Amending 1040'S TO GET Additional Child Tax Credit (8812)

Yannman · Post by **Yannman** » Tue Dec 04, 2012 5:40 pm

Has anyone gone back to amend previous 1040's to claim Foreign Tax Credit (1116) instead of Foreign Earned Income Exclusion (2555) in order to get the Additional Child Tax Credit (8812)?

Has it worked? Or did the IRS give you trouble (audit)?

What if you file 2010 and 2011 late and claim that credit? will they allow it or slap you with a penalty for late filing?

My case: Complied with 4 years of FBAR's last Summer, back-filing now 3 years of 8891, and i am filing my 2010 and 2011 at this time. None change my tax liability or amount due.

Thank you

nelsona · Post by **nelsona** » Tue Dec 04, 2012 6:19 pm

Yes, this is a perfectly acceptable way of ensuring the IRS sends you the $1000 for each child. I have helped several people do this and all have recieved their money.

You can't have late-filing penalty if they owe you money.

Yannman · Post by **Yannman** » Tue Dec 04, 2012 6:49 pm

On The 8891's I am back-filing (with 1040x) I am taking the 6a election (deferral).

So all I need to make sure is that any interest accumated in those RRSP's is shown on Sched B?

Thanks again.

Taxpoor · Post by **Taxpoor** » Tue Dec 04, 2012 7:18 pm

If you are taking the 6a election for defferal, why would you tabulate the interest accumulated in your RRSP on schedule B?

I could be wrong, but if you tabulate schedule B, would you not be paying tax on interest accrued? The same interest you with to defer by taking the 6a election?

Yannman · Post by **Yannman** » Tue Dec 04, 2012 7:43 pm

Actually, I am not taking the Article XVIII(7) election at 6c retroactively since I have enough Foreign Tax Credit (Passive Income 1116) to offset the undistributed interest from line 10a of all 8891's.

I am simply filing 8891's retroactively to report RRSP's because I was not aware of the requirement before. Thanks to this forum, I found out about it.

So all the interest accumulated in RRSP's will have no tax liability (in US) when I withdraw them. Unless I have it all wrong...

Yannman · Post by **Yannman** » Tue Dec 04, 2012 8:55 pm

As well as the $1000 credit per child, it seems that using the FTC (1116) instead of FEIE (2555) opens up the 'Making Work Pay' credit ($800).

Is that correct or a software glitch?

nelsona · Post by **nelsona** » Wed Dec 05, 2012 12:36 am

If you are reporting income, then you do NOT take the election on line 6, you report all interest cap gains etc gained internally on 8891 line 10 and it will translate to your return.

Make work pay comes from having taxable work that you di not exclude, this removing 2555 makes that work too.