Child Tax Credit Payment Schedule 2024: CTC Expansion Eligibility & Benefits!

The American government has announced in the 2025 budget statement the restoration of Child Tax credit expansion. The CTC in the American Rescue Plan aims to offer working families with lower earnings a monthly CTC payment. The article covers the guidelines and 2024 CTC payment schedule for eligible US families. 

Child Tax Credit Payment Schedule 2024

The bill for child tax credit expansion was passed in the House on 31 Jan 2024 to offer monthly financial support in child care and expenses to eligible US families with lower income. 

According to the bill, the eligible applicants would receive a monthly payment of $250-$300 per child in their bank account on every 15th of the month. 

The CTC payment in 2024 will begin in July 2024, you will get the CTC payment on the 15th day of each month for the year. The payment for August will be credited to your bank account on the 13th as the 15th of August falls on a weekend. 

According to the Budget, the child tax credit is increased to $3000 per child for children over six years of age from $2000 per child. 

The Child Tax Credit Expansion Bill is stalled for final approval from the Senate.

The government would need to act quickly to make the bill a law before tax Day (15 April).  In the budget expansion, the government introduced the Child Tax Credit bill as the full Child Tax Credit (CHILDCTC). 

Eligibility for the Child Tax Credit Expansion 2024

According to the CHILDCTC, the following families will qualify for the monthly child tax credits:

  • The recipients should be citizens of the US.
  • The dependent child’s age must be lower than 17 years.
  • The dependent child must be your child, foster child, step-child, or grandkid, authorized by the agency. 
  • The child must be living with you for more than half a year.   
  • The income of the applicants should come between $75000 – $150,000.
  • The applicants earning high are also eligible for the CTC payments but the credit amount will be lesser or there will be no credit at all. 

How much can you expect from the CTC based on your income?

Here’s the distribution of CTC payment: 

  • The applicants who have a child under the age of 6 can receive up to $3600 in a year.
  • The child aged over 6 years but less than 17 years can expect a payment of $3000 in a year. 

The CTC payment varies according to the income of the applicants. Income Limit for people who can receive $300 per child under the age of 6 years and $250 for ages over 6 to 17 years:

  • Married couples filing jointly and income less than $150,000.
  • Individuals filing as a single parent with income less than $112,500.
  • The rest of the filers who have income less than $75,000 qualify for the CTC 2024. 

The income limit for people who at least qualify for $2000 CHILDCTC, where the government provides $166 per child:

  • Married couples filing jointly and income less than $400,000.
  • Individuals filing as a single parent with income less than $200,000.
  • The rest of the filers who have income less than $200,000 qualify for the CTC 2024. 

The CTC payments would be fully refundable, which means you can receive the CTC payment even when you don’t owe taxes to the government or don’t have taxable income. 

The refundable amount per child would increase in the coming year, such as $18,00 in the tax year 2023, $19,00 for the tax year 2024, and $2000 for the 2025 tax year.

How to apply for the Child Tax Credit payment 2024?

The eligible working families can apply for the CHILDCTC before 15 April 2024 in the same way they usually apply for the CTC, the extended amount will be credited to their account after the final approval of the Senate to the CTC expansion bill.

  • To apply for the CTC credits, the taxpayers must fill the Form 1040 and the attached Schedule 8812 – Credits for Qualifying Children and Other Dependents the form. 
  • IRS will review your application and process your CTC payment when they find your application eligible for the payment. 

The CTC expansion bill is passed in the House and the applicants must apply for it if they wish to receive this benefit from the federal government before 15 April 2024. After the final approval of the Senate, the CTC payment will be credited to your account as per the norms. 

Visit the GMR Homepage To Get the Latest Topics.

Leave a Comment