Don’t miss out on these tax credits if you live overseas – WBNews

Americans families residing in a foreign country can take advantage of some tax planning gems this season. Just like those living stateside, citizens abroad need to file by April 18. They get an automatic extension to June 15, but any taxes due must be paid by the April date. While living overseas comes with extra requirements — namely, reporting your foreign accounts to the Internal Revenue Service — accountants point out that there are also opportunities for filers. “The availability of the child tax credit is a surprise to many taxpayers who live abroad and have kids,” said Joshua Ashman, a certified public accountant at Expat Tax Professionals in New York. “Many people are surprised that they’re eligible for a refundable tax credit.” Just as in the United States, parents are eligible for the child tax credit. Be aware that similar rules apply: You must support your child, and he or she must live at home with you. The planning quirk for American parents abroad is that they have to make a choice. They can opt for the child tax credit, which reduces tax liability dollar for dollar, as well as the additional child tax credit if the filer gets less than the full $1,000 per kid as part of the child tax credit. Alternatively, taxpayers can take the foreign earned income exclusion, which permits expats to exclude some of the income they’ve earned abroad. For the 2016 tax year, you can exclude a maximum of $101,300. You cannot have…more detail