i1040-sch8812--dft

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Department of the Treasury
Internal Revenue Service

2021 Instructions for Schedule 8812

DRAFT AS OF
November 4, 2021

Credit for
Qualifying
Children and
Other
Dependents

Use Schedule 8812 (Form 1040) to figure your child tax credits and an additional tax if you received excess advance child tax credit payments during 2021. For taxpayers meeting certain residency requirements, these credits are a refundable child tax credit (RCTC) and a nonrefundable
credit for other dependents (ODC). For other taxpayers, these credits are a nonrefundable child
tax credit (NCTC), the ODC, and a refundable additional child tax credit (ACTC).

Section references are to the Internal Revenue Code unless otherwise
noted.

Reminders

Future Developments

Delayed refund for returns claiming ACTC. The IRS cannot issue
refunds before mid-February 2022 for returns that properly claim
ACTC. This time frame applies to the entire refund, not just the portion associated with ACTC.

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.

Abbreviations. The following abbreviations will be used in these instructions when appropriate.
• ACTC means additional child tax credit.
• ATIN means adoption taxpayer identification number.
• ITIN means individual taxpayer identification number.
• NCTC means nonrefundable child tax credit.
• ODC means credit for other dependents.
• RCTC means refundable child tax credit.
• SSN means social security number.
• TIN means taxpayer identification number. A TIN may be an

What’s New
Schedule 8812 (Form 1040). The Schedule 8812 (Form 1040) and its
instructions have been revised to be the single source for figuring and
reporting the child tax credits and credit for other dependents. The instructions now include all applicable worksheets for figuring these
credits. As a result, Pub. 972 will not be revised. For prior year versions of Pub. 972 go to IRS.gov/Pub972.
Enhanced child tax credit. For 2021, the child tax credit applies to
qualifying children who have not attained age 18 by the end of 2021.
Also, the initial amount of the child tax credit is increased to $3,600
for each qualifying child who has not attained age 6 by the end of
2021 and $3,000 for each other qualifying child who has not attained
age 18 by the end of 2021. The credit for other dependents has not
been enhanced.

ATIN, an ITIN, or an SSN.
Other abbreviations may be used in these instructions and will be
defined as needed.

General Instructions
Taxpayer Identification Number
Requirements

Simplified refundable child tax credit. If you meet certain residency requirements, your child tax credit will be fully refundable even if
you received no income. If you do not meet the residency requirements, you will figure your child tax credit and additional child tax
credit in a manner similar to how these credits were figured for 2020.

You Must Have a TIN by the Due Date of Your Return
If you, or your spouse if filing jointly, do not have an SSN or ITIN
issued on or before the due date of your 2021 return (including extensions), you cannot claim the RCTC, NCTC, ODC, or ACTC on either
your original or an amended 2021 return.

Letter 6419. If you received advance child tax credit payments during 2021, you will receive Letter 6419. Keep this letter with your tax
records. You will use the information in this letter to figure your child
tax credit on your 2021 tax return or the amount of additional tax you
must report on Schedule 2 (Form 1040).

If you apply for an ITIN on or before the due date of your 2021
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.

Additional tax on excess advance child tax credit payments. If
you received advance child tax credit payments during 2021 and the
credits you figure using Schedule 8812 are less than what you received, you may owe an additional tax. Complete Schedule 8812 to
determine if you must report an additional tax on Schedule 2 (Form
1040).

Each Qualifying Child You Use for RCTC, NCTC, or
ACTC Must Have the Required SSN
If you have a qualifying child who does not have the required SSN,
you cannot use the child to claim the RCTC, NCTC, or ACTC on either your original or an amended 2021 return. The required SSN is
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Nov 03, 2021

Cat. No. 59790P

one that is valid for employment and is issued before the due date of
your 2021 return (including extensions).

dren. The advance payments were early payments of 50% of the
amount of RCTC estimated to be claimed on your 2021 tax return
based on information from either a 2019 or 2020 tax return, including
information provided to the IRS through an online non-filer tool to receive economic impact payments or advance child tax credit payments, and information provided in the child tax credit update portal
on IRS.gov. Changes throughout the year, such as a change in filing
status or change in the number of qualifying children, could impact
the amount of child tax credit you are eligible to receive on your 2021
tax return.

