Yes. A U.S. citizen living abroad can claim the Child Tax Credit for 2025 if the taxpayer and child meet the eligibility requirements.
For 2025 tax returns filed in 2026, the Child Tax Credit is worth up to $2,200 per qualifying child. Up to $1,700 per qualifying child may be refundable through the Additional Child Tax Credit.
Living outside the United States does not disqualify you. Your eligibility depends on whether your child qualifies, whether the required Social Security Numbers were issued on time, how much U.S. income tax you have, how much earned income you report, and whether you claim the Foreign Earned Income Exclusion or the Foreign Tax Credit.
If you are new to the U.S. filing system, start with our guide to filing U.S. taxes from abroad.
Key Takeaways
- The maximum Child Tax Credit for 2025 is $2,200 per qualifying child.
- Up to $1,700 per qualifying child may be refundable through the Additional Child Tax Credit.
- The standard ACTC calculation is 15% of earned income above $2,500.
- Claiming the Foreign Earned Income Exclusion through Form 2555 prevents you from claiming the ACTC.
- Using the Foreign Tax Credit instead may preserve ACTC eligibility because your foreign earned income remains reported on your U.S. tax return.
- The credit begins to phase out when modified adjusted gross income exceeds $200,000 for most filing statuses or $400,000 for married couples filing jointly.
- A qualifying child must be under age 17 at the end of 2025 and have an employment-valid Social Security Number issued before the return’s due date, including extensions.
- Beginning with 2025 returns, the taxpayer claiming the CTC or ACTC must also meet a Social Security Number requirement.
How Much Is the Child Tax Credit for 2025?
The maximum Child Tax Credit for 2025 is $2,200 per qualifying child. Up to $1,700 per child may be refundable through the Additional Child Tax Credit.
| 2025 rule | Amount |
|---|---|
| Maximum Child Tax Credit | $2,200 per qualifying child |
| Maximum refundable ACTC | $1,700 per qualifying child |
| Earned-income threshold used in the standard ACTC formula | $2,500 |
| ACTC calculation rate | 15% |
| Phaseout threshold for married filing jointly | $400,000 |
| Phaseout threshold for all other filing statuses | $200,000 |
| Credit for Other Dependents | Up to $500 per qualifying dependent |
Above the applicable phaseout threshold, the combined Child Tax Credit and Credit for Other Dependents is reduced by $50 for every $1,000, or part of $1,000, of excess modified adjusted gross income.
For example, if your U.S. income-tax liability is $4,000 and you qualify for the full $2,200 Child Tax Credit for one child, the credit reduces your tax liability to $1,800.
The 2025 amounts and calculations are confirmed on the 2025 Schedule 8812 and in the 2025 Schedule 8812 instructions.
What Is the Difference Between the CTC and the ACTC?
The Child Tax Credit reduces U.S. federal income tax, while the Additional Child Tax Credit may generate a refund after your income-tax liability has been reduced to zero.
Child Tax Credit
The Child Tax Credit is nonrefundable. It can reduce your federal income-tax liability to zero, but it cannot by itself create a refund.
There is no separate $500 maximum for the nonrefundable portion. The total CTC is worth up to $2,200 per qualifying child, although the amount you can use as a nonrefundable credit is limited by your U.S. income-tax liability and the other calculations on Schedule 8812.
Additional Child Tax Credit
The Additional Child Tax Credit is the refundable part of the credit. An eligible taxpayer may receive up to $1,700 per qualifying child, even if there is no U.S. income-tax liability left to pay.
The refundable amount depends on earned income, the unused portion of the CTC, the number of qualifying children, and the Schedule 8812 calculation. Our Additional Child Tax Credit guide for expats explains the refundable credit in more detail.
Do Expats Need Earned Income to Claim the Child Tax Credit?
Earned income is required for the standard Additional Child Tax Credit calculation. It is not a separate requirement for using the nonrefundable Child Tax Credit against existing U.S. income-tax liability.
The distinction is:
- Nonrefundable CTC: You must have U.S. income-tax liability for the credit to reduce. The credit cannot create a refund by itself.
