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Child Tax Credit

I live in a foreign country and I don't have to pay US taxes since I pay taxes in the foreign country. I was under the impression that even though I don't pay taxes I still should get money for each dependent listed on my tax return. But TurboTax says I'm not eligible.

Can anyone explain why? 
Do I have to live in the US for half a year to get the money?

 

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1 Best answer

Accepted Solutions

Child Tax Credit

@Sam613613 

 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/u-taxpayers-livin...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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6 Replies

Child Tax Credit

From the IRS

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

 

Who is Eligible

To be eligible for advance payments of the Child Tax Credit, you (and your spouse, if married filing jointly) must have:

  • Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return or
  • Entered your information in 2020 to get stimulus (Economic Impact) payments with the Non-Filers: Enter Payment Info Here tool or
  • Given us your information in 2021 with the Non-Filer: Submit Your Information tool

And you (and your spouse, if married filing jointly) must also have:

  • Lived in a main home in the United States for more than half the year (the 50 states and the District of Columbia) or filed a joint return with a spouse who has a main home in the United States for more than half the year; and
  • A qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number; and
  • Made less than certain income limits.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Child Tax Credit

@Sam613613 - in 2021, the child tax credit (the $3600 / $3000) is as xmasbaby0 explains. So since you and the children did not live in the US for at least 6 months , you are not eligble for that.

 

but the 'old rules' (pre-2021) were still in effect for those not eligible for the 2021 version noted above  (and those pre-2021 rules  are back in effect for 2022).  But they are non-refundable credits, meaning if you did not have a tax liability, there is no child credit (the $2,000) under these rules either 

 

 

 

 

  

Child Tax Credit

@Sam613613 wrote:  "I live in a foreign country and I don't have to pay US taxes since I pay taxes in the foreign country."

 

Wrong.  If you're a U.S. citizen, the foreign tax credit may reduce your U.S. tax liability, but the fact that you live abroad does not in itself relieve you of the obligation to file a U.S. tax return nor to pay U.S. income tax.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Child Tax Credit

@Sam613613 

 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/u-taxpayers-livin...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Child Tax Credit

Thanks

Child Tax Credit

I spoke to an accountant. He said that if I want to get money back for dependants, I have to use the Foreign Tax Credit (FTC) and not use the Foreign Earned Income Exclusion (FEIE).
And thanks xmasbaby0 for the link that explains it:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/u-taxpayers-livin...

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