Credits for Qualifying Children and Other Dependents Introduction Future Developments What’s New ACTC amount increased. Reminders Delayed refund for returns claiming ACTC. Abbreviations. General Instructions Taxpayer Identification Number Requirements You Must Have a TIN by the Due Date of Your Return Each Qualifying Child You Use for CTC or ACTC Must Have the Required SSN Each Dependent You Use for the ODC Must Have a TIN by the Due Date of Your Return Improper Claims Form 8862 may be required. Effect of Credit on Welfare Benefits Credits for Qualifying Children Adopted child. Credit for Other Dependents (ODC) Adopted child. Limits on the CTC and ODC Modified AGI. Specific Instructions Part I — Child Tax Credit and Credit for Other Dependents (All Filers) Line 4 Line 6 Line 13 Part II-A—Additional Child Tax Credit for All Filers Bona Fide Residents of Puerto Rico Line 15 Line 18a Line 18b Part II-B—Certain Filers Who Have Three or More Qualifying Children and Bona Fide Residents of Puerto Rico Line 21 Credit Limit Worksheet A Credit Limit Worksheet B Credit Limit Worksheet B—Continued Earned Income Chart — Line 18a Earned Income Worksheet Additional Medicare Tax and RRTA Tax Worksheet 2023 Instructions for Schedule 8812 (2023) 2023 Credits for Qualifying Children and Other Dependents Introduction Use Schedule 8812 (Form 1040) to figure your child tax credit (CTC), credit for other dependents (ODC), and additional child tax credit (ACTC). The CTC and ODC are nonrefundable credits. The ACTC is a refundable credit. Future Developments For the latest information about developments related to Schedule 8812 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Schedule8812. What’s New ACTC amount increased. The maximum amount of ACTC for each qualifying child increased to $1,600. Reminders Delayed refund for returns claiming ACTC. The IRS can’t issue refunds before mid-February 2024 for returns that properly claim ACTC. This time frame applies to the entire refund, not just the portion associated with ACTC. Abbreviations. The following abbreviations will be used in these instructions when appropriate. ACTC means additional child tax credit. ATIN means adoption taxpayer identification number. CTC means child tax credit. ITIN means individual taxpayer identification number. ODC means credit for other dependents. SSN means social security number. TIN means taxpayer identification number. A TIN may be an ATIN, an ITIN, or an SSN. Other abbreviations may be used in these instructions and will be defined as needed. General Instructions Taxpayer Identification Number Requirements You Must Have a TIN by the Due Date of Your Return If you, or your spouse if filing jointly, do not have an SSN or ITIN issued on or before the due date of your 2023 return (including extensions), you can’t claim the CTC, ODC, or ACTC on either your original or an amended 2023 return. If you apply for an ITIN on or before the due date of your 2023 return (including extensions) and the IRS issues you an ITIN as a result of the application, the IRS will consider your ITIN as issued on or before the due date of your return. Each Qualifying Child You Use for CTC or ACTC Must Have the Required SSN If you have a qualifying child who does not have the required SSN, you can’t use the child to claim the CTC or ACTC on either your original or an amended 2023 return. The required SSN is one that is valid for employment and is issued before the due date of your 2023 return (including extensions). If your qualifying child was born and died in 2023 and you do not have an SSN for the child, attach a copy of the child's birth certificate, death certificate, or hospital records. The document must show the child was born alive. If your qualifying child does not have the required SSN, but has another type of taxpayer identification number issued on or before the due date of your 2023 return (including extensions), you may be able to claim the ODC for that child. See Credit for Other Dependents (ODC) , later. Each Dependent You Use for the ODC Must Have a TIN by the Due Date of Your Return If you have a dependent