The Child Tax Credit system is complicated enough when you're earning at home in the States, it takes on another level of complexity when you choose to live and work abroad.
Let’s admit it, having children is expensive. A number of expenses, such as education and child care, need to be added to the budget, not to mention the increase in clothing, food and leisure costs.
The Internal Revenue Service (IRS) actually recognizes this struggle and allows various exemptions, deductions and credits to taxpayers who have children. The most common benefit is an exemption of $4,000 (for 2015) (indexed for inflation) for each of your child that qualifies as a dependent per the IRS rules. Other benefits include deductions for medical expenses and student loan interests and credits for child care and education expenses.