Americans living abroad with children may qualify for the US Child Tax Credit, even when their children were born or raised outside the United States.
This guide explains how the Child Tax Credit works for Americans abroad, including eligibility, refundable credits, income limits, and how to claim the credit on a 2026 US tax return filed in 2027.
Yes. Americans living abroad can claim the Child Tax Credit (CTC) if they meet the IRS eligibility requirements. For tax year 2026, the credit starts at a statutory maximum of $2,200 per qualifying child, subject to applicable inflation adjustments.
Eligible taxpayers may also qualify for a refundable Additional Child Tax Credit (ACTC), even when they owe little or no US federal income tax.
However, claiming the Foreign Earned Income Exclusion generally prevents taxpayers from receiving the refundable portion.
The Child Tax Credit is a federal tax benefit designed to reduce the income tax burden on families with qualifying children.
For Americans abroad, the credit can be especially valuable because it may reduce US federal income tax or, in certain circumstances, result in a refund.
The credit has two components:
Child Tax Credit (CTC)
A nonrefundable credit that reduces eligible US federal income tax liability.
Additional Child Tax Credit (ACTC)
A refundable portion available to certain taxpayers who qualify but cannot use the full credit against their income tax liability.
For example, an American family living in Germany with two qualifying children may be eligible for the Child Tax Credit even though both parents earn their income overseas.
Whether they receive a refund depends on their income, US tax liability, and the tax benefits claimed on their return.
Not sure your family qualifies?
American families abroad may qualify for valuable child-related tax benefits. Know the requirements, filing rules, and available credit before you file.
|
Requirement |
General rule for tax year 2026 |
|---|---|
|
Maximum Child Tax Credit |
$2,200 per qualifying child before applicable inflation adjustment |
|
Refundable portion |
Subject to the annual ACTC limit and earned income rules |
|
Child’s age |
Under 17 at the end of 2026 |
|
Child’s citizenship or residency |
US citizen, US national, or US resident alien |
|
Child’s identification |
Qualifying Social Security number |
|
Parent’s identification |
At least one eligible taxpayer SSN; special rules for joint filers |
|
Income phaseout begins |
$200,000, or $400,000 for married filing jointly |
|
Child’s residence |
Generally must live with the taxpayer for more than half the year |
|
FEIE impact |
Claiming Form 2555 generally prevents ACTC eligibility |
|
IRS form |
Schedule 8812 with Form 1040 |
The final 2026 inflation-adjusted credit and refundable limits should be confirmed against the IRS’s 2026 Schedule 8812 instructions before publication.
Americans living abroad generally follow the same federal Child Tax Credit eligibility rules as taxpayers living in the United States.
Living overseas does not automatically disqualify a parent or child from the credit.
A child generally must:
A child born and raised abroad may qualify if these requirements are satisfied.
For tax year 2026, a qualifying child generally must have a Social Security number valid for employment in the United States, issued by the applicable tax return deadline, including extensions.
The taxpayer must also have a qualifying SSN. For married couples filing jointly, at least one spouse must have the required SSN, while the other spouse must have an SSN or ITIN issued by the applicable deadline.
A child with only an Individual Taxpayer Identification Number (ITIN) does not qualify for the Child Tax Credit.
A child must have a valid SSN to qualify for the Child Tax Credit; an ITIN is not enough. Apply for a Social Security number by the return’s due date, including extensions.
A child does not need to be born in the United States to qualify.
For example, an American citizen living in Spain may have a child who was born in Madrid.
If the child acquired US citizenship, has the required Social Security number, and meets the other eligibility conditions, the parent may be able to claim the Child Tax Credit.
However, having an American parent does not automatically establish that a foreign-born child has acquired US citizenship. The applicable citizenship requirements must be satisfied.
The amount of Child Tax Credit available depends on the number of qualifying children, the taxpayer’s income, and their federal income tax liability.
For tax year 2026, the statutory credit begins at $2,200 per qualifying child, with an annual inflation adjustment potentially increasing the maximum.
