expat tax help blog


Posted By: Clark Stott

10 point checklist to Child Tax Credits

Let’s admit it, having children is expensive. A number of expenses, such as education and child care, need to be added to the budget, not to mention the increase in clothing, food and leisure costs.

BIGGEST MYTH: Way too many American expats living in countries like the UK, Australia, Canada and the Philippines believe they can't claim US Child Tax Credit Refunds because they aren't paying any tax to the IRS.

This is not true!

If you're paying tax in any of those countries, then you're already meeting that part of the criteria to claim.

The Internal Revenue Service (IRS) actually recognizes this struggle and allows various exemptions, deductions, and credits to taxpayers who have children. The most common benefit is an exemption of $4,000 (for 2015) (indexed for inflation) for each of your child that qualifies as a dependent per the IRS rules. Other benefits include deductions for medical expenses and student loan interests and credits for child care and education expenses.

There is also a credit that can reduce your tax bill by as much as $1,000 per child – the Child Tax Credit. If your tax liability is less than $1,000, or zero, then it becomes a REFUND. The IRS owes you!

The Child Tax Credit can be complicated enough for taxpayers in the US but there are even further complications for us expats, choosing to live and work abroad.

Watch the video to see if you're eligible, then use our Child Tax Credit Calculator here.

We've put together a 10 point checklist for you to download, but watch this video first...


Download our 10-point Child Tax Credit checklist for FREE

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Date published: 07/20/2016