Check out the latest on the $1,400 per person and $3,600 Child Tax Credit (CTC) payments coming for Americans. The Child Tax Credit is a financial benefit for families with eligible children in the U.S. It was created in 1997 to help ease the financial stress on families raising kids. Keep reading to learn more about the CTC payments in 2024.
$1,400/Person + $3,600 CTC Payment Coming for Americans
Initially set at $2000 per child, with $1400 of it being refundable, the Child Tax Credit (CTC) saw big changes in recent years. In 2021, the American Rescue Plan raised the CTC to $3600 for kids under six and $3000 for kids aged six to seventeen, making the full amount refundable for that year. However, this change was adjusted again in 2022.
For the fiscal year 2024/25, changes are expected to be made to the Child Tax Credit (CTC) to help with inflation. Under the proposed Tax Relief for American Families and Workers Act of 2024, the maximum amount you can get back will gradually increase. It will go up to $1900 in 2024 and $2000 in 2025.
Changes in the CTC 2024?
In 2021, the American Rescue Plan made the Child Tax Credit (CTC) bigger. Families could receive $3,600 for each child under six years old. They could even get this money back even if they didn’t owe any taxes.
Looking ahead to 2024, the CTC is expected to go up a little bit to help with the rising cost of living. Reports say that families might be able to get back up to $1,900 in 2024 and $2,000 in the following year. This increase is meant to help families cover their expenses.
America Rescue Plan Eligibility
Here’s what you need to know about the benefits from the American Rescue Plan for working households:
To get the stimulus checks, single people must earn less than $75,000. If you’re married and file taxes together, you must make up to $150,000. For heads of households, the income limit is $112,500.
If you have children who meet the plan’s requirements, you could receive up to $1,400 for each child.
Here’s what else the American Rescue Plan offers:
- People without kids can get an income tax credit ranging from $543 to $1,502.
- For families with children, the Child Tax Credit (CTC) provides $2,000 to $3,000 for each child over 6 years old, and $3,600 for each child under 6 years old.
Previously, children had to be 16 or younger to qualify for the CTC, but the new plan raises the age limit to 17.
Who is Eligible for the $1,400/Person + $3,600 CTC Payment?
To qualify for the Child Tax Credit (CTC), households need to meet a few important requirements. Each child must:
- Have a valid Social Security Number.
- Be under 17 years old before the end of the tax year.
- Have lived with the applicant for more than half the year.
- Be an American citizen, national, or resident alien.
- Not have provided more than half of their support.
If families missed the deadline to sign up for monthly payments or forgot to file their taxes, they should still file a tax return to get the full CTC benefits they are owed. Remember, receiving the CTC doesn’t affect how much help you get from other federal benefits, so families can receive support from multiple programs without any reductions.
All We Know
In this article, we’ll talk about the Child Tax Credit (CTC) and how it helps families. The CTC gives money back on your taxes, which can help cover the costs of raising children, especially with prices going up. To claim the CTC, you need to file a federal tax return using Form 1040 and include Schedule 8812. If you filed taxes for 2019 or 2020 or received stimulus checks, you’ll automatically get CTC payments without having to sign up again.
It’s also good to know that the CTC won’t affect other federal benefits like unemployment insurance or Medicaid. This means families can get the CTC along with other forms of help. Because the rules for the CTC can change, it’s important to stay updated on who can receive it and how to apply. This way, families can continue to benefit from the CTC in the future.