Department of the Treasury Important Changes Internal Revenue Service

Child tax credit increased. For 2003, the maximum child

tax credit is increased to $1,000 for each qualifying child. Publication 972 But you must reduce your credit by any advance payment

Cat. No. 26584R — OMB No. 1545–0074 you received in 2003.

Advance payment of child tax credit. Advance pay- Child Tax ments of the increase in the child tax credit were made to

some individuals in 2003. If you received an advance

payment, you will need to reduce the credit you can claim Credit on your return by the advance payment you already received. For details, see Advance Child Tax Credit Payment

on page 3.

For use in preparing

2003 Returns 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.

Introduction

The purpose of this publication is:

1) To figure the child tax credit you claim on Form

1040, line 49, 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.

This publication is intended primarily for individuals sent

here by the instructions to Forms 1040, 1040A, and 8812.

Even if you were not sent here by the instructions to one of

the forms, you can still choose to use this publication to

figure your credit. However, most individuals can use the

simpler worksheet in their tax form instructions.

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

child tax credit.

If you were sent here from your Form 1040 or Form

1040A instructions. Go to page 4 of this publication and

complete the Child Tax Credit Worksheet.

If you were sent here from your Form 8812 instructions. Go to page 8 of this publication and complete the

1040 Filers – Taxable Earned Income Worksheet.

Get forms and other information If you have not read your Form 1040 or Form 1040A

faster and easier by: instructions. Read on the next page the explanation of

who must use this publication. If you find that you are not Internet • www.irs.gov or FTP • ftp.irs.gov required to use this publication to figure your child tax

FAX • 703–368–9694 (from your fax machine) credit, you can use the simpler worksheet in the Form 1040

or Form 1040A instructions to figure your credit.
Who must use this publication? If you answer “Yes” to Qualifying Child any of the following questions, you must use this publication to figure your child tax credit. A qualifying child for purposes of the child tax credit is a

child who:

1) Are you excluding income from Puerto Rico or are

you filing any of the following forms? • Is claimed as your dependent on line 6c of Form

1040 or Form 1040A, and

a) Form 2555 or 2555-EZ (relating to foreign earned • Was under age 17 at the end of 2003, and income)

• Is your (a) son, daughter, adopted child, stepchild, or b) Form 4563 (exclusion of income for residents of a descendant of any of them (for example, your American Samoa) grandchild); (b) brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, 2) Is the amount on Form 1040, line 35, or Form your niece or nephew), whom you cared for as you 1040A, line 22, more than the amount shown below would your own child; or (c) foster child (any child for your filing status? placed with you by an authorized placement agency

a) Married filing jointly – $110,000 whom you cared for as you would your own child),

and b) Single, head of household, or qualifying widow(er)

– $75,000 • Is a U.S. citizen or resident alien.

c) Married filing separately – $55,000

Note: The above requirements are not the same as the 3) Are you claiming any of the following credits? requirements to be a qualifying child for the earned income

credit. a) Adoption credit, Form 8839

An adopted child is always treated as your own child. b) Mortgage interest credit, Form 8396 An adopted child includes a child placed with you by an

c) District of Columbia first-time homebuyer credit, authorized placement agency for legal adoption even if the

Form 8859 adoption is not final. An authorized placement agency

includes any person or court authorized by state law to

place children for legal adoption.

Comments and suggestions. We welcome your comments about this publication and your suggestions for Limits on the Credit

future editions.

You must reduce your child tax credit if either (1) or (2) You can e-mail us at *tax.forms.irs.gov. Please put applies. “Publications comment” on the subject line.

You can write to us at the following address: 1) The amount on line 43 (Form 1040) or line 28 (Form

1040A) is less than the credit. If this amount is zero,

you cannot take this credit because there is no tax to Internal Revenue Service

reduce. But you may be able to take the additional Individual Forms and Publications Branch

child tax credit. See Additional Child Tax Credit, SE:W:CAR:MP:T:I

later. 1111 Constitution Ave. NW

Washington, DC 20224 2) Your modified adjusted gross income (AGI) is above

the amount shown below for your filing status.

We respond to many letters by telephone. Therefore, it • Married filing jointly – $110,000. would be helpful if you would include your daytime phone

number, including the area code, in your correspondence. • Single, head of household, or qualifying widow(er) –

$75,000.