- Refundable ACTC: You generally need earned income above $2,500, and you cannot claim the Foreign Earned Income Exclusion through Form 2555.
Earned income generally includes:
- Wages and salaries;
- Tips and other taxable employee compensation; and
- Net earnings from self-employment.
Interest, dividends, pensions, capital gains, rental income, and similar investment income are not earned income for the standard ACTC calculation.
How Is the Additional Child Tax Credit Calculated?
The standard ACTC formula equals 15% of earned income above $2,500, subject to the unused CTC and the maximum refundable amount of $1,700 per qualifying child.
The basic calculation is:
- Subtract $2,500 from earned income.
- Multiply the remaining amount by 15%.
- Compare the result with the unused CTC and the $1,700-per-child refundable limit.
- Claim the smallest applicable amount calculated on Schedule 8812.
Earned income of exactly $2,500 produces no refundable credit under this formula.
Example: One Child and $10,000 of Earned Income
A taxpayer has $10,000 of qualifying earned income:
$10,000 − $2,500 = $7,500
$7,500 × 15% = $1,125
The taxpayer may qualify for an ACTC of $1,125, assuming all other requirements are met and at least that amount of the CTC remains unused.
Example: One Child and $50,000 of Earned Income
A taxpayer has $50,000 of qualifying earned income:
$50,000 − $2,500 = $47,500
$47,500 × 15% = $7,125
The formula produces $7,125, but the maximum ACTC for one qualifying child is $1,700.
Taxpayers with three or more qualifying children may qualify for an alternative calculation based partly on certain Social Security, Medicare, and self-employment taxes. Schedule 8812 determines which calculation applies.
Who Is a Qualifying Child for the 2025 Child Tax Credit?
A child must meet the relationship, age, support, residency, dependency, joint-return, citizenship or residency, and Social Security Number tests.
The child generally must:
- Be your child, stepchild, eligible foster child, sibling, stepsibling, half-sibling, or a descendant of one of them;
- Be under age 17 at the end of 2025;
- Not have provided more than half of their own support during 2025;
- Have lived with you for more than half of 2025, subject to exceptions for temporary absences and certain other circumstances;
- Be claimed as a dependent on your U.S. tax return;
- Not file a joint return, unless the joint return is filed only to claim a refund of withheld or estimated tax;
- Be a U.S. citizen, U.S. national, or U.S. resident alien; and
- Have a Social Security Number valid for employment that was issued before the due date of the 2025 return, including extensions.
The child does not have to live in the United States. A child living with you abroad may qualify if all the requirements are met.
The support rule is frequently misstated. You do not necessarily have to prove that you personally paid more than half of the child’s support. The correct qualifying-child test is that the child did not provide more than half of their own support.
The IRS lists the complete requirements in its Child Tax Credit guidance.
Does the Child Need a Social Security Number?
Yes. For the 2025 CTC and ACTC, the qualifying child must have a Social Security Number that is valid for employment.
The SSN must have been issued before the due date of the 2025 return, including extensions. A child with only an ITIN or ATIN cannot qualify for the CTC or ACTC.
If a dependent does not have the employment-valid SSN required for the CTC but has another qualifying taxpayer identification number—an SSN, ITIN, or ATIN—issued by the applicable deadline, the taxpayer may instead qualify for the nonrefundable Credit for Other Dependents of up to $500.
Does the Taxpayer Need a Social Security Number for 2025?
Yes. Beginning with 2025 returns, the taxpayer claiming the CTC or ACTC must also have a Social Security Number valid for employment and issued before the return’s due date, including extensions.
On a joint return, only one spouse must have the employment-valid SSN. The other spouse must have an SSN or ITIN issued on or before the due date of the return.
These taxpayer and child identification requirements apply to both original and amended 2025 returns. The 2025 Schedule 8812 instructions explain the requirements in detail.
How Does the Foreign Earned Income Exclusion Affect the ACTC?
Claiming the Foreign Earned Income Exclusion prevents you from claiming the Additional Child Tax Credit for 2025.
