Updated October 21, 2026. Quick answer: Credit Limit Worksheet B is the second limit worksheet in the Schedule 8812 instructions. You use it only if you claim one of four credits (mortgage interest, adoption, residential clean energy, D.C. first-time homebuyer) and meet the other conditions. It tests earned income and payroll taxes, and line 15 goes on line 4 of Credit Limit Worksheet A.
What this worksheet is for
The instructions for line 13 say “Complete Credit Limit Worksheet B only if you meet all of the following.” The conditions are listed at Credit Limit Worksheet A. The worksheet repeats a caution: “Use this worksheet only if you meet each of the items discussed under line 3 of Credit Limit Worksheet A, including that you are not filing Form 2555.”
It leans on the Earned Income Worksheet for line 3. The schedule is at Schedule 8812.
The worksheet line by line
| Line | What the worksheet says |
|---|---|
| Before you begin | “Complete the Earned Income Worksheet, later, in these instructions.” |
| Caution | “Use this worksheet only if you meet each of the items discussed under line 3 of Credit Limit Worksheet A, including that you are not filing Form 2555.” |
| 1 | “Enter the amount from Schedule 8812, line 12” |
| 2 | “Number of qualifying children under age 17 with the required social security number:” “$1,700. Enter the result” “The number of children you use for this line is the same as the number of children you used for line 4 of Schedule 8812.” |
| 3 | “Enter your earned income from line 7 of the Earned Income Worksheet” |
| 4 | “Is the amount on line 3 more than $2,500?” “No. Leave line 4 blank, enter-0- on line 5, and go to line 6.” “Yes. Subtract $2,500 from the amount on line 3. Enter the result.” |
| 5 | “Multiply the amount on line 4 by 15% (0.15) and enter the result” |
| 6 | “On line 2 of this worksheet, is the amount $5,100 or more?” |
| 6, if No | “If you are a bona fide resident of Puerto Rico and line 5 above is less than line 1 above, go to line 7.” “Otherwise, leave lines 7 through 10 blank, enter-0- on line 11, and go to line 12.” |
| 6, if Yes | “If line 5 above is equal to or more than line 1 above, leave lines 7 through 10 blank, enter-0- on line 11, and go to line 12.” “Otherwise, go to line 7.” |
| 7 | “If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA taxes, use the Additional Medicare Tax and RRTA Tax Worksheet to figure the amount to enter; otherwise enter the following amounts.” |
| 8 | “Enter the total of any amounts from” “Schedule 1, line 15”; “Schedule 2, line 5”; “Schedule 2, line 6”; “Schedule 2, line 13” |
| 9 | “Add lines 7 and 8. Enter the total” |
| 10 | “1040 and 1040-SR filers. Enter the total of the amounts from Form 1040 or 1040-SR, line 27a, and Schedule 3, line 11.” |
| 11 | “Subtract line 10 from line 9. If the result is zero or less, enter-0-” |
| 12 | “Enter the larger of line 5 or line 11” |
| 13 | “Enter the smaller of line 2 or line 12” |
| 14 | “Is the amount on line 13 of this worksheet more than the amount on line 1?” “No. Subtract line 13 from line 1. Enter the result.” “Yes. Enter-0-.” |
| Then | “Next, figure the amount of any of the following credits that you are claiming.” |
| 15 | “Enter the total of the amounts from” “Schedule 3, line 5a”; “Schedule 3, line 6c”; “Schedule 3, line 6g”; “Schedule 3, line 6h”. “Enter this amount on line 4 of Credit Limit Worksheet A.” |
A worked example
Illustration, not an IRS example. Every input is invented. Suppose three qualifying children, no Puerto Rico residence, and a Schedule 8812 line 12 of $4,000.
| Item | Illustration |
|---|---|
| Line 1 (suppose Schedule 8812 line 12 is) | $4,000 |
| Line 2, computed: 3 qualifying children times $1,700 | $5,100 (computed) |
| Line 3 (suppose line 7 of the Earned Income Worksheet is) | $30,000 |
| Line 4 (yes, more than $2,500), computed: line 3 minus $2,500 | $27,500 (computed) |
| Line 5, computed: line 4 times 15% | $4,125 (computed) |
| Line 6 (is line 2 $5,100 or more?) | Yes. Line 5 is more than line 1, so leave lines 7 to 10 blank |
| Line 11 | $0 |
| Line 12, computed: larger of line 5 and line 11 | $4,125 |
| Line 13, computed: smaller of line 2 and line 12 | $4,125 (computed) |
| Line 14 (is line 13 more than line 1? yes) | $0 |
Line 15 would then be filled in only if one of the four listed credits is claimed. Its total goes to Credit Limit Worksheet A, line 4.
Where the number comes from
Line 1 comes from Schedule 8812 line 12, covered at Schedule 8812 lines 9 to 14. Line 3 comes from the Earned Income Worksheet, which builds earned income from Form 1040 line 1z and, for the self-employed, Schedule C and Schedule SE. Lines 7 to 9 use social security and Medicare tax withheld; the related Schedule 8812 lines are at Schedule 8812 lines 21 to 26. Line 10 uses the earned income credit on Form 1040 line 27 and Schedule 3 line 11.
Where it goes next
Line 15 ends with “Enter this amount on line 4 of Credit Limit Worksheet A.” Worksheet A then produces the limit that goes on Schedule 8812 line 13, as covered at Schedule 8812 lines 9 to 14. The credit that results reaches Form 1040 line 19, captioned “Child tax credit or credit for other dependents from Schedule 8812”.
Edition and line numbers
This page reads the 2025 Instructions for Schedule 8812 (Form 1040), the current file irs.gov served on 2026-10-21 (sha256 in the kit data). The Credit Limit Worksheet B in it is for the tax year 2025 return, filed in 2026. Check the tax year printed on the worksheet in your own instructions and use that year’s line numbers, because a different year’s worksheet can number or word its lines differently.
Common mistakes
- Completing the worksheet without the Earned Income Worksheet. The first instruction is “Complete the Earned Income Worksheet, later, in these instructions.”
- Counting the wrong number of children on line 2. The worksheet says “The number of children you use for this line is the same as the number of children you used for line 4 of Schedule 8812.”
- Leaving out a spouse’s payroll taxes on a joint return. The worksheet footnote says “If married filing jointly, include your spouse’s amounts with yours when completing lines 7 and 8.”
Related: Credit Limit Worksheet A, Earned Income Worksheet, Schedule 8812 lines 9 to 14, Schedule 8812 lines 21 to 26, the earned income credit on Form 1040 line 27, and Schedule 3 line 11.
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Answer againSources
- Instructions for Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents (2025): https://www.irs.gov/pub/irs-pdf/i1040s8.pdf
- Form 1040 (2025): https://www.irs.gov/pub/irs-pdf/f1040.pdf
Read from the IRS documents linked above on October 21, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.