who does not have an SSN, ITIN, or ATIN issued on or before the due date of your 2023 return (including extensions), you can’t use that dependent to claim the ODC on either your original or an amended 2023 return. If you apply for an ITIN or ATIN for the dependent on or before the due date of your 2023 return (including extensions) and the IRS issues the ITIN or ATIN as a result of the application, the IRS will consider the ITIN or ATIN as issued on or before the due date of your return. Improper Claims If you erroneously claim the CTC, ACTC, or ODC and it is later determined that your error was due to reckless or intentional disregard of the CTC, ACTC, or ODC rules, you will not be allowed to claim any of these credits for 2 years even if you are otherwise eligible to do so. If it is determined that your error was due to fraud, you will not be allowed to claim any of these credits for 10 years. You may also have to pay penalties. Form 8862 may be required. If your CTC (refundable or nonrefundable depending on the tax year), ACTC, or ODC for a year after 2015 was denied or reduced for any reason other than a math or clerical error, you must attach Form 8862 to your tax return to claim the CTC, ACTC, or ODC unless an exception applies. See Form 8862, Information To Claim Certain Credits After Disallowance, and its instructions for more information, including whether an exception applies. Effect of Credit on Welfare Benefits Any refund you receive as a result of taking the ACTC can’t be counted as income when determining if you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. These programs include Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security Income (SSI), and Supplemental Nutrition Assistance Program (formerly food stamps). In addition, when determining eligibility, the refund can’t be counted as a resource for at least 12 months after you receive it. Check with your local benefits coordinator to find out if your refund will affect your benefits. Credits for Qualifying Children The CTC and ACTC are credits for individuals who claim a child as a dependent if the child meets certain conditions. To claim a child for the CTC and ACTC, the child must be your dependent, under age 17 at the end of 2023, and meet all the conditions in Steps 1 through 3 under Who Qualifies as Your Dependent in the Instructions for Form 1040. Example 1. Your child turned 17 on December 30, 2023, and is a citizen of the United States and claimed as a dependent on your return. You can’t use the child to claim the CTC or ACTC because the child was not under age 17 at the end of 2023. For each qualifying child for whom you are claiming the CTC or ACTC, you must check the “Child tax credit” box in column (4) of the Dependents section on page 1 of Form 1040, 1040-SR, or 1040-NR for the child. Adopted child. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. If your child is age 17 or older at the end of 2023, see Credit for Other Dependents (ODC) next. Credit for Other Dependents (ODC) The ODC is for individuals with a dependent who meets the following conditions. The person is claimed as a dependent on your return. To determine if an individual is your dependent begin with Step 1 under Who Qualifies as Your Dependent in the Instructions for Form 1040. The person can’t be used by you to claim the CTC or ACTC. See Credits for Qualifying Children , earlier. The person was a U.S. citizen, U.S. national, or U.S. resident alien. For more information, see Pub. 519. If the person is your adopted child, see Adopted child , later. Example 2. Your sibling’s 10-year-old child lives in Mexico and qualifies as your dependent. The child is not a U.S. citizen, U.S. national, or U.S. resident alien. You can’t use the child to claim the ODC. For each dependent for whom you are claiming the ODC, you must check the “Credit for other dependents” box in column (4) of the Dependents section on page 1 of Form 1040, 1040-SR, or 1040-NR for the dependent. You can’t use the same child to claim the credits under Credits for Qualifying Children and the ODC. Adopted child. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. If you are a U.S. citizen or U.S. national and your adopted child lived with you all year as a member of your household in 2023, that child meets condition (3), earlier, to be a qualifying person for the ODC. Limits on the CTC and ODC The maximum credit amount of your CTC and ODC may be reduced if either (1) or (2) applies. The amount on line 18 of your Form 1040, 1040-SR, or 1040-NR is less than both credits. If the amount is zero, you cannot take either credit because there is no tax to reduce. But you may be able to take the ACTC if you are claiming the CTC (you cannot take the ACTC if you are only claiming the ODC). See Part II-A Additional Child Tax Credit for All Filers , later. Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. Married filing jointly –$400,000 All other filing statuses –$200,000 Modified AGI. For purposes of the CTC and ODC, your modified AGI is the amount on line 3 of Schedule 8812. Specific Instructions Part I — Child Tax Credit and Credit for Other Dependents (All Filers) Line 4 Add the number of boxes checked under “Child tax credit” in column (4) of the Dependents section on Form 1040, 1040-SR, or 1040-NR and enter the result on line 4. You can’t check both the child tax credit box and the credit for other dependents box for the same person. Line 6 Add the number of boxes checked under “Credit for other dependents” in column (4) of the Dependents section on Form 1040, 1040-SR, or 1040-NR and enter the result on line 6. You can’t check both the child tax credit box and the credit for other dependents box for the same person. Line 13 Enter the amount from Credit Limit Worksheet A. When completing Credit Limit Worksheet A, you may be instructed to complete Credit Limit Worksheet B if you meet certain conditions. Complete Credit Limit Worksheet B only if you meet all of the following. You are claiming one or more of the following credits. a. Mortgage interest credit, Form 8396. b. Adoption credit, Form 8839. c. Residential clean energy credit, Form 5695, Part I. d. District of Columbia first-time homebuyer credit, Form 8859. You are not filing Form 2555. Line 4 of Schedule 8812 is more than zero. Part II-A—Additional Child Tax Credit for All Filers If the amount on line 12 is more than line 14, you may be able to take the additional child tax credit. Complete your Form 1040, 1040-SR, or 1040-NR through line 27 (also complete Schedule 3, line 11) before completing Part II-A. If you file Form 2555, you cannot claim the additional child tax credit. Bona Fide Residents of Puerto Rico If you were a bona fide resident of Puerto Rico, you may be eligible to claim the ACTC if you had at least one qualifying child. You can claim the ACTC in Part II of Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico), instead of Form 1040 or 1040-SR and Schedule 8812 if you aren’t required to file Form 1040 or 1040-SR. To determine your ACTC on Schedule 8812, complete Part II-A and II-B as follows. On line 18a, include only earned income you reported on Form 1040 or 1040-SR. Don’t include income earned in Puerto Rico, which you exclude from U.S. tax as a bona fide resident of Puerto Rico. On line 21, include all your withheld social security, Medicare, and Additional Medicare taxes, including those taxes withheld by Puerto Rican employers that are shown on Puerto Rico Form(s) 499R-2/W-2PR. Generally, you were a bona fide resident of Puerto Rico if, during 2023, you: Met the presence test, Did not have a tax home outside of Puerto Rico, and Did not have a closer connection to the United States or to a foreign country than you have to Puerto Rico. For more information on bona fide resident status, see Pub. 570. Line 15 Check this box if you do not want to claim the additional child tax credit. If you check this box, skip Parts II-A and II-B. And enter -0- on line 27. Line 18a If you have net earnings from self-employment and you use either optional method to figure those net earnings, use the Earned Income Worksheet, later, to figure the amount to enter on line 18a; otherwise, all other taxpayers can use the Earned