The credit begins to decrease when modified adjusted gross income exceeds the following thresholds:
|
Filing status |
Phaseout begins |
|---|---|
|
Married filing jointly |
$400,000 |
|
Single |
$200,000 |
|
Head of household |
$200,000 |
|
Married filing separately |
$200,000 |
The credit generally decreases by $50 for every $1,000, or fraction of $1,000, that modified adjusted gross income exceeds the applicable threshold.
For example, a married couple filing jointly with modified adjusted gross income of $410,000 would generally face a $500 reduction in their total available Child Tax Credit.
The final credit depends on the number of qualifying children and other applicable limitations.
Americans abroad must consider their worldwide income when determining eligibility for the Child Tax Credit.
For purposes of the credit’s income phaseout, modified adjusted gross income generally includes certain foreign earned income and housing amounts excluded under Section 911.
Therefore, excluding foreign income under the FEIE does not necessarily reduce the income used to determine the Child Tax Credit phaseout.
One of the most important considerations for American families abroad is whether they qualify for the refundable Additional Child Tax Credit.
Unlike the nonrefundable Child Tax Credit, the ACTC may result in a federal tax refund even when the taxpayer has little or no remaining federal income tax liability.
Requirements for the Additional Child Tax Credit
To qualify for the refundable portion, taxpayers generally must:
Under the general earned income formula, the refundable amount is based on 15% of qualifying earned income above $2,500, subject to the applicable annual limit and other rules.
The final refundable amount also depends on how much of the Child Tax Credit is already used to offset federal income tax.
Example: American Family Living in Germany
Suppose an American couple living in Germany has two qualifying children.
Both parents work in Germany and pay German income taxes.
If they claim the Foreign Tax Credit and otherwise qualify for the ACTC, they may be eligible for a refundable Child Tax Credit even if their US federal income tax liability is reduced to zero.
However, the refund is not automatic. It depends on their qualifying earned income, applicable limits, filing status, and the completed Schedule 8812 calculation.
|
Feature |
Child Tax Credit |
Additional Child Tax Credit |
|---|---|---|
|
Reduces federal income tax |
Yes |
Not its primary function |
|
Can generate a refund beyond tax owed |
No |
Yes |
|
Requires a qualifying child |
Yes |
Yes |
|
Subject to income limits |
Yes |
Yes |
|
Available when claiming the FEIE |
Potentially |
Generally no |
This distinction is particularly important for expats whose foreign taxes already eliminate most or all of their US income tax liability.
The Foreign Earned Income Exclusion can affect whether an American abroad receives a refundable Child Tax Credit.
Although the FEIE can reduce federal income tax on qualifying foreign earnings, claiming it generally prevents taxpayers from claiming the Additional Child Tax Credit.
Claiming the FEIE does not automatically disqualify a taxpayer from the nonrefundable Child Tax Credit.
However, if the FEIE eliminates the taxpayer’s federal income tax liability, there may be little or no remaining tax against which the nonrefundable credit can be applied.
Taxpayers who claim the Foreign Earned Income Exclusion, foreign housing exclusion, or foreign housing deduction generally cannot claim the refundable ACTC for the same tax year.
This restriction applies even when the taxpayer has qualifying children and otherwise meets the income requirements.
Example: American Working in Portugal
Suppose an American parent living in Portugal earns $80,000 in qualifying foreign employment income and has one qualifying child.
If the parent claims the FEIE and excludes the entire salary, they may eliminate US federal income tax on that employment income.
However, claiming Form 2555 generally prevents them from receiving the refundable Additional Child Tax Credit.
If the parent instead qualifies for the Foreign Tax Credit, the result may be different. The appropriate approach depends on the taxpayer’s total income, foreign taxes, and other circumstances.
For some American families living in higher-tax countries, claiming the Foreign Tax Credit instead of the FEIE may produce a better overall result.
The Foreign Tax Credit generally offsets US federal income tax using qualifying foreign income taxes.
Unlike the FEIE, claiming the FTC does not automatically disqualify a taxpayer from the Additional Child Tax Credit.
Suppose an American family living in the UK pays enough qualifying UK income tax to offset its US federal income tax liability.
