IRS Publication 972

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Publication 972: Child Tax Credit

What Publication 972 was

Publication 972 was an IRS guidance document that explained how to determine and claim the Child Tax Credit (CTC) and the refundable Additional Child Tax Credit (ACTC) for tax years 2020 and earlier. It included eligibility rules, worksheets for special situations, and instructions on calculating credit amounts.

Important note: For tax years 2021 and later, Publication 972 is no longer used to figure the child tax credit or credit for other dependents. Those credits are determined using Schedule 8812 alongside Form 1040.

Key takeaways

  • Publication 972 explained who qualified for the Child Tax Credit and how much could be claimed for tax years through 2020.
  • For 2021 and later, use Schedule 8812 with Form 1040 instead of Publication 972.
  • The CTC has income-based phaseouts and a refundable component (ACTC) for lower-income taxpayers.

Who qualifies for the Child Tax Credit (as described in Publication 972)

A qualifying child generally had to meet all of the following tests for the tax year in question:
* Under age 17 at the end of the tax year.
Claimed as a dependent on the taxpayer’s federal return.
 A U.S. citizen, U.S. resident alien, or U.S. national (residency details are covered in IRS residency guidance).
Lived with the taxpayer for more than half of the tax year.
 Did not provide more than half of their own support.

Credit amount (for tax years through 2020)

  • The maximum Child Tax Credit per qualifying child was $2,000 (the increase from $1,000 took effect in 2018).
  • Publication 972 included worksheets to help calculate the allowable credit in special situations.

Refundability — Additional Child Tax Credit (ACTC)

  • A portion of the CTC could be refundable as the Additional Child Tax Credit (ACTC) for taxpayers whose credits exceeded their tax liability.
  • After legislative changes in 2017, the refundable portion increased to up to $1,400 (from $1,000).
  • Taxpayers with earned income above certain minimums (for example, more than $2,500 in annual earned income) could qualify for a refundable ACTC.
  • To claim the refundable credit, filers used Schedule 8812.

Income limits and phaseouts

  • The CTC phased out at higher income levels. For tax year 2020, the phaseout began at adjusted gross income (AGI) of $200,000 for single filers and $400,000 for married filing jointly.
  • High-income taxpayers may be ineligible for some or all of the credit depending on AGI.

How to claim (current process)

  • For tax years through 2020, Publication 972 explained claiming the credit using Form 1040 and accompanying worksheets.
  • For tax years 2021 and later, determine and claim child-related tax credits using Schedule 8812 together with Form 1040.

Summary

Publication 972 was the IRS’s reference for the Child Tax Credit through the 2020 tax year, detailing eligibility, credit amounts, refund rules, and income phaseouts. For returns starting in 2021, the guidance and calculations moved to Schedule 8812 and Form 1040. If you have specific questions about eligibility or how the credit applies to your situation, consult current IRS instructions for Form 1040 and Schedule 8812 or a tax professional.