Additional Child Tax Credit

The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit. It may give eligible parents a tax refund when their Child Tax Credit is greater than the U.S. federal income tax they owe.

Why it matters for U.S. expats

Qualifying U.S. expat parents may receive the ACTC even if they owe no U.S. income tax. For 2025 tax returns filed in 2026, up to $1,700 per qualifying child may be refundable.

Your filing choices are key to this. If you file Form 2555 to claim the Foreign Earned Income Exclusion, you cannot claim the ACTC for that tax year.

Common questions

1. Can expat parents claim the Additional Child Tax Credit?

Yes. Living abroad does not prevent you from claiming the ACTC if you, your child, and your income meet the eligibility requirements.

2. How much is the Additional Child Tax Credit?

For the 2025 tax year, up to $1,700 per qualifying child may be refundable. The actual amount depends on your earned income and other details on your return.

3. Who is a qualifying child for the ACTC?

The child must be under 17, live with you for more than half the year, qualify as your dependent, and be a U.S. citizen, national, or resident alien. Other relationship and support rules also apply.

4. Does my child need a Social Security number?

Yes. Your qualifying child must have a Social Security number valid for employment and issued before the return due date, including extensions.

5. Can I claim the ACTC if I use the Foreign Earned Income Exclusion?

No. If you file Form 2555 to claim the Foreign Earned Income Exclusion, you cannot claim the ACTC for that year.

6. How do expats claim the Additional Child Tax Credit?

Claim your child as a dependent on Form 1040 and complete Schedule 8812. The calculation is based partly on your earned income, which must exceed $2,500.

Related forms

• Form 1040: Filing from abroad
• Schedule 8812: Calculating the Child Tax Credit and Additional Child Tax Credit
• Form 2555: Claiming the Foreign Earned Income Exclusion

When to get help

Consider getting specialist help if:

• You are unsure whether your child qualifies.
• Your child was born abroad or recently received a Social Security number.
• You need to choose between the Foreign Tax Credit and Foreign Earned Income Exclusion.
• You claimed Form 2555 and expected an ACTC refund.
• You need to amend a previous return to claim the credit.

Bright!Tax can check your eligibility, compare your expat tax options, and claim the credits available to your family. Get started with Bright!Tax.

Related Bright!Tax guides

• What is the Child Tax Credit? A guide for U.S. expats
• Foreign Tax Credit vs. Foreign Earned Income Exclusion
• How to file an amended tax return as an expat

Official sources

• IRS: Child Tax Credit and Additional Child Tax Credit
• IRS: Schedule 8812 and instructions
• IRS: Instructions for Schedule 8812

Reviewed by

Katelynn Minott, CPA & CEO

Last reviewed

June 2026