Get the latest updates on the $1,400 per person and $3,600 Child Tax Credit (CTC) payments coming for Americans. The Child Tax Credit is a financial benefit for families with qualifying children in the United States.
Established in 1997, it helps ease the financial burden on households raising children. Read on to learn more about the CTC payment in 2024.
What is the Child Tax Credit?
The Child Tax Credit (CTC) provides financial support to families with dependent children. Initially set at $2,000 per child, with $1,400 being refundable, the CTC saw significant changes in 2021 due to the American Rescue Plan. The credit increased to $3,600 for children under six and $3,000 for children aged six to seventeen, with the entire amount refundable for that year. However, these enhancements reverted in 2022.
Expected Changes in 2024
For the fiscal year 2024/25, adjustments to the CTC are expected to account for inflation under the proposed Tax Relief for American Families and Workers Act of 2024. The maximum refundable amount is set to rise gradually, reaching $1,900 in 2024 and $2,000 in 2025.
Changes in the CTC for 2024
In 2021, the American Rescue Plan significantly increased the CTC. Families received $3,600 for each child under six, and the entire credit could be refunded, meaning households could get money back even if they didn’t owe taxes.
For 2024, the CTC is expected to increase slightly to keep up with inflation. The refundable amount will increase to $1,900 in 2024 and $2,000 in 2025, ensuring families get enough support to cover rising expenses.
America Rescue Plan Eligibility
Here is what you need to know about the direct benefits the American Rescue Plan provides to working households:
- Income Limits: Single individuals must earn less than $75,000, those filing joint taxes must earn up to $150,000, and heads of households should not earn more than $112,500.
- Payments for Children: You can receive up to $1,400 for each child if they qualify for the plan.
- Tax Credits: Individuals without kids can qualify for an income tax credit ranging from $543 to $1,502. Families with children can receive between $2,000 and $3,000 for each child over six and $3,600 for children under six.
Who is Eligible for the $1,400/Person + $3,600 CTC Payment?
To qualify for the CTC, households must meet several requirements:
- Each child must have a valid Social Security Number.
- Children must be under 17 years old before the tax year ends.
- Children must live with the applicant for more than half the year.
- The child must be an American citizen, national, or resident alien.
- The child must not have provided more than half of their own support.
Important Note
Families who missed filing taxes or the signup deadline for monthly payments should file a tax return to claim the full CTC. The CTC does not affect other federal benefits, so eligible families can receive multiple forms of assistance without any cuts.
FAQs
1. What is the Child Tax Credit (CTC)?
The CTC is a financial benefit for families with dependent children to help ease the financial burden of raising kids.
2. How much is the CTC for 2024?
For 2024, the CTC is expected to be $3,600 for children under six and $3,000 for children aged six to seventeen.
3. Who is eligible for the CTC?
To qualify, each child must have a valid Social Security Number, be under 17 years old, and live with the applicant for more than half the year. The child must also be an American citizen, national, or resident alien.
4. How do I claim the CTC?
You can claim the CTC by filing a federal tax return using Form 1040 and attaching Schedule 8812. Households who filed taxes for 2019 or 2020 or received stimulus checks will automatically receive the CTC payments.
