Expat Tax Online Explains IRS Announcement: Child Tax Credit Lost When Child Turns 17

/EIN News/ -- AUSTIN, Texas, Jan. 21, 2025 (GLOBE NEWSWIRE) -- Expat Tax Online, a leading provider of tax services for U.S. expatriates, is highlighting recent changes to the Child Tax Credit (CTC) announced by the IRS. Families who have a child with an 1992 birthdate will want to be informed that such a child will no longer qualify for the CTC based on the new rules.

The IRS also explained that children must still be below the age of 17 as of the end of the tax year to continue to qualify for this benefit. For most families, it is an important change in their economic planning and their filed tax return. Expat Tax Online highlights the relevance of knowing how such changes may affect domestic and expatriate taxpayers.

Understanding the Child Tax Credit Basics

The Child Tax Credit is a vital provision aimed at reducing the tax burden for families. It allows parents to claim up to $2,000 per qualifying child under 17, with phaseouts beginning at $200,000 for single filers and $400,000 for married couples filing jointly. Once a child turns 17, however, they are no longer eligible, though they may still qualify as dependents for other credits or deductions.

Impact of Losing the Credit at Age 17

When a taxpayer's child is 17 and no longer eligible for the CTC, Expat Tax Online urges taxpayers to consider other credits, such as the Other Dependents Credit, or educational tax credits," notes the writer. Understanding why you lose your child's tax credit at age 17 can help families explore alternatives. There can be comfort in many families' options, especially if their child starts picking up wages and paying something towards the household.

Special Considerations for Expatriates

For U.S. citizens residing abroad, the application for the Child Tax Credit may be more involved. Expat taxpayers may encounter special problems, including foreign income exclusions and difference in tax conventions. Expat Tax Online is expert on dealing with these complex situations and guarantees compliance and optimization of benefits.

“Our team understands the complexities of filing taxes as an expat," said a spokesperson for Expat Tax Online. "Due to this latest IRS update, it is also more important than ever to think through plans in advance, especially for families with teenagers. We invite expats to contact us and explore tools like the Child Tax Credit Calculator so that they can manage these transitions successfully.

Tools to Simplify Tax Planning

Expat Tax Online advises parents to prepare for potential changes in Child Tax Credit eligibility (use of the Child Tax Credit Calculator, for example) by using the functionalities offered. These tools allow families to:

1. Estimate their creditworthiness from income and family size.
2. Prerationalize financial changes as children exit the credit.
3. Identify other potential tax benefits that may apply.
   

Impact of Losing the Credit

Although, the withdrawal of the Child Tax Credit can appear drastic, families must also note that there may still be other tax credits that are available. Such as, a lot of 17-year-olds start generating wage, which may offset the financial needs of the families.

Tax laws are also subject to change. Expat Tax Online recommends that families be kept informed about possible changes to credits and deductions laws.

Special Considerations for Expatriates

For U.S. expatriates, claiming the (Child Tax Credit) may be less straightforward. Things such as foreign-paid income, the Foreign Earned Income Exclusion, and tax agreements may impact eligibility.

Expat Tax Online specializes in helping expatriates understand how U.S. tax laws apply to their unique situations. The company offers the tools and expert knowledge needed to achieve compliance and to capture as many applicable tax benefits as that is possible, including the Child Tax Credit.

Conclusion

To do a good job of financial planning, it is important to understand the Child Tax Credit ends at age 17. Families can also make provision for this move with the assistance of online calculators, such as the Child Tax Credit Calculator, and advice from Expat Tax Online.

Although a loss of the credit may seem like it is a disadvantage it can be seen as an opportunity to seek a different credit and benefit as the children get older. Keeping up to date with the tax law changes and seeking advice from professionals provides families with tax planning opportunities.

Contact Expat Tax Online for Assistance

Expat Tax Online, with its expert support for US citizens tax issues in and out of the US, provides the right guidance for individual situations.

Media Contact;
Contect Person: Andrew Landin
Company Name: Expat Tax Online
Email: hello@expattaxonline.com
Phone: +1 (737) 204 3982
Website: https://www.expattaxonline.com/

Disclaimer: This content is provided by the Expat Tax Online. The statements, views, and opinions expressed in this column are solely those of the content provider. The information shared in this press release is not a solicitation for investment, nor is it intended as investment, financial, or trading advice. It is strongly recommended that you conduct thorough research and consult with a professional financial advisor before making any investment or trading decisions. Please conduct your own research and invest at your own risk.