Income Chart, later, to figure the amount to enter on line 18a. Income excluded under a tax treaty is also excluded from the computation of earned income on line 18a. Line 18b Enter on line 18b the total amount of nontaxable combat pay that you (and your spouse if filing jointly) received in 2023. This amount will be reported either on line 1i of Form 1040, or 1040-SR, or should be shown in Form W-2, box 12, with code Q. Part II-B—Certain Filers Who Have Three or More Qualifying Children and Bona Fide Residents of Puerto Rico Line 21 If you are completing Part II-B and your employer withheld or you paid Additional Medicare Tax or tier 1 RRTA tax, use the Additional Medicare Tax and RRTA Tax Worksheet, later, to figure the amount to enter on line 21. Withheld social security, Medicare, and Additional Medicare taxes should be shown on Form(s) W-2, boxes 4 and 6, and Puerto Rico Form(s) 499R-2/W-2PR, boxes 21 and 23. Credit Limit Worksheet A 1. Enter the amount from line 18 of your Form 1040, 1040–SR, or 1040–NR. 1. _____ 2. Add the following amounts (if applicable) from: Schedule 3, line 1 + _____ Schedule 3, line 2 + _____ Schedule 3, line 3 + _____ Schedule 3, line 4 + _____ Schedule 3, line 5b + _____ Schedule 3, line 6d + _____ Schedule 3, line 6f + _____ Schedule 3, line 6 + _____ Schedule 3, line 6m + _____ Enter the total. 2. _____ 3. Subtract line 2 from line 1. 3. _____ Complete Credit Limit Worksheet B only if you meet all the following. 1. You are claiming one or more of the following credits. a. Mortgage interest credit, Form 8396. b. Adoption credit, Form 8839. c. Residential clean energy credit, Form 5695, Part I. d. District of Columbia first-time homebuyer credit, Form 8859. 2. You are not filing Form 2555. 3. Line 4 of Schedule 8812 is more than zero. 4. If you are not completing Credit Limit Worksheet B, enter -0-; otherwise, enter the amount from Credit Limit Worksheet B. 4. _____ 5. Subtract line 4 from line 3. Enter here and on Schedule 8812, line 13. 5. _____ Credit Limit Worksheet B Tax Tables Complete the Earned Income Worksheet, later, in these instructions. 1040 and 1040-SR filers. Complete line 27; Schedule 2, lines 5, 6, and 13; and Schedule 3, line 11 of your return if they apply to you. 1040-NR filers. Complete Schedule 2, lines 5, 6, and 13; and Schedule 3, line 11 of your return if they apply to you. Caution.Use this worksheet only if you meet each of the items discussed under line 3 of Credit Limit Worksheet A, including that you are not filing Form 2555. 1. Enter the amount from Schedule 8812, line 12 1. _____ 2. Number of qualifying children under 17 with the required social security number: ____ × $1,600. Enter the result 2. _____ TIP: The number of children you use for this line is the same as the number of children you used for line 4 of Schedule 8812. 3. Enter your earned income from line 7 of the Earned Income Worksheet 3. _____ 4. Is the amount on line 3 more than $2,500? 4. _____ ❑ No. Leave line 4 blank, enter -0- on line 5, and go to line 6. ❑ Yes. Subtract $2,500 from the amount on line 3. Enter the result. 5. Multiply the amount on line 4 by 15% (0.15) and enter the result 5. _____ 6. On line 2 of this worksheet, is the amount $4,800 or more? ❑ No. If you are a bona fide resident of Puerto Rico and line 5 above is less than line 1 above, go to line 7. Otherwise, leave line 7 through 10 blank, enter -0- on line 11, and go to line 12. ❑ Yes. If line 5 above is equal to or more than line 1 above, leave lines 7 through 10 blank, enter -0- on line 11, and go to line 12. Otherwise, go to line 7. 7. *If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA taxes, use the Additional Medicare Tax and RRTA Tax Worksheet to figure the amount to enter; otherwise enter the following amounts. 7. _____ Social security tax withheld from Form(s) W-2, box 4, and Puerto Rico Form(s) 499R-2/W-2PR, box 21, and Medicare tax withheld from Form(s) W-2, box 6, and Puerto Rico Form(s) 499R-2/W-2PR, box 23. 8. *Enter the total of any amounts from — Schedule 1, line 15; Schedule 2, line 5; Schedule 2, line 6; and Schedule 2, line 13. 