What is Schedule 3 (Form 1040)?
Schedule 3 (Form 1040), Additional Credits and Payments, is a form issued by the Internal revenue service (IRS) to report nonrefundable credits or other payments and refundable credits.
How to fill out Schedule 3 (Form 1040)?
Some nonrefundable credits or other payments and refundable credits may not apply to you. In this case, you may leave the space blank. However, you may check the instructions of the specific form required to be attached or filed as you may be eligible to take credit.
Name(s) shown Form 1040, 1040-SR, or 1040-NR
Enter the name or names shown on your Form 1040, Form 1040-SR, or Form 1040-NR.
Your social security number
Enter your Social Security Number (SSN).
Part I. Nonrefundable Credits
Line 1. Foreign tax credit. Attach Form 1116 if required
You have to file Form 1116, Foreign Tax Credit, to claim your foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country or U.S. possession.
Enter the amount of your foreign tax credit from your Form 1116.
If you do not have to file Form 1116, enter the smaller of your total foreign taxes or the total of the amount on line 16 of Form 1040 or Form 1040-SR and the amount on line 2 of your Schedule 2 (Form 1040), Additional Taxes.
Line 2. Credit for child and dependent care expenses. Attach Form 2441
You need to file Form 2441, Child and Dependent Care Expenses, to take the credit for child and dependent care expenses, if you paid someone to care for your child or another qualifying person so you and your spouse, if filing jointly, can work or look for work.
Enter the amount of your credit for child and dependent care expenses.
Line 3. Education credits from Form 8863, line 19
Enter the amount of the education credits you reported on line 19 of your Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits).
You may take an education credit if you or your dependent paid qualified expenses in the current tax year for yourself, your spouse, or your dependent to enroll in an eligible educational institution.
Line 4. Retirement savings contributions credit. Attach Form 8880
You need to file Form 8880, Credit for Qualified Retirement Savings Contributions, to figure the amount of your retirement savings contributions credit.
Enter the amount of your retirement savings contributions credit.
You may be able to take this credit if you or your spouse if filing jointly, made:
- (a) contributions, other than rollover contributions, to a traditional or Roth IRA;
- (b) elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or a governmental 457, SEP, or SIMPLE plan;
- (c) voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan);
- (d) contributions to a 501(c)(18)(D) plan; or
- (e) contributions to an ABLE account by the designated beneficiary, as defined in Section 529A.
Line 5. Residential energy credits. Attach Form 5695
You need to file Form 5695, Residential Energy Credits, to figure and take your residential energy credits, such as your nonbusiness energy property credit and or residential energy efficient property credit.
Enter the amount of your residential energy credits.
Line 6. Other credits from Form:
Mark the box to enter the amount of your general business credits from your Form 3800, General Business Credit.
Mark the box to enter the amount of your minimum tax credit, if any, for alternative minimum tax (AMT) you incurred in prior tax years or any credit carry forward to next year from your Form 8801, Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts.
Mark the box for other credits. Then, enter the name of the tax form and the amount of your credit.
Line 7. Add lines 1 through 6. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 20
Add the amount you listed on lines 1 through 6. Then, enter the total here and on line 20 of your Form 1040, Form 1040-SR, or Form 1040-NR.
Part II. Other Payments and Refundable Credits
Line 8. Net premium tax credit. Attach Form 8962
You need to file Form 8962, Premium Tax Credit, to figure the amount of your premium tax credit (PTC) and reconcile it with any advance payments of the premium tax credit (APTC).
Enter the amount of your net premium tax credit.
You may be eligible to claim the premium tax credit if you, your spouse, or a dependent enrolled in health insurance through the Marketplace.
Line 9. Amount paid with request for extension to file
If you obtained an automatic extension of time to file your tax forms by making a payment or filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, enter the amount of the payment or any amount you paid with Form 4868.
If you paid by debit or credit card, add the payment and the amount you paid with Form 2350, Application for Extension of Time to File U.S. Income Tax Return. Then, enter the total. Do not include the convenience fee.
Line 10. Excess social security and tier 1 RRTA tax withheld
Enter the amount of excess Social Security Tier 1 Railroad Retirement Tax Act (RRTA) tax withheld.
If you, or your spouse, if filing a joint return, had more than one employer for the current tax year and total wages of more than $137,700, the excess Social Security Tier 1 RRTA tax may have been withheld.
You can take a credit on this line for the amount withheld more than $8,537.40. However, if any one employer withheld more than $8,537.40, you can't claim the excess on your tax return.
The employer should adjust the tax for you. If the employer doesn't adjust the overcollection, you can file a claim for a refund using Form 843, Claim for Refund and Request for Abatement.
Line 11. Credit for federal tax on fuels. Attach Form 4136
You need to file Form 4136, Credit For Federal Tax Paid On Fuels, to figure and claim credit for certain nontaxable uses or sales of fuel during your income tax year, alternative fuel credit, and credit for blending a diesel-water fuel emulsion.
Enter your credit for federal excise taxes paid on fuels that are used for nontaxable purposes.
Line 12. Other payments or refundable credits
a. Form 2439
Enter the amount of undistributed long-term capital gains from your Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains.
b. Qualified sick and family leave credits from Schedule(s) H and Form(s) 7202
If you paid household employment taxes, enter the refundable portion of the credit for qualified sick and family leave wages you are eligible for due to reasons related to the coronavirus from your Schedule H (Form 1040), Household Employment Taxes.
Enter the amount of any credit for paid sick or family leave for certain self-employed individuals due to coronavirus. The amount of credit for sick leave is on line 24 of your Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, and the amount of credit for family leave is on line 35 of the same form.
c. Health coverage tax credit from Form 8885
Enter the amount of your health coverage tax credit (HCTC) from your Form 8885, Health Coverage Tax Credit.
If you are claiming a credit for repayment of amounts you included in your income in an earlier year because it appeared you had a right to the income, enter the credit amount. Then, enter “I.R.C. 1341.”
If you made a tax payment that does not belong on any other line, including a credit under section 960(c) concerning an excess limitation account, enter the payment amount. Then, enter “Tax.”
If you have a net section 965 inclusion in the current tax year and have elected to pay your net 965 tax liability in installments, enter the deferred amount. Then, enter “TAX” and the amount of net 965 tax liability remaining to you will pay in future years.
e. Deferral for certain Schedule H or SE filers
You can defer some of the household employment and self-employment tax payments you may owe on your current tax year's return and pay them at a later time if you file Schedule H (Form 1040) or Schedule SE (Form 1040), Self-Employment Tax.
However, you cannot defer the amounts that you have already paid. If you qualify, the amount you may defer is figured in the Deferral Worksheet in the instructions provided by the IRS.
f. Add lines 12a through 12e
Add all the amounts you entered on lines 12a through 12e. Then, enter the total.
Line 13. Add lines 8 through 12f. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 31
Add all the amounts you entered on lines 8 through 21. Then, enter the total here and on line 31 of your Form 1040, Form 1040-SR, or Form 1040-NR.
How to file Schedule 3 (Form 1040)?
Attach your accomplished Schedule 3 (Form 1040) and the other documents to your Form 1040, Form 1040-SR, or Form 1040-NR.