US Child Tax Credit in Switzerland: Don't Lose the $1,700 Refund

The US taxes citizens on worldwide income, but family tax credits still follow you to Switzerland. The Child Tax Credit is worth up to $2,200 per qualifying child under age 17 for 2025 and 2026, and up to $1,700 of that amount can be refundable through the Additional Child Tax Credit. The catch expat parents miss: if you file the Foreign Earned Income Exclusion, the refundable piece often disappears. For a closer look at the mechanics, our FEIE vs Foreign Tax Credit guide walks through the decision.

The four family credits you may qualify for

• Child Tax Credit: up to $2,200 per qualifying child under 17 at the end of the tax year, with phaseout beginning at $200,000 of AGI for single/head of household and $400,000 for married filing jointly (a 5% phaseout, roughly $50 lost per $1,000 of income over the threshold).
• Additional Child Tax Credit: the refundable portion of the CTC—up to $1,700 per child—calculated as 15% of earned income above a $2,500 floor; you need at least $2,500 of earned income to qualify at all.
• Credit for Other Dependents: up to $500 per dependent who does not qualify for the CTC, including children ages 17–18 and full-time college students ages 19–23.
• Child and Dependent Care Credit: non-refundable; for 2026 it covers 20% to 50% of up to $3,000 in care expenses for one qualifying person or $6,000 for two or more, subject to earned-income rules.

You claim the CTC, ACTC and Credit for Other Dependents on Form 8812; the Child and Dependent Care Credit goes on Form 2441. The rules sound straightforward until the FEIE enters the picture.

The FEIE trap: how $1,700 per child can silently disappear

Here's the problem. Form 2555 excludes foreign earned income from US taxable income. But the Additional Child Tax Credit is calculated as 15% of your earned income above a $2,500 floor. Excluded income is not treated as earned income for this purpose, so if you exclude enough income, your refundable ACTC drops to zero. In Switzerland's high-tax environment, the Foreign Tax Credit often offsets your US tax anyway—meaning many parents who default to the FEIE give up $1,700 per child without gaining anything. This is fact-specific, not a blanket rule; the right choice depends on your exact income mix, Swiss tax paid, and filing status.

SSN rule for kids born abroad

For 2025 and later, both the qualifying child and at least one parent must have a valid Social Security Number to claim the Child Tax Credit—an ITIN alone no longer works. If your child was born in Switzerland, the route to an SSN is the Consular Report of Birth Abroad (CRBA) at the US Embassy or consulate. Do this early; the document also establishes US citizenship and unlocks more than just the Child Tax Credit. Our guide to Having a Baby in Switzerland: US Citizenship, Taxes & Allowances covers the CRBA, Swiss family allowances, and what to register on both sides.

Credit for Other Dependents and Child and Dependent Care Credit

The Credit for Other Dependents is easy to overlook. It's worth up to $500 per dependent who does not qualify for the Child Tax Credit—including a 17- or 18-year-old and full-time college students ages 19 through 23. If you're already thinking about education costs, our look at 529 College Savings Plans for US Expats in Switzerland: Do They Still Make Sense? explains whether those accounts still make sense.

The Child and Dependent Care Credit is non-refundable. For 2026, it covers 20% to 50% of qualified work-related care expenses, up to $3,000 for one qualifying person or $6,000 for two or more. The child generally must be under 13. A critical expat nuance: both spouses must have earned income—a stay-at-home spouse with no earned income blocks the credit unless they are a full-time student or cannot care for themselves. Because it's non-refundable, if the FEIE reduces your US tax to zero, this credit becomes worthless. That's another reason the FEIE-vs-FTC calculation matters for families.

How to claim and how Swiss family allowances fit

File Form 8812 with your 1040 for the CTC, ACTC and Credit for Other Dependents; use Form 2441 for the care credit. On the Swiss side, family allowances (Kinderzulagen or allocations familiales) are paid separately through your employer or the AHV system and run in parallel with US credits—they don't reduce your US family credits. You don't have to choose one system or the other.