For Australia-based U.S. filers, there is a further wrinkle. The IRS has published only draft 2026 materials, so the line numbers below come from the final 2025 forms. The 2026 amounts come from IRS inflation guidance.
This guide covers where to find the worksheet, what goes into it, how to carry the result to Form 1040, common errors, and points specific to filers in Australia.
Key Takeaways
- Use only final IRS Schedule 8812 materials for the correct tax year, never older or draft worksheets.
- Worksheet A sets a tax-liability ceiling on nonrefundable credits. It is not a credit.
- Its result is not the refundable ACTC.
- Verify every line reference against the final 2026 instructions once released.
What Is Schedule 8812 and Credit Limit Worksheet A?
Schedule 8812 calculates the Child Tax Credit (CTC), the Credit for Other Dependents (ODC) and the Additional Child Tax Credit (ACTC). You attach it to Form 1040, 1040-SR or 1040-NR when you meet the eligibility rules.
Worksheet A's role
Worksheet A is not a separate schedule and you do not file it. It appears in the Schedule 8812 instructions under the heading Credit Limit Worksheet A - Keep for Your Records. It measures the tax left after specified other credits, which caps the nonrefundable CTC and ODC.
It differs from three things people often confuse it with:
- Schedule 8812 itself, which hosts the full calculation
- The maximum credit figure per child
- The ACTC calculation in Part II
What the worksheet measures
Think of it as a ceiling. A family might qualify for a large credit on paper, yet the nonrefundable portion can't exceed the tax owed after other credits. Anything beyond that may flow to the ACTC, if eligible.
Where to find the correct worksheet
The final materials currently available are for tax year 2025, with instructions corrected on 23 January 2026. The 2026 PDFs posted so far are drafts marked not for filing.
- IRS Schedule 8812 page: the hub for the form and instructions
- Instructions PDF: contains Worksheet A
- Draft 2026 instructions: reference only
Confirm the tax year and revision date before copying any line number from a blog, software screenshot or prior-year PDF.
Who May Qualify for Credits Calculated on Schedule 8812?
Qualifying children
For the Child Tax Credit (CTC), a child generally must meet all of these tests under current IRS rules:
- Be your son, daughter, stepchild, eligible foster child, sibling or a descendant of one
- Be under 17 at year-end
- Be claimed as your dependent
- Have lived with you more than half the year
- Not have provided more than half their own support
- Be a U.S. citizen, national or resident alien
- Hold a valid SSN issued before the return due date, including extensions
Other dependents
The Credit for Other Dependents (ODC) covers dependents who don't qualify for the CTC, such as an older child or a child without the required SSN.
The dependent needs an SSN, ITIN or ATIN issued on or before the due date, including extensions. The ODC is nonrefundable and does not cover you or your spouse.
Information to gather
- Completed Form 1040 figures, especially line 18
- Schedule 3 amounts
- Dependent details and identification numbers
- Income records and filing status
- Whether you file Form 2555 or claim mortgage interest, adoption, residential clean energy or D.C. first-time homebuyer credits
For joint returns, the taxpayer or one spouse needs a valid SSN. The other spouse needs a timely SSN or ITIN.
How to Complete Credit Limit Worksheet A and Report the Result on Form 1040
Before you start
Finish the relevant parts of Form 1040 and Schedule 8812 first. Then identify which dependents go to the CTC and which to the ODC.
Line-by-line walkthrough (final 2025 numbering)
| Line | What to enter |
|---|---|
| 1 | Form 1040/1040-SR/1040-NR, line 18 |
| 2 | Sum of Schedule 3, lines 1, 2, 3, 4, 5b, 6d, 6f, 6l and 6m |
| 3 | Line 1 minus line 2 |
| 4 | 0, unless you complete Credit Limit Worksheet B |
| 5 | Line 3 minus line 4; enter on Schedule 8812, line 13 |
When Worksheet B applies
Complete Worksheet B only when all of these apply:
- You claim the mortgage interest, adoption, residential clean energy, or D.C. first-time homebuyer credit
- You are not filing Form 2555
- Schedule 8812 line 4 is above zero
Worksheet B's result is subtracted, not added.
Carry the result forward
On Schedule 8812, the income phase-out runs through lines 9 to 12. The phase-out starts at $400,000 for married filing jointly and $200,000 for other statuses, reducing the credit by 5% of the excess, rounded up to the next $1,000.
