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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3362
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Additional Child Tax Credit/form 8812

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Note: Married filing jointly with two minor students 14 and 16.
Form 1040 line 12 in the amount of $87,729 resulted from Schedule C line 31.
Form 1040 line 21 in the amount of (87,726) resulted from Form 2555 Pg 2 line 26,
Form 1040 line 8a of $219 plus $87,729 less negative $87,726 leaving line
22 as $219.
Form 1040 line 37 of negative $5,979 resulted from $219 minus line 27 $6,198.
Form 1040 line 43 equals zero due line 38 negative $5,979 minus $11,400 of line
40a and line 42 of $14,600.
Form 1040 line 56 equates to $12,395.
Am I entitled for “Additional Child Tax Credit” of $2,000 for line 65 of Form 1040? Provide me of Form 8812 worksheet whether I am or not entitled for the credit, please?
Customer:
The Additional Child Tax Credit is utilized when you get less than the full amount of the Child Tax Credit. The seven requirements for the Child Tax Credit can be found at the following: http://www.irs.gov/publications/p17/ch33.html
Form 8812 is no longer utilized--it is now Schedule 8812 - http://www.irs.gov/pub/irs-pdf/f1040s8.pdf
Please let me know if you require additional information or clarification.
Customer:
Please note that the Child Tax Credit must be reduced if EITHER (1) the amount on Form 1040, Line 46 is less than the credit. If this amount is zero, you cannot take this credit because there is no tax to reduce OR (2) you’re modified adjusted gross income is above $110,000 (married filing jointly). As I previously advised, the Additional Child Tax Credit is utilized when you get less than the full amount of the Child Tax Credit.
Customer:
Allow me to retaliate my question as I used my 2010 data. Okay, if Form 8812 is not Schedule 8812. What is the answer to this question?
Tax Year 2012
Note: Married filing jointly with two minor students 14 and 16.
Form 1040 line 12 in the amount of $78,078 resulted from Schedule C line 31.
Form 1040 line 21 in the amount of ($78,078) resulted from Form 2555 Pg 2 line 26,
Form 1040 line 22 is zero,
Form 1040 line 27is $5,515,
Form 1040 line 43 equals zero due line 38 negative $5,515 minus $11,900 of line
40 and line 42 of $15,200
Form 1040 line 56 equates to $9,590.
Question: Am I entitled for “Additional Child Tax Credit” of $2,000 for line 65 of Form 1040? Provide me of Schedule 8812 worksheet whether I am or not entitled for the credit? Let me not do the work. Give me the answer by completing the schedule and give me the answer yes or no.
Customer:
I apologize if you think I am suggesting that you do the work. Give me a few minutes to calculate this with the information you have given me. I will forward my answer shortly. Thank you.
Customer:
Part II of Schedule 8812 is used to figure your Additional Child Tax Credit. http://www.irs.gov/pub/irs-pdf/f1040s8.pdf
Based on the information you have given me, you cannot take the Additional Child Tax Credit.
Customer:
I disagree on your statement of "Please note that the Child Tax Credit must be reduced if EITHER (1) the amount on Form 1040, Line 46 is less than the credit. If this amount is zero, you cannot take this credit because there is no tax to reduce" OR (2) your modified adjusted gross income is above $110,000 (married filing jointly). As I previously advised, the Additional Child Tax Credit is utilized when you get less than the full amount of the Child Tax Credit.
Customer:
I understand what you are saying, but what I quoted is per IRS guidelines. The Child Tax Credit goes on Line 51 of the 1040. Please see the Child Tax Credit Worksheet http://apps.irs.gov/app/vita/content/globalmedia/child_tax_credit_line_51_1040i.pdf
Customer:
In order to accurately compute the Additional Child Tax Credit, Part 2 of the Worksheet must be completed. This Worksheet is pretty straightforward, but if you have difficulty, let me know.
Customer:
Why Part 1 is so confusing. IRS started me to complete Part 1 and it was here that I was informed that I am entitled for additional tax credit.
Customer:
It is difficult for anyone to give you a correct answer if the correct information is not supplied. That is the reason I gave you the instructions, etc. in my initial response. Based on the information you gave me, I was able to complete Part 1. I need the information for Part 2 to give you a correct answer. What is the amount on Line 46 of your 1040? Based on the information you gave me, it should be zero. Do you have any amounts for the lines listed in Part 2, No. 8? If so, I need those amounts. I will then be able to fill out Part 2. If my assumptions are correct, you qualify for the Additional Child Tax Credit of $2,000.
Customer:
1040 line 46 is zero. Because Part 2 of SCH 8812 line 9 is zero, the other lines are also zero.
Customer:
Part 2 of SCH 8812 line 13 is $2,000.
Customer:
You are correct.
Customer:
IRS, you and I are correct that additional tax credit is available against my tax software.
Barbara and other Tax Specialists are ready to help you
Customer: replied 4 years ago.
I found out the Taxpayers would have been entitled to additional child tax credit on line 65 only when they have three dependent children or more.
Customer: replied 4 years ago.
Here is another reply I received. Taxpayers qualify for $2,000 as the number of dependents is irrelevant.
Your information is incorrect. The maximum amount for the Child Tax Credit is $1,000 per qualifying child.
Customer: replied 4 years ago.
Definitely, Taxpayer does not qualify for ADDITIONAL CHILD TAX CREDIT!
The Child Tax Credit is a non-refundable credit on Line 51 of the 1040. If there is no tax liability, there is no child tax credit. However, the Additional Child Tax Credit is a refundable credit and is available for those taxpayers who qualify on Line 65 of the 1040.
Customer: replied 4 years ago.
We are discussing Additional Child Tax Credit. Additional Child Tax Credit is not applicable to my case.
I realize we were discussing the Additional Child Tax Credit, but it is tied to the Child Tax Credit. I have taken the time to review the information contained in your original question and the supplemental information you provided. My original answer to you that you do NOT qualify for the Additional Child Tax Credit is correct.