turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

ACTC for expats

My wife and I live with our 4 children all under 16 outside of the US. We are all US citizens. We have no tax liability in the US. I believe that we still qualify for the ACTC (last year we paid a CPA to do out taxes, we were in the same situation, and we received the ACTC). TT says "since the Additional Child Tax Credit is a refundable credit, but your tax return did not show any earned income, you did not meet that credit's $2,500 minimum earned income requirement." Of course, we have income that is reported, it just is not taxable. How do I get around this?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

6 Replies
Hal_Al
Level 15

ACTC for expats

"ACTC is not allowed if you or your spouse (if filing a joint return) file a Form 2555 or Form 2555EZ (excluding foreign earned income)."

https://www.eitc.irs.gov/other-refundable-credits-toolkit/what-you-need-to-know-about-ctc-and-actc/w...

ACTC for expats

Right. So TT is guiding me to use 2555 instead of 1116 (foreign tax credit). In the past I have used 1116. How do I guide TT to use 1116 instead of 2555?

Hal_Al
Level 15

ACTC for expats

You may want to do a new post with that specific question. 

ACTC for expats

@aallpoadoakdfa is it possible you are assuming that using form 1116 in the past was correct? 

 

https://www.irs.gov/pub/irs-pdf/i1116.pdf

https://www.irs.gov/pub/irs-pdf/i2555.pdf

 

suggest reading 'who qualifies' on each instruction form to confirm which path is correct in your circumstance. 

 

Form 1116 is only to be used if you are paying taxes to a foreign government.  Are you?

 

 

ACTC for expats

Yes, i am paying taxes to a foreign government. How do I indicate this in TT? I can't seem to figure that out. 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies