Child Tax Credit 2024 When Will It Start

Extending the child tax credit and providing tax credits to corporations would also receive the about $78 billion in tax cuts; nevertheless, the package may have a difficult time passing.

American parents stand to gain a lot if a bill that was announced on Tuesday and is expected to pass into law is successful.

How will I benefit?

A little over three quarters of the present $2,000 child tax credit—or $1,600—is returnable when you file your taxes.

Taxpayers who have refundable tax credits will continue to receive their cash payouts even after their tax liability has been paid in full, whereas those who have nonrefundable tax credits can only utilise them to lower their tax liability; any residual credit will be lost.

The maximum refundable child tax credit would be raised to $1,800 for tax returns filed in 2023, $1,900 for tax returns filed the following year, and $2,000 for tax returns filed in 2025 under the proposed legislation.

The IRS states that in order to qualify for the child tax credit, you must have a dependent who possesses a valid Social Security number that is used for work in the United States.

Who Qualifies

You can claim the Child Tax Credit for each qualifying child who has a Social Security number that is valid for employment in the United States.

To be a qualifying child for the 2023 tax year, your dependent generally must:

• Be under age 17 at the end of the year
• Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
• Provide no more than half of their own financial support during the year
• Have lived with you for more than half the year
• Be properly claimed as your dependent on your tax return
• Not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid
• Have been a U.S. citizen, U.S. national or U.S. resident alien.

Also Read : $300 Child Tax Credit 2024 IRS

How to Claim This Credit

You can claim the Child Tax Credit by entering your children and other dependents on Form 1040, U.S. Individual Income Tax Return, and attaching a completed Schedule 8812, Credits for Qualifying Children and Other Dependents.

2024 Tax deadlines

Children under the age of seventeen will be allowed to claim the maximum tax credit of $2,000 per child as of December 31, 2023. For the year 2024, the enhanced child tax credit was $3,000 for kids between the ages of 6 and 17, and $3,600 for kids younger than 5. The age barrier was temporarily lifted on December 31st to include individuals under the age of 18, however it was subsequently revoked.

In the year 2024, you can get $1,700 back by submitting an online application for the IRS Child Tax Credit Plan. Moreover, the state’s child and dependent tax credit is expected to increase from $180 to $440 per year, eliminating the limitation of two dependents.

By visiting the official website of the Internal Revenue Service at www.irs.gov, any American citizen with a kid under the age of eighteen can simply apply for the $3,600 kid Tax Credit 2024. The Social Security number of the dependent kid is needed in order to get the $3,600 kid Tax Credit 2024.

Additionally, the legislation would increase the benefit to families with more than one child by shifting the refundable credit computation from a per-family to a per-child basis. The Centre for Budget and Policy Priorities reports that, if the legislation is passed, a mother with two children and an income of $15,000 would receive a child tax credit of $3,600 in 2023, an increase from the present law’s $1,875 benefit.