2007 Instructions for Form 8812, Additional Child Tax Credit

Instructions

Purpose of Form

Use Form 8812 to figure your additional child tax credit. The additional child tax credit may give you a refund even if you do not owe any tax.

Who Should Use Form 8812

First, complete the Child Tax Credit Worksheet that applies to you. See the instructions for Form 1040, line 52, Form 1040A, line 32, or Form 1040NR, line 47. If you meet the condition given in the Tip at the end of your Child Tax Credit Worksheet, use Form 8812 to see if you can take the additional child tax credit.

Effect of Credit on Welfare Benefits

Any refund you receive as a result of taking the additional child tax credit will not be used to determine if you are eligible for the following programs, or how much you can receive from them. But if the refund you receive because of the additional child tax credit is not spent within a certain period of time, it may count as an asset (or resource) and affect your eligibility.

Nontaxable Combat Pay

Enter on line 4b the total amount of nontaxable combat pay that you, and your spouse if filing jointly, received in 2007. This amount should be shown in Form W-2, box 12, with code Q.

Railroad Employees

If you worked for a railroad, include the following taxes in the total on Form 8812, line 7.

1040A Filers

If you, or your spouse if filing jointly, had more than one employer for 2007 and total wages of over $97,500, figure any excess social security and tier 1 railroad retirement (RRTA) taxes withheld. See Pub. 505. Include any excess on Form 8812, line 10.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by Internal Revenue Code section 6103.

The average time and expenses required to complete and file this form will vary depending on individual circumstances. For the estimated averages, see the instructions for your income tax return.

If you have suggestions for making this form simpler, we would be happy to hear from you. See the instructions for your income tax return.

Earned Income Chart -- Line 4a

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IF you...        AND you...              THEN enter on line 4a...
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have net         use either optional    the amount figured using
earnings         method to figure       Pub. 972.
from self-       those net earnings
employment
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                 completed Worksheet    your earned income from
are taking       B on page 49 of your   Worksheet B, line 4b, plus
the EIC          Form 1040              all of your nontaxable combat
on Form 1040,    instructions           pay if you did not
line 66a, or                            elect to include it in
Form 1040A,                             earned income for the EIC.
line 40a                                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       your earned income from
                 Worksheet B or         Step 5 on page 46 of your
                 filed Form 1040A       1040 instructions or page
                                        40 of your 1040A
                                        instructions, plus all
                                        of your nontaxable combat
                                        pay if you did not elect
                                        to include it in earned
                                        income for the EIC.
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                 were self-employed,    the amount figured using
                 or you are filing      Pub. 972.
                 Schedule SE because
                 you were a member of
                 the clergy or you
                 had church employee
                 income, or you are
                 filing Schedule C or
                 C-EZ as a statutory
                 employee
               -------------------------------------------------------
                 are not self-employed  your earned income
                 or filing Schedule     figured as follows:
                 SE, C, or C-EZ for     Line 7 of Form 1040 or   ____
                 the above reasons      Form 1040A, or line 8
                                        of Form 1040NR
                                        Subtract, if included
                                        on line 7 (line 8 for
                                        Form 1040NR), any:
                                        • Taxable scholar-   }
                                          ship or fellowship }
                                          grant not reported }
                                          on a Form W-2.     }
                                                             }
are not taking                          • Amount received    }
the EIC                                   for work performed }
                                          while an inmate in }
                                          a penal            }
                                          institution (put   }
                                          "PRI" and the      }
                                          amount subtracted  }
                                          in the space next  }
                                          to line 7 of       }
                                          Form 1040 or 1040A }
                                          (line 8 for        }
                                          Form 1040NR)).     }
                                                             }
                                        • Amount received as }
                                          a pension or       }
                                          annuity from a     }
                                          nonqualified       }
                                          deferred com-      }
                                          pensation plan     }
                                          or a nongovern-    }
                                          mental section     }
                                          457 plan (put      } - ____
                                          "DFC" and the      }
                                          amount subtracted  }
                                          in the space next  }
                                          to line 7 of       }
                                          Form 1040 or       }
                                          Form 1040A         }
                                          (line 8 for        }
                                          Form 1040NR)).     }
                                          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.           }
                                                             }
                                        • Amount from        }
                                          Form 2555,         }
                                          line 43, or        }
                                          Form 2555-EZ,      }
                                          line 18.           }
                                        Add all your
                                        nontaxable combat
                                        pay from Form(s)
                                        W-2, box 12,
                                        with code Q            + ____
                                              Earned income    = _____
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