If you have children or dependents, then you will want to fill out Schedule 8812. This is 3 pages of math equations that seem to wind in so many paths just to give you an amount to enter on your 1040. I can’t even imagine how they came up with this. Someone at the IRS had a bad life and wanted the rest of us to suffer maybe? I digress.
Once you have deciphered this schedule, you will enter the amount from line 40 to line 19 on your 1040. Are you unsure what “nonrefundable” means? Well, the child tax credit is a nonrefundable credit which means if your tax liability is $0 then you will not receive this credit because there is no tax to reduce.
By filling out schedule 8812, though, you might receive a refundable child tax credit (meaning you can receive this money even if you don’t owe taxes) or an additional child tax credit. This will be entered on line 28 of your 1040. Pretty cool of the IRS. These are those famous child tax credit checks the government fronted to eligible taxpayers at the end of 2021 in case you were wondering.
Schedule your next tax appointment with Angie Love’s Taxes.
ANGIE LOVE’S TAXES
angielovestaxes.com