Before You Begin

You should check your tax return instructions to see if you need this publication.

Purpose

The purpose of this publication is:

1. To figure the child tax credit you claim on Form 1040, line 50, or Form 1040A, line 33, and
2. To figure the amount of taxable earned income you enter on line 4 of Form 8812, Additional Child Tax Credit.

The child tax credit is explained in the instructions for Form 1040 and Form 1040A. You cannot claim the child tax credit on Form 1040EZ.

This publication is intended for individuals sent here by the instructions to Forms 1040, 1040A, and 8812. Although anyone can choose to use this publication to figure their credit, most individuals can use the simpler worksheet in their tax form instructions.

This publication also includes a detailed example of a taxpayer who figures the child tax credit and the additional child tax credit.

How To Use This Publication

If you were sent here from your Form 1040 or Form 1040A instructions.   Go to page 3 of this publication and complete the Child Tax Credit Worksheet.

If you were sent here from your Form 8812 instructions.   Go to page 7 of this publication and complete the 1040 Filers - Taxable Earned Income Worksheet.

If you have not read your Form 1040 or Form 1040A instructions.   Pick up your Form 1040 or Form 1040A instructions and complete the following steps.

1. Go to the instructions for line 50 of Form 1040 or line 33 of Form 1040A.
2. Answer the Questions.
3. Form 1040. If you answered Yes to question 1, 2, or 3, go to page 3 of this publication and complete the Child Tax Credit Worksheet.
   Form 1040A. If you answered Yes to question 1 or 2, go to page 3 of this publication and complete the Child Tax Credit Worksheet.

Taxable Earned Income

You will need to figure your taxable earned income using one of the worksheets in this publication if you are completing the Line 11 Worksheet (page 5) or Form 8812. Form 1040 filers, use the worksheet on page 7 to figure your taxable earned income. Form 1040A filers, use the worksheet on page 8.

Additional Child Tax Credit

This credit is for certain individuals who get less than the full amount of the child tax credit. The additional child tax credit may give you a refund even if you do not owe any tax.

Form 8812.   You must file Form 8812 to take the additional child tax credit. To see if you qualify to take this additional credit, read your Form 1040 instructions for lines 50 and 66 or your Form 1040A instructions for lines 33 and 42. A filled-in copy of Form 8812 is shown later. Form 8812 can also be found in the Form 1040 and Form 1040A instruction packages.

Important Reminder

Photographs of missing children.   The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Comments and Suggestions

We welcome your comments about this publication and your suggestions for future editions.

You can e-mail us while visiting our web site at www.irs.gov.

You can write to us at the following address:

Internal Revenue Service
Tax Forms and Publications
W:CAR:MP:FP
1111 Constitution Ave. NW
Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

Child Tax Credit Worksheet. page 1

Child Tax Credit Worksheet. page 2

Line 11 worksheet page 1

Line 11 worksheet page 2

1040 Filers - Taxable Earned Income Worksheet       Keep for Your Records

Before you begin:
Use this worksheet only if you were sent here from the Line 11 Worksheet on page 5 of this publication or line     4 of Form 8812, Additional Child Tax Credit.   Disregard community property laws when figuring the amounts to enter on this worksheet.   If married filing jointly, include your spouse's amounts with yours when completing this worksheet.
1.	Enter the amount from Form 1040, line 7						1.
		Next, if you are filing Schedule C, C-EZ, F, or SE, or you received a Schedule K-1 (Form 1065 or Form 1065-B), go to line 2a. Otherwise, skip lines 2a through 2e and go to line 3.
2.	a.	Enter any statutory employee income reported on line 1 of Schedule C or C-EZ					2a.
	b.	Enter any net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), line 15a (other than farming); and Schedule K-1 (Form 1065-B), box 9.* Reduce this amount by any unreimbursed nonfarm partnership expenses you deducted on Schedule E. Do not include any statutory employee income or any other amounts exempt from self-employment tax. Options and commodities dealers must add any gain or subtract any loss (in the normal course of dealing in or trading section 1256 contracts) from section 1256 contracts or related property					2b.
	c.	Enter any net farm profit or (loss) from Schedule F, line 36, and from farm partnerships, Schedule K-1 (Form 1065), line 15a.* Reduce this amount by any unreimbursed farm partnership expenses you deducted on Schedule E. Do not include any amounts exempt from self-employment tax			2c.
	d.	If you used the farm optional method to figure net earnings from self-employment, enter the amount from Schedule SE, Section B, line 15. Otherwise, skip this line and enter on line 2e the amount from line 2c			2d.
	e.	If line 2c is a profit, enter the smaller of line 2c or line 2d. If line 2c is a (loss), enter the (loss) from line 2c.					2e.
3.	Add lines 1, 2a, 2b, and 2e. If zero or less, stop. Do not complete the rest of this worksheet. Instead, enter -0- on line 2 of the Line 11 Worksheet on page 5 or line 4 of Form 8812, whichever applies						3.
4.	Enter any amount included on line 1 that is:
	a.	A scholarship or fellowship grant not reported on Form W-2			4a.
	b.	For work done while an inmate in a penal institution (enter PRI and this amount on the dotted line next to line 7 of Form 1040)			4b.
	c.	A pension or annuity from a nonqualified deferred compensation plan or a section 457 plan (enter DFC and this amount on the dotted line next to line 7 of Form 1040). 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.			4c.
5.	a.	Enter any amount included on line 3 that is also included on Form 2555, line 41, or Form 2555-EZ, line 18. Do not include any amount that is also included on line 4a, 4b, or 4c above	5a.
	b.	Enter the amount, if any, from Form 2555, line 42, that is also deducted on Schedule C, C-EZ, or F, or included on Schedule E in partnership net income or (loss)	5b.
	c.	Subtract line 5b from line 5a			5c.
6.	Enter the amount from Form 1040, line 29				6.
7.	Add lines 4a through 4c, 5c, and 6						7.
8.	Subtract line 7 from line 3						8.
		If you were sent here from the Line 11 Worksheet on page 5, enter this amount on line 2 of that worksheet. If you were sent here from Form 8812, enter this amount on line 4 of that form.
*If you have any Schedule K-1 amounts and you are not required to file Schedule SE, complete the appropriate line(s) of Schedule SE, Section A. Put your name and social security number on Schedule SE and attach it to your return.

1040A Filers - Taxable Earned Income Worksheet       Keep for Your Records

Before you begin:
Use this worksheet only if you were sent here from the Line 11 Worksheet on page 5 of this publication.   Disregard community property laws when figuring the amounts to enter on this worksheet.
1.	Enter the amount from Form 1040A, line 7				1.
2.	Enter any amount included on line 1 that is:
	a.	A scholarship or fellowship grant not reported on Form W-2	2a.
	b.	For work done while an inmate in a penal institution (enter PRI and this amount next to line 7 of Form 1040A)	2b.
	c.	A pension or annuity from a nonqualified deferred compensation plan or a section 457 plan (enter DFC and this amount next to line 7 of Form 1040A). 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	2c.
3.	Add lines 2a through 2c				3.
4.	Subtract line 3 from line 1. Enter the result here and on line 2 of the Line 11 Worksheet on page 5				4.

First | Next

Publication Index | 2002 Tax Help Archives | Tax Help Archives | Home