The 2024 tax year concluded on April 15, unless you wish to apply for a tax extension. If you’ve been waiting for the government to approve legislation expanding the child tax credit, don’t delay any longer.
Through this page, I will talk about the $3,600 IRS Child Tax Credit Payment in 2024. Even if you don’t owe any taxation, you can still receive a refund for part of the child tax credit.
Both the current credit as well as the credit which is stalled in the Senate are covered by this. Since the remaining money is nonrefundable, you may only utilise that part of the tax credit over taxes that you owe.
However, in order to claim it, you must file your tax return. Then, determine your eligibility for the 2024 child tax credit and its potential amount by visiting this page. You must first review the Eligibility for the $3,600 CTC Payment 2024 that is provided on this page.
Eligibility Criteria
1. Your modified adjusted gross income, or MAGI, should be $400,000 or else less if you are filing jointly, the amount is under $200,000.
2. On December 31, 2023, the child you are claiming credit for, was under the age of 17.
3. They are currently using their Social Security number.
4. They may be your stepchild, sibling, foster child, half-sister, half-brother, or derived from one of these. They may also be your biological child (such as a grandchild, niece, or nephew).
5. They have merely contributed half of their funds for the relevant tax year.
6. They have lived with you for over half the year.
7. You are declaring them as a dependent on your own tax return.
8. Either you are a US citizen or a resident alien.
Increase In Child Tax Credit
To help citizens who have been adversely impacted by the COVID-19 outbreak, the government initiated the American Rescue Plan. A crucial part of our plan is providing families with more financial support through the Child Tax Credit.
Families can now get up to $3,000 for each kid, with an additional $600 available in 2024. Previously, families could only receive a maximum of around $2,000 per child. The Act significantly improved the CTC.
The credit for every child below the age of six was raised to $3,600. For every child from the ages of six to seventeen, the credit was fixed at $3,000. Before this change, the CTC was capped at $2,000 per kid for those under 16.
For every child, the maximum credit that would be reimbursed was $1,400. Due to inflation, the refundable portion of this parameter was adjusted for the 2022 tax years through 2025 and raised to $1,600 in 2023.
How did Congress extend the Child Tax Credit?
The Child Tax Credit was raised from $2,000 per kid in the American Rescue Plan to around $3,600 for kids below the age of six & $3,000 for youngsters below the age of eighteen for a one-year period.
The Child Tax Credit reduces income taxes that families owe on a dollar-for-dollar basis. For every $1,000 over $112,500 for owners of single-occupancy houses & $150,000 for couples, $50 was subtracted from the credit.
But because the previous restrictions only applied to the first $2,000, those who had previously qualified for that amount would not be affected.
According to the 2021 law, the credit was fully refundable, which meant that families with barely any federal tax obligation would receive a cheque for the whole amount.
The U.S. Treasury reports that beginning in July 2021, payments were made to millions of families on a monthly basis, benefiting 88% of the nation’s children. For kids under six, the maximum payment amount is $300; for kids between six and seventeen, it is $250.
Read Also – Australia Family Tax Benefit 2024: When will Part A and Part B Benefits Increase in Amount?
