Schedule 3 (Form 1040), Additional Credits and Payments is used to report certain tax credits and payments that don’t appear directly on the main tax form.
If you have an amount to report on Schedule 3, the schedule is attached to your Form 1040, Form 1040-SR, or Form 1040-NR. The totals from Schedule 3 are then transferred to the appropriate lines of your federal income tax return.
You don’t need to complete Schedule 3 simply because you’re filing a tax return. You generally need it only when you qualify for one of the credits or have one of the payments listed on the schedule.
Our tax software uses the information you enter to determine whether Schedule 3 is required and, for supported items, place the amounts on the correct lines.
How is Schedule 3 organized?
Schedule 3 has two sections:
- Part I, Nonrefundable Credits, reports credits that can reduce your income tax, generally no lower than zero.
- Part II, Other Payments and Refundable Credits, reports certain tax payments and credits that may increase your refund or reduce the amount you owe.
The difference matters. A nonrefundable credit generally can’t create a refund by itself, while a refundable credit may be paid to you even if it reduces your tax to zero.
Part I: Nonrefundable Credits
Part I reports tax credits that generally reduce income tax but don’t, by themselves, create a refund greater than the tax you owe.
Line 1: Foreign tax credit
Enter your allowable foreign tax credit.
This credit may help prevent double taxation when you paid or accrued income tax to a foreign country or U.S. possession on income that is also subject to U.S. tax.
Attach Form 1116 when required. Some taxpayers can claim the credit without filing that form if they meet the applicable requirements.
Line 2: Credit for child and dependent care expenses
Enter the credit calculated on line 11 of Form 2441.
You may qualify if you paid eligible care expenses for a qualifying child or another qualifying person so you, and your spouse if filing jointly, could work or look for work.
Attach Form 2441.
Line 3: Education credits
Enter the nonrefundable education credit from line 19 of Form 8863.
This amount may include the nonrefundable portion of the American opportunity credit or the lifetime learning credit, depending on your eligibility and education expenses.
Line 4: Retirement savings contributions credit
Enter the retirement savings contributions credit, often called the Saver’s Credit.
You may qualify if you made eligible contributions to a retirement plan or individual retirement arrangement and meet the income, age, student-status, and dependency requirements.
Attach Form 8880.
Line 5a: Residential clean energy credit
Enter the residential clean energy credit from the applicable line of Form 5695.
Under the current 2026 draft, line 5a refers to line 3 of the revised Form 5695. This differs from the 2025 Schedule 3, which referred to line 15. Taxpayers should use the final 2026 forms when preparing their returns.
Line 5b: Reserved for future use
The current 2026 draft marks line 5b as reserved for future use.
This is a change from the 2025 Schedule 3, where line 5b was used for the energy efficient home improvement credit from Form 5695.
Lines 6a through 6z: Other nonrefundable credits
Report other qualifying nonrefundable credits on the applicable line:
- Line 6a: General business credit. Attach Form 3800.
- Line 6b: Credit for prior-year minimum tax. Attach Form 8801.
- Line 6c: Adoption credit. Attach Form 8839.
- Line 6d: Credit for the elderly or disabled. Attach Schedule R.
- Line 6e: Reserved for future use.
- Line 6f: Clean vehicle credit. Attach Form 8936.
- Line 6g: Mortgage interest credit. Attach Form 8396.
- Line 6h: District of Columbia first-time homebuyer credit. Attach Form 8859.
- Line 6i: Qualified electric vehicle credit. Attach Form 8834.
- Line 6j: Alternative fuel vehicle refueling property credit. Attach Form 8911.
- Line 6k: Credit to holders of tax credit bonds. Attach Form 8912.
- Line 6l: Amount from line 14 of Form 8978.
- Line 6m: Credit for previously owned clean vehicles. Attach Form 8936.
- Line 6z: Other nonrefundable credits identified in the instructions. List the credit type and amount.
Line 7: Total other nonrefundable credits
Add lines 6a through 6z. Enter the total on line 7.
Line 8: Total nonrefundable credits
Add lines 1 through 4, line 5a, and line 7.
Under the current 2026 draft, this total is entered on line 20 of Form 1040.
