What is Form 8812?
Form 8812 calculates the Child Tax Credit ($2,200 per qualifying child under 17 in 2025) and the Other Dependent Credit ($500 per other dependent). The credit phases out at $50 per $1,000 of income above $400,000 MFJ or $200,000 for other filers. The non-refundable portion reduces tax liability, while the refundable Additional Child Tax Credit (ACTC) can generate a refund of up to $1,700 per child based on 15% of earned income above $2,500.
SupportedKey Lines
| Line | Description | Destination |
|---|---|---|
| Line 12 | Total credit before phase-out | CTC + ODC |
| Line 14 | Non-refundable CTC/ODC | Schedule 3 Line 6a |
| Line 27 | Refundable ACTC | Schedule 3 Line 13a |
How PaisaTax Handles It
- Fully computed from dependent information, filing status, and AGI
- Phase-out applies $50 reduction per $1,000 of modified AGI above the threshold
- ACTC calculated as 15% of earned income above $2,500, capped at $1,700 per qualifying child
- Gated by Form 8862 when a prior-year CTC disallowance exists
Common Situations
- Family under threshold: Full $2,200 per child credit, non-refundable portion offsets tax, any excess becomes ACTC refund.
- High-income phase-out: MFJ couple earning $440K loses $2,000 of credit ($50 x 40 increments above $400K).
- Other dependents: Adult dependents or children 17+ qualify for $500 ODC (non-refundable only, no ACTC).