As of now, there are no official announcements regarding the revised Child Tax Credit amount for 2024. However, based on research and findings, it is clear that the Child Tax Credit (CTC) 2024 serves as a federal tax incentive to provide financial assistance to taxpayers raising children.
Despite discussions about expanding it before the 2024 filing season, lawmakers could not make the changes in time, leaving the tax break unchanged as many rushed to file their returns before the April 15, 2023 deadline. Before claiming these benefits, check the Child Tax Credit Eligibility 2024.
The Child Tax Credit 2024 is a federal tax that offers economic assistance to taxpayers with children. Lawmakers intended to enhance it before the 2024 filing session but were unable to do so. Thus, the tax benefit remained unchanged as several individuals filed their tax returns before the April cutoff. Taxpayers with children under 17 can receive up to $2,000 per qualifying dependent, with a refundable amount of $1,600 provided by the federal government.
Eligibility
To receive the child tax credit, applicants must meet several eligibility requirements. These include:
- Age: The child must be under 17 years old by the end of the tax year.
- Relationship: The child must be your son, daughter, stepchild, brother, sister, step-sibling, or a descendant of any of these, such as a grandchild, niece, or nephew.
- Dependent Status: You must be eligible to claim the child as a dependent.
- Residency: The child must have lived with you for more than half the year.
- Financial Support: You must have provided at least 50% of the child’s financial support in the previous year.
- Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien with a valid Social Security number.
- Income: Your modified adjusted gross income (MAGI) must not exceed certain thresholds: $400,000 for married couples filing jointly or $200,000 for single taxpayers.
Amounts
For 2024, the Child Tax Credit remains at $2,000 per qualifying child, with a potential refundable amount of up to $1,600. If your MAGI exceeds the income limits, the credit decreases by $50 for every $1,000 over the limit. Here’s a summary of the amounts:
| Child Tax Credit Amounts 2024 |
|---|
| Base Amount |
| Refundable Amount |
| Income Thresholds |
Legislative Updates
The Tax Relief for American Families and Workers Act of 2024 aims to modify the CTC. It was approved by the U.S. House of Representatives but faces delays in the Senate. If passed, the bill would offer temporary extensions of benefits to lower-income families who do not fully benefit from the current tax credit.
During the previous filing season, the maximum refundable child tax credit amount was $1,600 per dependent. For the tax years 2024 and 2025, this amount could rise to $1,900 and $2,000 respectively. The base CTC, currently $2,000 per qualifying child, would be adjusted for inflation in 2024 and 2025.
FAQs
What is the Child Tax Credit amount for 2024?
The amount remains at $2,000 per qualifying child with a refundable portion up to $1,600.
Who qualifies for the Child Tax Credit?
Taxpayers with children under 17 who meet specific residency, support, and income criteria.
How is the Child Tax Credit calculated?
It is based on the child’s age, relationship, residency, financial support, and citizenship status, along with the taxpayer’s income.
When is the deadline to file for the Child Tax Credit?
The deadline to file your tax return and claim the Child Tax Credit is April 15, 2024.
Where can I find more information about the Child Tax Credit?
Visit the IRS official website at www.irs.gov for detailed information.
