Families eagerly await the potential Child Tax Credit (CTC) expansion in 2024. Following impactful changes introduced in 2021 which provided crucial financial support to millions of families, discussions about extending the CTC have intensified. In this article, we delve into Child Tax Credit 2024 Update overview, eligibility criteria, and the expected amount eligible families may receive if the Child Tax Credit expansion 2024 bill becomes law.
Child Tax Credit 2024 Update
CTC is a tax benefit administered by the U.S. government, provides financial assistance to eligible families with qualifying dependent children to lessen the financial burden of child-rearing by either reducing tax liability or increasing tax refunds. The credit amount varies based on household income and the number of qualifying children. In 2021, the American Rescue Plan Act expanded the CTC, raising the maximum credit amount, broadening eligibility to include more families, and rendering the credit fully refundable. This expansion proved crucial in supporting millions of families, particularly those with lower incomes, and contributed to the well-being of children by alleviating child poverty.
In 2024, there is a proposed further expansion of the CTC, to make it more accessible to larger number of families. These changes intend to lift children out of poverty by increasing the credit amount and expanding eligibility. The Tax Relief for American Families and Workers Act of 2024 has already received approval from the House of Representatives and now awaits consideration by the Senate. If passed, it will implement the proposed Child Tax Credit expansion.
Child Tax Credit Expansion 2024 Highlights
| 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) |
Child Tax Credit 2024 Eligibility Qualifications
To qualify for the Child Tax Credit expansion in 2024, you and your child may have to meet several criteria such as:
- Citizenship: You and your child must be a U.S. citizen or resident alien
- Child’s Age: The child should be under 17 years old end of the tax year i.e., on December 31st, 2023.
- Relationship: You can claim the child if they are your biological child, stepchild, foster child, adopted child, sibling, half-sibling, or a descendant of any of these (such as a grandchild, niece, or nephew).
- Social Security Number: The child and the parents must have a valid Social Security number.
- Residency:The child must have lived with you for more than half the year, with exceptions for special circumstances.
- Financial Support: You must have provided over half of the child’s financial support during the financial year for which you will claim tax credit.
- Dependency: You must be claiming the child as a dependent on your tax return.
- Income: Your Modified Adjusted Gross Income (MAGI) must fall below specific thresholds based on your filing status:
- Married Filing Jointly: Under $400,000
- Single/Head of Household: Under $200,000
Additionally, to qualify for the refundable portion of the credit, you need to earn at least $2,500 in income. Notably, for tax years 2024 and 2025, tax filers can use their earned income from either the current or prior year to meet this minimum requirement.
Child Tax Credit 2024 payment Amount
The proposed payment amount for the Child Tax Credit expansion in 2024 (to be filed in 2025) and 2023 (to be filed in 2024) is $2,000 per qualifying child under the age of 17 as of December 31st, 2023.
If the Child Tax Credit expansion does not pass, the maximum credit will remain at $2,000, with no monthly payments. Instead, you would receive the entire credit when filing your tax return in 2025.
If it is approved, then the credit amount may increase, although specific details are still being awaited. Families with two children could be entitled to a total of $4,000 in benefits. The IRS might once again distribute the credit in monthly instalments, like the approach used in 2021.
Chances of Child Tax Credit 2024 expansion Approval
The Child Tax Credit expansion bill has successfully passed the House of Representatives. To avail of this federal benefit, you must submit your application before April 15, 2024. However, the Senate’s final approval is still pending, and the specific date for a Senate vote remains unscheduled. The proposed bill introduces significant adjustments like taxpayers can now utilize income from either the current or coming year to calculate the Child Tax Credit expansion. These modifications are set to take effect during the 2024 tax year, commencing in April 2024.
Child Tax Credit 2024 Claim & Latest Status Check
To claim the Child Tax Credit expansion for 2024 tax year, then check the Child Tax Credit 2024 Update , eligibility criteria, file a federal tax return, such as Form 1040, attach Schedule 8812 (Credits for Qualifying Children and Other Dependents) to your tax return.It will help in figuring out credit amount and how much of the partial refund you may be able to claim if applicable.
To check the status, go to the IRS website and select “Where’s my refund”. Enter your Social Security number and choose the appropriate tax year from the list of choices.
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