2015 Instructions for Schedule 8812: Child Tax Credit
Reference Guide
Schedule 8812 serves two distinct purposes for the 2015 tax year. Part I documents that children identified with an Individual Taxpayer Identification Number meet the substantial presence test for U.S. residency, while Parts II through IV calculate the Additional Child Tax
Credit for eligible taxpayers.
Qualifying Child Requirements for 2015
A qualifying child must meet seven specific conditions under the 2015 tax law. The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half sibling, or descendant of any of these relatives. Age requirements specify that the child must be under age 17 as of December 31, 2015, and the child cannot provide over half of his or her own support during the tax year.
Residency rules require the qualifying child to live with you for more than six months of 2015.
You must claim the child as a dependent on your income tax return; the child cannot file a joint return except to claim a refund of withheld taxes, and the child must be a U.S. citizen, U.S.
national, or U.S. resident alien.
Credit Calculation Process for 2015
The maximum amount equals $1,000 for each qualifying child in 2015. You calculate this amount using the Child Tax Credit Worksheet found in the Form 1040 instructions, not on Form
8812 itself.
- Phase-out thresholds by filing status affect how much of the Child Tax Credit you can
claim.
- Single filers, heads of household, and qualifying widows or widowers begin the
phase-out at $75,000 of modified adjusted gross income (MAGI).
- Married couples filing jointly begin the phase-out at $110,000 of MAGI.
- Married taxpayers filing separately begin the phase-out at $55,000 of MAGI.
- The available credit is reduced by $50 for every $1,000 of MAGI above the applicable
threshold.
The nonrefundable portion appears on Form 1040 line 52, Form 1040A line 35, or Form
1040NR line 49. Form 8812 becomes necessary only when calculating the refundable
Additional Child Tax Credit portion for your tax return.
Schedule 8812 Part I: ITIN Documentation Requirements
Part I applies exclusively to children identified with an Individual Taxpayer Identification Number on your tax return. You must answer substantial presence test questions for each such child you claim by completing Lines A through D with yes or no responses.
The substantial presence test requires specific physical presence in the United States. Children must be present for at least 31 days during 2015 and 183 days during the three years, including
2015, 2014, and 2013.
Days of presence count differently across years: you count all days present in 2015, one-third of days present in 2014, and one-sixth of days present in 2013. Children with social security numbers or adoption taxpayer identification numbers skip Part I entirely.
Additional Child Tax Credit Eligibility and Structure
The Additional Child Tax Credit represents the refundable portion, providing a tax break for eligible taxpayers. Parts II through IV of Form 8812 determine your Additional Child Tax Credit amount through earned income calculations and social security tax considerations.
Part II begins the calculation process with these steps
- Enter the amount from line 6 of your Child Tax Credit Worksheet on line 1.
- Enter the amount from Form 1040 line 52, Form 1040A line 35, or Form 1040NR line 49
on line 2.
- Subtract line 2 from line 1 to determine your potential Additional Child Tax Credit before
earned income calculations.
- Calculate your earned income on line 4a, including wages, salaries, tips, and net
self-employment income from Schedule C after applicable adjustments.
Earned Income Threshold and Refundable Credit
Calculation
Taxpayers must exceed $3,000 of earned income to claim the Additional Child Tax Credit. You calculate your potential tax refund by subtracting $3,000 from your earned income and multiplying the result by 15 percent.
Part III serves taxpayers with three or more Qualifying Children through an alternative calculation method. You add social security taxes, Medicare taxes, and Additional Medicare taxes withheld from Forms W-2 to self-employment taxes paid from Schedule C and certain other amounts. Comparing the Part II and Part III calculations determines which method yields the larger Additional Child Tax Credit for reducing your tax liability.
Part IV displays the final Additional Child Tax Credit amount on line 13 of Form 8812. This tax refund amount transfers to Form 1040 line 67, Form 1040A line 43, or Form 1040NR line 64 as a refundable credit.
Foreign Earned Income Exclusion Restriction for 2015
Taxpayers filing Form 2555 or Form 2555-EZ for 2015 cannot claim the Additional Child Tax
Credit. This restriction applies when you exclude foreign earned income, claim the foreign housing exclusion, or deduct foreign housing costs from your income tax.