• Married filing separately – $55,000.

Child Tax Credit

Modified AGI. For purposes of the child tax credit, your

This credit is for people who have a qualifying child as modified AGI is your AGI plus the following amounts that

defined on this page. It is in addition to the credit for child may apply to you.

and dependent care expenses (on Form 1040, line 45, or

Form 1040A, line 29) and the earned income credit (on • Any amount excluded from income because of the

Form 1040, line 63, or Form 1040A, line 41). exclusion of income from Puerto Rico.

The maximum amount you can claim for the credit is • Any amount on line 43 or line 48 of Form 2555,

$1,000 for each qualifying child. Foreign Earned Income.

Page 2
• Any amount on line 18 of Form 2555–EZ, Foreign offset) of $400. When figuring your child tax credit for 2003,

Earned Income Exclusion. you and Mary enter $600 (Mary’s $400 advance payment

plus your $200 advance payment) on line 2 of your Child • Any amount on line 15 of Form 4563, Exclusion of Tax Credit Worksheet. You include $600 on line 2 of the Income for Bona Fide Residents of American Sa- worksheet even if you are claiming only Mary’s child. moa.

Offset. If you owe past-due federal income tax, child sup- If you do not have any of the above, modified AGI is the port, spousal support, or certain federal nontax debts, such AGI amount on line 35 (Form 1040) or line 21 (Form as student loans, all or part of any refund or advance child 1040A). tax credit payment may be used (offset) to pay the

past-due amount. Offsets for federal taxes are made by the

Claiming the Credit IRS. All other offsets are made by the Treasury

Department’s Financial Management Services (FMS). You To claim the child tax credit, you must file Form 1040 or will receive a notice from FMS showing the amount of the Form 1040A. You cannot claim the child tax credit on Form offset and the agency receiving it. 1040EZ. You must provide the name and identification On line 2 of your Child Tax Credit Worksheet, enter the

number (usually a social security number) on your tax amount of your advance child tax credit payment before return for each qualifying child. offset.

Advance Child Tax Credit Payment Taxable Earned Income

You must reduce your 2003 child tax credit by any advance

child tax credit payment you received in 2003. Enter the You will need to figure your taxable earned income using

amount of any advance payment you received (before one of the worksheets in this publication if you are completoffset) on line 2 of your Child Tax Credit Worksheet. The ing the Line 13 Worksheet (page 6) or Form 8812. Form

amount of your advance payment (before offset) is shown 1040 filers, use the worksheet on page 8 to figure your

on Notice 1319. This notice was mailed to you in 2003 if taxable earned income. Form 1040A filers, use the workyou received an advance payment. If you do not have this sheet on page 9.

notice, you can check the amount of your advance payment (before offset) on the IRS website at www.irs.gov or

call us at 1–800–829–1040. Additional Child Tax Credit If you received an advance payment but do not have a

qualifying child for 2003, you do not have to pay back the This credit is for certain individuals who get less than the amount you received. Do not enter the amount of your full amount of the child tax credit. The additional child tax advance payment on your return. credit may give you a refund even if you do not owe any If you filed a joint return for 2002, but for 2003 you are tax. not filing a joint return (or a joint return with the same

spouse), you are considered to have received one-half of How to claim the additional child tax credit. To claim

the advance payment. the additional child tax credit, follow the steps below.

Example 1. You filed a joint return for 2002 and re- 1) Make sure you figured the amount, if any, of your

ceived an advance child tax credit payment (before offset) child tax credit.

of $800. You are divorced and filing using head of house- 2) If you answered “Yes” on line 6 or line 7 of the Child hold status for 2003. You are considered to have received Tax Credit Worksheet in the Form 1040 or Form an advance payment (before offset) of $400. When figuring 1040A instructions (or on line 15 of the Child Tax your child tax credit for 2003, enter $400 on line 2 of your Credit Worksheet in this publication), use Form 8812 Child Tax Credit Worksheet. to see if you can take the additional child tax credit.

Example 2. You filed a joint return for 2002 with your 3) If you have an additional child tax credit on line 13 of

wife, Jane. You and Jane received an advance child tax Form 8812, carry it to line 65 (Form 1040) or line 42

credit payment (before offset) of $400. In 2003, you and (Form 1040A).