Then:
- Line 14 is the smaller of line 12 and line 13. Carry it to Form 1040 line 19.
- Line 16a is line 12 minus line 14, the starting point for the ACTC.
- The ACTC is capped at $1,700 per qualifying child for 2026, with the final amount reaching Form 1040 line 28 via Schedule 8812 line 27.
Never enter the same amount on both the nonrefundable and refundable lines.
Illustrative example
This hypothetical uses round numbers for clarity. A single filer has one qualifying child, income well below the phase-out, and Form 1040 line 18 of $1,500 with no listed Schedule 3 credits.
- Worksheet A line 5 is $1,500, entered on Schedule 8812 line 13
- Line 12 is $2,200 (the 2026 maximum CTC)
- Line 14 is the smaller figure, $1,500, going to Form 1040 line 19
- Line 16a is $700, which may be available toward the ACTC, subject to its separate tests
Confirm every figure against the final 2026 IRS forms and instructions, which do not include a numerical Worksheet A example.
Common Schedule 8812 Mistakes to Avoid
Using the wrong year's worksheet
Draft 2026 PDFs are marked “do not file,” and the current final instructions still cover 2025. The IRS also changed a heading on the child SSN rule from “by” to “before” the due date, so copies downloaded before 23 January 2026 may be outdated.
Confusing credit limits with credit amounts
Three figures are separate:
- The maximum credit ($2,200 per child for 2026, per Rev. Proc. 2025-32)
- The amount allowed after the tax limit (Worksheet A)
- The refundable ACTC, up to $1,700 per child
The maximums are not additive.
Entering figures incorrectly
- Treating every dependent child as CTC-eligible without confirming both the under-17 age test and the dependency tests
- Assuming an ITIN is enough for the CTC, which requires the specified SSN
- Claiming a dependent already claimed elsewhere
- Omitting a required Worksheet B adjustment
- Treating every unused credit amount as refundable
2026 Tax-Year and Australian-Based Filer Considerations
Confirming the 2026 IRS materials
Tax year 2026 returns are filed in 2027. Per the IRS, 2026 inflation adjustments generally apply to those returns. Until the final form is released, treat 2026 line numbers as provisional.
What changed
Public Law 119-21, signed 4 July 2025, removed the scheduled end of the higher CTC and set the base at $2,200 (indexed after 2025). It also added the taxpayer SSN requirement. The ODC remains $500 per eligible dependent.
Australia-based U.S. taxpayers
U.S. citizens and resident aliens in Australia are taxed on worldwide income. Eligibility turns on U.S. rules, not Australian residence.
- Form 2555: filing it bars the ACTC. Excluded income is added back in the Schedule 8812 phase-out calculation.
- Form 1040-NR: only U.S. nationals and Canada/Mexico residents claim the CTC/ODC in full. Australian residence alone does not qualify.
- Child residence: the test is living with you more than half the year, not time physically in the U.S.
- Currency: report in U.S. dollars using a consistent IRS-accepted rate.
- Extension: filers living abroad get an automatic two-month extension, normally 15 April to 15 June, but interest runs from the regular due date.
Professional support
VJM Global prepares U.S. returns for Australia-based taxpayers, reviews Schedule 8812 and maintains current-year compliance documentation. The firm cannot promise eligibility, a refund or a specific credit amount.
Frequently Asked Questions
Where do I find Credit Limit Worksheet A for Schedule 8812?
It is in the Schedule 8812 instructions on the IRS Schedule 8812 page, under "Keep for Your Records." It is not a standalone form. Final 2026 instructions are not yet available.
What is Schedule 8812 (Child Tax Credit)?
It is the schedule attached to Form 1040, 1040-SR or 1040-NR that calculates the CTC, ODC and ACTC.
What is the maximum Child Tax Credit per qualifying child?
For 2026 it is $2,200, with up to $1,700 potentially refundable. The amount you actually receive depends on income, tax liability and eligibility.
What is the other dependent credit and who is eligible?
It is a nonrefundable credit of up to $500 for dependents who don't qualify for the CTC, such as older children. The dependent needs a timely SSN, ITIN or ATIN.
How do I complete Credit Limit Worksheet A?
Take line 18 from Form 1040, subtract the listed Schedule 3 credits, subtract any Worksheet B amount, and enter the result on Schedule 8812 line 13.
Does everyone who claims a dependent need to complete Schedule 8812?
No. It is required when you claim the CTC, ODC or ACTC. Dependency alone does not establish credit eligibility.
