Child tax refund – up to $1,700 per child, every year.
American families living in Israel can get a cash refund for every US-citizen child – even if they owe no US tax. Most families never claim it, or only claim the latest year. We file up to 3 years back as well.
How much you could get – including past years
The refund depends on the number of children, your earned income and how many years you haven’t claimed yet. This is an estimate – the exact amount is set when the returns are prepared.
Estimated total refund:
Estimate only, based on each year’s refundable cap ($1,600 in 2023, $1,700 in 2024 and 2025) and 15% of earned income above $2,500, at about ₪3.1 per dollar.
Who qualifies
The refund is called the Additional Child Tax Credit. It is paid even to families who owe no US tax at all – which is the situation of most American families in Israel. To receive it you need:
- A child under 17 at the end of the tax year, who is a US citizen.
- A Social Security number for the child – issued by the due date of that year’s return. No number, no refund, so it’s worth handling early.
- A Social Security number for the filing parent – from tax year 2025 this is required of the parent too (or of the spouse on a joint return).
- Earned income of at least $2,500 a year. The refund is up to 15% of the income above that, capped at $1,700 per child.
- A return filed the right way. This is the part most self-filers miss – see below.
Why you filed yourself and got nothing
A US return offers two ways to deal with your Israeli income: the foreign earned income exclusion (Form 2555) or a credit for the tax you paid in Israel (Form 1116). Both bring your US tax to zero – but only the second keeps the child refund.
Choosing the exclusion – sometimes the default in do-it-yourself software – quietly gives up thousands of dollars a year. It can be fixed with an amended return, up to 3 years back.
How it works
Free check
A few questions on WhatsApp: how many children, which numbers you have, what you filed before. We tell you roughly what you’re owed and what it costs.
Send documents
Payslips or Form 106, passports and Social Security numbers. A clear checklist – no chasing paperwork.
We prepare and file
Returns for every year, with the foreign tax credit and bank account reporting (FBAR) where needed. You sign, we file.
Refund in your account
The refund comes from the IRS, usually within a few months. We follow up until it arrives.
Pricing
A fixed price, and no percentage of your refund – the whole refund is yours.
| Service | Price |
|---|---|
| Catch-up package3 past years + the current year, including FBAR | ₪4,490 |
| Annual family returnIncludes a free check for refunds from past years | ₪1,390 |
Prices are final. Government fees are paid separately at the official rate. Full price list
Frequently asked questions
How long does it take to get the refund?
A return filed on time is usually processed within a few weeks to a few months. Late and amended returns take longer – often several months. We keep you updated until the money arrives.
I don’t owe US tax. Why file at all?
Because US citizens must file every year wherever they live, and without a return there is no refund. For most families in Israel the return doesn’t cost them anything with the IRS – it brings money in.
How many years back can I claim?
Generally up to 3 years from each year’s filing deadline. Every year you wait, one year closes and its refund is lost.
My child doesn’t have a Social Security number. What now?
We get one – it’s free with the authorities, and we handle it as part of the baby package or as a single service. Note that the number must be issued by each year’s filing deadline, so don’t wait.
My spouse isn’t a US citizen. Does that matter?
You can file separately or jointly, and sometimes that changes the refund. We check which option works out better for you.
Why don’t you charge a percentage of the refund?
IRS rules restrict fees that depend on the size of the refund, and that model encourages inaccurate returns. A fixed price, and the refund is all yours.
Let’s look at your case – free
Bar answers you personally on WhatsApp: what can be done, how long it takes and what it costs.