What is IRS Tax Form 8812?

Tax season can be a stressful time for many Americans, especially those who have children and are claiming certain tax credits.

One important tax form to be aware of is IRS Form 8812, also known as the Child Tax Credit and Additional Child Tax Credit.

In this article, we will explore what IRS Tax Form 8812 is, who can use it, and how to fill it out properly.

What is the Additional Child Tax Credit?

The Child Tax Credit is a non-refundable tax credit that can be worth up to $2,000 per qualifying child. However, if the amount of the credit exceeds the taxpayer’s tax liability, they may not be able to receive the full credit amount.

The Additional Child Tax Credit is a refundable tax credit that can be claimed by taxpayers who have at least one qualifying child. It is designed to help families who may not have enough tax liability to claim the full amount of the Child Tax Credit.

This is where the Additional Child Tax Credit comes in. If the taxpayer is eligible, they can claim the credit on Form 8812 to receive a refund of up to 15% of their earned income over $2,500, up to a maximum of $1,400 per qualifying child.

Who is eligible to use Form 8812?

To be eligible to use Form 8812, the taxpayer must meet certain requirements. First and foremost, they must have at least one qualifying child who meets the requirements for the Child Tax Credit.

Additionally, the taxpayer must have earned income of at least $2,500 for the tax year in question. They must also have an additional Child Tax Credit amount greater than zero on their tax return.

It’s important to note that the taxpayer must also have a valid Social Security number or Individual Taxpayer Identification Number (ITIN) for each qualifying child.

How to fill out Form 8812

Filling out Form 8812 may seem daunting at first, but it’s actually a straightforward process. The form itself is only one page long and consists of four parts.

Part I: Identification

The first part of the form asks for basic identification information, including the taxpayer’s name, Social Security number, and the tax year in question. It also asks for the names and Social Security numbers of each qualifying child.

Part II: Additional Child Tax Credit

Part II is where the taxpayer will calculate the amount of their Additional Child Tax Credit. This section requires the taxpayer to enter their earned income, as well as any nontaxable combat pay they may have received.

The taxpayer will then enter the amount of their Child Tax Credit from their tax return, as well as any other credits they may be claiming. The form will automatically calculate the amount of the Additional Child Tax Credit the taxpayer is eligible for.

Part III: Refundable Credit

Part III is where the taxpayer will enter the amount of their refundable credit. This is the amount that the taxpayer is eligible to receive as a refund.

Part IV: Signature

The final part of form 8812 requires the taxpayer to sign and date the form, certifying that the information they have provided is accurate to the best of their knowledge.

Most Online tax programs provide step-by-step instructions

Most online tax programs provide step-by-step instructions and prompts, making it easier to navigate the filing process, especially for specific forms like 8812.

Overall, filing Form 8812 online can save you time and effort while ensuring that your information is submitted accurately and securely.