Section 47 - Schedule 8812 and Part II, Form 1040-SS, Refundable Child Tax Credit

Schedule 8812, Credits for Qualifying Children and Other Dependents, is used on Form 1040-NR to claim refundable Child Tax Credit or additional Child Tax Credit. For TY 2012 through TY 2017, taxpayers used Part I of Schedule 8812 to indicate whether their children met the physical presence test for this credit. In PY21, the ERS only fields for the physical presence test are deleted. Examiners will manually check for the physical presence test when EC 290 or 344 displays. Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, invalid conditions and correction procedures for the fields on Schedule 8812.

Part II, Form 1040-SS/SS(SP) is used to claim the Additional Child Tax Credit (Refundable Child Tax Credit for TY21) by bona fide residents of Puerto Rico. Section 47 has two transcribed fields for Part II.

Section 47 contains the following fields.

Form 1040-NR

Form 1040-SS (sp)/SS

Field Title

Field Location on Form

03OEI

Additional Child Tax Credit Opt out Election Indicator

Checkbox on line 15

47EI

Schedule 8812 Earned Income

Line 18a

47NCP

Non-Taxable Combat Pay

Line 18b Schedule 8812

47PRI

Income From Puerto Rico Amount

Part II, line 3, Form 1040-SS/SS (sp)

47SSM

47SSM(TY20 and prior and TY22 and later)

Total Social Security and Medicare Withheld Amount

Line 21, Schedule 8812

Part II, Line 13f (PY22 and prior Part II, line 2,) Form 1040-SS/PR

Taxpayers filing Form 1040 and Form 1040-NR do NOT need to have 3 qualifying children regardless of the address shown on their return. If it appears the taxpayer is a bona fide resident of Puerto Rico≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ see IRM 3.22.3.9.5.2 for correction procedures.

For TY20 and prior ONLY taxpayers filing Form 1040-SS or Form 1040-PR must have 3 or more qualifying children to qualify for Additional Child Tax Credit.

For TY 21 and TY22 taxpayers filing Form 1040-SS or Form 1040(PR) can claim refundable Child Tax Credit with 1 or more qualifying children.

For TY 23 and later taxpayers filing Form 1040-SS or Form 1040-SS (sp) can claim additional Child Tax Credit with 1 or more qualifying children.

This field is transcribed from Part II, line 3 (TY22 and prior - Part II, line 1), on Form 1040-SS. It reports income derived from sources within Puerto Rico, which for Form 1040-SS filers, is their modified adjusted gross income. For TY20 and prior Field 47PRI is used to phase out the taxpayer’s Additional Child Tax Credit (ACTC). Instructions for this field are in EC 344 at IRM 3.22.3.253.2.

For TY21 Part II, line 1 on Form 1040-SS and Form 1040(PR) is the taxpayers Modified adjusted gross income and is used for the refundable Child Tax Credit. Instructions for this field are in EC 345.

This field is transcribed from Part II, line 13f (TY22 and prior - Part II, line 2). This line is reserved for TY21 on Form 1040(PR) and therefore not used for TY21.