one employer withheld too much, you must file Form 843 to request a refund directly from the IRS.
Step 8: Report Qualified Sick and Family Leave Credits
Line 13b reports credit for qualified sick and family leave wages paid in 2022 from Schedule H for leave taken before April 1, 2021. Line 13h reports credit for qualified ill and family leave wages paid in 2022 from Schedule H for leave taken after March 31, 2021, and before October 1, 2021.
These credits apply only to household employers who paid qualifying wages in 2022 for employee leave that occurred within these specific 2021 date ranges. The sick and family leave credit program expired after 2021. Do not claim credits for leave taken in 2022 or later years.
Step 9: Calculate Part II Total Other Payments and Refundable Credits
Enter net premium tax credit from Form 8962 on line 9. Enter the amount paid with the extension request from Form 4868 on line 10. Enter excess Social Security and tier 1 RRTA tax withheld on line 11 if applicable. Enter credit for federal tax on fuels from Form 4136 on line 12 if you used fuel for nontaxable purposes.
Enter amounts on line 13a for undistributed capital gains from Form 2439. Enter qualified sick and family leave credits on lines 13b and 13h, as calculated in Schedule H. Report IRC section 1341 repayment credit on line 13d if you repaid amounts included in earlier year income. Enter deferred IRC section 965 net tax liability on line 13f—report other refundable credits on line 13z with proper identification.
Add lines 9 through 12 and line 14, and enter the total on line 15. Transfer line 15 total to Form 1040, Form 1040-SR, or Form 1040-NR, line 31, in the Payments section. Refundable credits can result in a refund even if your tax liability is zero.
Step 10: Assemble and File Complete Return
Attach all required supporting forms to Schedule 3. Include Form 1116 for foreign tax credit, Form 2441 for child and dependent care expenses, Form 8863 for education credits, Form 8880 for retirement savings contributions credit, Form 5695 for residential energy credits, Form 3800 for general business credit, Form 8801 for prior year minimum tax credit, Form 8839 for adoption credit, Schedule R for elderly or disabled credit, Forms 8910 or 8936 for motor vehicle credits, Form 8396 for mortgage interest credit, Form 8859 for District of Columbia homebuyer credit, Form 8834 for electric vehicle credit, Form 8911 for alternative fuel property credit, Form 8912 for tax credit bonds, Form 8978 for section 965 net tax liability, Form 8962 for premium tax credit, Form 4136 for fuel tax credit, Form 2439 for undistributed capital gains, and any other forms supporting line 6z or 13z claims.
Sign and date Form 1040, 1040-SR, or 1040-NR. Both spouses must sign joint returns. Attach Schedule 3 as an integral part of your complete return package. Schedule 3 cannot be filed as a standalone document.
Consult the IRS “Where to File” page to determine the current Form 1040 mailing addresses, which vary based on your state and whether you are enclosing a payment. File by the April deadline or request an extension using Form 4868.
Important Filing Restrictions
Nonresident aliens filing Form 1040-NR face restrictions on certain credits. The child tax credit, credit for other dependents, additional child tax credit, and premium tax credit for dependents are available in full only to residents of Canada and Mexico, with limited availability for residents of India and South Korea under tax treaty provisions.
Schedule 3 is required only if you have credits or payments to report. Include Schedule 3 only when claiming credits or reporting payments listed on the form.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
