How to Write Schedule 8812 Form 1040: The Only Guide You Need

How To Write A Schedule 8812 Form 1040

Before anything, let’s talk about this tax credit. The Additional Child Tax Credit is a significant financial relief for families with children. Through this tax credit, you can reduce the income tax that you owe, depending on the number of qualified children.

Important Parts of Schedule 8812 (Form 1040)

Schedule 8812 was designed to calculate the ACTC of eligible taxpayers. As soon as the amount has been derived, you will need to report it on Form 1040. 

Before you can claim your ACTC, you will need to file Schedule 8812. You will need to complete these parts:

Part I – CTC

The first thing you need to do is determine if you are eligible for CTC. You need to fill out the lines based on the number of your eligible children and your adjusted gross income. 

Part II – ACTC

Remember to list down the name and Social Security Number of each qualifying child. The definition of a qualifying child includes the following:

• Age: Should be below 17 at the end of the tax year
• Relationship: Should be your son, daughter, stepchild, foster child, sister, brother, stepbrother, stepsister, or a descendant of these
• Residency: The child should be residing with you for over half of the tax year
• Support: The child should not be able to provide over half of their support
• Dependent Status: The child needs to be a dependent on your tax return
• Identification: The child should have a valid Social Security Number

Part III – Earned Income Calculation

The third part you need in writing Schedule 8812 Form 1040 is the earned income calculation. In this part, you will need to calculate your earned income if you have three or more children who qualify.

Part IV – ACTC Calculation

You will then need to follow the step-by-step instructions in computing your ACTC amount. 

Remember to file Schedule 8812 together with Form 1040 so that proper credit allocation can be done. 

To claim the ACTC, you will need to know how to draft Schedule 8812 Form 1040. Now that you know how to write this form, here is a step-by-step guide on how you can file it:

1. Check eligibility

Before anything, you have to check if your child meets the eligibility requirements. Check if his age, residency, relationship, support, and identification meet the criteria for CTC. 

2. Complete Schedule 8812

Since CTC is non-refundable, you will need to accomplish Schedule 8812 for additional CTC. 

3. Check income requirement

Does your earned income meet the minimum requirement for eligibility? Make sure you have checked this too.

4. Prepare necessary requirements

The next step is to prepare the essential documents. If you don’t have one yet, make sure to prepare your child’s Social Security Number. 

5. Report CTC on Form 1040

You will then need to report your credit amount on your tax return.

Once you’re done with all of these, all that’s left to do is to submit your tax return before the deadline.