11k – Schedule 3 – Additional Credits and Payments (Attach to Form 1040):
📘 Schedule 3 – Additional Credits and Payments (Attach to Form 1040):-
🔹 Purpose :
Used to claim non-refundable and refundable tax credits not directly listed on Form 1040.
🔹 Part I – Non-refundable Credits :
• Foreign tax credit 🌍
• Education credits (Lifetime Learning, AOTC) 🎓
• Child & dependent care expenses 👨👩👧
• Residential energy credit (solar, wind, etc.) ☀️
🔹 Part II – Other Payments/Refundable Credits:
• Net premium tax credit (ACA) 🏥
• Amount paid with extension request (Form 4868) ⏳
• Excess Social Security withheld 🧾
🔹 Flow to Form 1040
Totals move to Form 1040, Line 20 & Line 31.
🔹 Example
A taxpayer owes $4,000 tax but is eligible for a $1,000 Lifetime Learning Credit and had $500 excess Social Security withheld.
hashtagBoth are reported on Schedule 3, reducing the tax owed to $2,500.
👉 In short: Schedule 3 = Claiming extra credits & payments that reduce tax or increase refund.
