Child Tax Credit (CTC) allows people of the United States of America a reduction of tax. It provides financial support to people with dependent children under the age of 17. The IRS (Internal Revenue Service) considers whether your dependent child is a qualifying child or not. Please note that Child Tax Credit is based on filing status, income, and the number of dependent children.
The federal CTC supports almost 40 Million families in America to raise their children every year. Due to inflation, prices are increasing for almost everything. The IRS decided to increase the amount of CTC from the previous year.
The Child Tax Credit in 2024 has a refundable amount of up to $2,000 per child under 17. But, the refundable amount of CTC is $1,700. Child Tax Credit is not entirely reimbursable. For more updated information, it is advisable to visit the official website of the IRS (https://www.irs.gov/).
IRS $2000 Child Tax Credit In September 2024
Additional Child Tax Credit (ACTC) allows citizens of the USA to receive a refund of up to $1,700 per child, in 2024. An eligible candidate can only receive this refund if their tax bill is 0.
But, please keep in mind that if an individual incurs less than $2,000 in tax, then he/she is not eligible for a refund. The filers must be earning at least $2,500 and have three or more children qualifying Child Tax Credit.
Highlights of IRS $2,000 CTC in September 2024
| Article Name | IRS $2000 CTC in August 2024 |
| Country | United States of America |
| Organization | Internal Revenue Service |
| Provider | Federal Government |
| Amount | $2,000 (might vary) |
| Category of Post | Finance |
| Official Website | https://www.irs.gov/ |
Eligibility Criteria
The IRS has posted 7 guidelines for meeting the eligibility criteria for Child Tax Credit 2024.
- Age limit: Every child who is registering for CTC must be less than 17 years.
- Relationship with the child: The relationships that are eligible in CTC are – son, daughter, stepchild, brother, sister, step-brother, step-sister, eligible foster child, half brother, half sister or, a grandchild.
- Citizenship: A child must be a citizen of the United States of America, a national of the USA, or a resident alien of the USA.
- Residency: A child must be living with you for more than half a tax year.
- Financial Support: The filer should be providing the child with more than half of the financial support.
- Dependency Status: During the tax return, the child must be claimed as a dependent.
- Income Limit: There is a certain income limit for the filers to claim CTC.
Income Limits
- $200,000 for a widower, head of household, and a single filer.
- $400,000 for a married couple filing jointly.
- $200,000 for a married couple filing separately.
How to claim Child Tax Credit?
To claim CTC in 2024, it is mandatory to file your tax return in 2025. You can enter your child on your income tax return (Form 1040). You also need to include (Schedule-8812).
Please note: If a person uses a tax preparer, then it will be handled by them for you. But, if you use system software it will help you with the prompts.
What about the families who don’t file tax returns?
The way the Child Tax Credit has a phase-out threshold, it also accepts a phase-in amount as well. So, families who do not earn enough to file a tax return can also be eligible for the CTC. Their eligibility is dependent on their annual income.
| Home Page | https://www.easthamptonchamber.com/ |
If you have three or more children qualifying for Child Tax Credit, then you are also eligible for EITC (Earned Income Tax Credit).
FAQs of Child Tax Credit 2024
The ACTC is calculated by multiplying income above $2,500 by 15%. That sums up to up to $1,700 per child.
It is advisable to use the IRS tool (Where’s my refund) for updates about the CTC refund. Please note paper returns might face delays due to longer processing time.
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