The FEIE allows a qualifying taxpayer to exclude up to $130,000 of foreign earned income for 2025. If both spouses independently qualify, each spouse may claim the exclusion, allowing a combined exclusion of up to $260,000.
The exclusion is claimed on Form 2555. Claiming the FEIE and filing Form 2555 are therefore the same tax choice, not separate rules. You can read more in our Foreign Earned Income Exclusion guide and our explanation of Form 2555.
The FEIE affects the child credit in two ways:
- It removes qualifying foreign earned income from U.S. taxable income. If the exclusion leaves you with no U.S. income-tax liability, there is no tax for the nonrefundable CTC to reduce.
- It prevents you from receiving the refundable ACTC. The restriction applies when you claim the FEIE through Form 2555, even if you exclude only part of your foreign earned income.
This is not simply a reduction in the earned income used to calculate the ACTC. The 2025 Schedule 8812 instructions state directly that a taxpayer who files Form 2555 cannot claim the ACTC.
How Is the Foreign Tax Credit Different From the FEIE?
The Foreign Tax Credit reduces U.S. tax without excluding your foreign income from your U.S. tax return.
An expat using the FTC generally reports the full amount of foreign income on Form 1040. The taxpayer then claims a credit for qualifying foreign income taxes paid or accrued abroad. The credit is usually calculated on Form 1116.
Because the foreign income remains reported, qualifying wages or self-employment income may remain available for the ACTC earned-income calculation. Using the FTC may therefore preserve ACTC eligibility when the taxpayer meets every other requirement.
| Issue | Foreign Earned Income Exclusion | Foreign Tax Credit |
| Treatment of foreign income | Excludes qualifying foreign earned income | Keeps foreign income in the U.S. income calculation |
| 2025 maximum | $130,000 per qualifying person | No fixed dollar maximum; limited by the FTC calculation |
| Main form | Form 2555 | Form 1116 |
| Effect on ACTC | Taxpayer cannot claim the ACTC | May preserve ACTC eligibility |
| How it reduces U.S. tax | Reduces taxable income | Credits qualifying foreign income tax against U.S. tax |
Our Form 1116 and Foreign Tax Credit guide explains how the credit is calculated. You can also compare both methods in our guide to the Foreign Earned Income Exclusion versus the Foreign Tax Credit.
Using the FTC does not automatically make you eligible for the ACTC. You must still satisfy the earned-income, qualifying-child, SSN, income phaseout, and other requirements.
You also cannot claim a Foreign Tax Credit for foreign taxes attributable to income excluded under the FEIE. If only part of your foreign income is excluded, the foreign taxes must be allocated between excluded and nonexcluded income.
How Can the FEIE and FTC Produce Different Child Tax Credit Results?
The method used to prevent double taxation can determine whether an expat receives a refundable ACTC.
Assume a U.S. citizen working in Canada earns $50,000 in employment income and has one qualifying child.
If the Taxpayer Claims the FEIE
The taxpayer claims the Foreign Earned Income Exclusion through Form 2555 and excludes the $50,000 of wages.
Because the taxpayer claimed the FEIE, they cannot claim the ACTC. If the exclusion also leaves the taxpayer with no U.S. income-tax liability, there is no tax for the nonrefundable CTC to reduce.
If the Taxpayer Claims the FTC
The taxpayer reports the full $50,000 of wages and claims a Foreign Tax Credit for qualifying Canadian income taxes.
The $50,000 remains earned income for the standard ACTC calculation:
$50,000 − $2,500 = $47,500
$47,500 × 15% = $7,125
The calculation produces $7,125, but the ACTC is capped at $1,700 for one qualifying child.
The taxpayer may therefore qualify for a $1,700 refundable credit, assuming all other requirements are met and the Schedule 8812 calculation supports the full amount.
This is a simplified example. The actual result depends on filing status, deductions, foreign tax rates, self-employment income, other credits, and previous FEIE elections.
Should an Expat Switch From the FEIE to the FTC to Claim the ACTC?
Possibly. However, the complete current-year and long-term tax results must be compared before switching.