If your qualifying child was born and died in 2021 and you do not
have an SSN for the child, attach a copy of the child's birth certificate,
death certificate, or hospital records. The document must show the
child was born alive.
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 2021 return (including extensions), you may be able
to claim the ODC for that child. See Credit for Other Dependents
(ODC), later.

DRAFT AS OF
November 4, 2021
TIP

Each Dependent You Use for the ODC Must Have a
TIN by the Due Date of Your Return

You may not have received advance child tax credit payments if you unenrolled from receiving the payments.

If you received advance child tax credit payments during 2021 but
the amount of the credits you are eligible for on your 2021 tax return
is less than what you received, you may owe an additional tax. Part III
of Schedule 8812 will be used to determine if you must report an additional tax on Schedule 2 (Form 1040).

If you have a dependent who does not have an SSN, ITIN, or ATIN
issued on or before the due date of your 2021 return (including extensions), you cannot use that dependent to claim the ODC on either your
original or an amended 2021 return.

Letter 6419

If you apply for an ITIN or ATIN for the dependent on or before
the due date of your 2021 return (including extensions) and the IRS
issues the ITIN or ATIN as a result of the application, the IRS will
consider the ITIN or ATIN as issued on or before the due date of your
return.

The IRS will issue Letter 6419, which will report the total amount of
advance child tax credit payments issued to you and the number of
qualifying children the IRS used to figure your advance child tax credit payments. You will need Letter 6419 to figure the amount of child
tax credit to claim on your tax return or the amount of additional tax
you must report. If you did not receive Letter 6419, go to the child tax
credit update portal at IRS.gov/ctcportal or call 800-908-4184 to get
the information needed before completing Schedule 8812.

Improper Claims
If you erroneously claim the RCTC, NCTC, ACTC, or ODC and it is
later determined that your error was due to reckless or intentional disregard of the RCTC, NCTC, ACTC, or ODC rules, you will not be allowed to claim any of these credits for 2 years even if you are otherwise eligible to do so. 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.

Married filing jointly. If you filed as married filing jointly on your
prior year return then both you and your spouse will receive a Letter
6419.

Credits for Qualifying Children

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 tax return to
claim the RCTC, NCTC, ACTC, or ODC unless an exception applies.
See Form 8862, Information To Claim Certain Credits After Disallowance, and its instructions for more information, including whether an
exception applies.

The RCTC, NCTC, 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 RCTC, NCTC, and ACTC, the child must be your dependent, under age 18 at the end of 2021, and meet all the conditions
in Steps 1 through 3 under Who Qualifies as Your Dependent in the
Instructions for Form 1040.

Effect of Credit on Welfare Benefits

Example 1. Your son turned 18 on December 30, 2021. He is a
citizen of the United States and you claimed him as a dependent on
your return. You cannot use him to claim the RCTC, NCTC, or ACTC
because he was not under age 18 at the end of 2021.

Any advance child tax credit payment and any refund you receive as a
result of taking the RCTC or 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 or advance payment 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.

For each qualifying child for whom you are claiming the RCTC,
NCTC, or ACTC, you must check the “child tax credit” box in column
(4) of the Dependents section on page 1 of Form 1040 or 1040-SR for
the child.
Adopted child. An adopted child is always treated as your own child.
An adopted child includes a child lawfully placed with you for legal
adoption.

TIP

Advance Child Tax Credit Payments and
Additional Tax

If your child is age 18 or older at the end of 2021, see Credit for Other Dependents (ODC) next.

Credit for Other Dependents (ODC)

Beginning in July and through December 2021, the IRS issued advance payments of the 2021 RCTC to taxpayers with qualifying chil-

The ODC is for individuals with a dependent who meets the following
conditions.

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1. The person is claimed as a dependent on your return. To determine if an individual is your dependent begin with Step 1 under Who
Qualifies as Your Dependent in the Instructions for Form 1040.

Taxpayers who do not meet the residency requirements described
under Box A or Box B (discussed later) may be eligible to claim the
NCTC, ACTC, and ODC. They will figure their NCTC, ACTC, and
ODC in a manner similar to how these credits were figured for 2020.
Those filers need to complete Part I-A, I-C, II-A, II-B (if applicable),
II-C, and III (if applicable) of Schedule 8812.

2. The person cannot be used by you to claim the RCTC, NCTC,
or ACTC. See Credits for Qualifying Children, earlier.
3. The person was a U.S. citizen, U.S. national, or U.S. resident
alien. For more information, see Pub. 519. If the person is your adopted child, see Adopted child, later.

