Schedule 8812 is the form you file with your tax return to claim the refundable part of the Child Tax Credit

Schedule 8812 is an IRS form that lets you claim the Additional Child Tax Credit, which is the refundable portion of the Child Tax Credit. The regular Child Tax Credit reduces the taxes you owe; the Additional Child Tax Credit can give you money back even if you owe no tax at all. You file Schedule 8812 along with your Form 1040 to claim this refund.

Not everyone needs Schedule 8812. If your regular Child Tax Credit already covers all the tax you owe, you do not need it. But if you have children and earned income, you may be may have access to to a refund through this form even if your tax bill is zero.

Key Takeaways

  • Schedule 8812 claims the refundable part of the Child Tax Credit, which can send you money even if you owe no federal income tax.
  • You only need Schedule 8812 if your Child Tax Credit is larger than the tax you owe, leaving a remainder to refund.
  • The form requires information about your children, your earned income, and your filing status.
  • Most tax software will calculate whether you need Schedule 8812 and fill it out automatically if you do.

The difference between the regular Child Tax Credit and the refundable part

The Child Tax Credit is worth up to $2,000 per child under age 17. When you file your return, this credit first reduces the federal income tax you owe. If the credit is larger than your tax bill, the leftover amount is the Additional Child Tax Credit — and that is what Schedule 8812 claims.

For example: if you owe $800 in federal tax and have a $2,000 Child Tax Credit for one child, the credit pays your $800 tax bill. You have $1,200 left over. Schedule 8812 lets you claim that $1,200 as a refund. Without Schedule 8812, you would lose that $1,200.

The refundable amount is limited. The Additional Child Tax Credit cannot exceed 15 percent of your earned income above $2,500. If you earned $20,000, for instance, the maximum refund you could claim is 15 percent of $17,500, which is $2,625. Tax software calculates this limit automatically.

Who needs to file Schedule 8812

You need Schedule 8812 if you have earned income, have dependent children under 17, and your Child Tax Credit is larger than the federal income tax you owe. Earned income means wages, self-employment income, or other compensation you received for work — not investment income or Social Security.

If you are self-employed, you also need Schedule 8812 to claim the Additional Child Tax Credit. The form uses your net self-employment income (after the self-employment tax deduction) to calculate the refundable amount.

You do not need Schedule 8812 if your tax bill is higher than your Child Tax Credit, because the credit will cover all of it and there is nothing left to refund. You also do not need it if you have no earned income, because the refundable portion is not available to you.

What information you need to complete Schedule 8812

Schedule 8812 asks for your filing status, your earned income for the year, and information about each may have access to child. You will need your Social Security number, your spouse's Social Security number (if filing jointly), and the Social Security number of each child you are claiming.

The form also requires your total income and the amount of your regular Child Tax Credit. If you are filing electronically through tax software, you enter this information once and the software carries it through to Schedule 8812 automatically. If you are filing by hand, you transfer numbers from your Form 1040 and your child information worksheet.

Keep copies of your children's birth certificates or Social Security cards available while you work on the form, even though you do not mail them in. The IRS may ask for proof of the child's age and identity if they review your return.

How tax software handles Schedule 8812

Most tax preparation software — including free options like IRS Free File — will ask you questions about your children and income, then automatically determine whether you need Schedule 8812. If you do, the software fills it out and includes it with your return. You do not have to decide whether to file it yourself.

If you are using software and it shows Schedule 8812 in your return package, that means the program calculated that you have a refundable credit. Review the earned income figure and the number of may have access to children to make sure they are correct, because errors there will change the refund amount.

If you are preparing your return by hand or with a tax professional, ask them directly whether Schedule 8812 applies to you. A tax preparer can tell you in minutes whether the form will increase your refund.

Common reasons the Additional Child Tax Credit is smaller than expected

The refundable portion of the Child Tax Credit is limited to 15 percent of your earned income above $2,500. If you earned $15,000, the maximum Additional Child Tax Credit is 15 percent of $12,500, which is $1,875 — even if you have two children and a $4,000 regular credit. Low-income earners often hit this limit.

You also cannot claim a refund larger than your regular Child Tax Credit. If your credit is $2,000 and your tax bill is $500, the refund is $1,500, not more. The refundable amount is always the credit minus the tax you owe, capped at the 15 percent calculation.

If you received an advance Child Tax Credit payment in 2021 or 2022 (during the expanded credit period), that amount reduces the credit you can claim now. The IRS sends a letter showing how much you received; you report that on your return, and it lowers your refund.

What happens after you file Schedule 8812

If the IRS accepts your return, the refund from Schedule 8812 is processed along with any other refund you are owed. You receive it by direct deposit or check, depending on how you requested it. The timeline is usually two to three weeks for direct deposit and longer for a mailed check.

If the IRS has questions about your return, they may ask for proof that your children meet the requirements — proof of age, Social Security numbers, or evidence that they lived with you. Keep your documentation organized in case you need to respond to a notice.

You do not need to do anything else once you file. Schedule 8812 is part of your annual tax return, and you file it the same way you file the rest of your return — electronically or by mail.

Frequently Asked Questions

Can I claim the Additional Child Tax Credit if I did not work during the year?

No. The refundable portion of the Child Tax Credit requires earned income. If you had no wages or self-employment income, you can still claim the regular (non-refundable) Child Tax Credit up to the amount of tax you owe, but you cannot use Schedule 8812 to claim a refund.

What if I received advance Child Tax Credit payments last year?

You report the amount you received on your current return, and it reduces the credit you can claim now. The IRS sends a letter (Form 6419) showing the total advance payments. You enter this amount on your return, which lowers your refund or increases the tax you owe.

Do I need Schedule 8812 if I am married and filing separately?

You can file Schedule 8812 if you are married filing separately, but the refundable credit is limited to $1,700 per child instead of the full amount. Most married couples benefit from filing jointly because the limit is higher.

What if my child does not have a Social Security number?

Your child must have a valid Social Security number to claim the Child Tax Credit or the Additional Child Tax Credit. If your child was born in the United States, you can explore for a number through the Social Security Administration. If your child is not a U.S. citizen, you may not be able to claim the credit.

Can I amend my return to add Schedule 8812 if I forgot to file it?

Yes. You can file Form 1040-X (Amended U.S. Individual Income Tax Return) to add Schedule 8812 and claim the refund you missed. You have three years from the original due date of your return to amend and claim the credit.