Can line 3 on the 2020 8812 (form 1040) be a negative number for child tax credit?

I just got a letter in the mail from the IRS saying I might be eligible for a refund on my 2020 taxes! I'm trying to fill out the form 8812 but I'm completely stuck. When I look at my 2020 tax return, on the child tax credit worksheet line 8 is blank and line 2 shows $1,400. Line 3 asks me to subtract line 2 from line 1, which would be 0-1400 = -$1,400. Is it even possible for line 3 to be negative? This seems weird but I don't wanna mess this up and lose out on money the IRS thinks I deserve. Has anyone dealt with this before? The letter seemed pretty clear that I might qualify for additional money.

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18 comments

Xan Dae

•8M

Yes, line 3 on Form 8812 for 2020 can absolutely be negative. What you're seeing is actually part of the normal calculation process for determining if you qualify for the Additional Child Tax Credit. The negative number represents the "unused" portion of your Child Tax Credit that could potentially be refundable. For 2020, the Child Tax Credit was $2,000 per qualifying child, but only $1,400 of that could be refundable as the Additional Child Tax Credit. If line 1 shows zero, it means you didn't use any of the non-refundable portion (likely because your tax liability was already reduced to zero through other means). So having -$1,400 on line 3 is correct and indicates you may qualify for the refundable portion. Continue completing the form - this negative number will be used in subsequent calculations to determine your actual refund amount.

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Xan Dae

•8M

Yes, in this context, a negative number can actually work in your favor! It indicates unused Child Tax Credit that could potentially become refundable through the Additional Child Tax Credit. Regarding amending your return, it depends on your specific situation. If you believe you qualified for the Additional Child Tax Credit but didn't claim it, you generally have up to three years from the original filing deadline to file an amended return using Form 1040-X. I'd recommend looking at your previous return to see if you completed Form 8812 and if you might have missed out on a credit you were entitled to.

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Thais Soares

•8M

I had the exact same confusion when dealing with this on my 2020 taxes! I actually used https://taxr.ai to upload my tax forms and letter from the IRS. Their system analyzed my situation and confirmed that having a negative number on line 3 was correct. Apparently, it's part of how they calculate the refundable portion of the child tax credit. The tool walked me through the whole process and made it super clear what I needed to do next. It showed me exactly where each number needed to go on Form 8812 and why that negative number was actually working in my favor. Made the whole process way less stressful.

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Thais Soares

•8M

It's actually really straightforward - you just upload your tax documents and it uses AI to analyze them. There's a secure portal where you can access your results, but I didn't have to provide any payment info just to get my forms analyzed. The system definitely understood my IRS letter - it even highlighted the specific sentences that were relevant to my situation. And it should be able to handle your unemployment situation too. The tool specifically looks at how different income sources affect your credits and deductions, so it would factor in how unemployment might have impacted your child tax credit calculations.

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Axel Bourke

•8M

Just wanted to update everyone - I tried https://taxr.ai after seeing it mentioned here and it absolutely worked for my situation with the negative line 3 on Form 8812! The system immediately identified that I was eligible for the Additional Child Tax Credit even with the negative number on line 3. It even explained how my unemployment income affected things. The step-by-step guidance made it super clear how to complete the rest of the form. Just submitted my paperwork to the IRS and they confirmed I'm getting an additional $1,820 back from my 2020 taxes! Would never have figured this out on my own since I was confused by the negative number.

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Aidan Percy

•8M

If you're struggling with getting answers from the IRS about this Form 8812 issue, I highly recommend trying https://claimyr.com - it saved me hours of frustration. After getting the same letter and being confused about the negative number on line 3, I tried calling the IRS directly but kept getting the "call volume too high" message for weeks. I was super skeptical at first, but Claimyr actually got me connected to an IRS agent in about 15 minutes. They have a video showing how it works here: https://youtu.be/_kiP6q8DX5c. The agent confirmed that the negative number was completely fine and helped me understand exactly how to complete the rest of the form.

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Aidan Percy

•8M

It works because they use technology to constantly dial the IRS for you, and when they get through, they connect you. It's basically doing the redial work for you, but with automated systems that can try hundreds of times per hour. I was definitely skeptical too, but after waiting on hold myself for hours over multiple days, I was desperate. It's not magic - they're just using technology to solve the "constantly busy" problem. And yes, it really does work. I talked to an actual IRS representative who confirmed that my negative number on line 3 was correct and helped me complete the rest of Form 8812 properly. Worth it just for the time saved and stress avoided.

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Norman Fraser

•8M

I need to eat my words. After posting my skeptical comment, I decided to try Claimyr anyway because I was desperate to resolve my 2020 Form 8812 issue with the negative number. Not only did I get through to the IRS in about 20 minutes, but the agent I spoke to was incredibly helpful. She walked me through exactly how to handle the negative number on line 3 and explained that it was actually SUPPOSED to be negative in my case because it represented the unused portion of the Child Tax Credit that could become refundable. I've already received confirmation that I'm getting an additional $2,100 refund for 2020! After months of frustration and confusion, I'm still shocked at how quickly this got resolved. Sometimes skepticism gets the better of me, but I'm glad I gave it a shot.

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Kendrick Webb

•8M

The easiest way to check is to look at your 2020 tax return - there should be a Recovery Rebate Credit Worksheet or a line on the Form 1040 itself (Line 30). If that line is blank or zero, you might have missed out. You qualify if you didn't receive the full stimulus payments you were entitled to in 2020. The first payment was $1,200 per adult and $500 per qualifying child, and the second was $600 per adult and per qualifying child. If your income wasn't too high and you didn't receive these full amounts, you might be eligible for the credit.

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