1040 Sch 8812 Instr

Department of the Treasury
Internal Revenue Service

2020 Instructions for Schedule 8812
(Rev. January 2021)

Additional Child
Tax Credit
Section references are to the Internal Revenue
Code unless otherwise noted.

Future Developments
For the latest information about developments related to Schedule 8812 and its instructions, such as legislation enacted after
they were published, go to IRS.gov/
Schedule8812.

What’s New
Earned income figured for additional
child tax credit. Recent legislation for 2020
allows an election to use prior year earned
income when figuring the additional child
tax credit. See Line 6a, later, for more information.

Reminder
Delayed refund for returns claiming
ACTC. The IRS cannot issue refunds before
mid-February 2021 for returns that properly
claim the ACTC. This time frame applies to
the entire refund, not just the portion associated with the ACTC.

General
Instructions

!

If you file Form 2555, you cannot
claim the ACTC.

CAUTION

Who Should Use Schedule 8812
First, complete the Child Tax Credit and
Credit for Other Dependents Worksheet that
applies to you. See the instructions for Form
1040 or 1040-SR, line 19, or the instructions
for Form 1040-NR, line 19. If you meet the
condition given in the TIP at the end of your
Child Tax Credit and Credit for Other Dependents Worksheet, use Schedule 8812 to
see if you can take the ACTC.

Use Schedule 8812 (Form 1040) to figure the additional child tax credit (ACTC). The ACTC
may give you a refund even if you do not owe any tax.

Taxpayer Identification Number
Requirements

and its instructions for more information, including whether an exception applies.

Each qualifying child must have the required social security number (SSN). If
you have a qualifying child who does not
have the required SSN, you cannot use the
child to claim the ACTC on either your original or an amended 2020 return. The required
SSN is one that is valid for employment and
is issued before the due date of your 2020 return (including extensions).

Effect of Credit on Welfare
Benefits

You must have a taxpayer identification
number by the due date of your return. If
you, or your spouse if filing jointly, do not
have an SSN or IRS individual taxpayer
identification number (ITIN) issued on or before the due date of your 2020 return (including extensions), you cannot claim the ACTC
on either your original or an amended 2020
return.
If you apply for an ITIN on or before the
due date of your 2020 return (including extensions) and the IRS issues you an ITIN as a
result of the application, the IRS will consider your ITIN as issued on or before the due
date of your return.

Specific
Instructions

Improper Claims

Part I — All Filers

If you erroneously claim the child tax credit
(CTC), credit for other dependents (ODC), or
ACTC, even though you are not eligible for
the credit, and it is later determined that your
error was due to reckless or intentional disregard of the CTC, ODC, or ACTC rules, you
will not be allowed to claim any of these
credits for 2 years. If it is determined that
your error was due to fraud, you will not be
allowed to claim any of these credits for 10
years. You may also have to pay penalties.

Line 6a

Form 8862 may be required. If your CTC,
ACTC, or ODC for a year after 2015 was denied or reduced for any reason other than a
math or clerical error, you must attach Form
8862 to your 2020 return to claim the ACTC
unless an exception applies. See Form 8862
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Jan 12, 2021

Any refund you receive as a result of taking
the ACTC cannot be counted as income
when determining if you or anyone else is eligible for benefits or assistance, or how much
you or anyone else can receive, under any
federal program or under any state or local
program financed in whole or in part with
federal funds. These programs include Temporary Assistance for Needy Families
(TANF), Medicaid, Supplemental Security
Income (SSI), and Supplemental Nutrition
Assistance Program (formerly food stamps).
In addition, when determining eligibility, the
refund cannot be counted as a resource for at
least 12 months after you receive it. Check
with your local benefits coordinator to find
out if your refund will affect your benefits.

Cat. No. 59790P

Earned income. Use the Earned Income
Chart, later, to determine the amount to enter
on line 6a. You can also make an election to
use your prior year earned income to determine the amount to enter on line 6a. See
Election to use prior year earned income,
next.
Election to use prior year earned income.
You may be able to use your 2019 earned income on line 6a to figure your additional
child tax credit. You can make this election
if your 2019 earned income was greater than
your 2020 earned income. Use the Earned Income Chart, later, twice—once with 2019
amounts and once with 2020 amounts to see

if your 2019 earned income is greater than
your 2020 earned income.
To make this election, enter “PYEI” and
the amount of your 2019 earned income in
the space next to Form 1040, 1040-SR, or
1040-NR, line 28.

