What is a Schedule 3 tax form?

One such form is Schedule 3 (Form 1040), which focuses on Additional Credits and Payments. While the main Form 1040 covers the basic details of your income and deductions, Schedule 3 dives deeper into specific credits and payments that can help lower your tax liability or increase your refund.

When should I use IRS Schedule 3?

Generally, taxpayers will use IRS Schedule 3 when they are claiming nonrefundable credits, other than the child tax credit or the credit for other dependents, or other payments and refundable credits. What is the difference between a refundable credit and a nonrefundable credit? Both types of tax credits can reduce your income tax bill to zero.

Does Schedule 3 include tax credits?

Part II of Schedule 3 includes space for reporting taxes you might have paid in addition to withholding and estimated tax payments. The previous version of Form 1040 had a handful of lines for reporting various tax credits. Now, only a few tax credits have their own lines on Form 1040, including: