The Child Tax Credit (CTC) is one of the most valuable tax benefits available to US taxpayers with dependent children. Even if you’re living overseas, you may still be eligible to claim the Child Tax Credit and reduce your US tax liability—or even receive a refund.
Many expats ask: “Can I claim child tax credit if my child lives abroad?” or “Can I claim child benefit if I live abroad?” The good news is that you often can—if you and your child meet the IRS requirements. Below, we explain eligibility, forms, filing tips for expats, and what to do if you missed filing in past years.
Understand the Child Tax Credit
The Child Tax Credit provides financial support to families with dependent children under the age of 17. For tax year 2024, the credit is up to $2,000 per qualifying child, with up to $1,700 refundable under the Additional Child Tax Credit (ACTC). This means even if you owe no US taxes, you could still receive a refund.
Determine Eligibility
To claim the Child Tax Credit, you and your child must meet these rules:
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Age requirement: Your child must be under 17 years old at the end of the tax year.
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Citizenship: Your child must be a US citizen, US national, or US resident alien.
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Residency: Your child must generally live with you for more than half the year (exceptions exist for expats and military families).
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Income limits: The credit begins to phase out if your Modified Adjusted Gross Income (MAGI) is above $200,000 for single filers or $400,000 if married filing jointly.
How to Claim the Child Tax Credit If You Live Abroad
Even if you live abroad, you’re required to file a US tax return to claim the Child Tax Credit. Use Form 1040 to report your income and claim the credit. Ensure you include all relevant income, such as wages, self-employment income, and foreign income.
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File a US tax return (Form 1040) – Expats must still file Form 1040 each year, even if they also pay taxes in their country of residence.
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Attach Schedule 8812 (Credits for Qualifying Children and Other Dependents) – This form calculates your credit and determines how much you can claim as refundable under the Additional Child Tax Credit (ACTC).
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Choose between Form 2555 or Form 1116 – If you use the Foreign Earned Income Exclusion (Form 2555), your refundable credit may be reduced. Many expats prefer the Foreign Tax Credit (Form 1116) because it often allows them to keep the refundable portion of the Child Tax Credit.
Form 8862 and the Child Tax Credit
If your claim for the Child Tax Credit (CTC) or the Additional Child Tax Credit (ACTC) was denied in a previous year, the IRS requires you to file Form 8862, Information to Claim Certain Credits After Disallowance, before you can claim the credit again. This form is essentially the IRS’s way of verifying that you now meet the eligibility rules.
You’ll need to attach Form 8862 to your tax return the next time you attempt to claim the Child Tax Credit. However, if your credit was only reduced because of income limits or due to a calculation error, you usually do not need to file Form 8862. By submitting this form, you show the IRS that your situation has changed, and you are once again eligible to claim the credit for your qualifying child.
What If You Missed Filing in Previous Years?
If you missed filing a US tax return in a prior year, you can usually still file late and claim the Child Tax Credit (CTC) for that year. The IRS generally allows taxpayers to claim a refund, including refundable credits such as the Additional Child Tax Credit (ACTC), for up to three years after the original due date of the return. This means you may still be able to receive money back, even if you owed no US taxes.
Claiming Child Tax Credit while living abroad requires filing all necessary forms correctly, even for past years. Filing late tax returns not only allows you to retroactively claim the credit but also keeps you in good standing with the IRS. If you’ve fallen behind on multiple years, expats may also qualify for the IRS Streamlined Filing Compliance Procedures, which provide a way to catch up on back taxes without heavy penalties.
FAQs About Claiming the Child Tax Credit While Living Abroad
1. Can I claim the Child Tax Credit if my child lives abroad?
Yes. You may claim the Child Tax Credit (CTC) even if your child lives abroad, as long as they qualify under IRS rules. Your child must be under 17 at the end of the tax year, a US citizen or resident, and listed as your dependent on your tax return.
2. What is the age for the Child Tax Credit?
For tax year 2024 (and continuing into 2025), a qualifying child must be under age 17 at the end of the tax year. Each child may qualify for up to $2,000 in credit, with up to $1,700 refundable through the Additional Child Tax Credit (ACTC).
3. How do I claim the Child Tax Credit while living abroad?
To claim the credit, you must file Form 1040 with Schedule 8812. Expats should also consider how they handle foreign income: choosing the Foreign Tax Credit (Form 1116) instead of the Foreign Earned Income Exclusion (Form 2555) can often preserve the refundable portion of the Child Tax Credit.
4. What are the income limits for the Child Tax Credit?
The Child Tax Credit begins to phase out once your modified adjusted gross income (MAGI) exceeds $200,000 for single filers or $400,000 for married couples filing jointly. Above these thresholds, the credit is reduced by $50 for every $1,000 of income over the limit.
5. Do my children need a Social Security Number (SSN) to qualify for the Child Tax Credit?
Yes. To claim the Child Tax Credit, your child must have a valid Social Security Number (SSN) issued by the Social Security Administration before the due date of your tax return. If your child only has an ITIN (Individual Taxpayer Identification Number), they do not qualify for the CTC.
6. Can I claim refundable credits after disallowance?
Yes, but you must first file IRS Form 8862, Information to Claim Certain Credits After Disallowance. If your Child Tax Credit, Additional Child Tax Credit, or another refundable credit (such as the Earned Income Tax Credit) was denied in a previous year, Form 8862 is required to show that you now meet the eligibility rules. Without it, your claim may be automatically rejected again.
7. What if I missed filing in previous years—can I still claim the Child Tax Credit?
Yes. The IRS allows taxpayers to file late and still claim refunds, including the Child Tax Credit, for up to three years after the original due date of the return. If you are an American living abroad and missed multiple years, you may also qualify for the Streamlined Filing Compliance Procedures, which help expats catch up without severe penalties.
8. If I already receive child-related benefits abroad, can I still claim the Child Tax Credit?
Yes. Receiving benefits such as a child allowance or UK Child Benefit does not prevent you from also claiming the US Child Tax Credit. These are separate programs, and you may still qualify for the CTC as long as you meet IRS requirements. However, your refundable amount may depend on whether you use the Foreign Tax Credit or Foreign Earned Income Exclusion on your US return.
Tax laws and credits can change, so it’s important to stay updated on any changes that might affect your eligibility for the Child Tax Credit or your overall tax obligations.
Claiming the Child Tax Credit while living abroad is feasible, but it requires careful attention to detail. By understanding eligibility requirements, accurately completing tax forms, and potentially seeking professional advice, you can successfully claim the credit and benefit from this valuable financial support.