Jane got divorced. After the divorce became final, you

married Mary, with whom you are filing a joint return for

2003. Mary filed using head of household status for 2002

and received an advance child tax credit payment (before

Page 3
Child Tax Credit Worksheet

No. STOP

Keep for Your Records

Before you begin: 

1.

4.

5.

10.

9.

1

4

Number of qualifying children:  $1,000. Enter the result.

Enter the amount from Form 1040, line 35, or

Form 1040A, line 22.

1040 Filers. Enter the total of any—

● Exclusion of income from Puerto Rico, and

● Amounts from Form 2555, lines 43 and 48;

Form 2555-EZ, line 18; and

Form 4563, line 15.

Is the amount on line 3 more than the amount on line 9?

You cannot take the child tax credit on Form 1040, line 49,

or Form 1040A, line 33. You also cannot take the additional child

tax credit on Form 1040, line 65, or Form 1040A, line 42.

Complete the rest of your Form 1040 or 1040A.

Yes. Subtract line 9 from line 3. Enter the result.

Go to Part 2 on the next page.

Multiply the amount on line 8 by 5% (.05). Enter the result.

5

10

If you received (before offset) an advance child tax credit payment, see Advance Child Tax Credit

Payment on page 3.

1040A Filers. Enter -0-. 

6. Add lines 4 and 5. Enter the total. 6

7. Enter the amount shown below for your filing status.

● Married filing jointly - $110,000

● Single, head of household, or

qualifying widow(er) - $75,000

● Married filing separately - $55,000

7



8. Is the amount on line 6 more than the amount on line 7?

Yes. Subtract line 7 from line 6.

No. Leave line 8 blank. Enter -0- on line 9.

If the result is not a multiple of $1,000,

increase it to the next multiple of $1,000

(for example, increase $425 to $1,000,

increase $1,025 to $2,000, etc.).

8

9

Part 1

2.

2

Enter the amount, if any, of your advance child tax

credit (before offset). (For details, see page 3.)

3. Is line 1 less than or equal to line 2?

Yes. STOP

You cannot take this credit. If line 2 is more than line 1, you do not

have to pay back the difference.

No. Subtract line 2 from line 1.

3

To be a qualifying child for the child tax credit, the child must be under age 17 at the end of 2003 and meet the other requirements listed

on page 2.

Page 4
Child Tax Credit Worksheet—Continued from page 4 Keep for Your Records

11.

12.

11

12

Enter the amount from Form 1040, line 43, or Form 1040A, line 28.

1040 Filers. Enter the total of the amounts from

lines 44 through 48.

13. Are you claiming any of the following credits?

● Adoption credit, Form 8839

● Mortgage interest credit, Form 8396

● District of Columbia first-time homebuyer credit, Form 8859

13 

14. Subtract line 13 from line 11. Enter the result.

Part 2

1040

15. Is the amount on line 10 of this worksheet more than the amount on line 14?

Yes. Enter the amount from line 14.

See the TIP below.

No. Enter the amount from line 10.

This is your

child tax credit.

Enter this amount on

Form 1040, line 49, or

Form 1040A, line 33.

You may be able to take the additional child tax credit on

Form 1040, line 65, or Form 1040A, line 42, only if you answered

“Yes” on line 15.

● First, complete your Form 1040 through line 64, or

Form 1040A through line 41.

● Then, use Form 8812 to figure any additional child tax credit.

15



Yes. Complete the Line 13 Worksheet on the next page

to figure the amount to enter here.

No. Enter the amount from line 12.

14

1040A

1040A Filers. Enter the total of the amounts from

lines 29 through 32. 

Page 5
Line 13 Worksheet Keep for Your Records

 Complete the Taxable Earned Income Worksheet on page 8 or 9 that applies to you.

1.

5.

7.

1

6

Enter the amount from line 10 of the Child Tax Credit Worksheet on page 4.

Enter the total of the following amounts from

Form(s) W-2:

1040 Filers. Enter the total of any—

● Amounts from Form 1040, lines 28 and 56, and

● Uncollected social security and Medicare or

tier 1 RRTA taxes shown in box 12 of your

Form(s) W-2 with codes A, B, M, and N.

7

1040A Filers. Enter -0-. 

