# Child tax credit (USA)



## Superlative (May 23, 2014)

I have been filing all the relevant tax and account disclosure forms myself for the last 8 years. I have 4-year old twins (with American passports and SS#s).

I recently learned about the Child Tax Credit (CTC) and as far as I can understand I am eligible to claim it and since the taxes I pay in France are much higher than what I would pay on the same income in the USA, the credit would be refunded to me. 

I was sure this couldn't be true, but then I read this guy's paper:

type this into google (this is my first post and the site won't let me put a link): americansabroad.org/files/3913/3589/8026/foreigntaxcreditadams.pdf

The examples he uses to illustrate the calculations are pretty close to my situation. 

Of course, trying to claim my CTC would mean switching from the 2555EZ to the dreaded 1116 which looks like a lot of fun. But for $2000... I suppose a few (more) hours of tax prep might be worth it.

Is this for real? Has anyone successfully collected the CTC when filing a 1116 that totally offset US taxes? Other than the hassle, are there any risks? How does the AMT figure into this calculation?

I also read that it's possible to file for this retroactively. Really? If I'm willing to sit down and fight my way through 4 years of tax forms I might be able to collect $8000?


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## BBCWatcher (Dec 28, 2012)

I assume you're referring to the Additional Child Tax Credit, the refundable tax credit.

Sure, it possible to receive money from the IRS and pay a negative tax rate due to refundable tax credits. That includes U.S. citizens, nationals, and permanent residents living overseas.

You've got to hurry if you want to claim refundable tax credits for tax year 2010 (including the Making Work Pay Tax Credit). The absolute final call is June 15, tax return received at the IRS, and assuming you were an overseas resident in early 2011 and attach the overseas residence statement described in Publication 54. So concentrate on tax year 2010 first then worry about the rest.

This all assumes you did not file. Please note that if you've filed and taken the FEIE that might have damaged your chances to go back and fix this. The IRS has some rules that limit flipping back and forth between the FEIE and FTC, so read those rules carefully.


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## sabad66 (Apr 14, 2014)

Why would you need to switch from FEIE to FTC to claim this? Is it a requirement of the ACTC to have some non-excluded income?


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## BBCWatcher (Dec 28, 2012)

Yes, you must have earned income that is not shielded by the FEIE/FHE in order to do certain things. One of those certain things is claiming refundable tax credits like the ACTC. Another one of those certain things is making qualified contributions to a U.S. IRA (e.g. Roth IRA).


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