For the 2024 tax year, the Child Tax Credit (CTC) remains a crucial financial support for families with children. The maximum credit amount is set at $2,000 per qualifying child under the age of 17 at the end of the tax year. This includes a refundable portion known as the Additional Child Tax Credit (ACTC), which has increased to $1,700 for 2024, up from $1,600 in 2023.
What Is the Child Tax Credit?
Every family does not qualify for the maximum amount of $ 3600 that is available as it depends on the tax credit of the particular family. Those clients who pay a smaller amount of taxes can be eligible for a lesser amount.
However, credit remains one of the significant financial assists to many in this view. Those concerned with details needed to claim up to $2000 per child in 2024 must study IRS information for any changes in eligibility.
Child Tax Credit: Qualifying Criteria
To claim the Child Tax Credit, families must meet several specific conditions:
- Dependency: The child must be claimed on the return of the taxpayer and be a dependent of the taxpayer.
- Residence: The child must have resided with the taxpayer during the tax year for at least six months out of the year.
- Financial Support: The parent has to be providing more than half of the child support to be classified as a dependent under the taxpayer.
- Social Security Number (SSN): The child must have A valid SSN.
- Relationship: The child must have a direct family relation and be referred to as a child of the family, that is, a child by birth, half or stepchild, a sibling or grandchild.
The dollar figure of credit a family is eligible for is also determined by their income. For the candidate to qualify for the full credit, the MAGI is one of the prerequisite elements to meet. Different brackets of income are categorized for joint filing spouses at $400,000 and for individual filing spouses at $200,000.
The credit is phased out completely by $1,500 if earned above the first $12,450, and further, it is reduced by $50 for every $1,000 earned above the first $12,450.
Deadlines Related To Taxes/Submissions And Suggestions.
The season of filing taxes starts in January, and the IRS encourages its users to file online and through electronic methods so as to be issued refunds early and through to their bank accounts.
This method is particularly efficient for taxpayers who get a refund file in approximately 21 days if there are no mistakes in the return.
