For an American expat earning approximately $25K – $30K while living in Japan with a single child, is it worth it to file as FTC to earn Child Tax Credit, as opposed to going through FEIE?
According to Turbotax’s estimation calculator, I would receive a rebate of approximately $3,000 – $4,000 per year, mostly thanks to the Child Tax Credit. Until now, I’ve done FEIE because I assumed that Child Tax Credit couldn’t lower my owed amount beyond $0 and therefore become a rebate.
However, I’m not sure if I’m understanding this incorrectly or doing my numbers wrong.
Any insight would be appreciated. Thank you in advance.
2 comments
/r/japanfinance
The rebate if you are living overseas maxes at $1500 per eligible child for 2022. I’ve been filing with the FTC for the past number of years and get a refund based on my children. The filing is more difficult.
https://www.myexpattaxes.com/expat-tax-tips/family-tax-support/us-tax-refunds-for-an-american-family-abroad/