8. Add lines 6 and 7. Enter the total. 8

9. 1040 Filers. Enter the total of the amounts from

Form 1040, lines 63 and 64.

1040A Filers. Enter the total of any— 9 ● Amount from Form 1040A, line 41, and

● Excess social security and tier 1 RRTA taxes 

withheld that you entered to the left of Form 

1040A, line 43.

● Social security taxes from box 4, and

● Medicare taxes from box 6.

If married filing

jointly, include your

spouse’s amounts

with yours when

completing lines 6

and 7.





Railroad employees, see the bottom of page 7.

CAUTION

! Use this worksheet only if you answered “Yes” on line 13 of the Child Tax Credit Worksheet on page 5.



Before you begin:

2. 2 Enter your taxable earned income from the worksheet

on page 8 or 9 that applies to you.

No. Leave line 3 blank, enter -0- on line 4, and go

to line 5.

3. Is the amount on line 2 more than $10,500?

Yes. Subtract $10,500 from the amount on line 2.

Enter the result.

4. Multiply the amount on line 3 by 10% (.10) and enter the result.

Is the amount on line 1 of the Child Tax Credit Worksheet on page 4 $3,000 or

more?

No. If line 4 above is zero, stop. Do not complete the rest of this worksheet.

Instead, go back to the Child Tax Credit Worksheet on page 5 and do the

following. Enter the amount from line 12 on line 13 and complete lines 14 and

15. If line 4 above is more than zero, leave lines 6 through 9 blank, enter -0-

on line 10, and go to line 11 on the next page.

3

4

Yes. If line 4 above is equal to or more than line 1 above, leave lines 6

through 9 blank, enter -0- on line 10, and go to line 11 on the next page.

Otherwise, see 1040 Filers and 1040A Filers on page 7 and then go to line 6.

6.

10. Subtract line 9 from line 8. If the result is zero or less, enter -0-.

Go to line 11 on the next page. 10

Page 6
Line 13 Worksheet—Continued from page 6 Keep for Your Records

12.

12

Is the amount on line 11 of this worksheet more than the amount on line 1?

13. Enter the total of the amounts from—

● Form 8839, line 18, and

● Form 8396, line 11, and

● Form 8859, line 11.

13 

14. Enter the amount from line 12 of the Child Tax Credit Worksheet on page 5.

15. Add lines 13 and 14. Enter the total.

Tier 1 tax withheld from your pay.

This tax should be shown in box 14 of your Form(s) W-2 and

identified as “Tier 1 tax.”

If you were an employee representative, 50% of the total Tier 1 tax and

Tier 1 Medicare tax you paid for 2003.

15

14

Yes. Enter -0-. No. Subtract line 11 from line 1. Enter the result.

Next, figure the amount of any of the following credits that you are claiming.

Use the amount from line 12 above when you are asked to enter the amount

from Form 1040, line 49, or Form 1040A, line 33.

● Adoption credit, Form 8839

● Mortgage interest credit, Form 8396

● District of Columbia first-time homebuyer credit, Form 8859

Then, go to line 13.

Railroad Employees. Include the following taxes in the total on line 6 of the Line 13 Worksheet.





Enter this amount on

line 13 of the Child

Tax Credit Worksheet

on page 5.

11. Enter the larger of line 4 or line 10. 11

1040 Filers. Complete lines 56, 63, and 64 of your return if they apply to you.

1040A Filers. Complete line 41 of your return if it applies to you. If you, or your spouse if filing

jointly, had more than one employer for 2003 and total wages of over $87,000, figure any excess

social security and railroad retirement (RRTA) taxes withheld. See the instructions for Form

1040A, line 43.

Page 7
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 13 Worksheet on page 6 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 13 Worksheet on page 6 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

nongovernmental 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 28 .................................... 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 13 Worksheet on page 6, 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.

Page 8
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 13 Worksheet on page 6 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 nongovernmental 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 13 Worksheet on

page 6 ................................................................... 4.

Page 9
10) They check the “Yes” box in line 10 since the amount

Detailed Example on line 3 ($2,400) is more than the amount on line 9

($100). They subtract line 9 ($100) from line 3

Steve and Gretchen Leaf have four children who are all ($2,400) and enter the result ($2,300) in the box for

qualifying children for the child tax credit. Steve and line 10.

