Does Studying Abroad Affect the Child Tax Credit?
No, sending your child to study abroad does not affect your Child Tax Credit eligibility. Over 340,000 American students study abroad annually, yet the IRS applies the same dependency, age, and citizenship requirements whether your child attends university domestically or internationally. Your child’s temporary educational absence doesn’t change their tax status as long as they remain your qualifying dependent.
This means eligible families can still claim up to $2,000 per qualifying child for 2024 tax returns, and up to $2,200 for 2025 tax returns filed in 2026. Even better, up to $1,700 of this credit is refundable, meaning you could receive money back even if you owe no federal taxes.
Key insight: Your child’s temporary educational absence preserves their dependent status for tax purposes.
What Makes a Child Eligible for the Child Tax Credit?
The Child Tax Credit eligibility requirements remain identical regardless of where your child attends school:
- Age requirement: Your child must be under age 17 at the end of the tax year. Most traditional college students won’t qualify since they typically start university at 18 or older. However, students who graduate high school early or take gap years might still qualify during their first year of college.
- Dependency requirement: You must claim your child as a dependent using the qualifying child rules. This includes meeting support, residency, and relationship tests that studying abroad generally doesn’t affect.
- Citizenship requirement: Your child must be a U.S. citizen, U.S. national, or resident alien. U.S. citizens studying abroad satisfy this requirement regardless of their physical location.
- Social Security Number requirement: Your child must have a valid Social Security Number issued before your tax return due date (including extensions). Individual Taxpayer Identification Numbers don’t qualify.
- Income limits: You qualify for the full credit if your annual income doesn’t exceed $200,000 for single filers or $400,000 for married filing jointly. The credit phases out by $50 for every $1,000 above these thresholds.
How Much Can You Claim for the Child Tax Credit?
The Child Tax Credit provides a substantial dollar-for-dollar tax reduction:
2024 tax year (filed in 2025):
- Up to $2,000 per qualifying child
- Up to $1,700 refundable through the Additional Child Tax Credit
- The remaining $300 is non-refundable and only reduces taxes owed
2025 tax year (filed in 2026):
- Up to $2,200 per qualifying child due to recent legislation
- Up to $1,700 refundable through the Additional Child Tax Credit
- The remaining $500 is non-refundable
How the refundable portion works: To receive the full $1,700 refundable amount, you need at least $11,333 of earned income. The IRS calculates this using the formula: 15% × (earned income − $2,500). If your earned income is lower, your refundable credit will be proportionally reduced.
Example: A family with $8,000 in earned income would receive a refundable credit of $825 (15% × ($8,000 − $2,500) = $825), rather than the full $1,700.
The good news: even families with lower incomes can still claim the non-refundable portion to reduce taxes owed, and any refundable amount helps put money back in your pocket.
Does the Residency Test Work for Students on Study Abroad Programs?
The residency requirement causes the most questions for families with children on study abroad programs, but IRS rules specifically accommodate educational absences.
Temporary absence rules: Time spent away at school counts as time living with you if your home remains the student’s permanent residence and they intend to return. This principle applies equally whether your child attends school locally or participates in a semester abroad program in Europe.
What qualifies as a temporary educational absence?
- Attending any educational institution as a student
- Semester abroad programs and exchange student programs
- Brief vacations and holiday visits home
- Summer breaks and semester breaks
- Medical treatment requiring extended stays
Supporting temporary absence classification: Your child maintains their room at your home, uses your address for official correspondence, returns during school breaks, and considers your residence their permanent home base.
If your student establishes permanent residence abroad, obtains foreign citizenship with intent to remain permanently, or shows clear intent to make the foreign country their permanent home, the temporary absence rule may not apply.
What Happens If Your Child Turns 17 While on Study Abroad?
The age test creates important timing considerations for families with students born later in the year.
The IRS uses December 31st to determine age for Child Tax Credit purposes. If your child turns 17 during the tax year, they don’t qualify for the Child Tax Credit that year, even if they were 16 for most of the year and studying abroad.
However, once they begin college, they may qualify for education credits like the American Opportunity Tax Credit or Lifetime Learning Credit, which provides up to $2,500 per student for qualified education expenses. This credit can provide more value than the Child Tax Credit for many families with college expenses.
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Can Foreign Income From Student Jobs Disqualify Your Child from the Credit?
Students earning income from part-time jobs while studying abroad don’t lose Child Tax Credit eligibility, but substantial earnings can affect the dependency determination.
If your child earns significant income abroad from work-study programs, internships, or part-time employment and provides more than half their own support, they may no longer qualify as your dependent, eliminating Child Tax Credit eligibility. Your child must report all foreign income on their U.S. tax return, but this income alone doesn’t disqualify them from being claimed as your dependent if other tests are met.
Income taxes paid to foreign countries don’t affect Child Tax Credit eligibility, though they may provide benefits through the Foreign Tax Credit if your student files their own return.
What If You Live Abroad While Your Child Studies Internationally?
Parents who relocate abroad while their child studies internationally can still claim the Child Tax Credit with proper planning, though additional considerations apply.
U.S. citizen parents remain subject to worldwide income reporting requirements regardless of where they live, preserving their ability to claim Child Tax Credit benefits. However, parents using the Foreign Earned Income Exclusion to exclude foreign wages may lose eligibility for the Additional Child Tax Credit portion, though they can still claim the non-refundable portion.
Some expat families choose the Foreign Tax Credit instead of the Foreign Earned Income Exclusion to preserve full Child Tax Credit benefits.
If you’re an American living abroad permanently (not just supporting a student abroad), you’ll want to review our comprehensive guide on the Child Tax Credit for expats, which covers additional complexities like bona fide residence tests and tax home considerations that don’t apply to students temporarily studying abroad.
How Do Foreign Scholarships Impact the Child Tax Credit?
Foreign scholarships and grants don’t directly affect Child Tax Credit eligibility, but can influence the dependency determination.
Scholarships used for tuition and required fees don’t count as support provided by the student, but amounts used for room and board do count as student-provided support. If your child receives substantial foreign scholarships covering living expenses, recalculate the support test to ensure you still provide more than half their total support.
Coordinating multiple funding sources: Many families combine foreign scholarships with 529 plan distributions and direct parent payments to fund international education. When calculating the support test, include your 529 plan distributions as support you provided (since you funded the account), but exclude scholarship amounts used for tuition and fees.
Strategic planning tip: If your child receives large scholarships that might affect the support test, consider how you allocate different funding sources. For example, use scholarship money for tuition and fees, while covering room and board expenses through 529 distributions or direct payments to maintain the dependency relationship.
If questioned by the IRS, maintain detailed records of all funding sources and how they’re used to support dependency and Child Tax Credit claims.
What Records Should You Keep for Children Studying Abroad?
Proper documentation becomes especially important when claiming Child Tax Credit benefits for children studying abroad.
Essential documentation:
- Records showing your home remains your child’s permanent residence
- Communication records demonstrating ongoing family relationships
- School enrollment records and academic calendars
- Travel records showing the temporary nature of foreign residence
- Support calculation documentation, including all expenses paid
Maintain your child’s room at home, continue using your address for their official correspondence, and document their returns during school breaks and holidays.
How Do You File for the Child Tax Credit?
Claiming the Child Tax Credit for children studying abroad follows the same process as domestic students:
- File Form 1040: Complete your annual tax return as required for all U.S. citizens
- Use Schedule 8812: This form calculates your Child Tax Credit and refundable Additional Child Tax Credit portion
- Report all income: Include any income your child earned abroad on their return if they file separately
- Choose your strategy: If you’re an expat parent, based on your tax situation, decide between the Foreign Earned Income Exclusion and Foreign Tax Credit.
Expats receive an automatic extension to file by June 15, though any taxes owed must still be paid by April 15.
Your Next Steps
Review your child’s age and dependency status to determine current Child Tax Credit eligibility, considering the age 17 cutoff and residency requirements. Document your child’s temporary absence for education and maintain records supporting your home as their permanent residence.
The Child Tax Credit provides valuable support for families during expensive educational years. This benefit continues with proper planning and documentation even when your child pursues international academic opportunities.
Contact us, and one of our customer champions will gladly help. If you need specific advice on your tax situation, click below to get a consultation with one of our expat tax experts.
This article is for informational purposes only and should not be considered tax advice. Individual circumstances vary, and you should consult with a qualified tax professional for advice specific to your situation.
