The Child Tax Credit was established in 1977, to help families in raising their dependent children. The main aim of the CTC is to give financial comfort to families who are in need. The American Rescue Plan has announced some changes in CTC. In the year 2024, eligible families would receive $1,400 to up to $3,600 per child.
There are significant changes made in the Child Tax Credit Plan in recent years. In 2021, the government has increased the Child Tax Credit to $3,600 per child for children under the age of 6. $3,000 per child who comes under the age group of 6 to 17. At that time the entire credit was refundable.
Before 2021, the amount of CTC was $2,000 per child and $1,400 was refundable. But in 2022, these changes were reverted back to the previous levels. For the year 2024-2025, due to inflation, the government would increase the refund amount to up to $1,900 in 2024 and $2,000 in 2025.
Analysis of $1400 to $3600 CTC Payment 2024
| Name of Program | $1,400/Person to $3,600 CTC Payment 2024 |
| Name of the country | United States of America |
| Eligibility | USA citizens |
| Category | Finance |
| Official website | www.irs.gov |
Difference between the previous CTC and the new CTC 2024
There have been some key differences explained in the American Rescue Plan :
- Increment in Credit Amount – $3,000 per child for the children who come under the age group of 6 to 17. $3,600 for the children who are under 6.
- Full Refundability – Low-income families can get full refunds even if they didn’t owe any tax.
- Expansion in Eligibility – Removal of minimum income requirement and inclusion of 17-year-old children.
- Advance Payments- From July to December 2021, monthly advance payments were made.
Through CTC, there were millions of children who came out of poverty across the country. Child poverty was reduced to 5.2% in 2021.
Expectations in 2024
In 2024, there have been some expectations for the increment of CTC. Child Tax Credit refundable amounts can raise up to $1,900 in 2024 to up to $2,000 in the next year. This increment would be made to help citizens face inflation in the upcoming years.
Income criteria to qualify for CTC 2024
- Single filers should not be earning more than $75,000.
- Joint filers must not have a combined income of more than $150,000.
- The income of Head of Households must be less than $112,500.
The phased-out payments
The phased-out payments are mentioned below :
- For single filers – $80,000.
- For Head of Households – 120,000.
- Joint filers – $160,000.
Some Important Key Points about the direct payments
- $1,400 was added in December 2020 in $600 added up to $2,000.
- Individuals who received $600 in December 2020 will receive $1,400 now.
- College students and seniors who are dependents also get $1,400 each.
| Home Page | https://www.easthamptonchamber.com/ |
FAQs of CTC Payments 2024
Children under the age of 17, who live with their parents for more than half of the year. They should also be US citizens.
Single filers must be earning less than $75,000. Joint filers must be earning not more than $150,000. The income of the Head of Household must be less than $112,500.
Yes, college students and seniors are eligible for the $1,400 CTC Payments. But they must be claimed as dependents.
The CTC refundable amount is going to increase in 2024 to up to $1,900. Due to inflation, it can reach $2,000 in 2025.
Riya Claire is the Editor-in-Chief of the East Hampton Chamber Portal. She holds a degree in Mass Communication, an MBA in Finance, and a diploma in HR, making her a versatile professional for an online portal