Additional Child Tax Credit
Federal tax law allows a taxpayer to claim a child tax credit of up to $1,000 for each qualifying child claimed as a dependent on a tax return.
If the total credit amount for all qualifying children exceeds the amount of tax owed for the year, the IRS requires to prepare IRS Form 8812 to calculate an alternative refundable credit called the Additional Child Tax Credit.
To complete Form 8812
If the IRS requires additional information on a qualifying child, Schedule 8812 is used to verify a child for the Child Tax Credit or the Additional Child Tax Credit. There are two situations when the form is used.
The child being claimed for the Child Tax Credit has an ITIN number. This form is not needed for a child with an SSN or ATIN number.
The Child Tax Credit is limited due to less tax owed. The form is used to determine if a dependent may be a qualifying child for the Additional Child Tax Credit, which is the refundable portion of the Child Tax Credit. This means a taxpayer could receive some of the credit as a refund even if taxes are not owed.
For more information on Schedule 8812 and ITIN numbers, see the IRS Instructions for Schedule 8812.
Article ID: 45
Created: Thu, Jul 14, 2016
Last Updated: Mon, Jan 16, 2017
Online URL: //kb.erosupport.com/article-45.html