Through the Child Tax Credit (CTC), you will be able to lower a percentage of your tax bill dollar for dollar and eventually get financial assistance for up to 48 million adult applicants who require a little bit of additional assistance to pay for their children’s school, housing, and food expenses.
Those who are qualified for this tax credit are adults who have dependents who are under the age of 17 and who qualify. A maximum limit of $2,000 will be implemented by the Internal Revenue Service (IRS) by the year 2025, with a maximum refundable component of $1,700.
For married taxpayers who file a combined return in 2025, the income threshold for eligibility for the Child Tax Credit will remain at $400,000, whereas for all other filers, the threshold will raise to $200,000 after the year 2025.
After you have submitted your tax return to the Internal Revenue Service (IRS) before the deadline of April 15, you may get payment 21 days after you have submitted your return to the IRS. It is necessary for you to check the status of your tax return online.
If you live outside of the United States, are you eligible to get the Child Tax Credit?
It is possible for US citizens who have been forced to relocate abroad to submit an application for the Child Tax Credit. This is because the eligibility rules do not change, so it is possible for them to do so.
However, it is important for them to keep in mind that submitting an application for the Foreign Earned Income Exclusion (FEIE) may have an impact on their eligibility for the full credit.
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It is possible that you will be eligible for a refund if you choose to opt for the Child Tax Credit rather than the foreign earned income exclusion.
This refund could increase from $1,000 to $1,400 by the year 2025. Additionally, it will still be possible for you to use the non-refundable portion of the Child Tax Credit as an American living abroad in order to reduce the amount of tax that you claim on your return.
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