To claim the Additional Child Tax Credit, you need to complete Schedule 8812 and attach it to your Form 1040 or Form 1040-SR. But don’t worry about memorizing all of the rules and limitations for claiming this credit.

What is a Schedule 8812?

In addition to the nonrefundable Child Tax Credit and Credit for Other Dependents that is claimed on Line 12a of Form 1040, a taxpayer with one or more qualifying children may be able to claim the refundable Additional Child Tax Credit on Schedule 8812.

What is a 8862 form from IRS?

Taxpayers complete Form 8862 and attach it to their tax return if: Their earned income credit (EIC), child tax credit (CTC)/additional child tax credit (ACTC), credit for other dependents (ODC) or American opportunity credit (AOTC) was reduced or disallowed for any reason other than a math or clerical error.

Who is eligible for the additional child tax credit?

To be eligible for the child tax credit, the child or dependent must: Be 16 years or younger by the end of the tax year. Be a U.S. citizen, national, or resident alien. Have lived with the taxpayer for more than half of the tax year.

Who qualifies for additional tax credit?

What does PYEI mean on tax return?

PRIOR-YEAR EARNED INCOME
PRIOR-YEAR EARNED INCOME USED: The Consolidated Appropriations Act, 2021, signed into law on December 27, 2020, allows taxpayers to substitute their prior-year earned income (PYEI) for their current-year earned income (CYEI) when computing both the Earned Income Credit (EIC) and the Child Tax Credit (CTC) if the PYEI …

How do I file Form 8862 electronically?

Simply go to the website and select Form 8862 in the online library of fillable forms. Then, type in the required information in the appropriate fields and place check marks where needed. You can then save all changes and electronically send the completed document to the IRS via email.

Why would I have to file Form 8862?

Form 8862 is required when the IRS has previously disallowed one or more specific tax credits. Filing this form allows you to reclaim credits for which you are now eligible. You can download Form 8862 from the IRS website, and can file it electronically or by mail.