The Child Tax Credit (CTC) can lower a portion of an adult’s tax bill dollar for dollar and provide financial support for up to 48 million claimants who need a little extra help with their children’s food, housing, and school costs.
Adults with eligible children younger than 17 can get this tax credit, which is not refundable. In 2025, the Internal Revenue Service (IRS) says it will be capped at $2,000, with a maximum of $1,700 in refunds.
For married couples filing jointly, the Child Tax Credit income limit will stay at $400,000 in 2025. For everyone else, the limit will stay at $200,000. If you file your tax return by April 15, you may get your payment from the IRS 21 days later. You can check the status of your return online.
This is what you need to know to claim the Child Tax Credit for children living abroad
People from the United States who have had to move to another country for different reasons may be wondering if they can get the Child Tax Credit. The rules for eligibility have not changed, so the answer is yes.
However, they should be aware that claiming the Foreign Earned Income Exclusion (FEIE) could make it harder for them to get the full credit.
As an American living abroad, you can still use the non-refundable part of the Child Tax Credit as a tax deduction if you choose to use the CTC instead of the foreign earned income exclusion. Think about the fact that you might be able to get a refund that goes from $1,000 in 2024 to $1,400 in 2025.
Who qualifies for the Child Tax Credit?
Any child who is eligible, has a Social Security number, and can work in the United States can get the Child Tax Credit. For the 2023 tax year, your dependent must generally meet the following requirements to be considered a child:
- be younger than seventeen at the end of the year.
- Be a sister, brother, stepbrother, stepsister, half-brother, half-sister, son, daughter, stepchild, eligible foster child, or a descendant of one of these.
- No more than half of their funds should be provided throughout the year.
- You must have lived with the child for more than half a year.
- be accurately included on your tax return as a dependent.
- Fail to file a joint return with your spouse for the tax year, or file a return only to receive a refund of estimated or withheld income taxes.
- You must be an American citizen, national, or foreign resident in the country
You can get the full 2023 Child Tax Credit for each qualified child if you meet all the requirements and your yearly income is less than $200,000 ($400,000 if you file a joint return). Parents and guardians who make more money might be able to get a partial credit.
Other tax credits available for families in the US
Those in the United States who get the Child Tax Credit (CTC) may also be able to get these other tax credits:
- Child and Dependent Care Credit: If you hired someone to look after your child or another eligible person so that you and your spouse could work or search for a new job. You may be able to receive the credit for dependent and child care costs if these conditions are met. Your federal income tax may be reduced if you include the Credit for Child and Dependent Care expenditures on your tax return.
- Earned Income Tax Credit: This federal credit is known for Americans as it provides tax relief to families and workers with low to moderate incomes. You can use the credit to lower your tax liability and even boost your refund if you are eligible.
Read Also :- SNAP Restrictions: See the full list of items you cannot buy with your SNAP benefits this special holiday season.
