Published 19 June 2026 · Updated 7 November 2026 · 3 min read
Families abroad often assume the Child Tax Credit is not for them. It is, provided the children have Social Security numbers, and for many UK-based families the refundable part is real money that the choice between the exclusion and the credit can either preserve or wipe out.
The 2025 figures
For tax year 2025 the Child Tax Credit is US$2,200 per qualifying child under 17, made permanent and indexed for inflation by the July 2025 legislation. Up to US$1,700 per child is refundable as the Additional Child Tax Credit. The credit phases out above US$200,000 of modified adjusted gross income (US$400,000 married filing jointly). Check the Form 1040 instructions for the year you are filing; the figures move with inflation.
Who is a qualifying child
Under 17 at the end of the year; your child, stepchild, foster child, sibling or their descendant; lived with you for more than half the year; claimed as your dependent; did not provide more than half of their own support; a US citizen, national or resident; and holding a valid Social Security number issued before the return due date. The taxpayer (or at least one spouse on a joint return) must also have an SSN.
The SSN hurdle
A child born in the UK to a US parent is usually a US citizen and entitled to an SSN. Until the number exists the credit cannot be claimed, and it cannot be added retrospectively for years when the child had no SSN. Applying for the SSN is your own application to the Social Security Administration (Form SS-5 through the Federal Benefits Unit at the embassy, with the Consular Report of Birth Abroad or US passport). We tell you when it is needed; we do not handle the application.
Why FEIE versus Foreign Tax Credit decides it
The refundable credit is 15% of earned income above US$2,500, up to the cap. Income excluded under the Foreign Earned Income Exclusion is not earned income for this purpose. Exclude everything and the refundable credit is nil. Claim the Foreign Tax Credit instead and your earned income stays in the calculation: UK tax often reduces the US tax to nil, and the refundable credit then produces a payment.
Example: a UK salary of about US$100,000, two qualifying children with SSNs. With the exclusion, no refundable credit. With the credit route, US tax is covered by UK tax paid and the Additional Child Tax Credit can be worth US$3,400. The numbers depend on your facts; we model both.
Switching from the exclusion to the credit means revoking the exclusion, which locks you out of it for five years. Look at the whole period, not one year.
Other family-related items
- Child and Dependent Care Credit: UK nursery and childminder costs can qualify where they let you work; non-refundable.
- Earned Income Tax Credit: not available if you claim the exclusion; rarely relevant otherwise for people abroad.
- Education credits: generally require a US-eligible institution; most UK institutions do not qualify.
Frequently asked questions
My children are dual citizens living in the UK. Do they qualify?
Yes, if they meet the tests above and have SSNs.
My child has an ITIN. Is that enough?
No. The credit needs an SSN for the child.
We missed the credit in earlier years. Can we go back?
Form 1040-X can claim it for open years (generally three years from the original due date), provided the child had an SSN by the due date of that year's return.
Written by the US UK Expat Tax advisory team. Last reviewed 7 November 2026 · Figures relate to the 2025 (filed 2026) tax year unless stated.
Primary sources checked
General information, not personal tax advice. Rules and thresholds change; we confirm the position for your facts before any work.