DRAFT AS OF
November 4, 2021
Specific Instructions

Example 2. Your 10-year-old nephew lives in Mexico and quali-

Part I-A — Child Tax Credit and Credit
for Other Dependents (All Filers)

fies as your dependent. He is not a U.S. citizen, U.S. national, or U.S.
resident alien. You cannot use him to claim the ODC.
For each dependent for whom you are claiming the ODC, you must
check the “credit for other dependents” box in column (4) of the Dependents section on page 1 of Form 1040 or 1040-SR for the dependent.

!

Line 4a

Add the number of boxes checked under “child tax credit” in column
(4) of the Dependents section on Form 1040 or 1040-SR and enter the
result on line 4a.

You cannot use the same child to claim the credits under
Credits for Qualifying Children and the ODC.

CAUTION

!

Adopted child. An adopted child is always treated as your own child.
An adopted child includes a child lawfully placed with you for legal
adoption.

You cannot check both the child tax credit box and the credit for other dependents box for the same person.

CAUTION

Line 4b
Enter the number of children from line 4a that were under age 6 at the
end of 2021 on line 4b.

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 2021, that
child meets condition (3), earlier, to be a qualifying person for the
ODC.

Example 3. You have 3 qualifying children who were ages 15,
10, and 5 at the end of 2021. On line 4a, you enter 3, and on line 4b,
you enter 1.

Residency Requirements

Line 5

For tax year 2021, taxpayers who meet certain residency requirements
described under Box A or Box B (discussed later) may be eligible to
claim the RCTC and ODC. Those filers only need to complete Parts
I-A, I-B, and III (if applicable) of Schedule 8812.

If line 4a is more than zero, enter the amount from the Line 5 Worksheet otherwise, enter -0-.

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Line 5 Worksheet
1. Multiply Schedule 8812, line 4b, by $3,600 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Multiply Schedule 8812, line 4c, by $3,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Add line 1 and line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

DRAFT AS OF
November 4, 2021
4. Multiply Schedule 8812, line 4a, by $2,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter the amount shown below for your filing status
• Married filing jointly — $12,500
• Qualifying widow(er) — $2,500
• Head of household — $4,375
• All other filing statuses — $6,250 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Enter the smaller of line 5 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. Enter the amount shown below for your filing status
• Married filing jointly or Qualifying widow(er) — $150,000
• Head of household — $112,500
• All other filing statuses — $75,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9. Subtract line 8 from Schedule 8812, line 3
• If zero or less, enter -0• If more than zero and not a multiple of $1,000, enter the next multiple of $1,000
For example, if the result is $425, enter $1,000; if the result is $1,025, enter $2,000, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Multiply line 9 by 5% (0.05) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter the smaller of line 7 or line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Subtract line 11 from line 3. Enter on Schedule 8812, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

Box B

Line 6

Check box “B” if you (or your spouse if filing jointly) are a bona fide
resident of Puerto Rico. Generally, you are a bona fide resident of Puerto Rico if, during 2021, you:
• Meet the presence test,
• Do not have a tax home outside of Puerto Rico, and
• Do not have a closer connection to the United States or to a foreign country than to Puerto Rico.

Add the number of boxes checked under “credit for other dependents”
in column (4) of the Dependents section on Form 1040 or 1040-SR
and enter the result on line 6.

!

You cannot check both the child tax credit box and the credit for other dependents box for the same person.

CAUTION

Line 13

For more information on bona fide residence, see Pub. 570, Tax
Guide for Individuals With Income From U.S. Possessions.

Box A

If you check either box A or box B, then go to the instructions for
Part I-B. If you cannot check either box A or box B, then go to the
instructions for Part I-C.

Check box “A” if you (or your spouse if filing jointly) have a principal place of abode in the United States for more than one-half of 2021.
This means your main home was in the 50 states or the District of Columbia for more than one-half of 2021. Your main home can be any
location where you regularly live. Your main home may be your
house, apartment, mobile home, shelter, temporary lodging, or other
location and doesn’t need to be the same physical location throughout
the tax year. You don’t need a permanent address. See Box B, later, if
you are a bona fide resident of Puerto Rico.

Part I-B — Filers Who Check a Box on
Line 13 (RCTC/ODC)

!

If you did not check a box on line 13, do not complete Part
I-B; instead, skip to Part I-C.

CAUTION

If you are temporarily away from your main home because of illness, education, business, or vacation, you are generally treated as living in your main home.

Only filers who check a box on line 13 should complete this part.
Do not complete Parts I-C, II-A, II-B, or II-C. If you enter -0- on
line 14g, also complete Part III; otherwise, do not complete Part III.

Military personnel stationed outside the United States. U.S. military personnel stationed outside the United States on extended active
duty are considered to have a main home in the United States for purposes of claiming a child tax credit.

Line 14c
If line 14a is zero, enter -0-; otherwise, enter the amount from Credit
Limit Worksheet A. If you enter -0-, you are not claiming ODC and
do not need to use Credit Limit Worksheet A for Part I-B.

!

CAUTION

-4-

If you checked a box on line 13, you do not need to complete
Credit Limit Worksheet B.

Credit Limit Worksheet A

1.

Enter the amount from line 18 of your Form 1040, 1040-SR, or 1040-NR.

2.

Add the following amounts (if applicable) from:

1

DRAFT AS OF
November 4, 2021
Schedule 3, line 1 .
Schedule 3, line 2 .

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Schedule 3, line 3 .
Schedule 3, line 4 .

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Schedule 3, line 6l
Form 5695, line 30

. . . . . . . . . .
. . . . . . . . . .

Form 8910, line 15

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Form 8936, line 23 .
Schedule R, line 22 .

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+

Enter the total.

3.

+

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2

3

Subtract line 2 from line 1.
Complete the Credit Limit Worksheet B only if you meet all of the following.
1. You are completing Part I–C of Schedule 8812.
2. You are claiming one or more of the following credits.
a. Mortgage interest credit, Form 8396.
b. Adoption credit, Form 8839.
c. Residential energy efficient property credit, Form 5695, Part I.
d. District of Columbia first-time homebuyer credit, Form 8859.
3. You are not filing Form 2555.
4. Line 4a of Schedule 8812 is more than zero.

4.

If you are not completing Credit Limit Worksheet B, enter -0-; otherwise, enter
4
the amount from the Credit Limit Worksheet B.

5.

Subtract line 4 from line 3. Enter here and on Schedule 8812, line 14c or line
15a, whichever applies.

Line 14f

5

vance child tax credit payments of $1,500 based on 1 qualifying child.
Both Roger and Tiffany received Letter 6419. Roger's letter reports
advance child tax credit payments of $3,000 in box 1 and 2 qualifying
children in box 2. Tiffany's letter reports advance child tax credit payments of $1,500 in box 1 and 1 qualifying child in box 2. Roger and
Tiffany were married in 2021 and file as married filing jointly on their
2021 tax return. Roger and Tiffany will add the amounts from box 1
of their Letters 6419 and enter $4,500 ($3,000 + $1,500) on line 14f.

Enter the amount of advance child tax credit payments you received
for 2021 as reported in box 1 on your Letter 6419.

Married Filing Jointly
If you are married filing jointly, add the amount reported in box 1 on
your Letter 6419 and your spouse's Letter 6419 and enter the total on
line 14f.

Example 5. In 2020, John and Susan filed as married filing jointly with 4 qualifying children. In 2021, John and Susan received advance child tax credit payments of $6,000 based on 4 qualifying children. Both John and Susan receive Letter 6419. John's letter reports
advance child tax credit payments of $3,000 in box 1 and 4 qualifying

Example 4. In 2020, Roger filed as single with 2 qualifying children. In 2021, Roger received advance child tax credit payments of
$3,000 based on 2 qualifying children. In 2020, Tiffany filed as head
of household with 1 qualifying child. In 2021, Tiffany received ad-

-5-

Line 15c

children in box 2. Susan's letter reports advance child tax credit payments of $3,000 in box 1 and 4 qualifying children in box 2. John and
Susan file as married filing jointly on their 2021 tax return. John and
Susan will add the amounts from box 1 of their Letters 6419 and enter
$6,000 ($3,000 + $3,000) on line 14f.

If you completed Parts II-A through II-C, enter the amount from
line 27; otherwise, enter -0-.
Only complete Parts II-A, II-B, and II-C if you are completing Part
I-C and you meet the following.

Example 6. In 2020, Jane filed as single with 3 qualifying children. In 2021, Jane received advance child tax credit payments of
$4,500 based on 3 qualifying children. Jane received Letter 6419 reporting advance child tax credit payments of $4,500 in box 1 and 3
qualifying children in box 2. In 2020, Tony and Ivy filed as married
filing jointly with 1 qualifying child. In 2021, Tony and Ivy received
advance child tax credit payments of $1,500 for 1 qualifying child.
Both Tony and Ivy receive Letter 6419. Tony's letter reports advance
child tax credit payments of $750 in box 1 and 1 qualifying child in
box 2. Ivy's letter reports advance child tax credit payments of $750 in
box 1 and 1 qualifying child in box 2. Tony and Ivy divorce in 2021
and Tony marries Jane later that same year. On their 2021 tax return,
Tony and Jane file as married filing jointly. Tony and Jane will add
the amounts from box 1 of their Letters 6419 and enter $5,250 ($4,500
+ $750) on line 14f.

1. You are not filing Form 2555.

DRAFT AS OF
November 4, 2021
2. Line 4a is more than zero.

3. Line 12 is more than line 15a.

Line 15e

Enter the amount of advance child tax credit payments you received
for 2021 as reported in box 1 on your Letter 6419.

Married Filing Jointly

If you are married filing jointly, add the amount reported in box 1 on
your Letter 6419 and your spouse's Letter 6419 and enter the total on
line 15e. See Example 4, Example 5, and Example 6, earlier.

If the amount on line 15e doesn't match the amount reported
to you on your Letter 6419 or the total amounts reported to
CAUTION
you (and your spouse if filing jointly), the processing of
your return will be delayed.

!

If the amount on line 14f doesn’t match the amount reported
to you on your Letter 6419 or the total amounts reported to
CAUTION
you (and your spouse if filing jointly), the processing of
your return will be delayed.

!

If you did not receive your Letter 6419, see the instructions under
Letter 6419, earlier.

If you did not receive your Letter 6419, see the instructions under
Letter 6419, earlier.

Parts II-A, II-B, and II-C—Filers Who
Do Not Check a Box on Line 13
(ACTC)

Part I-C—Filers Who Do Not Check a
Box on Line 13 (NCTC/ACTC/ODC)
Only filers who do not check a box on line 13 should complete this
part. If you checked a box on line 13, use Part I-B instead.

Only complete Parts II-A, II-B, and II-C if you are completing Part
I-C and you meet the following.

Line 15a

1. You are not filing Form 2555.

Enter the amount from Credit Limit Worksheet A.

2. Line 4a is more than zero.

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.

3. Line 12 is more than line 15a.

Line 18a
If you have net earnings from self-employment and you use either optional method to figure those net earnings, use the Earned Income
Worksheet, later, to figure the amount to enter on line 18a; otherwise,
all other taxpayers can use the Earned Income Chart next to figure the
amount to enter on line 18a.

1. You are completing Part I-C of Schedule 8812.
2. You are claiming one or more of the following credits.
a. Mortgage interest credit, Form 8396.
b. Adoption credit, Form 8839.
c. Residential energy efficient property credit, Form 5695, Part I.
d. District of Columbia first-time homebuyer credit, Form 8859.

!

CAUTION

3. You are not filing Form 2555.
4. Line 4a of Schedule 8812 is more than zero.

-6-

Income excluded under a tax treaty is also excluded from
the computation of earned income on line 18a.

Credit Limit Worksheet B

Before you begin:

Complete the Earned Income Worksheet, later in these instructions.

1040 and 1040-SR filers. Complete line 27a; Schedule 2, line 5; Schedule 2, line 6; and
Schedule 3, line 11 of your return if they apply to you.
1040-NR filers. Complete Schedule 2, line 5; Schedule 2, line 6; and Schedule 3, line 11
of your return if they apply to you.

DRAFT AS OF
November 4, 2021
CAUTION

Use this worksheet only if you meet each of the items discussed under line 3 of Credit Limit Worksheet A, including
that you are completing Part I–C and are not filing Form 2555.

1.

Enter the amount from Schedule 8812, line 12 .

2.

Number of qualifying children under 18 with the required social security
× $1,400. Enter the result.
number:

.

.

.

.

.

.

.

.

.

.

.

1

2

TIP: The number of children you use for this line is the same as the number of
children you used for line 4a of Schedule 8812.

3.

Enter your earned income from line 7 of the Earned
Income Worksheet.

3

4.

