The child tax credit abroad: money the IRS may owe you

1How the credit works

For 2025 and 2026, the child tax credit is up to $2,200 for each child under 17 at the end of the year. It first reduces any U.S. tax you owe. If there's no tax to reduce, up to $1,700 per child can be paid to you instead. That refundable part is called the additional child tax credit.

The refund depends on your earned income: it's 15% of your earned income above $2,500, up to $1,700 per child. The credit starts to shrink once your income passes $200,000, or $400,000 on a joint return, counting income you exclude abroad.

Children who are 17 or older can qualify for a $500 credit for other dependents, which isn't paid as a refund.

2The choice that decides it

If you claim the foreign earned income exclusion, you can't get the refundable part. If you use the foreign tax credit instead, you usually can, and in a country with higher taxes than the U.S., the credit already brings your U.S. tax to zero.

That's why we prepare your return both ways before choosing.

3The Social Security number rules

• Each child needs a Social Security number that's valid for work, issued before your return's due date, including extensions.
• You need one too. On a joint return, only one spouse needs it.
• No numbers yet? Here's how to get one from abroad.

4Claiming it for past years

Catch-up returns under the Streamlined procedures can claim the credit too, and refunds for recent years are common for families. But refunds have time limits: generally, a refund has to be claimed within three years of the return's due date. Often the oldest catch-up year pays nothing, so filing sooner is worth real money. Not sure which route fits you? See every IRS catch-up option for expats.

For many families, catching up pays for itself.

Common questions

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