How Do I Claim the Child Tax Credit on Form 8812 as an Expat?

American expats can claim the Child Tax Credit using Schedule 8812, and for many families abroad, the credit is worth thousands of dollars in refunds. For the 2025 tax year (filed in 2026), the Child Tax Credit (CTC) is worth up to $2,200 per qualifying child, increased from $2,000 under the One Big Beautiful Bill Act signed into law in July 2025. Up to $1,700 per child can be refunded to you through the Additional Child Tax Credit (ACTC), even if you owe $0 in U.S. taxes.

According to the IRS, you must have earned income of at least $2,500 and your child must have a valid Social Security Number to qualify. The critical decision for expats is which tax strategy you use, because claiming the Foreign Earned Income Exclusion eliminates access to the refundable ACTC:

Use the Foreign Tax Credit (Form 1116) and you can claim both the non-refundable CTC and the refundable ACTC
Use the FEIE (Form 2555) and you lose the refundable portion entirely
For families with two children, this decision alone can be worth $3,400+ in refunds

Make Sure You Don’t Reduce Your Credit by Filing Wrong

We’ll prepare Form 8812 properly so your Child Tax Credit isn’t reduced or denied.

Here’s how to maximize your family’s credits on Schedule 8812.

What Is Schedule 8812 and What Credits Does It Cover?

Schedule 8812 (Credits for Qualifying Children and Other Dependents) is the form you attach to your Form 1040 to calculate and claim three separate credits:

Credit	2025 Amount	Refundable?	Key Requirement
Child Tax Credit (CTC)	Up to $2,200 per child	No (reduces tax to $0 only)	Child under 17 with SSN
Additional Child Tax Credit (ACTC)	Up to $1,700 per child	Yes (paid as refund)	Earned income of at least $2,500; cannot use FEIE
Credit for Other Dependents (ODC)	Up to $500 per dependent	No	Dependent who does not qualify for CTC

The CTC and ACTC were made permanent and increased under the One Big Beautiful Bill Act. Starting in 2026, both amounts will be indexed for inflation annually.

Important for 2025 filings: At least one parent (or one spouse, if married filing jointly) must now have a valid Social Security Number to claim the CTC or ACTC. Previously, only the child needed an SSN. This is a new requirement under the One Big Beautiful Bill Act.

Does My Child Qualify for the Child Tax Credit?

Your child must meet all of the following tests for the 2025 tax year:

Relationship: Your child, stepchild, adopted child, foster child, sibling, or a descendant of any of these (such as a grandchild, niece, or nephew).
Age: Under 17 at the end of the 2025 tax year (December 31, 2025).
Residency: Lived with you for more than half the tax year. Temporary absences for school, medical care, or military service count as time living with you.
Support: The child did not provide more than half of their own financial support during the year.
Citizenship: Must be a U.S. citizen, U.S. national, or U.S. resident alien with a valid Social Security Number (SSN) issued before the tax return filing deadline (including extensions).
Filing requirement: The child is claimed as a dependent on your return and does not file a joint return (except solely to claim a refund).

If your child has an Individual Taxpayer Identification Number (ITIN) rather than an SSN, they do not qualify for the CTC or ACTC. However, they may still qualify for the $500 Credit for Other Dependents.

Which Tax Strategy Unlocks the Biggest Benefit: FEIE or Foreign Tax Credit?

This is the single most important decision for expat families claiming the Child Tax Credit. Your choice between the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC) determines whether you can access the refundable ACTC.

Using the FEIE (Form 2555)

Filing Form 2555 excludes up to $130,000 of foreign earned income from U.S. taxation for the 2025 tax year. This often reduces your taxable income to $0, which means:

You can claim the non-refundable CTC to reduce any remaining tax to $0
You cannot claim the refundable ACTC (the IRS prohibits the ACTC when filing Form 2555)
If your taxable income is already $0, the non-refundable CTC provides no benefit either

Using the Foreign Tax Credit (Form 1116)

Filing Form 1116 reports your full foreign income on your U.S. return, then applies a dollar-for-dollar credit for foreign taxes paid. This approach:

Often reduces your U.S. tax liability to $0 (just like FEIE)
Preserves full eligibility for the refundable ACTC
Can generate a cash refund of up to $1,700 per qualifying child

Side-by-Side Comparison

Scenario: Sarah is an American living in Germany with two qualifying children under 17. She earns $95,000 and pays $22,000 in German taxes.

Factor	FEIE Strategy	FTC Strategy
U.S. taxable income	$0 (excluded)	$95,000 (reported)
U.S. tax before credits	$0	~$14,000
Foreign Tax Credit applied	N/A	$14,000 (eliminates U.S. tax)
Non-refundable CTC benefit	$0 (no tax to reduce)	$0 (tax already eliminated by FTC)
Refundable ACTC	Not available	$3,400 ($1,700 x 2 children)
Total refund	$0	$3,400

The FTC strategy delivers a $3,400 cash refund in this example. For expats in high-tax countries like Germany, the UK, France, Canada, and Australia, the FTC often provides the same tax elimination as the FEIE while preserving ACTC eligibility.

