Schedule 8812 (Form 1040) Additional Child Tax Credit – 2019 Tax Year Guide

What Schedule 8812 (Form 1040) Is For

Schedule 8812 (Form 1040 or 1040-SR) is the form you use to claim the Additional Child Tax Credit for the 2019 tax year. This credit may provide you with a refund even if you don't owe any federal income tax. Think of it as a way to get back some of the Child Tax Credit you couldn't use because your tax bill was too small or zero.

Here's how it works: The regular Child Tax Credit can reduce your tax liability, but it can only bring your tax owed down to zero—it can't create a refund by itself. If your Child Tax Credit is larger than your tax liability, you might be eligible for the Additional Child Tax Credit, which is refundable. This means the IRS can send you a check for the unused portion of your credit, potentially putting money directly in your pocket even if you owed no tax to begin with.

To qualify for this credit, you must have at least one qualifying child under age 17 who has a valid Social Security Number issued before the due date of your return. The child must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (like a grandchild), and must have lived with you for more than half the year. Both you and your spouse (if filing jointly) must have either a Social Security Number or Individual Taxpayer Identification Number issued on or before your return's due date.

The Additional Child Tax Credit is particularly valuable for working families with lower incomes who earn enough to owe little or no income tax but still have earned income from work. The credit is calculated based on your earned income, which includes wages, salaries, tips, and self-employment income. For 2019, if your earned income exceeds $2,500, you may qualify for at least some of the Additional Child Tax Credit.

When You’d Use Schedule 8812 (Form 1040)

You should complete Schedule 8812 when filing your 2019 tax return if you first completed the Child Tax Credit and Credit for Other Dependents Worksheet (found in the Form 1040 instructions) and discovered you couldn't claim the full amount of your Child Tax Credit because your tax liability was too low. The worksheet will indicate whether you should proceed to Schedule 8812.

If you're filing late but still within the statute of limitations (generally three years from the original due date), you can still claim the Additional Child Tax Credit by filing your 2019 return with Schedule 8812 attached. However, keep in mind that refund claims must typically be filed within three years of the original return due date or two years from the date you paid the tax, whichever is later.

You may need to file an amended return using Form 1040-X if you originally filed your 2019 return without claiming the Additional Child Tax Credit but later realize you were eligible. One specific reason to amend your 2019 return involves disaster relief: legislation extended to 2019 an election allowing taxpayers affected by certain federally declared disasters to use their 2018 earned income instead of 2019 income when calculating the credit. If your 2018 earned income was higher than your 2019 income and your main home was in a federally declared disaster area during the incident period, amending your return to elect prior-year income might increase your credit.

If your Child Tax Credit or Additional Child Tax Credit was denied or reduced in any year after 2015 for reasons other than math or clerical errors, you must attach Form 8862 to your 2019 return when claiming the Additional Child Tax Credit, unless an exception applies. This requirement helps ensure that taxpayers who previously claimed credits improperly can demonstrate they now meet all eligibility requirements.

Key Rules or Details for 2019

Several critical rules govern who can claim the Additional Child Tax Credit and how much you can receive. First and foremost are the identification number requirements. Each qualifying child must have a Social Security Number that is valid for employment and issued before your return's due date (including extensions). An Individual Taxpayer Identification Number, Adoption Taxpayer Identification Number, or temporary Social Security Number won't work for the child when claiming this credit. Similarly, you and your spouse must each have either a Social Security Number or Individual Taxpayer Identification Number issued on or before the return due date.

The maximum Child Tax Credit for 2019 is $2,000 per qualifying child. The Additional Child Tax Credit can refund up to $1,400 of that amount per child if you cannot use the full credit to offset your tax liability. The calculation involves multiplying 15 percent of your earned income above $2,500 by the number of qualifying children, though the credit cannot exceed $1,400 per child or the amount of unused Child Tax Credit from your worksheet.

If you have three or more qualifying children, you may be able to calculate the Additional Child Tax Credit using an alternative method in Part II of Schedule 8812. This method compares the earned income calculation to the excess of your Social Security and Medicare taxes over your other tax credits. You'll use whichever calculation gives you the larger credit amount.

Your earned income matters significantly. It includes wages, salaries, tips, nontaxable combat pay (if you choose to include it), and net self-employment income. You cannot claim the credit if you file Form 2555 to exclude foreign earned income. For taxpayers affected by federally declared disasters in 2019, there's a special rule allowing you to use your 2018 earned income if it was higher, potentially increasing your credit.

