Families are looking forward to the possible increase of the Child Tax Credit (CTC) in 2024. Since 2021, when important changes were made that helped millions of families with money, talks about extending the CTC have gotten more heated.
This piece goes over the main points of the Child Tax Credit 2024 Update, including who is eligible, how much they may get, and what the eligibility criteria are. It also talks about how much families may get if the Child Tax Credit Expansion 2024 bill becomes law.
New on The Child Tax Credit for 2024
The Child Tax Credit (CTC) is a tax benefit run by the U.S. government that helps qualified families with qualifying dependent children by lowering their tax bills or giving them more money back in the form of tax refunds.
The credit amount changes based on how much money the family makes and how many children apply. The American Rescue Plan Act increased the CTC in 2021, making it available to more families, raising the maximum credit amount, and making the credit fully refundable.
This increase was significant because it helped millions of families, especially those with low incomes, and it also improved the health and well-being of children by reducing child poverty.
More changes are planned for the CTC in 2024, making it easier for more families to use it. By raising the credit amount and making it available to more kids, these changes are meant to help kids get out of poverty.
The House of Representatives has already passed the Tax Relief for American Families and Workers Act of 2024. It now goes to the Senate to be considered. If passed, the planned changes to the Child Tax Credit will happen.
Highlights of the Child Tax Credit Expansion 2024
| Name | Child Tax Credit expansion |
| Country of Origin | USA |
| State | All States |
| Regulating Body | IRS |
| Year | 2024 |
| Category | Financial Aid |
| Objective | Mitigate the burden of childbearing |
| Applicable persons | Households with children. |
| Age Limit | Up to 17 years. |
| Expected Payment Amount | $2000(Onetime payment)$300 per month for children under 6. (monthly)$250 per month for children aged 6 to 17. (monthly) |
| Payment Mode | Online (Direct Deposit) |
| Payment Duration | Every month |
| New Payment Starting Month | First business day of every month |
| Payment dates in May | 1st May |
| Website | Child Tax Credit | Internal Revenue Service (irs.gov) |
Who Can Get the Child Tax Credit in 2024?
For the Child Tax Credit to grow in 2024, you and your child may need to meet several requirements, such as:
Citizenship: Either you or your child must be a citizen or permanent resident of the United States.
Age of the Child: The child must be younger than 17 years old by the end of the tax year, which is December 31, 2023.
Relationship: You can claim the child if they are your blood child, stepchild, foster child, adopted child, sibling, half-sibling, or a descendant of any of these people, like a grandchild, niece, or nephew.
Identification Number: Both the child and both sets of parents must have a legal ID number.
Residence: The child must have stayed with you for more than half the year, though there are some exceptions.
Help with Money: You must have paid for more than half of your child’s expenses during the year you want to claim the tax refund.
Dependency: The child must be used as a dependent on your tax return.
Income: Depending on how you filed, your Modified Adjusted Gross Income (MAGI) must be less than certain amounts:
Under $400,000 if you are married and file jointly.
Single or head of household: less than $200,000You must also make at least $2,500 a year to be eligible for the refunded part of the credit. For the tax years 2024 and 2025, people can meet this minimum standard with earned income from either the current year or the previous year.
How Much the Child Tax Credit Will Pay in 2024
If you file your taxes in 2025, you will get an extra $2,000 for each qualified child under 17 years old in 2024 (to be paid in 2024). The same goes for 2023 (to be paid in 2023).
The largest credit will stay at $2,000 if the Child Tax Credit increase does not pass. There will be no monthly payments. Instead, when you file your taxes in 2025, you will get the full credit.
The credit amount may go up if it’s accepted, but more information is still needed. Benefits of up to $4,000 could be given to families with two children. Like they did in 2021, the IRS might again give out the credit in monthly installments.
Chances of Approval for Child Tax Credit Expansion in 2024
The bill to expand the Child Tax Credit was passed by the House of Representatives. You have until April 15, 2024, to send in your application for this government benefit. But the Senate’s final approval is still needed, and there is still no set date for a Senate vote.
There are some big changes in the suggested bill. For example, taxpayers can now use income from either this year or next year to figure out how much of an increase they can get in the Child Tax Credit. These changes will be made during the 2024 tax year, which starts in April 2024.
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Child Tax Credit 2024 Claim and the Most Up-to-Date Status Check
To get the 2024 Child Tax Credit increase, you must first check the Child Tax Credit 2024 Update to see if you meet the requirements. Then, you must file a federal tax return, like Form 1040, and include Schedule 8812 (Credits for Qualifying Children and Other Dependents) with your return. It will help you figure out how much credit you get and how much of a partial return you might be able to get.
Go to the IRS website and click on “Where’s my refund?” to find out what’s going on. You will need to enter your Social Security number and pick the right tax year from the list.