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  1. #1

    Default Child Tax Credit when Child Resides Overseas

    Hello there, I am moving overseas next year with my child, who is a U.S. citizen minor. I would like to know if his father will be entitled to claim the child tax credit here in the U.S. when his child is living overseas, as long as I sign the corresponding form or statement?

    Thanks for your assistance!

  2. #2
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    Default Re: Child Tax Credit when Child Resides Overseas

    Quote Quoting Martin18
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    Hello there, I am moving overseas next year with my child, who is a U.S. citizen minor. I would like to know if his father will be entitled to claim the child tax credit here in the U.S. when his child is living overseas, as long as I sign the corresponding form or statement?

    Thanks for your assistance!
    Among the requirements for the Child Tax Credit (CTC) is that the child must have lived with you for over half the tax year. So if the child does not live with the father for at least half the year the father will be ineligible to claim the CTC. That's true whether the child is living in the U.S. or living in another country. See IRS Publication 972 which explains all the requirements for the credit.

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    Default Re: Child Tax Credit when Child Resides Overseas

    Quote Quoting Martin18
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    Hello there, I am moving overseas next year with my child, who is a U.S. citizen minor. I would like to know if his father will be entitled to claim the child tax credit here in the U.S. when his child is living overseas, as long as I sign the corresponding form or statement?

    Thanks for your assistance!
    Why are you moving overseas? Generally no, the child has to be residing in the US for the child tax credit to be claimed. However, there could be an exception to that if the move is military or state department related.

    Quote Quoting Taxing Matters
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    Among the requirements for the Child Tax Credit (CTC) is that the child must have lived with you for over half the tax year. So if the child does not live with the father for at least half the year the father will be ineligible to claim the CTC. That's true whether the child is living in the U.S. or living in another country. See IRS Publication 972 which explains all the requirements for the credit.
    TM that is not accurate. Normally I wouldn't argue with you but you definitely have this one wrong. The non custodial parent can claim the CTC if the custodial parent gives him/her form 8332. However the child must have lived in the US for more than six months of the year to be eligible for the CTC at all. The child must have lived with the parent for more than six months of the year to be eligible for the EITC.

    Exceptions to that are out of country living due to military or state department moves.

  4. #4

    Default Re: Child Tax Credit when Child Resides Overseas

    Thank you to both of you, really appreciate the quick responses!

    Reason for the relocation is that we are divorced, and I am returning to my home country.

    I am very interested in your perspectives, as I did review the 1040 instructions as closely as I could bear (!), and it seemed to say that the child had to be either a US citizen or resident (e.g. point 7 on page 3 of publication 92). He is of course a citizen. There are also the exceptions for children of divorced or separated parents, which to me seemed to say that as long as I sign Form 8332 then the noncustodial parent can have the credit.

    I can't actually find anywhere it says he has to be a resident for his father to claim him, and if you could point me to such a statement I'd be so grateful.

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    Default Re: Child Tax Credit when Child Resides Overseas

    Quote Quoting llworking
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    TM that is not accurate. Normally I wouldn't argue with you but you definitely have this one wrong. The non custodial parent can claim the CTC if the custodial parent gives him/her form 8332.
    My apologies to the OP, you are correct that the CTC may be claimed by the noncustodial parent (NCP) if the custodial parent (CP) provides the Form 8332. I overlooked the

    Quote Quoting llworking
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    However the child must have lived in the US for more than six months of the year to be eligible for the CTC at all. The child must have lived with the parent for more than six months of the year to be eligible for the EITC.

    Exceptions to that are out of country living due to military or state department moves.
    But I disagree with you on this. Nowhere in IRC 24 does it limit the CTC to kids who lived in the U.S. for six months of the year. Nor does Publication 972 mention any such limitation or exceptions to that limitation for military/state department moves. Where are you getting that from. The kid must be a citizen or resident of the U.S. Since the kid in this case is a citizen, it does not matter in what country the kid lives.

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    Default Re: Child Tax Credit when Child Resides Overseas

    Quote Quoting Taxing Matters
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    My apologies to the OP, you are correct that the CTC may be claimed by the noncustodial parent (NCP) if the custodial parent (CP) provides the Form 8332. I overlooked the



    But I disagree with you on this. Nowhere in IRC 24 does it limit the CTC to kids who lived in the U.S. for six months of the year. Nor does Publication 972 mention any such limitation or exceptions to that limitation for military/state department moves. Where are you getting that from. The kid must be a citizen or resident of the U.S. Since the kid in this case is a citizen, it does not matter in what country the kid lives.
    I am going to have to go find that information again. This was a major issue with our firm and the IRS a few years ago. I believed as you did that if the child was a citizen that the parent could claim the child tax credit. The IRS proved me wrong.

    Military and state department assignments overseas are treated as if the children live in the US.

  7. #7

    Default Re: Child Tax Credit when Child Resides Overseas

    llworking, I would really appreciate it if you could find that information, it would make a big difference to my discussions with my son's father.

    Very grateful to you both for your insight.

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    Default Re: Child Tax Credit when Child Resides Overseas

    Quote Quoting llworking
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    I am going to have to go find that information again. This was a major issue with our firm and the IRS a few years ago. I believed as you did that if the child was a citizen that the parent could claim the child tax credit. The IRS proved me wrong.
    That would be quite a feat for the IRS to do since the Code itself has no such limitation nor are there any Treasury regulations on it. The IRS does not have the authority to modify a statute by regulation anyway. And I'd think if that limitation existed the IRS would have mentioned in it Publication 972, too. But it doesn't. (Not that the publications are always 100% complete or correct, which is why I usually verify things with the Code and regulations rather than just the publications. I should have done so before my first response, obviously.) I'm guessing that you are remembering a fight over some other provision, not the CTC.

  9. #9
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    Default Re: Child Tax Credit when Child Resides Overseas

    Quote Quoting Taxing Matters
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    That would be quite a feat for the IRS to do since the Code itself has no such limitation nor are there any Treasury regulations on it. The IRS does not have the authority to modify a statute by regulation anyway. And I'd think if that limitation existed the IRS would have mentioned in it Publication 972, too. But it doesn't. (Not that the publications are always 100% complete or correct, which is why I usually verify things with the Code and regulations rather than just the publications. I should have done so before my first response, obviously.) I'm guessing that you are remembering a fight over some other provision, not the CTC.
    No, it was definitely the CTC. If I remember correctly the parents in the US were ITIN holders and they were denied the CTC because their US citizen children were not physically residing in the US. They were living abroad with their grandparents.

  10. #10

    Default Re: Child Tax Credit when Child Resides Overseas

    llworking, I think I remember a provision that the children must be living at least half the year with one or both parents? (Irrespective of where)

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