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minafeldtax
Returning Member

Child tax credit rejected for expat child

My credit was reduced from $4200 to $2800 due to my third child being disqualified. He was born June , 2020 but I was unable acquire his Consular Report of Birth Abroad CRBA for his US birth certificate due to the London US Embassy closure for Covid. When the embassy reopened it was not possible to get an appointment except in emergency situations.  We finally applied on April 29, 2022 for the CRBA and his social security number.  CRBA was granted on May 20 2022, but social security number was not issued until July 20 2022.  As a US citizen living abroad, I get an automatic extension for tax filing until June 15 so both of these dates fall within that period.  On June 15 I filed an additional extension until October 15, 1022. I believe I have complied with all the guidelines so why did they reject Child tax credit? 

5 Replies
Critter-3
Level 15

Child tax credit rejected for expat child

If this was for the 2020 return and the $1400 refundable CTC then you are out of luck ... you missed the deadline since the SSN was not issued until 2022. 

 

 

If this is for the $1400 third stimulus payment on the 2021 return then this  is an issue you will have to take up with them ... amend the return to put the credit back and this time include all supporting documents needed to support your claim to the credit.

 

Not sure when you actually filed the return but the paper extension may not have been recorded prior to the return being processed.  

 

FYI ... in the future ... if you will not file before 4/15 then simply efile a 6 month extension instead of doing the extra 4 month extension later just to keep things simple.

 

 

minafeldtax
Returning Member

Child tax credit rejected for expat child

Thanks for the response. The 2021 return was filed in early August after receiving the SSN.  They refused the child tax credit and the stimulus so there is actually $2800 involved. The IRS documentation says that if you requested the SSN before the extension deadline (June 15 in this case) then it still qualifies.  The October extension doesn't seem relevant in this case.  Is there an alternative to filing an amended return? A phone call? The form 12203? We still have not received the actual notice even though they say it is dated Aug 29.  I don't know how much time we have to dispute it.

 

We also filed an amended 2020 return, but I now realize this was wrong after reading the IRS fine print; The information on Turbo Tax made it sound like that was legitimate. What should we do about that?  File another 2020 amended return going back to the original? The amended return is still in process.

 

 

 

 

minafeldtax
Returning Member

Child tax credit rejected for expat child

Thanks for that information. I posted a further question.

 

Critter-3
Level 15

Child tax credit rejected for expat child

They refused the child tax credit and the stimulus so there is actually $2800 involved. The IRS documentation says that if you requested the SSN before the extension deadline (June 15 in this case) then it still qualifies.  The October extension doesn't seem relevant in this case.  Is there an alternative to filing an amended return? A phone call? The form 12203? We still have not received the actual notice even though they say it is dated Aug 29.  I don't know how much time we have to dispute it.  Actually it is the $3600 CTC and the $1400 stimulus on the 2021 return for a total of $5000 that you have been shorted.  And you may have requested the SS# before 6/15 however it was not issued by then  AND  the IRS did not know you were overseas AND they did not know you filed an extension  so your ONLY option will be to file an appeal ... https://www.irs.gov/pub/irs-pdf/f12203a.pdf   You can try to call however I doubt you will get thru to anyone at the IRS.  You could try the taxpayer advocate office by filing a form 944.

 

We also filed an amended 2020 return, but I now realize this was wrong after reading the IRS fine print; The information on Turbo Tax made it sound like that was legitimate. What should we do about that?  File another 2020 amended return going back to the original? The amended return is still in process.  There is nothing to do about the 2020 return ... the one you filed  will simply be denied.

Critter-3
Level 15

Child tax credit rejected for expat child

The Protecting Americans from Tax Hikes or PATH Act made several changes to the tax law, including preventing retroactive claims of the EITC and CTC by amending a return or filing an original return for any earlier year in which the individual or anyone listed on the return did not have a SSN valid for employment. You can't claim EITC or CTC unless the Social Security number for you, your spouse (if married filing a joint return) or a qualifying child is issued before the due date of the return including any valid extensions.

http://www.thetaxadviser.com/newsletters/2016/jan/congress-makes-changes-to-popular-tax-credits.html

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