2024 Child Tax Credit: Amount and Expected Timing

The Child Tax Credit (CTC) offers tax relief for families with children, allowing eligible filers to claim up to $2,000 per qualifying dependent, with $1,600 potentially eligible for a refund.

2024 Child Tax Credit: Families with children continue to benefit substantially from the Child Tax Credit (CTC), despite unsuccessful recent attempts to extend it for the 2024 tax filing season. Consequently, the credit remained unaltered, permitting eligible filers to submit claims for a maximum of $2,000 per qualifying dependent, of which $1,600 may be eligible for a refund.

The CTC is a nonrefundable tax credit that is specifically engineered to diminish tax liabilities by the amount of the credit, potentially nullifying tax obligations entirely. Nonetheless, certain taxpayers may qualify for an additional child tax credit or partial refund.

Taxpayers and their children must satisfy particular eligibility requirements that are contingent upon the child’s age and their relationship to the filer to be eligible for the CTC. Furthermore, income-based restrictions are in effect, as the credit becomes ineligible for individuals with higher incomes.

For the 2023 tax year, individuals with a modified adjusted gross income (MAGI) of less than $400,000 (married filing jointly) or $200,000 (all other filers) were eligible to receive the credit worth $2,000 per qualifying dependent.

The CTC per qualifying child will remain at $2,000 for the 2024 tax year (returns due in 2025), with a potential refund of $1,700 via the Additional Child Tax Credit.

Child Tax Credit 2024: Estimated Arrival of Tax Refund

Understanding the Child Tax Credit: Who is eligible for this tax benefit?

To be eligible to claim the Child Tax Credit (CTC) on their annual tax returns, taxpayers must satisfy seven essential criteria: the child’s age, relationship status, dependent status, residency, financial support, citizenship, and income.

Age: At the end of the tax year, your child must have been under the age of 17.

Relationship: The child in question must be one of the following: your son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepsister, or a descendant of any of the aforementioned individuals (e.g., your granddaughter or nephew).

Dependent status: The child must be properly claimed as your dependent. Additionally, the child is not permitted to contribute to the joint tax return unless it is to request a refund of income taxes withheld or estimated to be paid.

Residency: You must have lived with the child you’re claiming for at least half of the year (there are some exceptions to this rule).

Financial support: You must have contributed at least 50% of the child’s financial support over the previous year. Put simply, if your eligible child has maintained self-sufficiency for a period exceeding six months, they are probably not eligible.

Citizenship: Along with possessing a valid Social Security number, your child must be a “U.S. citizen, U.S. national, or U.S. resident alien,” per the IRS.

Income: Additionally, parents or caregivers claiming the credit are generally prohibited from exceeding certain income thresholds. The degree to which your income surpasses that threshold determines how gradually the credit is diminished until it is eliminated.

How do I claim the Child Tax Credit?

Claims on federal tax returns (Form 1040 or 1040-SR) are typically due by April 15; however, extensions are available until October 15. Schedule 8812 (“Credits for Qualifying Children and Other Dependents”) facilitates determining the CTC amount and potential refund.

Tax software and the IRS’s Free File program, which guide filers through the required forms and steps, streamline the claiming process. The purpose of these resources is to facilitate eligible families’ access to the CTC by providing financial assistance during tax season.

When can the 2024 Child Tax Credit be Expected?

By October 30, 2024, the Child Tax Credit payment, which features increased credit limits, complete refundability, and expanded eligibility, is expected to be credited.

In the event of non-remittance, funds will be deposited directly into bank accounts. The issuance date for monthly payments is the fifteenth of every month. Contact the authorities only after three business days since the payment was not received.

Tax Refund Deposits: How Long After Approval to Expect Money in Bank Accounts

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