Line 6b
Nontaxable combat pay. Enter on line 6b
the total amount of nontaxable combat pay

that you, and your spouse if filing jointly, received in 2020. This amount should be
shown in Form W-2, box 12, with code Q.
If you are using 2019 earned income on
line 6a, enter your 2019 nontaxable combat
pay on line 6b.

Part II — Certain Filers Who
Have Three or More
Qualifying Children
Line 9
Additional Medicare Tax and tier 1 RRTA
tax. Use the Line 9 Worksheet to figure the

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amount to enter on line 9 if your employer
withheld or you paid Additional Medicare
Tax or tier 1 RRTA tax.

Earned Income Chart — Line 6a
IF you...

AND you...

THEN enter on line 6a...

have net earnings from use either optional method to
self-employment
figure those net earnings,

the amount figured using the Earned Income Worksheet in Pub. 972 (even if you are also taking the EIC).

are taking the EIC on
Form 1040 or
1040-SR, line 27,

completed Worksheet B, relating
to the EIC, in your Instructions
for Forms 1040 and 1040-SR,

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,

your earned income from Step 5 of the EIC instructions in your tax return instructions, plus all of your nontaxable combat
pay if you did not elect to include it in earned income for 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 as a statutory
employee,
are not self-employed or filing
Schedule SE or C for the above
reasons,

are not taking the EIC

the amount figured using the Earned Income Worksheet in Pub. 972.

your earned income figured as follows:
Line 1 of Form 1040 or 1040-SR, or line 1a of Form 1040-NR.
Subtract, if included on line 1 of Form 1040 or 1040-SR, or line 1a of Form 1040-NR, 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 1 of Form 1040 or 1040-SR, or line 1a of Form
1040-NR).
• 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 1 of Form 1040 or 1040-SR, or line 1a of Form 1040-NR). 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.
• Medicaid waiver payments you excluded from income (see the instructions for Schedule 1
(Form 1040), line 8, and Pub. 525 for information about these payments), unless you choose to
include this amount in earned income, in which case subtract zero.
Add all your nontaxable combat pay from Form(s) W-2, box 12, with code Q.
Earned Income =

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+

Line 9 Worksheet

Keep for Your Records

If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA taxes, use this worksheet to figure the amount to enter on line 9.
Social security tax, Medicare tax, and Additional Medicare Tax on Wages.
1. Enter the social security tax withheld (Form(s) W-2, box 4)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Enter the Medicare tax withheld (Form(s) W-2, box 6). Box 6 includes any Additional Medicare Tax withheld . . . . . . . . . . . . . . . . . . . 2.
3. Enter any amount from Form 8959, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Add lines 1, 2, and 3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Enter the Additional Medicare Tax withheld (Form 8959, line 22)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
Additional Medicare Tax on Self-Employment Income.
7. Enter one-half of the Additional Medicare Tax, if any, on self-employment income (one-half of Form 8959, line 13)

. . . . . . . . . . . . . . . 7.

Tier 1 RRTA taxes as an employee of a railroad (enter amounts on lines 8, 9, 10, and 11) or employee representative (enter amounts on lines 12, 13, 14, and 15). Do not include
amounts in Form W-2, box 14, that are identified as Additional Medicare Tax or Tier 2 tax. Do not include amounts shown on Form CT-2 on line 3 for Additional Medicare Tax or
line 4 for Tier 2 tax.
8. Enter the Tier 1 tax (Form(s) W-2, box 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9. Enter the Medicare Tax (Form(s) W-2, box 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Enter the Additional Medicare Tax, if any, on RRTA compensation as an employee (Form 8959, line 17). Do not use the same amount from
Form 8959, line 17, for both this line 10 and line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Add lines 8, 9, and 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter one-half of Tier 1 tax (one-half of Forms CT-2, line 1, for all 4 quarters of 2020) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Enter one-half of Tier 1 Medicare tax (one-half of Forms CT-2, line 2, for all 4 quarters of 2020) . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. Enter one-half of the Additional Medicare Tax, if any, on RRTA compensation as an employee representative (one-half of Form 8959, line 17).
Do not use the same amount from Form 8959, line 17, for both this line 14 and line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Add lines 12, 13, and 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
Line 9 Amount
16. Add lines 6, 7, 11, and 15. Enter here and on Schedule 8812, line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

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