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IRS Schedule 8812: Child Tax Credit Form Guide

What is a IRS Schedule 8812

IRS Schedule 8812 is the part of Form 1040 that needs to be filled out if you want to get a federal tax credit for having more than one child. The additional child tax credit is a refundable credit, which means that if the extra child tax credit exceeds the amount of tax that the taxpayer owes, the extra child tax credit can be refunded to the taxpayer.

The extra child tax credit can be worth up to $1,400 per child for the 2019 tax year. People who pay no federal taxes but are eligible for an extra tax credit in 2019 can get up to $1,400 for each qualifying dependent who is under the age of 18.

The federal tax law in the United States lets you claim refundable credits on your tax return for children who meet certain requirements. This can save you a lot of money. The IRS might ask you to fill out Form 8812 based on how many qualified dependents you claim on your tax return. The IRS Form 8812 must be filed with your 1040, 1040A, or 1040NR when you file your tax return. It can’t be asked for later in the year.

Check out the rules for Schedule 8812 to find out if you can get the child tax credit and how to do it.

What is Form 8812?

You can find the form called Schedule 8812 on Form 1040. It’s used to figure out the “additional child tax credit.” It’s not possible to get the full $2000 child tax credit if you owe no taxes or owe less than what the credit is worth. You might be able to get the extra child tax credit, though, if you fill out IRS Form 8812.

Qualifying child requirement

It’s possible for people in the United States to get a tax credit of up to $1,000 a year for taking care of their children as of 2017. It must be true for the child to be able to go.

  • They must be a citizen, national, or resident of the United States.
  • They must be under the age of 17 at the conclusion of the fiscal year.
  • They must reside with you for at least half of the year.
    You must provide them with more than half of their funding.

There is a tax credit you can get for each child, stepchild, or grandchild who fits this description. In order to get a tax credit, you need to fill out Form 8812. If the amount of credit you get is more than the amount of tax that you owe the IRS wants you to do this.

Exceptions to qualifying child requirement

In some cases, even if your dependent didn’t live with you for more than half of the tax year, you may still be able to get the child tax credit.

  • The kid was born and died in the same tax year, and they resided in your house throughout their lifetime.
  • The dependant was in school or in a correctional facility, or you were gone on business, medical treatment, or active military activity.

Side note: Noncustodial parents are eligible for the credit as long as the custodial parent does not claim the credit or an exemption for the same kid.

What are the Benefits of Child Tax Credits?

Even if you don’t owe any taxes, you must submit your tax return and support Schedule 8812. A tax credit decreases your yearly payment dollar for dollar, and with enough qualified credits, you might reduce your tax bill to the point where the government owes you money, resulting in a tax refund. Your money may be refunded to you in the form of a mailed check or direct deposit into your bank account, depending on how you request it.

By decreasing the earned income level, the Stimulus Act of 2009 made it much simpler to qualify for the extra child tax credit. As a consequence, many low-income taxpayers stand to gain from higher returns.

Do I Qualify for Child Tax Credit on Form 8812?

If you want to claim the extra tax credit, you must have earned income, according to the terms and circumstances of Schedule 8812. When you read the instructions for Form 8812, you’ll see that you must submit the amount of your gross income obtained from wages and other job-related compensation to determine the amount of your alternative credit.

The process for calculating your credit amount is complicated, and it will be decreased if your gross income exceeds the filing status barrier. If you have one or more qualifying children and earn at least $2,500, you may be entitled to a return of up to 15% of your excess income. If your earned income is less than $2,500, you may be eligible for a refundable credit if you meet the following criteria:

  • You have at least three qualified dependents.
  • You paid Social Security taxes that were more than your earned income credit.

Do not forget to check your Form W-4 to see how much you have to pay in taxes. Then, when you fill out Form 8812. In the event that you didn’t withhold enough money from your paychecks for taxes, you might owe the IRS money and won’t be able to get back any of it. You should always talk to a tax expert about whether or not you qualify for the extra child tax credit or any other deductions that might be available to you, just like always.

Can I File Schedule 8812 if I’m Divorced?

For people who have divorced or separated, only one person can claim the child credit on Schedule 8812. If the IRS Publication 596 says that a noncustodial parent can claim a child as a dependent if the following are true:

  • It is very likely that the parents have split up or are legally separated from each other.
  • It doesn’t matter if they were married for the past 6 months or not. They’ve always lived apart, even if
  • The child got more than half of their money and/or lived with one or both parents for over half the year.

Form 8812 must be signed by the non-custodial parent to get the credit. It says that he or she won’t be able to claim the dependent on their tax return. They will then send that information to the IRS with their own Form 1040.

Side note: People who have to file taxes by the due date should make sure they have their taxpayer ID numbers. Child tax credits aren’t available to people who don’t have Social Security numbers or ITINs from the IRS when they file their taxes. Even if they get an SSN or ITIN later, they can’t use them.

Form 8812 Instructions

The three parts of the instructions for IRS Form 8812 are broken down into two parts each. Part I should be filled out by everyone who files taxes unless you have already filled out Form 2555, which prevents you from getting the extra child tax credit.

Form 8812

For two years after you claimed the extra child tax credit on your tax return, the IRS says that you won’t be able to get the credit again because you were reckless or blatantly broke the rules. It’s very important to get help from a tax expert to make sure you don’t make false claims and get the money you’re owed. We’ve helped a lot of people with their taxes, from planning to getting them done. We look forward to working with you, too. For help with the IRS, reach out to us today. Find out what we can do for you and how we can help.

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Toshiko Osaka

Toshiko Osaka