If the family claims the FTC rather than the FEIE, it may still qualify for the refundable Additional Child Tax Credit.
This can be particularly valuable for families with young children who meet the Social Security number and earned income requirements.
|
Consideration |
FEIE |
FTC |
|---|---|---|
|
Reduces US income tax |
By excluding qualifying foreign earnings |
By crediting qualifying foreign income taxes |
|
Requires foreign residency or presence tests |
Yes |
No FEIE residency tests |
|
Allows nonrefundable CTC |
Potentially |
Potentially |
|
Allows refundable ACTC |
Generally no |
Potentially |
|
Often relevant in |
Lower-tax countries |
Higher-tax countries |
|
Best option for families |
Depends on circumstances |
Depends on circumstances |
The Foreign Tax Credit may be particularly beneficial for families living in countries such as the UK, Germany, France, or Spain, where foreign income taxes can be relatively high.
However, it is important to compare the complete tax calculation rather than assuming that the FTC always produces a larger refund.
Taxpayers who previously claimed the FEIE should consider the consequences before switching to the FTC.
Revoking an FEIE election generally prevents the taxpayer from claiming the same exclusion again for the following five tax years without IRS consent.
Therefore, a decision to switch should consider future income, foreign residency plans, and the ages of qualifying children—not just the current year’s refund.
Revoking an FEIE election generally prevents you from claiming the same exclusion again for the following five tax years without IRS consent. Weigh your future income, residency plans, and your children’s ages before switching, not just this year’s refund.
Americans living abroad may be married to spouses who are not US citizens or US tax residents.
These families may still qualify for the Child Tax Credit, but their filing status and identification numbers can affect eligibility.
In certain circumstances, an American married to a nonresident alien may elect to treat the spouse as a US resident for federal income tax purposes and file a joint return.
This can affect the Child Tax Credit calculation, but the election generally requires both spouses to report worldwide income under the applicable US tax rules.
The election should therefore be considered carefully.
Married taxpayers filing separately may qualify for the nonrefundable Child Tax Credit if they satisfy the relevant requirements.
However, the refundable Additional Child Tax Credit is generally unavailable to married taxpayers filing separately unless an applicable exception permits different treatment.
Some Americans married to nonresident aliens may qualify to file as Head of Household if they meet the applicable requirements.
For example, a US citizen living in France with a nonresident alien spouse and a qualifying child may be eligible for Head of Household status under certain circumstances.
The taxpayer must satisfy the applicable household maintenance, qualifying person, and filing status rules.
Could Your Filing Status Affect Your CTC?
Filing jointly, separately, or as Head of Household can lead to different tax outcomes for Americans married to foreign spouses. Get guidance on the rules that apply to your family.
A child does not generally need to live in the United States to qualify for the Child Tax Credit.
However, the child must satisfy the citizenship or residency requirements and the applicable dependency rules.
For example, an American family living in Denmark with two US citizen children may qualify for the Child Tax Credit if the children live with the parents for more than half the year and satisfy the other requirements.
Living overseas does not, by itself, disqualify the children.
Temporary absences for education may count as time living with the taxpayer under the applicable residency rules.
For example, a qualifying child attending boarding school may still satisfy the residency requirement when the absence is considered temporary.
The facts and circumstances determine whether the child’s absence qualifies.
Dual citizenship generally does not prevent a child from qualifying for the Child Tax Credit.
A child who holds both US and foreign citizenship may qualify if they meet the age, relationship, residency, dependency, and Social Security number requirements.
Families with children who do not qualify for the Child Tax Credit may be eligible for the Credit for Other Dependents.
This nonrefundable credit can provide up to $500 for each eligible dependent, subject to the applicable income and other limitations.
Dependents Who May Qualify
Examples may include:
Unlike the Child Tax Credit, the Credit for Other Dependents does not require every qualifying dependent to have an SSN. An eligible ITIN may be sufficient, although citizenship or residency and other requirements still apply.
|
Requirement |
Child Tax Credit |
Credit for Other Dependents |
|---|---|---|
|
Maximum statutory amount |
$2,200 before 2026 inflation adjustment |
$500 |
|
Child under 17 required |
Yes |
No |
|
Qualifying child SSN required |
Yes |
Not necessarily |
|
Refundable portion available |
Potentially |
No |
|
Income phaseout applies |
Yes |
Yes |
For example, an American living in Australia with an 18-year-old dependent child may no longer qualify for the Child Tax Credit for that child but may qualify for the Credit for Other Dependents.