Gretchen’s adjusted gross income (AGI) (Form 1040, line 11) They enter the amount from line 43 of their Form 35) is $112,000. This amount represents Steve’s salary 1040 ($2,000) in the box for line 11. and is considered taxable earned income. They will file a

joint return. Assume that their tax (Form 1040, line 43) is 12) Steve and Gretchen did not have any of the credits

$2,000. on lines 44, 45, 46, 47, or 48 of Form 1040, so they

Steve and Gretchen received an advance payment of enter -0- in the box for line 12.

the child tax credit in 2003. The amount was $1,600. They 13) They check the “No” box on line 13 because they are also received Notice 1319 indicating $1,600 as the amount not claiming any of the credits shown on line 13. of the payment.

Steve and Gretchen have the 2003 Form 1040 tax They enter -0- in the box for line 13.

package and instructions. They want to see if they qualify 14) They subtract the amount on line 13 ($0) from the for the child tax credit, so they follow the steps for line 49 in amount on line 11 ($2,000) and enter the result the instructions. ($2,000) in the box for line 14.

Step 1. In Step 1 of those instructions Steve and Gretchen 15) They check the “Yes” box in line 15 since the amount

determine all four children qualify for the child tax credit. on line 10 ($2,300) is more than the amount on line

14 ($2,000). They enter the amount from line 14 Step 2. The Leafs check the box in column (4) of line 6c on ($2,000) in the box for line 15. Their child tax credit is Form 1040 for each child. $2,000. They enter $2,000 on line 49 of their Form

Step 3. 1040. In Step 3 the Leafs find out they must use Publication 972 to figure their child tax credit because their AGI is Steve and Gretchen read the TIP in the worksheet and find

more than $110,000. When they read Publication 972, that they may be able to take the additional child tax credit they find out they must complete the Child Tax Credit because they checked the “Yes” box in line 15. Worksheet which begins on page 4. Steve and Gretchen complete their Form 1040 through

Completing the Child Tax Credit Worksheet. Steve and line 64 and use Form 8812 to see if they can claim the

Gretchen fill out the worksheet (shown here) to find out additional child tax credit.

how much child tax credit they can claim.

Completing Form 8812.

1) Steve and Gretchen enter the number of qualifying

children (4), multiply 4 by $1,000, and enter the re- 1) They enter the amount from line 10 of their Child Tax

sult ($4,000) in the box for line 1. Credit Worksheet ($2,300) on line 1.

2) They enter $1,600, the amount of the advance child 2) On line 2, they enter the amount of their child tax

tax credit payment, in the box for line 2. credit ($2,000) from line 49 of their Form 1040.

3) They check the “No” box for line 3, subtract the 3) Steve and Gretchen subtract the amount on line 2

amount on line 2 ($1,600) from the amount on line 1 ($2,000) from the amount on line 1 ($2,300) and

($4,000), and enter the result ($2,400) in the box for enter the result ($300) on line 3.

line 3. 4) Before completing line 4, they read the instructions

4) They enter their AGI ($112,000) in the box for line 4. on the back of the form and answer “No” to each of

the four questions. They enter the amount from line 7 5) They enter -0- in the box for line 5 since they did not of their Form 1040 ($112,000) on line 4. exclude any income from Puerto Rico or any income

on Form 2555, Form 2555–EZ, or Form 4563. 5) Since the amount on line 4 ($112,000) is more than

$10,500, they check the “Yes” box and subtract 6) They add $112,000 and $0 and enter the result $10,500 from the amount on line 4 ($112,000) and ($112,000) in the box for line 6. enter the result ($101,500) on line 5. 7) They enter $110,000 in the box for line 7 since they

will file a joint return. 6) They multiply the amount on line 5 ($101,500) by

10% (.10) and enter the result ($10,150) on line 6. 8) They check the “Yes” box in line 8 since the amount Next, they are asked if they have three or more on line 6 ($112,000) is more than the amount on line qualifying children. Steve and Gretchen check the 7 ($110,000). They subtract line 7 ($110,000) from “Yes” box. Since line 6 ($10,150) is more than line 3 line 6 ($112,000) and enter the result ($2,000) in the ($300), they skip Part II and enter the amount from box for line 8. line 3 ($300) on line 13. This $300 is their additional

9) They multiply the amount on line 8 ($2,000) by 5% child tax credit. They also enter this amount on line

(.05) and enter the result ($100) in the box for line 9. 65 of their Form 1040.

