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Child Tax Credit 2024: Eligibility and CTC Expansion Possibilities

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The Child Tax Credit (CTC) is a tax relief program for families with eligible children. Even if you don’t usually file a tax return, you might still be able to claim the credit. The CTC is a federal aid that financially assists taxpayers with kids. This year, there were hopes to expand the credit for the 2024 tax season, but it didn’t happen.

Despite failed attempts to expand it for 2024, hopes are high for its potential increase. After the significant changes in 2021 that helped many families, talks about extending the CTC are gaining momentum. This article will give a brief update on changes to the CTC in 2024, who might be eligible, and the potential benefits for qualifying families if the 2024 CTC expansion bill is passed.

CTC Stimulus Monthly Payments 2024: When will $300 Payout Start?

Latest Update Child Tax Credit 2024:

The Child Tax Credit (CTC) is a U.S. government program that helps families with dependent children by reducing their taxes or increasing their refunds. The amount of credit depends on the family’s income and the number of children.

In 2021, the CTC was expanded under the American Rescue Plan Act, increasing the maximum credit and making more families eligible. This expansion was a big help to many families, especially those with lower incomes, and helped reduce child poverty.

child tax credit 2024

Now, there’s a proposal to expand the CTC even more in 2024 to help even more families. The proposed changes aim to further reduce child poverty by increasing the credit amount and making more families eligible.

The Tax Relief for American Families and Workers Act of 2024, which includes these changes, has been approved by the House of Representatives and is now waiting for the Senate’s approval. If passed, it will implement the proposed CTC expansion.

Child Tax Credit Expansion 2024 Details:

NameChild Tax Credit Expansion
Applicable StatesAll
TypeFinancial Aid
GoalEase child-rearing costs
Who Can ApplyFamilies with kids
Age Limit for KidsUp to 17 years
Expected Amount$2000 (one-time), $300/month (kids under 6), $250/month (kids 6-17)
Payment MethodOnline (Direct Deposit)
Payment FrequencyMonthly
Start MonthFirst business day of each month
June Payment DateJune 2024
WebsiteChild Tax Credit at

Child Tax Credit 2024 Eligibility:

CitizenshipYou and your child must be U.S. citizens or resident aliens.
Child’s AgeThe child should be under 17 years old by the end of the tax year (December 31, 2023).
RelationshipThe child can be your biological, step, foster, adopted child, sibling, half-sibling, or a descendant of any of these (like a grandchild, niece, or nephew).
Social Security NumberBoth you and your child need a valid Social Security number.
ResidencyThe child should have lived with you for more than half the year, with some exceptions.
Financial SupportYou should have provided over half of the child’s financial support during the year.
DependencyYou should be claiming the child as a dependent on your tax return.
IncomeYour Modified Adjusted Gross Income (MAGI) should be under $400,000 for joint filers and under $200,000 for single/head of household filers.
Minimum Income for Refundable CreditYou need to earn at least $2,500 in income to qualify for the refundable portion of the credit. For tax years 2024 and 2025, you can use your income from either the current or prior year to meet this requirement.

Maximum Payment Amount for Child Tax Credit 2024:

The proposed Child Tax Credit for 2024 and 2023 is $2,000 per child under 17 as of December 31, 2023. If the expansion doesn’t pass, the credit will stay at $2,000, paid in full when you file your 2025 tax return.

If the expansion is approved, the credit might increase, but we’re still waiting for the details. Families with two kids could get up to $4,000. The IRS may again pay the credit in monthly installments, like they did in 2021.

Probability of Approval for Child Tax Credit Expansion in 2024?

The Child Tax Credit expansion bill has cleared the House of Representatives. To get this benefit, apply before April 15, 2024. The Senate’s approval is still awaited and the vote date is not yet fixed. The new bill allows taxpayers to use income from this year or next for the Child Tax Credit calculation. These changes will start from the 2024 tax year, beginning in April 2024.

How to Claim Child Tax Credit CTC 2024?

  1. To apply for the expanded Child Tax Credit for 2024, first check the latest updates and eligibility requirements.
  2. File a federal tax return using Form 1040.
  3. Attach Schedule 8812 to your tax return. This helps calculate your credit amount and any potential partial refund.
  4. To check the status of your claim, visit the IRS website.
  5. Click on “Where’s my refund”, enter your Social Security number, and select the correct tax year.

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