EMB ERJ 145 ER/LR
Flight Crew Instrument; Flight Crew Multiengine; Flight Crew Air Transport Pilot (ATP)
Communication Breakdown; Situational Awareness
ATC Issue All Types; Conflict Ground Conflict; Critical; Ground Incursion Runway
Flight Crew Took Evasive Action
Procedure; Human Factors
ZZZ Tower cleared us for takeoff on Runway XX.  While executing the before takeoff checklist below the line; and clearing the final before taking the Runway; Captain noticed a B747 on short final.  He immediately stopped the aircraft but not before the nose crossed the hold short line.  ATC issued a go around for the B747.  We were then issued a line up and wait clearance once the traffic was clear.
We were cleared for takeoff while we were taking the turn onto [Taxiway] XX for Runway XX. The FO (First Officer) started running the complete 'Before Takeoff Checklist.' I looked out my left side window and glare shield and did not notice anything on final. We continued rolling through the intersection and as we crossed the hold short line; through the flow I looked again and noticed a B747 just about to cross the threshold for Runway XX. I immediately applied the brakes and stopped. We remained clear of the runway; but were already over the hold short line. Tower issued the go around to the B747 and we remained in position until further instructions. Tower then instructed us to Line Up and Wait on Runway XX.
Flight Crew reported that during taxi for takeoff; ATC cleared aircraft for takeoff with a B747 on short final; resulting in a go around for the B747.