'$1,000' Child Tax Credit?

Hi everyone,

My wife is filing her taxes through 'Taxes for Expats' and the accountant is asking the below. What exactly is she saying as we're quite confused (it might as well be Chinese to us)?

Hi Jenniffer, Congratulations on your new baby! Now that you have a child, you can potentially get a child tax credit of up to $1,000 on your return. The way this would be possible would be: -Provide your foreign taxes paid (you can only receive a child tax credit if you take foreign tax credits against your income, not the foreign earned income exclusion). UK tax paid is almost always higher than the US tax liability so like the foreign earned income exclusion, your tax liability would still be reduced to 0, it's just that you would get a refund of $1,000. -You would have to revoke taking the foreign earned income exclusion for 5 years. Let me know if you would like to go this take this route.

I haven't seen anyone mention this tax credit before but i don't regularly peruse the tax area of the site.

If anybody could clear it up 

Thanks!

She has been advised correctly.  This is how I file.

She has been advised correctly.  This is how I file.

So what do we do? Does she receive $1,000?

So what do we do? Does she receive $1,000?

Follow your accountants advice and she will receive a check for $500-$1,000 depending on income.

The payment has increased from 2018 to up to $1,400. This is standard US tax planning.  You will want to consider if the child tax credit refund might be taxable in the UK (just as UK child benefit is taxable in the States).

You may want to think incidentally of using a dually US/UK qualified accountant located in the UK who will be in the same time zone and can speak in non-US tax jargon...

And is guya dually qualified as well as being located in the UK?

I know this is a somewhat old post now, but is this information still accurate, even if you're not living in the United States? The worksheets seem to rule out claiming this $1,400 credit if you're not living in the States anymore...?

I know this is a somewhat old post now, but is this information still accurate, even if you're not living in the United States? The worksheets seem to rule out claiming this $1,400 credit if you're not living in the States anymore...?

Yes, but you need to use Foreign Tax Credits and not Foreign Earned Income Credit.  If you use FEIC, you aren't eligible.

I do take foreign tax credits. The various worksheets have really confused me. Is it the Additional Child Tax Credit that is giving you the $1,400 or are you eligible for the regular one?

Yes, but you need to use Foreign Tax Credits and not Foreign Earned Income Credit.  If you use FEIC, you aren't eligible.

I wasn't sure I'd heard of FEIC. Is this the same as FEIE, form 2555?  My son uses FEIE to exclude his UK salary, and I use FTC's, form 1116, to get credits against my pension income.

I use form 1116 as well (general and passive). Are those of you who are claiming the $1,400 credit taking the EIC on line 17a or not taking it? Looking at the instructions, I just can't see how I'm eligible for this without living in the US...?

At this point, I may have to complete this year's like I did last year and ignore all of the child tax credit related stuff, and if I ever figure it out, re-do these two tax years.