Child Tax Credit for Expats: What You Need to Know in 2025

The Child Tax Credit for 2025 has officially changed — and if you’re living abroad with kids, you’ll want to know what’s new. Thanks to the recently passed One Big Beautiful Act (OBBA) the credit has been expanded, with updates to eligibility rules, income limits, and refund amounts that could directly affect your tax refund this year.

So what does the Child Tax Credit 2025 update mean for expats?

You could now qualify for up to $2,200 per child, even if you live outside the U.S. And if you meet certain criteria, you may receive a refund of up to $1,700 per child, even if you owe no U.S. income tax.

However, claiming the updated Child Tax Credit as an American abroad is a little more complex than it is for stateside taxpayers. Whether you qualify — and how much you can actually receive — depends on your income, your tax filing choices (FEIE vs. FTC), and how you structure your return.

In this guide, we’ll explain:

Who qualifies for the Child Tax Credit in 2025
What the updated income limits and refundable amounts are
How to calculate your credit if you live abroad
How the One Big Beautiful Bill affects expat families
Step-by-step instructions for claiming the credit confidently

Can Expats Claim the Child Tax Credit?

Yes — U.S. expats can still claim the Child Tax Credit in 2025. The rules remain largely unchanged, but a few key changes are now in effect under the One Big Beautiful Bill Act.

To qualify, you and your child must meet these IRS requirements:

Your child must be under age 17 by December 31, 2025
Your child must be a U.S. citizen, national, or resident alien
The child must have a valid Social Security Number (SSN) issued before the tax filing deadline
The child must live with you for at least half the year (temporary absences for school count)
You must claim the child as a dependent
New in 2025: At least one parent (if filing jointly) must also have a valid SSN

These rules apply whether you’re filing from Seattle or Singapore. The key difference for expats lies in how you report your income and which credits you claim.

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How the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) Affect Your Credit

Expats often use one of two tax strategies:

1. Foreign Earned Income Exclusion (FEIE)

Lets you exclude up to $130,000 of foreign earned income (2025 limit)
If you exclude all your income, you can’t claim the refundable portion of the Child Tax Credit
You can still claim the nonrefundable portion (to offset any tax owed)

2. Foreign Tax Credit (FTC)

Lets you reduce your U.S. tax bill based on foreign income taxes paid
You can claim the refundable portion of the Child Tax Credit
Often a better choice if your foreign tax rate is high and you have qualifying children

Tip: Many expats switch from FEIE to FTC when they have children, since it can unlock thousands in refundable credits.

Ready to simplify your expat taxes? Get matched with a tax advisor who understands life abroad. Get started today.

How Much Is the Child Tax Credit for Expats in 2025?

Thanks to the One Big Beautiful Bill, the 2025 Child Tax Credit is:

Type	2025 Amount
Total per qualifying child	$2,200
Refundable portion (ACTC)	Up to $1,700
Minimum earned income required	$3,000

To receive the refundable portion (ACTC), you must have at least $3,000 in earned income, and that income must not be excluded under FEIE.

Income Limits for the 2025 Child Tax Credit

The Child Tax Credit is subject to income-based phaseouts, which means the amount you can claim gradually decreases once your income passes a certain threshold.

Here’s how it works in 2025:

Single filers: Phaseout begins at $200,000 of modified adjusted gross income (MAGI)
Married filing jointly: Phaseout begins at $400,000 of MAGI

Once you cross the threshold, your credit is reduced by $50 for every $1,000 (or part of $1,000) of income over the limit.

Example:

If you’re a single filer with $230,000 in MAGI, that’s $30,000 over the $200,000 limit.
$30,000 ÷ $1,000 = 30 increments
30 × $50 = $1,500 reduction

So instead of receiving the full $2,200 per child, you’d receive $700.

If you had two qualifying children, your total credit would be $1,400 instead of $4,400.

Tip: If your income is near the phaseout threshold, working with a tax advisor can help you explore deductions, credits, or strategy changes (like filing separately) to preserve more of your credit.

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 U.S. citizen has to file a return, regardless of where they live. This is true even if you exclude all your income through the FEIE.
Attach Schedule 8812: Use this form to calculate both the refundable and nonrefundable portions of your Child Tax Credit. Attach this to your 1040.
Choose Between FEIE and FTC
- If you use FEIE, you’ll lose the refundable part of the credit.
- If you use FTC, you may qualify for the full $2,200 per child, including a refund.
Meet the Income Threshold: To qualify for the refundable credit, you need at least $3,000 in earned income.
File by the Deadline: Expats get an automatic extension to June 15, but any taxes owed are still due by April 15.

Knowing what deductions and credits you’re eligible for could save you big time.

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