Is the amount on line 3 more than $2,500?
No. Leave line 4 blank, enter -0- on line 5, and go
to line 6.
Yes. Subtract $2,500 from the amount on line 3.
Enter the result.

4

5.

Multiply the amount on line 4 by 15% (0.15) and enter the result.

6.

On line 2 of this worksheet, is the amount $4,200 or more?
No.
• If line 2 or line 5 above is zero, enter the amount from line 1 above on line
14 of this worksheet. Do not complete the rest of this worksheet. Instead, go
back to Credit Limit Worksheet A and do the following. Enter -0- on line 4,
and complete line 5.
• If both line 2 and line 5 are more than zero, leave lines 7 through 10 blank,
enter -0- on line 11, and go to line 12.
Yes. If line 5 above is equal to or more than line 1 above, leave lines 7 through 10
blank, enter -0- on line 11, and go to line 12. Otherwise, go to line 7.

If married filing
jointly, include your
spouse’s amounts
with yours when
completing lines 7
and 8.

7.

If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA
taxes, use the Additional Medicare Tax and RRTA Tax
Worksheet to figure the amount to enter; otherwise enter 7
the total of the following amounts from Form(s) W-2.
• Social security tax withheld from box 4, and
• Medicare tax withheld from box 6.

8.

Enter the total of any amounts from—
• Schedule 1, line 15;
• Schedule 2, line 5;
• Schedule 2, line 6; and
• Schedule 2, line 13.

8

Add lines 7 and 8. Enter the total.

9

9.

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5

Credit Limit Worksheet B—Continued
10.

1040 and 1040-SR filers. Enter the total of the amounts
from Form 1040 or 1040-SR, line 27a, and Schedule 3,
line 11.
1040-NR filers. Enter the amount from Schedule 3,
line 11.

10

DRAFT AS OF
November 4, 2021
11.

Subtract line 10 from line 9. If the result is zero or less, enter -0-.

11

12.

Enter the larger of line 5 or line 11.

12

13.

Enter the smaller of line 2 or line 12.

13

14.

Is the amount on line 13 of this worksheet more than the amount on line 1?
No. Subtract line 13 from line 1. Enter the result.

14

Yes. Enter -0-.
Next, figure the amount of any of the following credits that you are claiming.
• Mortgage interest credit, Form 8396.
• Adoption credit, Form 8839.
• Residential energy efficient property credit, Form 5695, Part I.
• District of Columbia first-time homebuyer credit, Form 8859.
Then, go to line 15.
15.

Enter the total of the amounts from—
• Form 8396, line 9, and
• Form 8839, line 16, and
• Form 5695, line 15, and
• Form 8859, line 3.

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15
Enter this amount on
line 4 of Credit Limit
Worksheet A.

Earned Income Chart — Line 18a
IF you...

AND you...

THEN enter on line 6a...

have net earnings
use either optional method the amount figured using the Earned Income Worksheet next (even if you
from self-employment to figure those net earnings, are also taking the EIC).
are taking the EIC on completed Worksheet B,
your earned income from Worksheet B (in your Instructions for Form
Form 1040 or
relating to the EIC, in your 1040), line 4b, plus all of your nontaxable combat pay if you did not elect to
1040-SR, line 27a,
Instructions for Form 1040, 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.

DRAFT AS OF
November 4, 2021
did not complete
Worksheet B, relating to
the EIC, in your
Instructions for Form
1040,

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.

the amount figured using the Earned Income Worksheet next.
are not taking the EIC

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Keep for Your Records

Earned Income Worksheet

Before you begin:
Use this worksheet only if you were sent here from the Credit Limit Worksheet B, earlier, or line
18a of Schedule 8812.
Disregard community property laws when figuring the amounts to enter on this worksheet.
If married filing jointly, include your spouse's amounts with yours when completing this worksheet.