You may still claim the nonrefundable portion on your filing documents. Form 8812 parts II through IV become unavailable under this restriction, which affects U.S. citizens working abroad and residents of Puerto Rico who file Form 2555.
Puerto Rico Residents and Special Considerations
Residents of Puerto Rico face unique filing requirements when claiming child tax credits. Puerto
Rico residents with income effectively connected with a U.S. trade or business must file Form
1040-NR or Form 1040-SR to claim the Additional Child Tax Credit. Puerto Rico residents who file Form 2555 to exclude income cannot complete Form 8812 Parts II through IV for the refundable portion.
For local tax compliance, Puerto Rico residents may also need to consult Anexo H-PR.
Taxpayers should review IRS forms specific to Puerto Rico filing situations, including
requirements for reporting earned income and determining eligibility for this credit on their tax return.
Credit for Other Dependents and Related Benefits
The Credit for Other Dependents does not apply to the 2015 tax year. This credit was established under later tax legislation and does not appear on the 2015 IRS forms or the 2015
Form 8812. Taxpayers seeking credits for dependents who do not qualify as children under age
17 should review other applicable credits under current tax law for their tax filing situation.
Form 8839 for adoption expenses and other IRS forms may affect your overall tax liability.
Review your credit for other dependents' eligibility under current tax law when filing returns for more recent tax years using Form 1040-SR or Form 1040-NR.
Filing Requirements and Documentation Standards
Step 1: Determine Which Parts to Complete
Attach Form 8812 to your Form 1040, Form 1040A, or Form 1040NR when filing your tax return.
Complete Part I only if you identified any dependent with an Individual Taxpayer Identification
Number and checked the box in column 4 indicating the child qualifies.
Step 2: Calculate Additional Child Tax Credit
Complete Parts II through IV only when your Child Tax Credit Worksheet directs you to calculate the Additional Child Tax Credit. Calculate your tax refund potential by entering your earned income and following the line-by-line instructions for each section of the form.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 3: Maintain Supporting Documentation
Maintain copies of all Forms W-2, self-employment documentation from Schedule C, and dependent identification documents supporting your Form 8812 entries. Keep these records for your files and potential future IRS inquiries related to your tax filing.
Frequently Asked Questions
Does Form 8812 calculate the child tax credit amount for 2015?
Form 8812 does not calculate the base amount for 2015. You calculate the nonrefundable portion using the Child Tax Credit Worksheet found in your Form 1040 instructions, and that amount appears on Form 1040 line 52, Form 1040A line 35, or Form 1040NR line 49. Form
8812 only calculates the Additional Child Tax Credit, which is the refundable portion for eligible taxpayers with sufficient earned income on their tax return.
What is the purpose of Part I on Form 8812?
Part I documents that children identified with an Individual Taxpayer Identification Number meet the substantial presence test for U.S. residency. You answer yes or no questions about each child’s physical presence in the United States during 2015 and the prior two years. Children identified with Social Security Numbers or Adoption Taxpayer Identification Numbers do not require Part I completion on their Income Tax Return.
Can I claim the Additional Child Tax Credit if I file Form 2555?
You cannot claim the Additional Child Tax Credit for 2015 if you file Form 2555 or Form
2555-EZ. This restriction applies when you exclude foreign earned income, claim the foreign housing exclusion, or deduct foreign housing costs. You may still claim the nonrefundable portion on Form 1040-NR or other IRS forms, but Form 8812 Parts II through IV become unavailable for your Tax Filing.
What earned income threshold applies to the Additional Child Tax Credit in
2015?
You must have more than $3,000 of earned income to claim the Additional Child Tax Credit.
Earned income includes wages, salaries, tips, and net self-employment income from Schedule
C after specific adjustments. You calculate 15 percent of your earned income exceeding $3,000 to determine your potential Tax Refund amount under Part II of Form 8812.
When should I complete Part III of Form 8812?
Part III applies when you have three or more Qualifying Children. This section calculates an alternative Additional Child Tax Credit amount based on social security taxes, Medicare taxes, and Additional Medicare taxes you paid during 2015. You use whichever calculation from Part II
or Part III produces the larger Additional Child Tax Credit for reducing your tax liability on your tax return.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