The Additional Child Tax Credit is subject to income phase-outs that begin at $200,000 of modified adjusted gross income for single filers and $400,000 for married couples filing jointly. If your income exceeds these thresholds, your Child Tax Credit (and potentially your Additional Child Tax Credit) will be reduced by $50 for every $1,000 over the limit.

Finally, important procedural rules apply. If you erroneously claim this credit and your error is determined to be due to reckless or intentional disregard of the rules, you cannot claim any child tax credits for two years. If fraud is involved, the ban extends to ten years, and you may face additional penalties.

Step-by-Step (High Level)

Completing Schedule 8812 follows a logical sequence once you've determined you're eligible. Begin by gathering your Child Tax Credit and Credit for Other Dependents Worksheet from the Form 1040 instructions. You'll transfer information from that worksheet to Schedule 8812.

Start with Part I, which all filers must complete. On line 1, enter the amount from line 8 of your Child Tax Credit worksheet—this represents the total Child Tax Credit and Credit for Other Dependents you calculated before any limitations. On line 2, enter the amount of Child Tax Credit you were actually able to claim on Form 1040, line 13a. Subtract line 2 from line 1 on line 3; this is your unused credit. If this number is zero, you cannot claim the Additional Child Tax Credit and should stop here.

Line 4 asks for the number of qualifying children under age 17 with the required Social Security Number—the same children you used to calculate your Child Tax Credit. Multiply this number by $1,400 and enter the result on line 5. Take the smaller of line 3 or line 4 and enter it on line 5.

Next comes the earned income calculation. Line 6a requires your earned income, which you determine using the Earned Income Chart in the Schedule 8812 instructions or the worksheet in Publication 972. This calculation varies depending on whether you're taking the Earned Income Credit, whether you have self-employment income, and whether you're using the disaster-related prior year earned income election. Line 6b is for nontaxable combat pay if applicable.

Line 7 requires you to check if your earned income exceeds $2,500. If not, you must enter zero on line 7 and cannot proceed further (unless you qualify for Part II). If yes, subtract $2,500 from your earned income and enter the result on line 7. Multiply line 7 by 15 percent and enter the result on line 8.

At this point, review line 4. If the amount is $4,200 or more (representing three or more qualifying children), you may need to complete Part II to see if an alternative calculation gives you a larger credit. If line 8 equals or exceeds line 5, skip Part II and enter the amount from line 5 on line 15. Otherwise, proceed to Part II.

Part II is only for filers with three or more qualifying children. Line 9 asks for withheld Social Security, Medicare, and Additional Medicare taxes from your W-2 forms. If your employer withheld Additional Medicare Tax or railroad retirement taxes, use the Line 9 Worksheet provided in the instructions to calculate this amount accurately. Line 10 captures certain self-employment taxes and other tax amounts. Add lines 9 and 10 on line 11, then subtract certain refundable credits (line 12) from line 11 to get line 13. Compare line 8 and line 13, entering the larger amount on line 14. The smaller of line 5 or line 14 goes on line 15.

Finally, line 15 in Part III is your Additional Child Tax Credit. Transfer this amount to Form 1040, line 18b. This credit will either reduce any tax you owe or increase your refund.

Common Mistakes and How to Avoid Them

The most frequent error taxpayers make with Schedule 8812 involves Social Security Number requirements. Many people attempt to claim the credit using a child's Individual Taxpayer Identification Number or Adoption Taxpayer Identification Number, but the Additional Child Tax Credit requires an employment-authorized Social Security Number issued before the return due date. Before completing the form, verify that each qualifying child has the correct type of identification number printed on their Social Security card. If the card says ""Not Valid for Employment,"" check whether your child's immigration status has changed—if they're now a U.S. citizen or permanent resident, request a new card from the Social Security Administration.

Another common mistake is forgetting to attach Form 8862 when required. If the IRS denied or reduced your Child Tax Credit or Additional Child Tax Credit in any year after 2015 for reasons other than simple math errors, you must attach Form 8862 to reclaim these credits. The form requires you to demonstrate that you now meet all eligibility requirements. Many taxpayers overlook this requirement and face delays or denials of their credit.

