When you prepare Schedule 8812 and calculate the Child Tax Credit you’re eligible for, you need to calculate the amount of gross income that you earn. Your earned income includes income you receive from work or by actively engaging in a business. It doesn’t include most of the taxable income you earn from investing, such as the interest from a savings account or the profit you earn from trading stocks during the year. The amount that you receive will be reconciled to the amount that you are eligible for when you prepare your 2021 tax return. Most families will receive about one-half of their tax credit through the advance payments. If you receive too little, you will be due an additional amount on your tax return.

  1. The CTC and ACTC are credits for individuals who claim a child as a dependent if the child meets certain conditions.
  2. Description of benefits and details at hrblock.com/guarantees.
  3. Your child turned 17 on December 30, 2023, and is a citizen of the United States and claimed as a dependent on your return.
  4. A tax refund is a state or federal reimbursement to a taxpayer who overpaid taxes.

In the unlikely event that you receive too much, you might have to pay the excess back, depending on your income level. The Child Tax Credit has been expanded by the American Rescue Plan Act, that was enacted in March of 2021. Part of this expansion is to advance the 2021 tax credit to families by sending them direct payments during the last half of 2021 rather than having them wait until they prepare their 2021 taxes in 2022. Most families do not need to do anything to get their advance payment. Normally, the IRS will calculate the payment amount based on your 2020 tax return.

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. With TurboTax Live Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or, get unlimited help and advice from tax experts while you do your taxes with TurboTax Live Assisted.

And if you want to file your own taxes, you can still feel confident you’ll do them right with TurboTax as we guide you step by step. No matter which way you file, we guarantee 100% accuracy and your maximum refund. • The Child Tax Credit (CTC) is worth up to $2,000 per qualifying child (tax year 2023).

Instructions for Schedule 8812 (

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. Use Schedule 8812 (Form 1040) to figure your child tax credits, to schedule 8812 taxslayer report advance child tax credit payments you received in 2021, and to figure any additional tax owed if you received excess advance child tax credit payments during 2021. Like all tax credits, the additional child tax credit works by reducing the amount of tax you owe.

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. For each dependent for whom you are claiming the ODC, you must check the “Credit https://turbo-tax.org/ 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. 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.

What’s Schedule 8812?

You will first need to complete the form using the Schedule 8812 instructions and then enter the results on your Form 1040. You’ll need to include the completed schedule with you tax return. 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. 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. For most taxpayers, the credit may be reduced if you have adjusted gross income that’s higher than the threshold that applies to your filing status. 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.

The quickest way to get a copy of your tax transcript is to go to IRS.gov/Transcripts. Click on either “Get Transcript Online” or “Get Transcript by Mail” to order a free copy of your transcript. If your dependent qualifies for one of these credits, TurboTax will automatically add it to your return.

Income limitations

Direct deposit also avoids the possibility that your check could be lost, stolen, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. The IRS issues more than 90% of refunds in less than 21 days.

Schedule 8812 (Child Tax Credit) is used to claim the Child Tax Credit (CTC), Credit for Other Dependents (ODC), and Additional Child Tax Credit (ACTC). The CTC and ODC are nonrefundable credits and only provide a credit up to the amount of tax owed. The ACTC is a refundable credit and provides a refund even if no tax is owed. Go to IRS.gov/IdentityTheft, the IRS Identity Theft Central webpage, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

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. The ODC is for individuals with a dependent who meets the following conditions. The maximum credit amount of your CTC and ODC may be reduced if either (1) or (2) applies. If your child is age 17 or older at the end of 2023, see Credit for Other Dependents (ODC) next. An adopted child includes a child lawfully placed with you for legal adoption.

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). Answer simple questions and TurboTax Free Edition takes care of the rest.

Kids are expensive, and Uncle Sam knows that as well as any parent does. Of course, you must have qualifying kids to be eligible for a child tax credit. But not everyone who has kids will qualify for the child tax credit and additional child tax credit.

Just enter your dependent information and complete your return as you would normally. When you’re done, we’ll fill out the schedule and file it along with your return. For tax year 2020, The CAA allows taxpayers to use their 2019 earned income if it was higher than their 2020 earned income in calculating the Additional Child Tax Credit as well as the Earned Income Tax Credit . If your available Child Tax Credit is greater than your tax liability, the Child Tax Credit can only reduce your tax bill to zero — you don’t get any unused portion of the credit back as a refund. The IRS also treats your child as living with you when they’re away at school or in a juvenile detention facility, or when you’re away on business, receiving medical treatment, or on active duty in the military.

Get unlimited live help from tax experts plus a final review with TurboTax Live Assisted Basic. If you meet all other requirements but the amount of tax you owe at the end of the year is either zero or an amount that’s less than the credit, you can’t claim the full Child Tax Credit of $2,000. However, you may be eligible for the reduced Additional Child Tax Credit by completing Schedule 8812 with your tax return. 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. 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.