Schedule 8812 Instructions 2013: Additional Child Tax
Credit Guide
For tax year 2013, Schedule 8812 determines eligibility for the additional child tax credit when the child tax credit claimed on Form 1040 exceeds your tax liability. Verification of the citizenship or residency status of the child, the earned income thresholds, and the Social Security numbers of the qualifying child is required by the form.
Taxpayers must complete Schedule 8812 when they claim the child tax credit but have insufficient tax liability to use the full credit amount. The additional child tax credit appears on
Form 1040, line 65; Form 1040A, line 39; or Form 1040NR, line 63.
Qualifying Child Requirements
Your qualifying child must meet specific criteria to qualify for both the child tax credit and the additional child tax credit. The child must be your son, daughter, stepchild, adopted child, foster child, or descendant thereof.
Each qualifying child must be under age 17 as of December 31, 2013, and must have lived with you for more than half of the tax year. Throughout the tax year, your child is prohibited from providing more than half of their own support.
For 2013, a qualifying child was required to have a valid Social Security number issued by the
Social Security Administration before the due date of the return to qualify for the child tax credit or the additional child tax credit. Schedule 8812 does not allow the child tax credit or additional child tax credit for children who do not have a valid Social Security number, and Part I is not used to establish eligibility for children with ITINs for tax year 2013.
You must verify that you are a U.S. citizen, national, or resident alien for the entire 2013 tax year to claim the additional child tax credit. Nonresidents and non-nationals cannot file Schedule
8812 for the refundable credit.
Understanding Schedule 8812 Structure
Schedule 8812 contains four distinct parts that serve different purposes. Part I of Schedule 8812 applies only in limited circumstances specified in the instructions and does not establish eligibility for the child tax credit or additional child tax credit for children without a valid Social
Security number in 2013.
You complete Part I only for children with ITINs who are claimed for the child tax credit. Children with Social Security numbers do not require Part I documentation on Schedule 8812.
Parts II through IV calculate your additional child tax credit amount based on earned income and tax liability. You should complete these sections only after finishing the Child Tax Credit
Worksheet in your Form 1040 instructions or IRS Publication 972.
How to Complete Schedule 8812 for the 2013 Additional
Child Tax Credit
Step 1: Gather Required Identification Documents
Collect Social Security numbers for each qualifying child claimed on Form 1040, line 51. Each number must match official documentation, such as the child’s Social Security card or birth certificate.
- Earned income includes wages, salaries, and tips that you received during the tax year
- It also includes net self-employment income reported on Schedule C or calculated on
- In addition, nontaxable combat pay reported in box 12 of Form W-2 with code Q may be
Step 2: Calculate Total Earned Income
Line 1 of Schedule 8812 requires entry of total earned income for the tax year. Earned income includes the following amounts: and that are reported on Form W-2.
Schedule SE, after allowable business expenses are deducted. included for purposes of calculating the additional child tax credit.
The earned income amount determines the refundable portion of the credit under the 2013 rules. Taxpayers who have net earnings from self-employment must use IRS Publication 972 to calculate the correct amount.
Step 3: Complete the Child Tax Credit Worksheet
Before starting Schedule 8812, you must complete the Child Tax Credit Worksheet in your Form
1040 instructions. The child tax credit itself is a nonrefundable credit worth up to $1,000 per qualifying child, claimed on Form 1040, line 51.
Schedule 8812, line 1, asks for the amount from line 6 of your Child Tax Credit Worksheet. This amount represents the total child tax credit before considering your tax liability.
Step 4: Calculate the Refundable Portion
Line 2 requires the amount from Form 1040, line 51, which shows the nonrefundable portion of the credit you can actually claim against your taxes. Subtract line 2 from line 1 to determine whether any additional child tax credit remains after applying the nonrefundable portion.
If the result is zero, you cannot claim the additional child tax credit. The remaining lines will be used to calculate your refundable credit if the result is greater than zero.
Line 5 requires you to subtract $3,000 from your earned income if that amount exceeds $3,000.
Multiply the result by 15 percent to determine your potential additional child tax credit.
Taxpayers with three or more qualifying children must complete Part III to calculate an alternative credit amount that may be larger.
Step 5: Complete Part III for Three or More Children
Part III applies only to taxpayers with three or more qualifying children. Line 7 includes withheld
Social Security, Medicare, and Additional Medicare taxes from Form W-2, boxes 4 and 6.
If your employer withheld Additional Medicare Tax or you paid tier 1 RRTA taxes, you must use the line 7 worksheet in the instructions. Line 10 applies to Form 1040A filers who had more than one employer during 2013 and total wages over $113,700.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 6: Transfer the Credit to Form 1040
Line 13 shows your final additional child tax credit amount. This amount transfers directly to
Form 1040, line 65; Form 1040A, line 39; or Form 1040NR, line 63.
You must attach Schedule 8812 to your main tax return when claiming the additional child tax credit. The schedule becomes a required attachment whenever any portion of the child tax credit is refundable under the 2013 rules.
Filing Procedures and Format Requirements
Schedule 8812 is not signed separately; you sign and date only your main Form 1040 as required by standard IRS filing procedures. Each qualifying child’s Social Security number or
ITIN must be entered correctly on Schedule 8812 in the appropriate column.
Social Security numbers must be formatted as nine digits, and each number must match the
Social Security Administration or IRS records. Mismatched or invalid identification numbers may delay processing or result in claim denial.
Substantial Presence Test for ITIN Holders
For the child to qualify for the substantial presence test, they must be physically present in the
United States for a minimum of 31 days in 2013. The child must also be present for at least 183 days during the three years, including 2013, 2012, and 2011.
Calculate the three years by counting all days present in 2013, one-third of the days present in
2012, and one-sixth of the days present in 2011. Children present for less than half of 2013 must not have a closer connection to a foreign country.
Frequently Asked Questions
Can I claim the additional child tax credit if my child has an ITIN instead of a Social Security number?
No, for tax year 2013, a child was required to have a valid Social Security number to qualify for the child tax credit or additional child tax credit, and children with ITINs were not eligible. You must complete Part I of Schedule 8812 to document that the child meets this test and is not otherwise treated as a nonresident alien.
Where do I enter the additional child tax credit on my 2013 tax return?
The additional child tax credit from Schedule 8812, line 13, is entered on Form 1040, line 65;
Form 1040A, line 39; or Form 1040NR, line 63. The nonrefundable child tax credit appears on
Form 1040, line 51, which you calculate before completing Schedule 8812.
What earned income counts for calculating the additional child tax credit?
Earned income includes wages, salaries, tips, net self-employment income, and nontaxable combat pay. You must use the earned income chart in the Schedule 8812 instructions to determine the correct amount based on your specific tax situation.
Do I need to complete Schedule 8812 if I claim the child tax credit?
You complete Schedule 8812 only if the Child Tax Credit Worksheet instructs you to do so after calculating your initial credit. Taxpayers with sufficient tax liability to claim the full child tax credit do not need Schedule 8812.
What happens if my qualifying child’s Social Security number does not match IRS records?
Mismatched or invalid Social Security numbers may delay processing of your tax return or result in denial of the additional child tax credit. Verify that each number matches the Social Security
Administration records and appears correctly on Schedule 8812 before filing.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