Calculating earned income incorrectly trips up many filers, especially those with self-employment income. The earned income definition for Schedule 8812 differs slightly from adjusted gross income. You must exclude certain items like scholarship income not reported on a W-2, pension distributions from nonqualified deferred compensation plans, and amounts earned while incarcerated. Self-employed individuals must use Publication 972's Earned Income Worksheet, which accounts for net self-employment earnings after expenses. Don't simply transfer your W-2 wages without considering these adjustments.

Taxpayers with three or more children sometimes skip Part II, missing an opportunity for a larger credit. If line 4 of Schedule 8812 shows $4,200 or more, you should complete Part II even if the calculation seems complicated. The alternative formula based on Social Security and Medicare taxes often yields a higher credit for larger families with modest incomes. Take the time to work through both calculations and use whichever produces the better result.

Filing Form 2555 to exclude foreign earned income makes you ineligible for the Additional Child Tax Credit, yet some taxpayers claim both. You must choose: either claim the foreign earned income exclusion or claim the Additional Child Tax Credit, but not both. Review your complete tax situation with a tax professional to determine which option provides the greater benefit.

Many taxpayers affected by federally declared disasters don't realize they can elect to use prior-year earned income if it was higher. For 2019, if your main home was in a disaster zone and your 2018 earned income exceeded your 2019 income, you can use the 2018 amount to calculate your credit. To make this election, write ""PYEI"" and your 2018 earned income next to Form 1040, line 18b. This simple notation can significantly increase your credit if disaster-related circumstances reduced your 2019 income.

Finally, some taxpayers erroneously claim the credit when they don't qualify, perhaps by overstating earned income or claiming ineligible children. Such errors can result in serious consequences. If the IRS determines your improper claim resulted from reckless or intentional disregard of the rules, you'll be banned from claiming child tax credits for two years. Fraudulent claims trigger a ten-year ban plus potential penalties. When in doubt about eligibility, consult the detailed requirements in the Schedule 8812 instructions or seek assistance from a qualified tax professional.

What Happens After You File

The IRS processes returns claiming the Additional Child Tax Credit with extra scrutiny to prevent fraud and improper payments. For returns filed in early 2020 claiming the 2019 Additional Child Tax Credit, the IRS cannot issue refunds before mid-February 2020, regardless of when you filed. This delay applies to your entire refund, not just the portion attributable to the Additional Child Tax Credit. The Protecting Americans from Tax Hikes Act requires this delay to give the IRS time to verify eligibility and detect fraudulent claims. If you file electronically in January expecting a quick refund, remember that this mandatory holding period applies.

Once the mid-February date passes, the IRS will process your return and issue your refund according to normal timeframes—typically within 21 days for electronically filed returns if no issues arise. You can track your refund status using the ""Where's My Refund?"" tool on IRS.gov or the IRS2Go mobile app. Enter your Social Security Number, filing status, and exact refund amount to check the status.

If the IRS questions your Additional Child Tax Credit claim, you may receive a notice requesting additional documentation. Common requests include proof of the child's Social Security Number, evidence that the child lived with you for more than half the year, or documentation of your earned income if you're self-employed. Respond promptly to these requests with copies (never originals) of documents like Social Security cards, school records, medical records, or business records showing addresses and dates. Delays in responding can significantly slow your refund.

In some cases, the IRS may adjust your Additional Child Tax Credit during processing. If they determine you claimed too much, they'll reduce the credit and send you a notice explaining the change. You have the right to dispute the adjustment by following the instructions in the notice, typically within 30 or 60 days. If you claimed too little, the IRS will sometimes correct the error in your favor and issue the higher refund automatically, though this is less common.

Your Additional Child Tax Credit refund has important implications for means-tested benefit programs. Federal law protects this refund from being counted as income when determining eligibility for federal assistance programs like Temporary Assistance for Needy Families, Medicaid, Supplemental Security Income, and Supplemental Nutrition Assistance Program. The refund also cannot be counted as a resource (asset) for at least 12 months after you receive it. However, state and local program rules vary, so check with your local benefits coordinator to understand exactly how your refund might affect your specific benefits.

If the IRS later determines you claimed the credit improperly, consequences vary by circumstance. Simple errors typically result in owing back the incorrect refund amount plus interest. However, reckless or intentional disregard of the credit rules triggers a two-year ban from claiming child tax credits, while fraudulent claims result in a ten-year ban plus potential civil and criminal penalties. The IRS may also require you to file Form 8862 before claiming child tax credits again in the future.

