Yes, you may still be eligible to claim the Child Tax Credit (CTC) even if you owe zero taxes to the IRS. The Child Tax Credit is partially refundable, meaning that if the credit brings your tax liability below zero, you may be eligible for a refund, known as the Additional Child Tax Credit.
What Is the Child Tax Credit?
The Child Tax Credit lets parents deduct a certain amount from their US tax bill for every qualifying child they have—typically $2,000 per child. For example, if a couple has two children who qualify for the Child Tax Credit, they could reduce their US tax obligation by $4,000.
The Child Tax Credit is partially refundable, as well. Even if you don’t owe taxes, for 2023, you can receive up to $1,600 per child as a tax refund. That means that if a couple owes no US taxes and has two children who qualify for the Child Tax Credit, they would be eligible for a tax refund of $3,200.
How do you know if your child qualifies? In most cases, they must:
- Be a US citizen
- Have a valid Social Security number before the end of the tax year
- Be 16 years or younger at the end of the tax year in question
- Live with the parent claiming the credit for at least half of that year
Learn more about the Child Tax Credit here: The Child Tax Credit for Expats: Are You Eligible?
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