Form 8812: Credits for Qualifying Children and Other Dependents
Used to calculate the child tax credit, credit for other dependents, and the additional child tax credit (refundable portion).
Overview
IRS Form 8812, officially titled "Credits for Qualifying Children and Other Dependents" (Schedule 8812 on the 2021 and later Form 1040), is the computational worksheet used to determine three related but distinct tax benefits: the Child Tax Credit (CTC), the Credit for Other Dependents (ODC), and the Additional Child Tax Credit (ACTC). The CTC and ODC are nonrefundable credits that reduce your tax liability dollar-for-dollar but cannot produce a refund on their own. The ACTC, calculated in Part II of the form, is the refundable component — meaning eligible taxpayers can receive it as a refund even if they owe no federal income tax.
The credit structure traces its authority to IRC § 24, which establishes the base child tax credit, sets the per-child credit amount, and governs the phase-out rules for higher-income taxpayers. Congress has modified the credit amounts, age limits, and refundability rules multiple times — most recently with the significant temporary expansions under the American Rescue Plan Act of 2021, which reverted to pre-expansion parameters for 2022 and later years. For tax year 2026 (filed in 2027), taxpayers should verify the current per-child credit amount and phase-out thresholds, as these figures are subject to legislative change and inflation adjustments.
Form 8812 is not filed as a standalone document; it attaches to Form 1040 (or 1040-SR or 1040-NR where applicable) and flows directly into the main return. The IRS redesigned the schedule in 2021 to consolidate what had previously been split across the main Form 1040 and a separate worksheet. Most tax software populates this form automatically when a qualifying dependent is entered, but understanding the mechanics helps preparers catch errors and advise clients on planning opportunities — particularly around the earned income floor that governs ACTC eligibility.
Who Files This Form?
Taxpayers must complete Schedule 8812 if they are claiming any of three credits: the Child Tax Credit (CTC) for qualifying children under age 17, the Credit for Other Dependents (ODC) for dependents who do not qualify for the CTC (such as older children, qualifying relatives, or dependents with an ITIN), or the Additional Child Tax Credit (ACTC) — the refundable portion available to taxpayers whose CTC exceeds their tax liability.
To claim the CTC, a child must meet all of the following: under age 17 at the end of the tax year, claimed as a dependent on the filer's return, a U.S. citizen, U.S. national, or U.S. resident alien, and must have a valid Social Security Number (SSN). This SSN requirement is strict — an ITIN or Adoption Taxpayer Identification Number (ATIN) does not qualify a child for the CTC (though an ITIN-holding dependent may still qualify for the ODC).
The credit phases out for higher-income taxpayers based on modified adjusted gross income (MAGI). The phase-out begins at MAGI thresholds that differ by filing status; once MAGI exceeds the threshold, the credit is reduced by a set amount for each increment above the limit. Taxpayers should consult current-year instructions for the exact thresholds, as these are periodically adjusted.
The ACTC is available to taxpayers who have earned income above a minimum floor (set by statute under IRC § 24(d)), have three or more qualifying children, or have earned income that supports the refundable calculation. Taxpayers with very low or no earned income will generally not qualify for the refundable ACTC portion. Noncustodial parents who claim the CTC via a signed Form 8332 from the custodial parent are not eligible for the ACTC, an important distinction that is frequently overlooked.
Key Fields
Part I, Line 4: Number of Qualifying Children Under Age 17
Enter only the count of children who meet every CTC requirement, including having a valid SSN. This number drives the base credit calculation. A common error is including a child who turned 17 before December 31 of the tax year — those children do not count here even if they are claimed as dependents.
Part I, Line 5: Number of Other Dependents
Enter dependents who qualify for the Credit for Other Dependents ($500 per dependent) but not for the full CTC. This includes children age 17 or older, qualifying relatives, and ITIN-holding dependents. The $500 ODC is nonrefundable and phases out under the same income thresholds as the CTC.
Part I, Line 3: Modified Adjusted Gross Income (MAGI)
MAGI for this credit is generally AGI plus any foreign earned income exclusion, foreign housing exclusion/deduction, and Puerto Rico/U.S. possession income exclusions. For most domestic filers with no foreign income, MAGI equals AGI. Misidentifying MAGI is a frequent error for clients with foreign income.
Part I, Line 8: Child Tax Credit and Credit for Other Dependents
This is the combined nonrefundable credit amount after applying the phase-out reduction. The result flows to Schedule 3, Line 6 of Form 1040. If this amount exceeds the taxpayer's tax liability, the excess does not automatically produce a refund — that is handled in Part II via the ACTC calculation.
Part II, Line 14a: Earned Income
This line captures earned income — wages, salaries, self-employment income (after the deductible SE tax deduction), and certain combat pay elections — used to calculate the ACTC. The amount must exceed the statutory floor for any ACTC to be refundable. Do not include unearned income such as interest, dividends, or capital gains.
Part II, Line 15: Additional Child Tax Credit (Refundable)
This is the refundable ACTC amount that flows to Schedule 3, Line 27 (or directly to Form 1040 Line 28 in some versions). It represents the lesser of the unclaimed CTC or a percentage of earned income above the floor. This is the line most clients mean when they ask 'how much of the child tax credit can I get back.'
Part II, Line 13: Nontaxable Combat Pay Election
Active-duty military members may elect to include nontaxable combat pay as earned income for purposes of computing the ACTC. Including combat pay can increase the refundable credit — but only if it benefits the taxpayer. The election is optional and must be evaluated each year; it can sometimes hurt if it pushes the taxpayer into a higher phase-out range.
Part I, Line 1: Filer's Tax Liability (Before Credits)
The CTC is applied against the tax on Line 1, not against gross income. Taxpayers with very low tax liability may find the nonrefundable CTC is limited — only the ACTC in Part II provides refundability. Confirming this figure matches Form 1040 before applying credits is a basic integrity check preparers should perform.
Filing Deadlines
April 15
October 15
Filed with Form 1040; no separate penalty, but failure to file means loss of child-related credits.
Step-by-Step Instructions
- 1
Confirm each dependent's eligibility before opening the form. Verify SSNs for CTC-qualifying children (age under 17, U.S. citizen/resident, your dependent), and separately identify ITIN or age-17+ dependents who qualify only for the $500 ODC. Document source records — birth certificates and Social Security cards should be in the file.
- 2
Enter the taxpayer's MAGI on the appropriate line in Part I. For most domestic filers this equals Form 1040 AGI; add back any foreign earned income or possession income exclusions if applicable. Apply the phase-out calculation if MAGI exceeds the threshold for the filing status to determine the maximum allowable credit.
- 3
Calculate the total initial credit amount in Part I by multiplying qualifying children by the per-child credit amount and other dependents by $500, then reduce by the phase-out amount if MAGI is above the threshold.
- 4
Compare the credit amount from Part I to the tax liability on Form 1040 (after other nonrefundable credits that have priority). The CTC and ODC are nonrefundable; the credit cannot exceed tax liability. Enter the allowable nonrefundable amount and carry it to Schedule 3, Line 6.
- 5
If any CTC credit amount is unused (exceeds tax liability) and the taxpayer has qualifying children under 17, proceed to Part II to calculate the ACTC. Confirm the taxpayer has earned income above the statutory minimum floor; if not, the ACTC is zero.
- 6
On Part II, enter earned income — wages, tips, net self-employment income (reduced by the deductible portion of SE tax), and any elected nontaxable combat pay. Do not include passive income, unearned income, or Social Security benefits.
- 7
Complete the ACTC computation in Part II, which compares a percentage of earned income above the floor against the unused CTC. The smaller of the two figures is the allowable ACTC. If the taxpayer has three or more qualifying children, a Social Security tax-based alternative calculation may yield a higher ACTC — complete both and use the larger result.
- 8
Transfer the ACTC from Line 15 to the refundable credits section of Form 1040. Cross-check that the total of the nonrefundable CTC (Schedule 3) and the refundable ACTC does not exceed the total initial credit calculated in Part I.
- 9
Review the completed schedule against the dependent information on Form 1040 to ensure consistency — names, SSNs, and dependent counts must match. Flag any noncustodial parent situations to confirm Form 8332 is attached and that the taxpayer is not erroneously claiming ACTC.
Common Mistakes to Avoid
Including a child who turned 17 during the tax year as a CTC-qualifying child.
Age is determined as of December 31 of the tax year. A child who turns 17 on any day of the year — including December 31 — does not qualify for the CTC for that year, though they may still qualify for the $500 ODC.
Claiming the CTC for a child with an ITIN instead of a valid SSN.
The CTC requires a Social Security Number issued by the Social Security Administration. If the child has only an ITIN, they do not qualify for the CTC; enter them in the ODC column instead. The ACTC is also unavailable for ITIN children.
Noncustodial parents claiming the Additional Child Tax Credit after receiving a Form 8332 from the custodial parent.
A Form 8332 release allows the noncustodial parent to claim the dependency exemption and the nonrefundable CTC, but not the ACTC. The custodial parent retains the right to the ACTC. Do not complete Part II for noncustodial parent situations.
Using AGI instead of MAGI when the taxpayer has foreign earned income or Puerto Rico income exclusions.
Review whether any income was excluded under IRC § 911 or similar provisions and add it back to AGI to arrive at MAGI. Failing to do so understates MAGI and can result in an inflated credit that triggers an IRS notice.
Including unearned income (interest, dividends, capital gains) in the earned income calculation for Part II.
Only wages, salaries, tips, net self-employment income, and elected combat pay count as earned income for ACTC purposes. Running unearned income through the earned income line overstates the refundable credit and creates a matching discrepancy the IRS will likely catch.
Failing to evaluate the nontaxable combat pay election for military clients each year.
The election to include nontaxable combat pay as earned income is optional and can increase or decrease the ACTC depending on the client's specific situation. Run the numbers both ways annually — do not simply carry forward the prior-year election without analysis.
Frequently Asked Questions
The Child Tax Credit (CTC) is a nonrefundable credit — it reduces your tax liability to zero but cannot generate a refund by itself. The Additional Child Tax Credit (ACTC) is the refundable portion of the credit that can produce a refund even if you owe no tax. Both are calculated on Schedule 8812, with the nonrefundable CTC computed in Part I and the refundable ACTC in Part II.
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