The FTC may be more beneficial when:
- You have earned income above $2,500;
- You have one or more qualifying children;
- You live in a country that imposes enough income tax to offset your U.S. tax;
- You meet every other ACTC requirement; and
- The expected refundable credit is greater than any additional U.S. tax or other cost caused by giving up the FEIE.
The FTC may be less helpful in a low-tax or no-tax country because there may not be enough foreign income tax available to offset the U.S. tax.
You must also consider the FEIE revocation rule. If you revoke an existing FEIE election, you generally cannot claim the exclusion again for the next five tax years without IRS approval. The 2025 Form 2555 instructions explain this restriction.
Do not switch methods solely because the ACTC may produce a refund. Compare both calculations and consider future tax years before making the election.
How Does an Expat Claim the Child Tax Credit?
An expat claims the CTC and ACTC by filing a U.S. federal income-tax return and completing Schedule 8812.
The basic steps are:
- File Form 1040.
- Report your worldwide income, including foreign wages and self-employment income.
- List each qualifying child in the dependents section.
- Enter the child’s employment-valid SSN.
- Check the Child Tax Credit box for each qualifying child.
- Complete Schedule 8812 to calculate the CTC and ACTC.
- Attach Form 2555 if claiming the FEIE or Form 1116 if claiming the FTC.
- Keep records supporting the child’s relationship, age, residency, support, citizenship or immigration status, and SSN.
For 2025 returns, the regular deadline was April 15, 2026. Qualifying taxpayers living abroad automatically received until June 15, 2026 to file and pay, although interest on unpaid income tax accrued from April 15.
Filing Form 4868 by June 15 extended the filing deadline to October 15, 2026. Our 2026 expat tax deadline guide explains the complete timeline.
Can an Expat Claim the Child Tax Credit for a Previous Year?
Yes. An expat who omitted the credit from a previously filed return may be able to claim it by filing Form 1040-X.
The taxpayer must qualify under the rules and credit amounts that applied to the year being amended. The $2,200 CTC and $1,700 ACTC amounts discussed in this article apply to 2025 and should not automatically be used for earlier years.
A refund claim generally must be filed within:
- Three years after the original return was filed; or
- Two years after the tax was paid;
whichever period expires later.
Different refund lookback rules may apply to late-filed returns and other circumstances. See our guide on how to correct a tax return after filing before amending a previous return.
What Are the Most Common Child Tax Credit Mistakes for Expats?
The most common mistakes involve outdated dollar amounts, the wrong support test, missing Social Security Numbers, and failing to compare the FEIE with the FTC.
Using the Wrong 2025 Credit Amount
The maximum 2025 Child Tax Credit is $2,200, not $2,000. The maximum refundable ACTC is $1,700 per qualifying child.
Using the Wrong Earned-Income Threshold
The standard ACTC calculation uses earned income above $2,500, not $3,000.
Treating Form 2555 as Separate From the FEIE
Form 2555 is the form used to claim the Foreign Earned Income Exclusion. Filing Form 2555 and claiming the FEIE are part of the same tax choice.
Saying the FEIE Merely Reduces ACTC-Eligible Income
The rule is stronger. Claiming the FEIE through Form 2555 prevents the taxpayer from claiming the ACTC.
Assuming the FTC Automatically Produces a Refund
The FTC may preserve ACTC eligibility, but the taxpayer must still meet every other requirement. The return must be calculated using the taxpayer’s actual earned income, foreign taxes, filing status, qualifying children, and other credits.
Saying the Child Must Be a U.S. Citizen
A qualifying child may be a U.S. citizen, U.S. national, or U.S. resident alien. The separate employment-valid SSN requirement must also be met.
Applying the Wrong Support Test
The child must not have provided more than half of their own support. The rule is not that the taxpayer must always have paid more than half of the child’s support personally.
Switching From the FEIE Without Considering the Five-Year Rule
Revoking the FEIE may prevent the taxpayer from claiming it again for the next five tax years without IRS approval.
For a broader overview of available tax benefits, see our U.S. expat deductions and credits FAQ.
