The Child Tax Credit (CTC) is a helpful program from the U.S. government that supports families with children. This article will explain the latest updates on the CTC, including new payment amounts, direct payment dates, and who is eligible for this support.
What is the Child Tax Credit?
The Child Tax Credit is financial help given to families with kids. In 2024, the CTC offers money based on the age of your children. Families with younger kids get more help. For example, under the American Rescue Plan Act, families with children under 6 get $3,600 per child, while those with kids aged 6 to 17 get up to $3,000 per child.
New Increase in the Credit
On January 19, 2024, a new law called the Tax Relief for US Families and Workers Act of 2024 was approved. This law will increase the CTC amount. Right now, the credit is $2,000 per child, with $1,600 being refundable. The refundable part will go up to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025.
President Joe Biden’s American Rescue Plan also provides an extra $300 payment each month through the CTC. The IRS will send these payments to help families with their children’s needs. All families who qualify will receive these payments.
$300 Direct Payment Dates
The CTC is given as monthly payments that reduce your tax bill. These payments are scheduled for the 15th of each month. For 2024, the payment dates are:
- August 15
- September 15
- October 15
- November 15
- December 15
These dates might change a little, so check the schedule to be sure.
To get the $300 payment, eligible families must fill out Form 1040 with Schedule 8812 and provide proof of their children’s details. Once this is done, the authorities will confirm the payment.
Who is Eligible for the Child Tax Credit?
To qualify for the CTC, you need to meet some requirements:
- Age of Children: The child must be under 18.
- Income Limits: Married couples can earn up to $400,000, and single individuals can earn up to $200,000.
- Household Contribution: You must provide more than half of your earnings to support your household.
- Social Security Number: Your child must have a valid Social Security number.
- Residency: Your child must have lived in the U.S. for more than half of the year.
If you don’t meet these requirements, your application will be rejected.
Summary
The U.S. government has made some changes to the Child Tax Credit for 2024 to help families in need. Monthly payments are planned, and you can use an online calculator on the IRS website to see how much you might get.
If you’re eligible but can’t get the CTC, you might still qualify for the Additional Child Tax Credit (ACTC). Make sure to check the requirements and keep your documents ready to maximize your benefits.
What is the Child Tax Credit?
The Child Tax Credit is financial help for families with children, giving them a certain amount of money per child to support their needs.
How much is the Child Tax Credit in 2024?
For children under 6, it’s up to $3,600, and for children aged 6 to 17, it’s up to $3,000.
When will the $300 monthly payments be made?
Payments are scheduled for the 15th of each month, with specific dates in 2024.
What are the eligibility requirements for the Child Tax Credit?
Requirements include having a child under 18, meeting income limits, contributing to the household, and having a valid Social Security number for the child.
What should I do if I can’t claim the Child Tax Credit?
You might be eligible for the Additional Child Tax Credit (ACTC) if you meet certain requirements.