8. _____ 9. Add lines 7 and 8. Enter the total 9. _____ Credit Limit Worksheet B—Continued 10. 1040 and 1040-SR filers. Enter the total of the amounts from Form 1040 or 1040-SR, line 27, and Schedule 3, line 11. 1040-NR filers. Enter the amount from Schedule 3, line 11. 10. _____ 11. Subtract line 10 from line 9. If the result is zero or less, enter -0- 11. _____ 12. Enter the larger of line 5 or line 11 12. _____ 13. Enter the smaller of line 2 or line 12 13. _____ 14. Is the amount on line 13 of this worksheet more than the amount on line 1? ❑ No. Subtract line 13 from line 1. Enter the result. ❑ Yes. Enter -0-. 14. _____ Next, figure the amount of any of the following credits that you are claiming. Mortgage interest credit, Form 8396. Adoption credit, Form 8839. Residential clean energy credit, Form 5695, Part I. District of Columbia first-time homebuyer credit, Form 8859. Then, go to line 15. 15. Enter the total of the amounts from — Schedule 3, line 5a; Schedule 3, line 6c; Schedule 3, line 6g; and Schedule 3, line 6h. 15. _____ Enter this amount on line 4 of the Credit Limit Worksheet A. * If married filing jointly, include your spouse’s amounts with yours when completing lines 7 and 8. Earned Income Chart — Line 18a IF you... AND you... THEN enter on line 18a... have net earnings from self-employment use either optional method to figure those net earnings, the amount figured using the Earned Income Worksheet next (even if you are also taking the EIC). are taking the EIC on Form 1040 or 1040-SR, line 27, completed Worksheet B, relating to the EIC, in your Instructions for Form 1040, your earned income from Worksheet B (in your Instructions for Form 1040), line 4b, plus all of your nontaxable combat pay if you did not elect to include it in earned income for the EIC. If you were a member of the clergy, subtract (a) the rental value of a home or the nontaxable portion of an allowance for a home furnished to you (including payments for utilities), and (b) the value of meals and lodging provided to you, your spouse, and your dependents for your employer’s convenience. did not complete Worksheet B, relating to the EIC, in your Instructions for Form 1040, your earned income from Step 5 of the EIC instructions in your tax return instructions, plus all of your nontaxable combat pay if you did not elect to include it in earned income for the EIC. are not taking the EIC the amount figured using the Earned Income Worksheet next. Earned Income Worksheet Before you begin: ✓ Use this worksheet only if you were sent here from the Credit Limit Worksheet B, earlier, or the instructions for line 18a. ✓ Disregard community property laws when figuring the amounts to enter on this worksheet. ✓ If married filing jointly, include your spouse's amounts with yours when completing this worksheet. 1. a. Enter the amount from line 1z of Form 1040, 1040-SR, or 1040-NR 1a. _____ b. Enter the amount of any nontaxable combat pay received. Also enter this amount on Schedule 8812, line 18b. This amount will be reported either on line 1i of Form 1040 or 1040-SR, or should be shown in Form(s) W-2, box 12, with code Q 1b. _____ Next, if you are filing Schedule C, F, or SE, or you received a Schedule K-1 (Form 1065), go to line 2a. Otherwise, skip lines 2a through 2e and go to line 3. 2. a. Enter any statutory employee income reported on line 1 of Schedule C 2a. _____ b. Enter any net profit or (loss) from Schedule C, line 31, and Schedule K-1 (Form 1065), box 14, code A (other than farming). Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. Do not include on this line any statutory employee income or any other amounts exempt from self-employment tax. Options and commodities dealers must add any gain or subtract any loss (in the normal course of dealing in or trading section 1256 contracts) from section 1256 contracts or related property 2b. _____ c. Enter any net farm profit or (loss) from Schedule F, line 34, and from farm partnerships, Schedule K-1 (Form 1065), box 14, code A*. Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. Do not include on this line any amounts exempt from self-employment tax 2c. _____ d. If you used the farm optional method to figure net earnings from self-employment, enter the amount from Schedule SE, line 15. Otherwise, skip this line and enter on line 2e the amount from line 2c 2d. _____ e. If line 2c is a profit, enter the smaller of line 2c or line 2d. If line 2c is a (loss), enter the (loss) from line 2c 2e. _____ 3. Combine lines 1a, 1b, 2a, 2b, and 2e. If zero or less, stop. Do not complete the rest of this worksheet. Instead, enter -0- on line 3 of Credit Limit Worksheet B or line 18a of Schedule 8812, whichever applies 3. _____ 4. Enter the Medicaid waiver payment amounts excluded from income on Schedule 1 (Form 1040), line 8s, unless you choose to include these amounts in earned income. See the instructions for Schedule 1, line 8s. If you and your spouse both received Medicaid waiver payments during the year, you and your spouse can make different choices about including the full amount of your payments in earned income. Enter only the amount of the Medicaid waiver payments that you or your spouse, if filing a joint return, do not want to include in earned income. To include all nontaxable Medicaid waiver payment amounts in earned income, enter -0- 4. _____ 5. Enter the amount from Schedule 1 (Form 1040), line 15 5. _____ 6. Add lines 4 and 5 6. _____ 7. Subtract line 6 from line 3 7. _____ If you were sent here from Credit Limit Worksheet B, enter this amount on line 3 of that worksheet. If you were sent here from the instructions for line 18a, enter this amount on line 18a of Schedule 8812. *If you have any Schedule K-1 amounts and you are not required to file Schedule SE, complete the appropriate line(s) of Schedule SE. Put your name and social security number on Schedule SE and attach it to your return. Additional Medicare Tax and RRTA Tax Worksheet If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA taxes, use this worksheet to figure the amount to enter on line 21 of Schedule 8812 and line 7 of Credit Limit Worksheet B. Social security tax, Medicare tax, and Additional Medicare Tax on Wages. 1. Enter the social security tax withheld (Form(s) W-2, box 4, and Puerto Rico Form(s) 499R-2/W-2PR, box 21) 1. _____ 2. Enter the Medicare tax withheld (Form(s) W-2, box 6, and Puerto Rico Form(s) 499R-2/W-2PR, box 23). These boxes include any Additional Medicare Tax withheld 2. _____ 3. Enter any amount from Form 8959, line 7 3. _____ 4. Add lines 1, 2, and 3 4. _____ 5. Enter the Additional Medicare Tax withheld (Form 8959, line 22) 5. _____ 6. Subtract line 5 from line 4 6. _____ Additional Medicare Tax on Self-Employment Income. 7. Enter one-half of the Additional Medicare Tax, if any, on self-employment income (one-half of Form 8959, line 13) 7. _____ Tier 1 RRTA taxes as an employee of a railroad (enter amounts on lines 8, 9, 10, and 11) or employee representative (enter amounts on lines 12, 13, 14, and 15). Do not include amounts in Form W-2, box 14, that are identified as Additional Medicare Tax or Tier 2 tax. Do not include amounts shown on Form CT-2 on line 3 for Additional Medicare Tax or line 4 for Tier 2 tax. 8. Enter the Tier 1 tax (Form(s) W-2, box 14) 8. _____ 9. Enter the Medicare tax (Form(s) W-2, box 14) 9. _____ 10. Enter the Additional Medicare Tax, if any, on RRTA compensation as an employee (Form 8959, line 17). Do not use the same amount from Form 8959, line 17, for both this line 10 and line 14 10. _____ 11. Add lines 8, 9, and 10 11. _____ 12. Enter one-half of Tier 1 tax (one-half of Forms CT-2, line 1, for all 4 quarters of 2023) 12. _____ 13. Enter one-half of Tier 1 Medicare tax (one-half of Forms CT-2, line 2, for all 4 quarters of 2023) 13. _____ 14. Enter one-half of the Additional Medicare Tax, if any, on RRTA compensation as an employee representative (one-half of Form 8959, line 17). Do not use the same amount from Form 8959, line 17, for both this line 14 and line 10 14. _____ 15. Add lines 12, 13, and 14 15. _____ Line 21 Amount. 16. Add lines 6, 7, 11, and 15. Enter here and on line 21 of Schedule 8812 and, if applicable, line 7 of Credit Limit Worksheet B 16. _____