This analysis depends on your specific income, foreign tax rate, and family situation. In lower-tax countries where you pay little or no local income tax, the FEIE may still be the better overall strategy. A Greenback accountant can calculate both scenarios for your return.

What Income Limits Apply to the Child Tax Credit?

The CTC and ACTC begin phasing out at these modified adjusted gross income (MAGI) thresholds:

Filing Status	Phase-Out Begins	Reduction Rate
Married filing jointly	$400,000	$50 per $1,000 over threshold
All other filing statuses	$200,000	$50 per $1,000 over threshold

These thresholds apply to both the 2024 and 2025 tax years and were made permanent under the One Big Beautiful Bill Act. For most expat families, the phase-out thresholds are high enough that the full credit is available.

Important for expats: When calculating MAGI, you must add back any foreign earned income excluded under the FEIE and any foreign housing exclusion. This means your MAGI for CTC purposes can be significantly higher than your U.S. taxable income.

How Do I Complete Schedule 8812?

Step 1: Complete your Form 1040 through line 15, including the dependents section on page 1 where you check the “Child tax credit” box for each qualifying child.
Step 2: Fill out Part I of Schedule 8812. Enter the number of qualifying children (multiplied by $2,200) and other dependents (multiplied by $500). Calculate any phase-out reduction if your MAGI exceeds the thresholds.
Step 3: Complete Credit Limit Worksheet A (found in the Schedule 8812 instructions) to determine how much of the CTC can reduce your tax liability.
Step 4: If your CTC exceeds your tax liability, complete Part II-A to calculate your refundable ACTC. The ACTC is calculated as 15% of earned income above $2,500, up to $1,700 per child. You must have earned income of at least $2,500 to qualify.
Step 5: Attach the completed Schedule 8812 to your Form 1040 when filing.

What Documents Do I Need?

Completed Form 1040 (through the appropriate lines)
Social Security Numbers for all qualifying children and for you (or your spouse, if filing jointly)
Form 1116 (if using the FTC strategy) or Form 2555 (if using FEIE)
Records of foreign taxes paid (if claiming the FTC)
Documentation of each child’s U.S. citizenship or residency status
Proof of earned income (W-2s, 1099s, or self-employment records)

What Are the Most Common Mistakes Expats Make?

Choosing FEIE without considering the ACTC. This is by far the most costly mistake. Many expats default to the FEIE without realizing they are giving up thousands in refundable credits. If you live in a high-tax country, the FTC often provides the same tax protection while keeping the ACTC available.
Using an ITIN instead of an SSN for the child. Only Social Security Numbers qualify for the CTC and ACTC. Children with ITINs can only qualify for the $500 Credit for Other Dependents.
Not filing at all. Some expats believe that because they owe $0 in U.S. taxes, they don’t need to file. But you must file a return to claim refundable credits like the ACTC. Filing is the only way to receive that refund.
Forgetting the new parent SSN requirement. Starting with 2025 returns, at least one parent must have a valid SSN. If both spouses have ITINs, neither can claim the CTC or ACTC for the child.
Missing the mid-February refund delay. The IRS cannot issue refunds for returns claiming the ACTC before mid-February. This applies to your entire refund, not just the credit portion. Plan accordingly and don’t count on ACTC refunds arriving before late February or early March.

Can I Claim Missed Credits from Previous Years?

Yes. You can file an amended return using Form 1040-X for up to three years after the original due date. This is especially valuable for expats who used the FEIE in prior years and could have received larger benefits by switching to the Foreign Tax Credit.

At Greenback, we have helped expats recover thousands of dollars by amending prior returns and switching from FEIE to FTC strategies for years where the ACTC would have generated a refund.

When Will I Receive My ACTC Refund?

If you file electronically, choose direct deposit, and have no errors on your return, expect your refund within 21 days of filing. However, under the PATH Act, the IRS cannot issue refunds for returns claiming the ACTC (or Earned Income Tax Credit) before mid-February. For the 2025 tax year (filed in 2026), this means refunds cannot be released before mid-February 2026, even if you file on the first day returns are accepted.

Get the Maximum Child Tax Credit for Your Family

Your choice between FEIE and Foreign Tax Credit affects not just your child tax credits but your entire return, from retirement contributions to other refundable credits. Getting this decision right can mean thousands of dollars back in your pocket each year.

No matter how late, messy, or complex your return may be, we can help. You’ll have peace of mind, knowing that your taxes were done right. Have questions about the process or next steps? Contact us, and one of our Customer Champions will happily address all your concerns. If you’re ready to be matched with a Greenback accountant, click the get started button below.

Claim Every Dollar of Your Child Tax Credit

We’ll prepare your Form 8812, coordinate it with FEIE or Foreign Tax Credits, and ensure your refund is fully protected.

This article is for informational purposes only and does not constitute personalized tax advice. Tax laws can change, and individual situations vary. For guidance specific to your situation, contact Greenback to speak with an expat tax specialist.