FAQs

My child has an Individual Taxpayer Identification Number but not a Social Security Number—can I use my child to claim the Additional Child Tax Credit?

No. The Additional Child Tax Credit requires that each qualifying child have a Social Security Number valid for employment, issued before the due date of your return including extensions. An ITIN, ATIN, or SSN marked ""Not Valid for Employment"" won't work for this credit. However, you may be able to claim the Credit for Other Dependents ($500) for that child instead. If your child is a U.S. citizen or permanent resident but their Social Security card says ""Not Valid for Employment,"" contact the Social Security Administration to get an updated card without that restriction.

I have two qualifying children and my earned income is $25,000—about how much Additional Child Tax Credit should I expect?

The calculation multiplies 15 percent of your earned income over $2,500, which in your case would be 15% × ($25,000 - $2,500) = $3,375. However, the credit is limited to $1,400 per qualifying child, so your maximum Additional Child Tax Credit would be $2,800 (2 children × $1,400). The actual amount depends on how much of your regular Child Tax Credit you couldn't use due to low tax liability. If your unused Child Tax Credit is less than $2,800, you'll receive only the unused portion.

What counts as earned income for Schedule 8812?

Earned income includes wages, salaries, tips, and other taxable employee compensation reported on Form W-2. It also includes net self-employment income from Schedule C or Schedule F after expenses, and nontaxable combat pay if you elect to include it. Earned income does NOT include unemployment compensation, Social Security benefits, pension or retirement income, investment income like interest and dividends, or welfare benefits. If you have self-employment income or received certain tax-exempt income, use the Earned Income Worksheet in Publication 972 to calculate your exact earned income amount.

I claimed the Additional Child Tax Credit but the IRS denied it two years ago—can I claim it on my 2019 return?

Yes, but you must attach Form 8862 to your 2019 return to reclaim the credit, unless an exception applies. Form 8862 requires you to demonstrate that you now meet all eligibility requirements for the credit. Exceptions to the Form 8862 requirement include situations where the credit was denied only due to a math or clerical error, or where the child's Social Security Number was missing but you've now obtained it. If your credit was denied due to reckless disregard of the rules and you're still within a ban period (two years for reckless disregard, ten years for fraud), you cannot claim the credit regardless of whether you're otherwise eligible.

My spouse and I are separated but not divorced—can we both claim the Additional Child Tax Credit for the same child?

No. Only one taxpayer can claim a particular child for the Additional Child Tax Credit in any tax year, even if the parents are married but separated. Generally, the parent with whom the child lived for the greater part of the year is entitled to claim the child. However, special rules apply for children of divorced or separated parents, detailed in Publication 501. These rules may allow the noncustodial parent to claim the child if certain conditions are met and the custodial parent signs Form 8332 releasing the claim. If both parents attempt to claim the same child, the IRS will typically deny both claims and require you to provide documentation proving eligibility.

Will receiving the Additional Child Tax Credit affect my eligibility for Medicaid, food stamps, or other government benefits?

Federal law protects the Additional Child Tax Credit refund from being counted as income when determining eligibility for federally funded benefit programs including Temporary Assistance for Needy Families, Medicaid, Supplemental Security Income, and the Supplemental Nutrition Assistance Program. The refund also cannot be counted as a resource (savings or asset) for at least 12 months after you receive it. However, state and local programs may have different rules, and benefit determination can be complex. Contact your local benefits office or coordinator to verify exactly how your Additional Child Tax Credit refund will be treated for your specific benefits.

What should I do if my 2019 income was lower due to a natural disaster and my 2018 income was higher?

If your main home was in a federally declared disaster area during 2019 and your 2018 earned income was higher than your 2019 earned income, you may elect to use your 2018 earned income to calculate your Additional Child Tax Credit. This can result in a larger credit. To make this election, write ""PYEI"" and your 2018 earned income amount next to Form 1040, line 18b (or line 18a if you're also claiming the Earned Income Credit). You'll need to calculate your earned income twice—once using 2019 amounts and once using 2018 amounts—to confirm that your 2018 income was indeed higher. The disaster must have been federally declared and your home must have been in the designated disaster zone or you must have been displaced from your home due to the disaster during the incident period.

Sources: All information in this guide comes from official IRS publications available at IRS.gov:

• 2019 Instructions for Schedule 8812
• 2019 Schedule 8812 Form
• 2019 Publication 972 - Child Tax Credit and Credit for Other Dependents

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