Am I eligible to claim the Child Tax Credit ($1000) while living abroad?
In the past, we have processed refundable child tax credits of $1,000 for each child for expats with earnings under $100k. There was a small loophole that enabled expats to claim this credit regardless of the foreign earned income exclusion.
The IRS has recently closed this loophole. If you utilize the FEIE, you cannot claim the Child Tax Credit.
Although it has not explicitly been stated, it is highly probable that the credit may no longer be claimed when amending prior year returns.
What we can do
There are still ways to claim the Child Tax Credit, but it depends on your situation. We can review your prior year tax return ($100) and let you know if it’s possible for you to do so and whether it makes sense to file an amendment for up to 3 years.
Should an amendment be warranted, the $100 would be applied towards tax preparation fees.