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Federal Tax Form 8812 - Additional Child Tax Credit Instructions

Instructions for Form 8812

Purpose of Form

Use Form 8812 to figure your additional child tax credit. The additional child tax credit may give you a refund even if you do not owe any tax.

Who Should Use Form 8812

First, complete the Child Tax Credit Worksheet that applies to you. See the instructions for Form 1040, line 52, Form 1040A, line 32, or Form 1040NR, line 47. If you meet the condition given in the TIP at the end of your Child Tax Credit Worksheet, use Form 8812 to see if you can take the additional child tax credit.

Effect of Credit on Welfare Benefits

Any refund you receive as a result of taking the additional child tax credit will not be used to determine if you are eligible for the following programs, or how much you can receive from them. But if the refund you receive because of the additional child tax credit is not spent within a certain period of time, it may count as an asset (or resource) and affect your eligibility.

  • Temporary Assistance for Needy Families (TANF).
  • Medicaid and supplemental security income (SSI).
  • Food stamps and low-income housing.

Nontaxable Combat Pay

Enter on line 4b the total amount of nontaxable combat pay that you, and your spouse if filing jointly, received in 2007. This amount should be shown in Form W-2, box 12, with code Q.

Railroad Employees

If you worked for a railroad, include the following taxes in the total on Form 8812, line 7.

  • Tier 1 tax withheld from your pay. This tax should be shown in box 14 of your Form(s) W-2 and identified as “Tier 1 tax.”
  • If you were an employee representative, 50% of the total tier 1 tax you paid for 2007.

1040A Filers

If you, or your spouse if filing jointly, had more than one employer for 2007 and total wages of over $97,500, figure any excess social security and tier 1 railroad retirement (RRTA) taxes withheld. See Pub. 505. Include any excess on Form 8812, line 10.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by Internal Revenue Code section 6103.

The average time and expenses required to complete and file this form will vary depending on individual circumstances. For the estimated averages, see the instructions for your income tax return.

If you have suggestions for making this form simpler, we would be happy to hear from you. See the instructions for your income tax return.

Earned Income Chart—Line 4a

IF you... AND you... THEN enter on line 4a...
have net earnings from selfemployment use either optional method to figure those net earnings the amount figured using Pub. 972.
are taking the EIC on Form 1040, line 66a, or Form 1040A, line 40a completed Worksheet B on page 49 of your Form 1040 instructions your earned income from Worksheet B, 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 or filed Form 1040A your earned income from Step 5 on page 46 of your 1040 instructions or page 40 of your 1040A 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 were self-employed, or you are filing Schedule SE because you were a member of the clergy or you had church employee income, or you are filing Schedule C or C-EZ as a statutory employee the amount figured using Pub. 972.
are not self-employed or filing Schedule SE, C, or C-EZ for the above reasons
your earned income figured as follows: Line 7 of Form 1040 or Form 1040A, or line 8 of Form 1040NR    _____________________

Subtract, if included on line 7 (line 8 for Form 1040NR), any:

  • Taxable scholarship or fellowship grant not reported on a Form W-2.
  • Amount received for work performed while an inmate in a penal institution (put “PRI” and the amount subtracted in the space next to line 7 of Form 1040 or 1040A (line 8 for Form 1040NR)).
  • Amount received as a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (put “DFC” and the amount subtracted in the space next to line 7 of Form 1040 or Form 1040A (line 8 for Form 1040NR)). This amount may be shown in box 11 of your Form W-2. If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity.
  • Amount from Form 2555, line 43, or Form 2555-EZ, line 18.
  - ____________________
Add all your nontaxable combat pay from Form(s) W-2, box 12, with code Q + ____________________
Earned Income  =

 

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