DRAFT AS OF
November 4, 2021

1. a. Enter the amount from line 1 of Form 1040 or 1040-SR, or line 1a of Form 1040-NR . . . . . . .
b. Enter the amount of any nontaxable combat pay received.
Also enter this amount on Schedule 8812, line 18b. This
amount should be shown in Form(s) W-2, box 12, with
code Q . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Next, if you are filing Schedule C, F, or SE, or you received a Schedule K-1 (Form 1065), go
to line 2a. Otherwise, skip lines 2a through 2e and go to line 3.
2. a. Enter any statutory employee income reported on line 1 of Schedule C . . . . . . . . . . . . . . . . . . . . .
b. Enter any net profit or (loss) from Schedule C, line 31, and Schedule K-1 (Form 1065),
box 14, code A (other than farming). Reduce any Schedule K-1 amounts as described in the
instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. Do
not include on this line any statutory employee income or any other amounts exempt from
self-employment tax. Options and commodities dealers must add any gain or subtract any
loss (in the normal course of dealing in or trading section 1256 contracts) from section 1256
contracts or related property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c. Enter any net farm profit or (loss) from Schedule F, line 34, and from farm
partnerships, Schedule K-1 (Form 1065), box 14, code A*. Reduce any
Schedule K-1 amounts as described in the instructions for completing
Schedule SE in the Partner's Instructions for Schedule K-1. Do not include
on this line any amounts exempt from self-employment tax . . . . . . . . . . . . . . . 2c.
d. If you used the farm optional method to figure net earnings from
self-employment, enter the amount from Schedule SE, line 15. Otherwise,
skip this line and enter on line 2e the amount from line 2c . . . . . . . . . . . . . . . . . 2d.
e. If line 2c is a profit, enter the smaller of line 2c or line 2d. If line 2c is a (loss), enter the
(loss) from line 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Combine lines 1a, 1b, 2a, 2b, and 2e. If zero or less, stop. Do not complete the rest of this
worksheet. Instead, enter -0- on line 3 of Credit Limit Worksheet B or line 18a of Schedule 8812,
whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Enter any amount included on line 1a that is:
a. A scholarship or fellowship grant not reported on Form W-2 . . . . . . . . . . . . . . 4a.
b. For work done while an inmate in a penal institution (enter “PRI” and this
amount on the dotted line next to line 1 of Form 1040 or 1040-SR, or line 1a
of Form 1040-NR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b.
c. A pension or annuity from a nonqualified deferred compensation plan or a
nongovernmental section 457 plan (enter “DFC” and this amount on the
dotted line 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4c.
d. Enter any amount included on Form 1040 or 1040-SR, line 1, that is a
Medicaid waiver payment you exclude from income (see the instructions for
Schedule 1, line 8z), unless you choose to include this amount in earned
income, in which case enter zero . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4d.
5. Enter the amount from Schedule 1 (Form 1040), line 15 . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Add lines 4a, 4b, 4c, 4d, and 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Subtract line 6 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
• If you were sent here from Credit Limit Worksheet B, enter this amount on line 3 of
that worksheet.
• If you were sent here from Schedule 8812, enter this amount on line 18a of that form.
*If you have any Schedule K-1 amounts and you are not required to file Schedule SE, complete the
appropriate line(s) of Schedule SE, Section A. Put your name and social security number on
Schedule SE and attach it to your return.
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1a.

1b.
2a.

2b.

2e.
3.

6.
7.

Line 21

Line 18b
Enter on line 18b the total amount of nontaxable combat pay that you
(and your spouse if filing jointly) received in 2021. This amount
should be shown on Form W-2, box 12, with code Q.

If you are completing Part II-B and your employer withheld or you
paid Additional Medicare Tax or tier 1 RRTA tax, use the Additional
Medicare Tax and RRTA Tax Worksheet to figure the amount to enter
on line 21.

DRAFT AS OF
November 4, 2021

Additional Medicare Tax and RRTA Tax 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 21 of Schedule 8812 and line 7 of
Credit Limit Worksheet B.
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 2021) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Enter one-half of Tier 1 Medicare tax (one-half of Forms CT-2, line 2, for all 4 quarters of 2021) . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 21 Amount.
16. Add lines 6, 7, 11, and 15. Enter here and on line 21 of Schedule 8812 and, if applicable, line 7 of Credit Limit Worksheet B

Part III—Additional Tax
Do not use Part III if you (and your spouse if filing jointly) did not
receive any advance child tax credit payments for 2021. Only use Part
III if you enter -0- on line 14g or line 15f, whichever applies. If you
(and your spouse if filing jointly) didn’t receive advance child tax
credit payments for 2021 or you received these payments but line 14g
or line 15f, whichever applies, is more than zero, then you do not have
excess advance child tax credit payments and you do not owe any additional tax.
The total amount of advance child tax credit payments that you received during 2021 was based on the IRS’s estimate of the amount of
RCTC you may be eligible to claim on your 2021 tax return. You may
owe additional tax on those payments if the total amount of advance
child tax credit payments you received is greater than the child tax
credit amount that you are eligible to claim on your 2021 tax return.
For example, if you received advance child tax credit payments for 3
qualifying children properly claimed on your 2020 tax return, but you
claim 1 qualifying child on your 2021 tax return, the advance child tax

