Child Tax Credit Increase 2024 – Amount, Eligibility and How to claim? 

The American Rescue Plan temporarily increased the benefit to $3,000 for children over six and a $3600 Child Tax Credit Increase in 2024 for kids under six, raising the maximum age limit from 16 to 17.

Child Tax Credit Increase 2024

Taxpayers may get extra help with their children’s living expenses via the child tax credit. One thousand dollars (USD) in federal benefits is available to each eligible dependant via these credits. In 2024, the IRS will provide a $3,600 child tax credit to families throughout the United States. 

Child tax credits are provided as a refundable tax credit on the tax bill and are subject to inflation-indexed increases beginning in 2024. To help low-income families cope with the additional expenses of raising a child, the Internal Revenue Service established the child tax credit. 

To help families and children financially, this credit will be increased for the year 2024. In 2024, CTC will see a fresh raise of up to $1700. Every one of these credits is backed by an annual investment of billions of dollars.

Child Tax Credit Amount 

An applicant’s high income will reduce the amount of money available for the eligible child’s extracurricular activities. It kicks in at $400,000 for married parents and starts at $200,000 for single parents. Therefore, you may get slightly less kid credit if you are rolling in dough.

A family’s annual income must be at least $2,500 for them to be eligible for the child credit. Anything exceeding USD 2,500 will result in an additional $0. The merit begins to accrue at a rate of fifteen percent. This means that families with lower incomes may only receive a portion of the credit, or none at all, in some cases. 

  • Children over six: 3000$
  • Children under six: 3600$

Some states have passed enlarged CTCs of their own, and the total amount of these credits will depend on those states as well. The 2024 credit amount is $7,830 (up from $7,430 in 2023) for families with three eligible children, $6,960 for families with two qualifying children, $4,213 for families with one qualifying kid, and $632 for families without qualifying children.

How to claim IRS CTC 2024?

Individuals are required to follow a certain procedure to get the IRS Child Tax Credit for the year 2024. The steps to get this rebate are detailed here:

  • You must submit your tax return together with Schedule 8812, which is entitled to Credits for Qualifying Children and Other Dependents.
  • You may find out whether you qualify for the additional refundable portion of the Child Tax Credit and get your calculation on this form.
  • For each eligible child, Schedule 8812 necessitates detailed information. Included in this are their name, SSN, and relationship to you.
  • Get your federal tax return filed for 2023. April or October 15, 2024, is the deadline for requesting an extension.
  • To make sure the kid is eligible, you have to answer questions about where they live and who pays for their expenses.
  • The credit calculation is made easy using this form. Both the total credit and modifications based on income are contingent upon the presence of eligible children.
  • Do the math for the return credit, if that’s the case. This is particularly important for those who have modest incomes.
  • Verifying all information is essential to avoid delays in credit processing.

US CTC Eligibility Criteria 

It’s important to meet certain requirements before claiming the Child Tax Credit in the United States. A few requirements that must be met to be eligible for 2024 Credits are mentioned below.

  • The youngster must not be older than seventeen by the end of 2024 to be eligible.
  • For the kid to be eligible for the benefit, they must have a Social Security number.
  • The young person in question may be a son, daughter, grandchild, foster kid, or the progeny of any of these.
  • The bulk of the child’s years should have been spent living with the petitioner.
  • The candidate must be a resident immigrant who is aging out of the United States or an American citizen by birth.
  • The claimants are not required to submit the income tax return jointly if they are married.

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