Page 10
Steve and Gretchen will get a child tax credit of $2,000 and Revenue law. Generally, tax returns and return information

an additional child tax credit of $300 for the year. are confidential, as required by section 6103.

The time needed to complete and file the worksheets in

this publication will vary depending on individual circumstances. The estimated average time is:

Paperwork Reduction Act Notice. We ask for the infor- Recordkeeping . . . . . . . . . . . . . . . . . . . 12 min.

mation on the worksheets in this publication to carry out

the Internal Revenue laws of the United States. You are Learning about the law or the

worksheets . . . . . . . . . . . . . . . . . . . . . . 8 min. required to give us the information if requested. 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. Preparing the worksheets . . . . . . . . . . 1 hr., 14min.

You are not required to provide the information re- If you have comments concerning the accuracy of these quested on a form (or worksheet in this publication) that is time estimates or suggestions for making these work- subject to the Paperwork Reduction Act unless the form (or sheets simpler, we would be happy to hear from you. See publication) displays a valid OMB control number. Books Comments and suggestions, earlier. or records relating to a form, its instructions, or this publication must be retained as long as their contents may become material in the administration of any Internal

Page 11
4 4,000

112,000

0

110,000

2,000

100

2,300

112,000





Leafs’ filled-in worksheet

2,400

1,600



Child Tax Credit Worksheet

No. STOP

Keep for Your Records

Before you begin: 

1.

4.

5.

10.

9.

1

4

Number of qualifying children:  $1,000. Enter the result.

Enter the amount from Form 1040, line 35, or

Form 1040A, line 22.

1040 Filers. Enter the total of any—

● Exclusion of income from Puerto Rico, and

● Amounts from Form 2555, lines 43 and 48;

Form 2555-EZ, line 18; and

Form 4563, line 15.

Is the amount on line 3 more than the amount on line 9?

You cannot take the child tax credit on Form 1040, line 49,

or Form 1040A, line 33. You also cannot take the additional child

tax credit on Form 1040, line 65, or Form 1040A, line 42.

Complete the rest of your Form 1040 or 1040A.

Yes. Subtract line 9 from line 3. Enter the result.

Go to Part 2 on the next page.

Multiply the amount on line 8 by 5% (.05). Enter the result.

5

10

If you received (before offset) an advance child tax credit payment see Advance Child Tax Credit

Payment on page 3.

1040A Filers. Enter -0-. 

6. Add lines 4 and 5. Enter the total. 6

7. Enter the amount shown below for your filing status.

● Married filing jointly - $110,000

● Single, head of household, or

qualifying widow(er) - $75,000

● Married filing separately - $55,000

7



8. Is the amount on line 6 more than the amount on line 7?

Yes. Subtract line 7 from line 6.

No. Leave line 8 blank. Enter -0- on line 9.

If the result is not a multiple of $1,000,

increase it to the next multiple of $1,000

(for example, increase $425 to $1,000,

increase $1,025 to $2,000, etc.).

8

9

Part 1

2.

2

Enter the amount, if any, of your advance child tax

credit (before offset). (For details, see page 3.)

3. Is line 1 less than or equal to line 2?

Yes. STOP

You cannot take this credit. If line 2 is more than line 1, you do not

have to pay back the difference.

No. Subtract line 2 from line 1.

3

To be a qualifying child for the child tax credit, the child must be under age 17 at the end of 2003 and meet the other requirements listed

on page 2.

Page 12
2,000

0

2,000

2,000

Leafs’ filled-in worksheet continued

0

Child Tax Credit Worksheet—Continued from page 4 Keep for Your Records

11.

12.

11

12

Enter the amount from Form 1040, line 43, or Form 1040A, line 28.

1040 Filers. Enter the total of the amounts from

lines 44 through 48.

13. Are you claiming any of the following credits?

● Adoption credit, Form 8839

● Mortgage interest credit, Form 8396

● District of Columbia first-time homebuyer credit, Form 8859

13 

14. Subtract line 13 from line 11. Enter the result.

Part 2

1040

15. Is the amount on line 10 of this worksheet more than the amount on line 14?

Yes. Enter the amount from line 14.

