Child Tax Credit for Expats: What You Need to Know
Living abroad doesn’t mean you miss out on valuable tax benefits like the Child Tax Credit. In fact, if you’re a US expat with children, you could qualify for up to $2,000 per child in tax credits!
However, the rules can get a little tricky. That’s why we’re here! At Greenback Expat Tax Services, many of our tax professionals are both expats and parents — just like you. In this guide, we’ll break down everything you need to know: who’s eligible, how much you can claim, and the steps to file as an expat in 2025.
Can Expats Claim the Child Tax Credit?
Americans living overseas can claim the Child Tax Credit if they meet the same basic requirements as stateside taxpayers. That means you and the child must be a US citizen or resident alien filing a US tax return, and your child needs to:
- Have a valid Social Security number (SSN) issued before the tax filing deadline
- Be under 17 by December 31, 2025
- Live with you for at least half the year (though temporary absences, like school, count)
If you use the Foreign Earned Income Exclusion (FEIE) to exclude all your foreign income (currently $126,500 for the 2024 tax year and up to $130,000 in 2025), you CAN claim the nonrefundable Child Tax Credit to offset any tax owed. However, you’ll miss out on the refundable portion. Why? The FEIE wipes out your taxable earned income, which is required for a refund.
On the other hand, if you opt for the Foreign Tax Credit (FTC) instead, you can reduce your US tax bill dollar-for-dollar with foreign taxes paid and still qualify for the full Child Tax Credit — including the refundable part. This can make it beneficial to opt for the FTC instead of the FEIE as an American abroad.
How Much Is the Child Tax Credit for Expats?
In 2025, the Child Tax Credit offers a standard amount of $2,000 per qualifying child, just like in previous years. This has been the standard rate since the 2017 Tax Cuts and Jobs Act.
The refundable portion, known as the Additional Child Tax Credit, is up to $1,700 per child in 2025. To claim this refundable part, you need at least $2,500 in earned income (not excluded by the FEIE).
However, the amount you can claim phases out if your adjusted gross income (AGI) exceeds certain thresholds.
- For single filers, the credit starts decreasing once your AGI is above $200,000
- For married couples filing jointly, the credit starts decreasing once your AGI is above $400,000
For every $1,000 over these thresholds, the credit drops by $50. For example, if you are a single filer with an income of $230,000, your credit would be reduced by $1,500 (30 x $50 = $1,500). If you had one qualifying child, you would only be able to claim a $500 tax credit instead of the full $2,000.
How to Claim the Child Tax Credit as an Expat
Claiming the Child Tax Credit is a straightforward process for Americans living at home and abroad. Here are the steps to take.
- File Form 1040: To claim the Child Tax Credit, you will have to file an annual tax return. Every US citizen must file a return anyway, regardless of where they live. This is true even if you exclude all your income through the FEIE.
- Attach Schedule 8812: This form can be used to calculate your Child Tax Credit (and refundable Additional Child Tax Credit portion as well). Attach this to your 1040.
Choose between FEIE vs. FTC:
- If you’re using FEIE, you can exclude up to $126,500 for the 2024 tax year and $130,000 of foreign income in 2025, but you may lose the refundable portion of the Child Tax Credit.
- If you opt for the FTC, you can offset your US tax bill based on your foreign income taxes. This will also allow you to claim the refundable portion of the Child Tax Credit.
- Submit your return: Expats have an automatic extension to file by June 15. However, any taxes you owe must still be paid by April 15.
FAQs: Common Questions About the Child Tax Credit for Expats
Can I Claim the Child Tax Credit If I Don’t Owe Taxes?
Yes! Even if you don’t owe any US taxes, you may still qualify for up to $1,700 per child (2024 and 2025 tax years) as a refundable credit through the Additional Child Tax Credit (ACTC).
To be eligible, you must have at least $2,500 in qualifying earned income reported on your tax return. This includes wages, salaries, tips, or self-employment income.
What If I Missed Claiming the Credit in Past Years?
You can file amended tax returns to claim the Child Tax Credit for at least three years you qualified. For example, if you qualified in 2022, 2023, and 2024 but missed the opportunity, you can use Form 1040-X to file amended returns and claim the credits retroactively. At Greenback, we’ve helped expats recover thousands of dollars this way!
What If My Child Is a Dual Citizen?
As long as they have a US SSN, they can qualify for the Child Tax Credit. Dual citizenship doesn’t impact their qualifications — only the SSN and residency rules do.
Can I Use an ITIN to Claim the Child Tax Credit?
No, the child must have a valid SSN for you to claim the Child Tax Credit on their behalf.
Still Have Questions About the Child Tax Credit for Expats?
Taxation for expats can be complicated, so if you still have questions about the Child Tax Credit—contact us, and one of our customer champions will gladly help. For specific advice on your tax situation, you can click below to get a consultation with one of our tax professionals specializing in US expat taxes.
