During 2020 we were stateside for more than 6 months. Between child tax credit x 4 + Earned income tax credit Our federal return was around $8k. Ot would be nice to have a video that had suggestions on how to plan trips back stateside. Dates/ benefits/things to look out for
I'm married to a non-US citizen and file as 'married filing separately'. My spouse's income does not feature on my taxes. Does that mean I can not claim refundable child tax credits for my kids?
No. You can still claim child tax credits if you file Married Filing Separately. The Child and Dependent Care credit is a separate (non-refundable) tax credit that generally cannot be claimed if filing separately.
Expat living in Thailand. 4 kids. Married filing joint, both American. Can I claim childcare or preschool costs? We have a nanny we pay cash for. No documentation required here.
As a US citizen living abroad, you may be eligible to claim the Child and Dependent Care Credit on your US tax return for qualifying childcare expenses you paid for your children. However, there are certain eligibility criteria that you must meet, including: 1, You must have earned income: To claim the credit, you (and your spouse, if filing jointly) must have earned income from wages, salaries, or self-employment. If you do not have earned income, you are not eligible for the credit. 2, You must have qualifying childcare expenses: The expenses you paid must be for the care of your qualifying child (under age 13) or a dependent who is physically or mentally unable to care for themselves. Qualifying expenses include payments made to a daycare center, nursery school, or nanny. 3, You must meet certain residency requirements: You and your qualifying child must have lived together for more than half of the year, and your child must have a valid Social Security number. Regarding your question about claiming childcare expenses for your children in Thailand, it's important to note that you will need to have documentation to support the expenses you are claiming on your tax return. This can include receipts, invoices, and other records that show the dates and amounts of the payments you made. If you are paying for childcare in cash without any documentation, it may be difficult to claim the expenses on your tax return. In addition, you should be aware that US citizens living abroad may also be subject to taxes in their country of residence, so you may want to consult with a tax professional to ensure you are meeting all of your tax obligations. 😉
@@MyExpatTaxes Thank you for the exhaustive answer. One of my first concerns in this regard (claiming childcare abroad) was when trying to enter childcare information into a big box tax website (TT) and it was requiring me to include contact and location or tax information on the child care provider. I did find a work around where they (TT) recommend people in this situation to type “LAFCP” in the information regarding the child’s care. I think it stands for Living Abroad Foreign Childcare Provider.
I am so confused. I tried to do my taxes with the child refund (I think), because I thought it would be better that the exemption. But we owe $400 dollars? We only made $19k a year freelancing online, the money was payed from the US. We lived all year overseas. We got $12k reinvested in dividends and have 2 American kids, my husband and I are Americans. We don't own anything in the US. Why do we owe taxes??
Hi Nelly, obviously we don't know your full circumstances but the first thing to check is to see if you used the FEIE (Form 2555). If you did, you will no longer qualify for the refundable child tax credit. The alternative is to use the Foreign Tax Credit. With the FTC you can still get refunds from the child tax credit. Secondly, if your income qualifies as self-employment income, you could still have to pay self-employment taxes to the US. This one is hard to get around. If you havn't already, I would highly suggest going through MyExpatTaxes software. It's designed to recognize the most optimized way for you to file. Plus our experts are available to help answer questions via chat. Start for free and pay when you are ready to file. www.MyExpatTaxes.com
@@MyExpatTaxes ni, we didn't use the form 2555. And yes, we quality as self employed. Could we use form 2555 if we are self-employed? I will check your software right now
@@MyExpatTaxes so I am using your software, and I am in the same place than H&R block. We owe $400. Question is, I can't find form 2555 in your software, because I would like to use that and not pay taxes. Where is it in your software? Thank you
@@lovitac When you're done entering your information, we calculate the best approach for your specific situation. So form 2555 will be automatically added to your package if the Foreign Earned Income Exclusion ist the best approach for you! If you have more specific questions, I highly recommend reaching out to our support team at team@myexpattaxes.com!
During 2020 we were stateside for more than 6 months.
Between child tax credit x 4 + Earned income tax credit
Our federal return was around $8k.
Ot would be nice to have a video that had suggestions on how to plan trips back stateside. Dates/ benefits/things to look out for
This is a great suggestion! This will be taken into consideration for our future content. 😉
@@MyExpatTaxes Great! Please do, and post before our next trip back. Haha. Jk
I'm married to a non-US citizen and file as 'married filing separately'. My spouse's income does not feature on my taxes. Does that mean I can not claim refundable child tax credits for my kids?
No. You can still claim child tax credits if you file Married Filing Separately. The Child and Dependent Care credit is a separate (non-refundable) tax credit that generally cannot be claimed if filing separately.
Hi Nathalie, can you provide information on filing Portugal taxes? I have a specific question. Thanks JP
Hey there Jp, We can only give US tax advice, Let me know if there's something we can help you with this. 😉
Expat living in Thailand.
4 kids.
Married filing joint, both American.
Can I claim childcare or preschool costs? We have a nanny we pay cash for. No documentation required here.
As a US citizen living abroad, you may be eligible to claim the Child and Dependent Care Credit on your US tax return for qualifying childcare expenses you paid for your children. However, there are certain eligibility criteria that you must meet, including:
1, You must have earned income: To claim the credit, you (and your spouse, if filing jointly) must have earned income from wages, salaries, or self-employment. If you do not have earned income, you are not eligible for the credit.
2, You must have qualifying childcare expenses: The expenses you paid must be for the care of your qualifying child (under age 13) or a dependent who is physically or mentally unable to care for themselves. Qualifying expenses include payments made to a daycare center, nursery school, or nanny.
3, You must meet certain residency requirements: You and your qualifying child must have lived together for more than half of the year, and your child must have a valid Social Security number.
Regarding your question about claiming childcare expenses for your children in Thailand, it's important to note that you will need to have documentation to support the expenses you are claiming on your tax return. This can include receipts, invoices, and other records that show the dates and amounts of the payments you made. If you are paying for childcare in cash without any documentation, it may be difficult to claim the expenses on your tax return.
In addition, you should be aware that US citizens living abroad may also be subject to taxes in their country of residence, so you may want to consult with a tax professional to ensure you are meeting all of your tax obligations. 😉
@@MyExpatTaxes
Thank you for the exhaustive answer.
One of my first concerns in this regard (claiming childcare abroad) was when trying to enter childcare information into a big box tax website (TT) and it was requiring me to include contact and location or tax information on the child care provider.
I did find a work around where they (TT) recommend people in this situation to type “LAFCP” in the information regarding the child’s care.
I think it stands for Living Abroad Foreign Childcare Provider.
I am so confused. I tried to do my taxes with the child refund (I think), because I thought it would be better that the exemption. But we owe $400 dollars?
We only made $19k a year freelancing online, the money was payed from the US. We lived all year overseas. We got $12k reinvested in dividends and have 2 American kids, my husband and I are Americans. We don't own anything in the US. Why do we owe taxes??
Hi Nelly, obviously we don't know your full circumstances but the first thing to check is to see if you used the FEIE (Form 2555). If you did, you will no longer qualify for the refundable child tax credit. The alternative is to use the Foreign Tax Credit. With the FTC you can still get refunds from the child tax credit.
Secondly, if your income qualifies as self-employment income, you could still have to pay self-employment taxes to the US. This one is hard to get around.
If you havn't already, I would highly suggest going through MyExpatTaxes software. It's designed to recognize the most optimized way for you to file. Plus our experts are available to help answer questions via chat. Start for free and pay when you are ready to file. www.MyExpatTaxes.com
@@MyExpatTaxes ni, we didn't use the form 2555. And yes, we quality as self employed. Could we use form 2555 if we are self-employed?
I will check your software right now
@@MyExpatTaxes so I am using your software, and I am in the same place than H&R block. We owe $400. Question is, I can't find form 2555 in your software, because I would like to use that and not pay taxes.
Where is it in your software?
Thank you
@@lovitac When you're done entering your information, we calculate the best approach for your specific situation. So form 2555 will be automatically added to your package if the Foreign Earned Income Exclusion ist the best approach for you! If you have more specific questions, I highly recommend reaching out to our support team at team@myexpattaxes.com!
@@MyExpatTaxes thank you! I will