See the TIP below.

No. Enter the amount from line 10.

This is your

child tax credit.

Enter this amount on

Form 1040, line 49, or

Form 1040A, line 33.

You may be able to take the additional child tax credit on

Form 1040, line 65, or Form 1040A, line 42, only if you answered

“Yes” on line 15.

● First, complete your Form 1040 through line 64, or

Form 1040A through line 41.

● Then, use Form 8812 to figure any additional child tax credit.

15



Yes. Complete the Line 13 Worksheet on the next page

to figure the amount to enter here.

No. Enter the amount from line 12.

14

1040A

1040A Filers. Enter the total of the amounts from

lines 29 through 32. 





Page 13
1040

1040A

. . . . . . . . . .

8812

1040

1040A

. . . . . . . . . .

Steve and Gretchen Leaf 678 00 4444

2,300

2,000

300

112,000

101,500

10,150

300





OMB No. 1545-1620 8812 Additional Child Tax Credit Form

Complete and attach to Form 1040 or Form 1040A. Department of the Treasury

Internal Revenue Service

Attachment

Sequence No. 47

Name(s) shown on return Your social security number

For Paperwork Reduction Act Notice, see back of form. Cat. No. 10644E Form 8812 (2003)

3

2

4

6

Enter the total of the withheld social security and Medicare taxes from Form(s)

W-2, boxes 4 and 6. If married filing jointly, include your spouse’s amounts

with yours. If you worked for a railroad, see the instructions on back

Add lines 7 and 8

1

Enter the total of the amounts from Form 1040, lines

28 and 56, plus any uncollected social security and

Medicare or tier 1 RRTA taxes included on line 60.

Enter -0-.

Enter the total of the amounts from Form 1040, lines

63 and 64.

Enter the total of the amount from Form 1040A, line

41, plus any excess social security and tier 1 RRTA

taxes withheld that you entered to the left of line 43

(see the instructions on back).

Enter the amount from line 3 of your Child Tax Credit Worksheet on page 41 of the Form 1040 instructions

or page 38 of the Form 1040A instructions. If you used Pub. 972, enter the amount from line 10 of the

worksheet on page 4 of the publication

Enter the amount from Form 1040, line 49, or Form 1040A, line 33

Subtract line 2 from line 1. If zero, stop; you cannot take this credit

8

9



6

1040A filers:

1040 filers:

1040 filers:

1040A filers:

1

2

13

Enter this amount on

Form 1040, line 65, or

Form 1040A, line 42.





3

Enter your total taxable earned income. See the instructions on back

5 Is the amount on line 4 more than $10,500?

No.

Yes. Subtract $10,500 from the amount on line 4. Enter the result

Leave line 5 blank and enter -0- on line 6.

4

5

Multiply the amount on line 5 by 10% (.10) and enter the result

7

Next. Do you have three or more qualifying children?

No. If line 6 is zero, stop; you cannot take this credit. Otherwise, skip Part II and enter the

smaller of line 3 or line 6 on line 13.

Yes.

7

8

9

10

10

11 Subtract line 10 from line 9. If zero or less, enter -0- 11

12 Enter the larger of line 6 or line 11 here 12

Next, enter the smaller of line 3 or line 12 on line 13.

13 This is your additional child tax credit

Part III

Part I

Part II

All Filers

Certain Filers Who Have Three or More Qualifying Children

Your Additional Child Tax Credit

If line 6 is equal to or more than line 3, skip Part II and enter the amount from line 3 on

line 13. Otherwise, go to line 7.

2003

Page 14
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find the number, go to www.irs.gov or look in the Internet. You can access the IRS web site 24 phone book under “United States Government, Inter- hours a day, 7 days a week at www.irs.gov to: nal Revenue Service.”

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Page 15
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questing Everyday Tax Solutions help. A representa- 3207, Small Business Resource Guide, is a must

tive will call you back within 2 business days to for every small business owner or any taxpayer schedule an in-person appointment at your conve- about to start a business. This handy, interactive CD con- nience. To find the number, go to www.irs.gov or tains all the business tax forms, instructions and publica- look in the phone book under “United States Govern- tions needed to successfully manage a business. In ment, Internal Revenue Service.” addition, the CD provides an abundance of other helpful

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Page 16