. . . . . . . . . . 16.

credit payments that you received based on the 3 children may result
in you having received excess advance child tax credit payments and
owing additional tax to repay the excess. However, you may not owe
the additional tax, or you may owe a reduced tax amount, if you qualify for repayment protection. Complete Part III of Schedule 8812 to determine if you owe additional tax or if you qualify for repayment protection.
Repayment protection. Repayment protection is available to taxpayers whose advance child tax credit payments took more qualifying
children into account than the taxpayers claim on their 2021 tax return. Taxpayers subject to the repayment protection may owe no additional tax or have the additional tax amount reduced by the repayment
protection amount. The full repayment protection amount is $2,000
per child not claimed on your tax return. The amount of the repayment
protection will be reduced or phased out based on your modified adjusted gross income (AGI).

Example 7. You properly claimed 4 qualifying children on your
2020 tax return, but claim only 1 qualifying child on your 2021 tax re-

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turn. You can be eligible for up to $6,000 in repayment protection
(that is, $2,000 for each excess qualifying child) if you qualify based
on your modified AGI.

Example 8. The facts are the same as in Example 4, earlier. Roger and Tiffany will add the number of qualifying children reported in
box 2 of their Letters 6419 and enter 3 (2 + 1) on line 30.

You won’t qualify for any repayment protection if your modified
AGI on your 2021 tax return is at or above the amounts listed below.
• $120,000 if married filing jointly or qualifying widow(er)
• $100,000 if head of household
• $80,000 if single or married filing separately

Example 9. The facts are the same as in Example 5, earlier. John
and Susan filed as married filing jointly on their 2020 tax return and
are filing together as married filing jointly on their 2021 tax return.
John and Susan will add the number of qualifying children reported in
box 2 of their Letters 6419 and divide the result by 2. John and Susan
will enter 4 on line 30 ((4 + 4 = 8) (8 divided by 2 = 4)).

Enter the number of qualifying children taken into account in determining the annual advance amount you received for 2021. The number of qualifying children is reported in box 2 of your Letter 6419.

Example 10. The facts are the same as in Example 6, earlier. Tony filed as married filing jointly on his 2020 tax return with Ivy. On
his 2021 tax return Tony is filing as married filing jointly with a different spouse, Jane. Tony and Jane will add the number of qualifying
children reported in box 2 of their Letters 6419 and enter 4 (1 + 3) on
line 30.

DRAFT AS OF
November 4, 2021

Line 30

Do not enter the number of children claimed on your 2021 tax return
on this line. The number of children claimed on your 2021 tax return
may be different than the number of qualifying children reported on
Letter 6419. You must use the number of qualifying children reported
on Letter 6419 to correctly account for any repayment protection
amount when figuring your additional tax.

Married Filing Jointly
If you are married filing jointly see the Married Filing Jointly Chart
next to figure the amount to enter on line 30.

If the amount on line 30 doesn’t match the number of qualifying children reported to you or the total number of chilCAUTION
dren reported to you (and your spouse if filing jointly) on
your Letter(s) 6419, the processing of your return will be delayed.

!

If you did not receive your Letter 6419, see the instructions under
Letter 6419, earlier.

Married Filing Jointly Chart — Line 30
IF on your 2020 tax
return...

AND on your 2021 tax THEN on line 30...
return...

you filed as single,
married filing
separately, head of
household, or
qualifying widow(er)

you file as married
filing jointly,

add the number of
qualifying children
reported in box 2 of
your Letter 6419 and
your spouse’s* Letter
6419.

you filed as married
filing jointly

you file as married
filing jointly with a
different spouse than
your 2020 tax return,

add the number of
qualifying children
reported in box 2 of
your Letter 6419 and
your spouse's* Letter
6419.

you file as married
filing jointly with the
same spouse from your
2020 tax return,

add the number of
qualifying children
reported in box 2 of
your Letter 6419 and
your spouse's* Letter
6419 and divide the
result by 2.

*Your spouse from your 2021 tax return.

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