Part II: Other Payments and Refundable Credits
Part II reports payments and refundable credits that may reduce your balance due or increase your refund.
Line 9: Net premium tax credit
Enter the net premium tax credit calculated on Form 8962.
This credit may apply if you or a member of your tax family enrolled in health coverage through the Health Insurance Marketplace and your allowed premium tax credit is more than the advance credit payments made during the year.
Attach Form 8962.
Line 10: Amount paid with an extension request
Enter the amount you paid with your request for an automatic extension of time to file.
An extension gives you more time to submit your return, but it generally doesn’t give you more time to pay your federal income tax. If you made a payment with your extension request, report it here so it can be included with your other tax payments.
Line 11: Excess Social Security and tier 1 RRTA tax withheld
Enter any excess Social Security or tier 1 Railroad Retirement Tax Act tax withheld.
This situation can occur when you worked for two or more employers during the year and the combined amount withheld exceeded the annual limit. If one employer withheld too much, you generally ask that employer to correct the withholding instead of claiming the excess on this line.
Line 12: Credit for federal tax on fuels
Enter the credit for federal tax paid on eligible fuels.
Attach Form 4136. The credit usually applies only when fuel was used for a qualifying nontaxable purpose.
Software note: Form 4136 and the credit for federal tax on fuels aren’t supported in our software. If you need to claim this credit, you may need to prepare the applicable form outside the software or use another filing option.
Lines 13a through 13z: Other payments and refundable credits
Report other eligible payments and refundable credits on the appropriate line:
- Line 13a: Credit from Form 2439 for tax paid by a regulated investment company or real estate investment trust on undistributed long-term capital gains.
- Line 13b: Section 1341 credit for repayment of amounts included in income in an earlier year.
- Line 13c: Net elective payment election amount from Part III, line 6, column (j), of Form 3800.
- Line 13d: Deferred amount of net section 965 tax liability.
- Line 13e: Total section 1062 applicable net tax liability from line 14 of Form 1062.
- Line 13z: Other refundable credits identified in the instructions. List the credit type and amount.
Line 13e is new on the current 2026 draft. It doesn’t appear on the final 2025 Schedule 3.
Line 14: Total other payments and refundable credits
Add lines 13a through 13z. Enter the total on line 14.
Line 15: Total additional payments and refundable credits
Add lines 9 through 12 and line 14.
Under the current 2026 draft, the total is entered on line 31 of Form 1040.
Do I need to file Schedule 3?
You generally need Schedule 3 if you’re claiming at least one credit or reporting at least one payment listed on the schedule.
Common reasons include:
- You paid income tax to another country.
- You paid qualifying child or dependent care expenses.
- You’re claiming an education credit.
- You qualify for the retirement savings contributions credit.
- You’re claiming a residential clean energy credit.
- You qualify for an adoption, clean vehicle, or mortgage interest credit.
- You’re eligible for the net premium tax credit.
- You made a payment with an extension request.
- Too much Social Security or tier 1 RRTA tax was withheld because you worked for multiple employers.
- You qualify for another refundable or nonrefundable credit reported on Schedule 3.
If none of these items apply, you generally won’t need to attach Schedule 3.
How do nonrefundable and refundable credits differ?
A nonrefundable credit can generally reduce the income tax you owe to zero, but any unused portion usually won’t be paid to you as a refund. Carryforward rules may apply to certain credits.
A refundable credit can reduce your tax below zero. If the credit and your other payments are more than your total tax, the extra amount may increase your refund.
Some credits contain both refundable and nonrefundable portions. For example, the education credit calculation may separate the refundable portion of the American opportunity credit from its nonrefundable portion. The parts may appear in different places on your return.
How do I file Schedule 3?
Enter the information for each credit or payment in the appropriate section of our software. For supported items, the software will calculate the applicable totals, prepare Schedule 3, and include it with your electronically filed return.
If you file on paper, attach Schedule 3 to your return using the attachment sequence number printed on the form.
Keep the records used to calculate each credit or payment. Depending on your return, these may include:
- Foreign tax statements
- Child care provider information
- Tuition statements
- Retirement contribution records
- Home energy improvement records
- Marketplace health insurance forms
- Extension payment confirmation
- Forms W-2 from multiple employers
- Vehicle purchase and eligibility documents