2024 Child Tax Credit: How Much Can You Claim for Each Qualifying Dependent?

2024 Child Tax Credit: One federal tax advantage that helps taxpayers with children financially is the child tax credit (CTC). Legislators had hoped, but ultimately failed, to extend the credit in time for the 2024 filing season, so it has been in and out of the press this year.

Because of this, the tax break stayed the same as taxpayers hurried to complete their taxes by the April 15 deadline: individuals with qualified dependents who had children under the age of 17 may claim up to $2,000 per qualifying dependent, of which up to $1,600 could be refundable.

Taxpayers and their children must meet specified qualifying requirements based on the child’s age and relationship to the filer to be eligible for the CTC. Rules about income also apply, with higher incomes seeing a phase-out of the credit.

For the 2023 tax year, the credit was equal to $2,000 for each eligible dependent for individuals whose modified adjusted gross income (MAGI) was less than $200,000 for all other filers or $400,000 for married couples filing jointly.

The CTC will stay at $2,000 per qualifying child for the 2024 tax year (tax returns filed in 2025), with a possible $1,700 refund through the Additional Child Tax Credit.

When completing their yearly tax returns, taxpayers who meet seven essential requirements—about the child’s age, citizenship, connection, dependent status, residency, financial assistance, and income—are eligible to claim the CTC.

According to Nerdwallet, Federal tax returns (Form 1040 or 1040-SR) are used to make claims, and they are normally due by April 15 or, with an extension, October 15. The CTC amount and possible return are found on Schedule 8812 (“Credits for Qualifying Children and Other Dependents”).

2024 Child Tax Credit: A Guide to Anticipating Your Tax Refund Arrival!

Tax software and the IRS’s Free File program, which guides filers through the necessary forms and stages, streamline the claiming process. These resources provide financial support during tax seasons to facilitate qualified families’ access to the CTC.

2024 Child Tax Credit: When is the Child Tax Credit expected to be credited?

By October 30, 2024, it is anticipated that the Child Tax Credit payment will be credited with increased credit limits, full refundability, and expanded eligibility.

Refunds or direct bank account deposits will be made for payments. On the fifteenth of every month, payments will be made. You should wait three working days before alerting the authorities if your money has not arrived.

Qualifications: Who is eligible for the Child Tax Credit?

When filing their annual tax returns, taxpayers have the option to claim the child tax credit. You and your eligible child must generally satisfy seven “tests”: age, income, citizenship, residency, dependent status, relationship, and financial support.

How soon will the IRS begin processing tax returns with Child Tax Credits?

• Age: At the end of the tax year, your child had to be under the age of 17.
• Relationship: The child you’re claiming has to be your biological child (e.g., grandchild, niece, nephew), son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, or stepsister).
• Dependency status: The child must be able to be legitimately claimed as your dependent. Additionally, the child is not permitted to submit a joint tax return unless they do so to get a reimbursement for taxes that were estimated or withheld.
• Residency: Unless there are certain exclusions, the kid you are claiming must have resided with you for at least half of the year.
• Financial support: During the past year, you had to have contributed at least half of the child’s maintenance. Put differently, your qualified child is probably not qualified if they were able to support themselves for longer than six months.
• Citizenship: Your child must have a valid Social Security number and be a “U.S. citizen, U.S. national, or U.S. resident alien,” according to the IRS.
• Income: To qualify for the credit, parents or caregivers usually cannot earn more than a particular amount. The amount that your income surpasses that threshold determines how much the credit is decreased, and eventually, goes away.