Schedule 3 (Form 1040) is where you claim credits and payments that don't have their own line on Form 1040. Part I covers nonrefundable credits such as the foreign tax credit, child and dependent care, education and energy credits, and totals on Form 1040, line 20. Part II covers refundable credits and other payments, such as a payment made with an extension, and totals on line 31.
Every line reference below comes from the 2025 Schedule 3 and the IRS instructions for Form 1040, as of October 2026.
Nonrefundable or refundable: why the split matters
A nonrefundable credit can reduce your tax to zero but no further. A refundable credit or payment can create a refund. That's why Schedule 3 has two parts, and why the totals land on different lines of your 1040.
| Part | Examples | Total goes to |
|---|---|---|
| Part I, Nonrefundable Credits | Foreign tax credit, child and dependent care credit, education credits, retirement savings contributions credit, residential clean energy and home improvement credits, general business credit, adoption credit | Form 1040, line 20 |
| Part II, Other Payments and Refundable Credits | Net premium tax credit, payment made with an extension request, excess Social Security withheld, credit for federal tax on fuels | Form 1040, line 31 |
Part I, the credits
| Line | Credit | Form |
|---|---|---|
| 1 | Foreign tax credit | Form 1116 if required |
| 2 | Child and dependent care expenses | Form 2441 |
| 3 | Education credits | Form 8863 |
| 4 | Retirement savings contributions credit | Form 8880 |
| 5a and 5b | Residential clean energy and energy efficient home improvement credits | Form 5695 |
| 6a to 6z | Other credits, including general business, prior year minimum tax, adoption, elderly or disabled, clean vehicle and mortgage interest credits | Forms 3800, 8801, 8839, Schedule R, 8936, 8396 and others |
The child tax credit and the credit for other dependents aren't on Schedule 3: they go on Form 1040 itself.
Part II, the payments people forget
Line 10 is for any amount you paid with a request for an extension. If you got an automatic extension by filing Form 4868, or by making a payment, enter that payment here, plus any amount paid with Form 2350. Don't include any card processing fee. Without this line, the IRS doesn't count the payment you've already sent against your bill, so check it if you filed an extension.
Line 9 takes the net premium tax credit from Form 8962, line 26, when your premium tax credit is more than the advance payments made for you. Line 12 claims a credit for federal excise tax on fuel used for a nontaxable purpose, using Form 4136.
The overlooked credit for two-job households
Line 11 is where people with more than one employer can get back Social Security tax that was over-withheld. Each employer withholds as if it's your only job, so if you had more than one employer in 2025 and total wages above $176,100, too much may have been taken. You can claim the amount withheld above $10,918.20 on line 11, as of October 2026.
- Work it out separately for you and your spouse. It isn't combined on a joint return.
- If one employer alone withheld more than $10,918.20, you can't claim that excess on your return. The employer should fix it, and if they don't, you can file a refund claim on Form 843.
- Excess tier 2 railroad retirement tax isn't claimed here either. It also needs Form 843.
A quick check before you file
- Did you pay anything when you asked for an extension? That's line 10.
- Did you or your spouse have two or more employers and combined wages above $176,100? Check line 11 for each of you separately.
- Did you pay for childcare so you could work? Form 2441 feeds line 2.
- Did you pay college costs? Form 8863 feeds line 3.
- Did you install solar panels or make energy upgrades at home? Form 5695 feeds lines 5a and 5b.
- Did you pay foreign tax on investment income? Line 1 may apply, sometimes without Form 1116.
If you contributed to a retirement plan or IRA and your income is modest, the retirement savings contributions credit on line 4 is easy to miss too. It's figured on Form 8880. Some of these credits also interact with each other, so let software, or a preparer, run the order. For dividends, check Form 1099-INT and your broker statements for foreign tax paid.
Lines 13a to 13z
These catch the rarer payments and refundable credits: credit for undistributed capital gains on Form 2439, the section 1341 credit for repaying income you were taxed on in an earlier year, net elective payment election amounts from Form 3800, deferred section 965 tax, and other refundable credits such as the section 960(c) excess limitation. Line 14 adds them up, and line 15 brings lines 9 to 12 and 14 together for Form 1040, line 31.
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How to complete it
- Complete the forms that feed each line first, such as Form 2441, Form 8863 or Form 1116.
- Enter each credit in Part I, add lines 6a to 6z on line 7, then total on line 8.
- Carry line 8 to Form 1040, line 20.
- Enter payments and refundable credits in Part II and total on line 15.
- Carry line 15 to Form 1040, line 31, and attach Schedule 3 with the supporting forms.
The verdict
Schedule 3 is where credits and payments that don't fit on the 1040 itself get counted, so leaving it off can mean paying more than you owe. If you paid with an extension, worked two jobs with high combined wages, or have energy, education or foreign tax credits, it's worth checking every line. The schedule's easy to miss and pays you back when you don't.
Frequently asked questions
What is Schedule 3 used for?
It claims nonrefundable credits and other payments and refundable credits that can't be entered directly on Form 1040.
Where does the Schedule 3 total go?
Part I, line 8, goes on Form 1040, line 20. Part II, line 15, goes on Form 1040, line 31.
Where do I report a payment made with Form 4868?
On Schedule 3, line 10, together with any amount paid with Form 2350, but not any card processing fee.
Can I get back excess Social Security tax on Schedule 3?
Yes, on line 11, if you had more than one employer and total 2025 wages above $176,100. You claim the amount withheld above $10,918.20.
Is the child tax credit on Schedule 3?
No. The child tax credit and the credit for other dependents are claimed on Form 1040 itself.
