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

Recently, the House passed a bill related to Child Tax Credit 2024, where low-income families can get expansion in child tax credits. So, if you’re going to file the tax claiming the Additional Child Tax Credits this year, then you must revise the new updates in the Child Tax Credit for 2024.

Child Tax Credit Updates 2024

On 31 January 2024, the US House passed the expansion of Child Tax credits under the bill Tax Relief for American Families and Workers Act of 2024) by a bipartisan vote of 357 to 70.  It is a $78 billion act that aims to increase the child tax credit and change the rules of research and development for business.

The expansion of the Child tax credit will benefit low-income tax-paying families having dependent children of age under 17.

  • Under the new bill, taxpayers can use their income data from this year and the year before to calculate the CTC, making it easier for people to qualify if their income drops. This would be called a “lookback” provision that comes when the parent loses the job, welcomes a new child, health issue, etc.
  • The new updates on CTC will let parents or caretakers get a refund on how many children they have, this will help families with two or more children to get more credits. For instance, a parent who has two children with an income of around $15,000 can see an increment in CTC from $1700 to $1800-$2500.
  • The lower maximum credit per child is increased to $1800 for 2023 taxes, $1900 for 2024, and $2000 for 2025 from $1600 CTC in earlier law. 

So, taxpayers can expect the following expansion in Child Tax Credit 2024:

Year Expansion in child Tax credit for per kid under 17
2023 $1800 
2024 $1900
2025 $2,000

The above updates tell that now the child tax credit per qualifying child is up to $2000 for tax years 2024 and 2025.

Eligibility for the Child Tax Credit 2024

Now, who will qualify for the Child Tax Credit credits? Let’s find out what are the eligibility requirements you need to meet to get a tax refund with the additional child tax credit in 2024:

  • The child must be under the age of 17 and should be dependent on the parent.
  • The child must be a US citizen or resident alien.
  • The parent must have a modified adjusted gross income (MAGI) of $200,000 or less and if the parents are jointly filing the tax returns it should be $400,000 or less than that.
  • The child you are applying for must have a valid social security number.
  • Your relationship with the child must be your child, stepchild, sibling, half-brother, half-sister, foster child, or your grandson or granddaughter.
  • The child should reside with you for over half the year and is a dependent.
  • The child must have provided at least half or less of the parent’s financial support during the filing year.

How can you claim your CTC?

The taxpayers can claim their tax refund with CTC by submitting their eligible children on Form 1040. You must fill the Schedule 8812 under this form.

The schedule will assist you in knowing the child tax credit amount for your child and also in understanding the partial refund that you will claim when the application qualifies for the CTC credits.

When to expect your Child Tax credit refund?

IRS has stated that they cannot process the Child Tax credit refund till mid-February as instructed by the federal. The delay is to ensure that the applications will be reviewed properly and there will be no possibility of scams. 

IRS said early tax e-filers who have used direct deposits can expect their tax refund around 27 Feb 2024. If you want to check the status of your refund, you can check it through the IRS “Where my Refund?” tool and track your refund application.

The bottom line is the new CTC update will grant 2024 taxpayers a credit worth $2000 for each qualifying child and with additional CTC taxpayers can get a partial refund of up to $1700. So, file your return carefully to ensure the maximum benefit on your tax refunds.

Go to GMR Homepage.

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