The Child Tax Credit is generally claimed by filing Form 1040 with Schedule 8812.
The credit is not automatically provided simply because a taxpayer has qualifying children.
Verify the child’s age, citizenship or residency status, Social Security number, relationship, and dependency requirements.
Identify your applicable filing status and calculate your modified adjusted gross income.
Consider whether the income phaseout reduces the available credit.
Determine whether you are claiming the Foreign Earned Income Exclusion or Foreign Tax Credit.
This decision can affect your eligibility for the refundable Additional Child Tax Credit.
Schedule 8812 is used to calculate:
Submit Schedule 8812 with Form 1040 and any other required tax forms.
Eligible Americans living abroad generally receive an automatic two-month filing extension, although additional filing extensions may be available.
The applicable US expat tax deadlines and extensions should be considered when preparing the return, particularly if a child needs a Social Security number before the filing deadline.
Choosing Between the FEIE and FTC
Your choice may affect your eligibility for the refundable Additional Child Tax Credit. Learn how the FTC works for Americans abroad.
Claiming the Refundable Credit While Using the FEIE
Taxpayers who claim Form 2555 generally cannot receive the Additional Child Tax Credit, even if they have qualifying children.
Assuming Children Born Abroad Do Not Qualify
Children born outside the United States may qualify if they meet the citizenship or residency, Social Security number, and other requirements.
Using an ITIN Instead of an SSN for a Qualifying Child
A child generally must have a qualifying SSN to be eligible for the Child Tax Credit.
Overlooking the FTC When Comparing Tax Benefits
The Foreign Tax Credit may preserve eligibility for refundable credits that would otherwise be unavailable when claiming the FEIE.
Ignoring Foreign Income in the Phaseout Calculation
Certain foreign earned income and housing amounts excluded from taxable income must generally be included when calculating modified adjusted gross income for the Child Tax Credit phaseout.
Claiming a Child Who Does Not Meet the Residency Test
A qualifying child generally must live with the taxpayer for more than half the year, subject to applicable exceptions.
Switching Tax Strategies Without Considering Future Years
Revoking an FEIE election may restrict the taxpayer’s ability to claim it again for five tax years without IRS consent.
Yes. US citizens living abroad may qualify if they meet the applicable requirements, including having a qualifying child with the required Social Security number.
For tax year 2026, filed in 2027, the statutory maximum begins at $2,200 per qualifying child, subject to applicable inflation adjustments. The final amount depends on income, eligibility, and tax liability.
You may still qualify for the nonrefundable Child Tax Credit. However, claiming the FEIE generally prevents you from claiming the refundable Additional Child Tax Credit.
A qualifying child must be a US citizen, US national, or US resident alien and meet the other Child Tax Credit requirements.
Yes, potentially. A child born overseas may qualify if they satisfy the applicable citizenship or residency, Social Security number, and dependency requirements.
No. A qualifying child generally must have a valid Social Security number to qualify for the Child Tax Credit. An ITIN alone is insufficient.
Yes, eligible taxpayers may receive the refundable Additional Child Tax Credit even when their federal income tax liability is zero, provided they satisfy the applicable rules.
Not necessarily, but the FTC may be more beneficial when refundable Child Tax Credit eligibility is important. The best approach depends on income, foreign taxes, family circumstances, and future tax considerations.
Generally, no. A qualifying child cannot be used by two taxpayers to claim the same Child Tax Credit for the same tax year. Special rules apply when more than one taxpayer could otherwise claim the child.
No. A child must be under age 17 at the end of 2026 to qualify for the Child Tax Credit. However, the child may qualify for the Credit for Other Dependents.
Yes. The credit is claimed through a federal income tax return, generally using Form 1040 and Schedule 8812.
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