Child Tax Credit 2024: Know about USA CTC Amount and How can You Receive it?

Child Tax Credit is federal tax benefit that provides individuals who have children financial help. Lawmakers had hoped, but ultimately failed, to extend the credit in time for the 2024 filing season, so it has been in and out of the headlines this year.

Therefore, the tax benefit stayed the same as taxpayers hurried to complete their taxes by the April 15 deadline: individuals with qualified dependents under the age of 17 may claim up to $2,000 per qualifying child, of which up to $1,600 might be refundable. Here i will update you on Child Tax Credit 2024 so check this page now.

Child Tax Credit 2024

Every dollar matters when it comes to raising children, and tax benefits could help. This tax season, you could be eligible for both federal and state child tax credits. Since this is the most recent information available, you must be aware of the State Child Tax Credit for 2024. When administered rightly, child tax credits have the potential to significantly lower child poverty and are a vital tool for assisting low- and middle-income families in maintaining their financial stability. With an emphasis on assisting low-income families, 14 states will offer CTCs in 2024, ensuring that the children residing in these households would get full benefits.

What is USA CTC Amount and How to Get it?

It is a tax incentive for parents but should not be confused with the credit for children and dependents, which is intended to help you pay for daycare while you are at work. For the 2023 tax year, you are eligible to claim a Child Tax Credit (CTC) of up to USD 2,000 for each dependent under the age of 17. In addition, the ACTC could be qualified for a USD 1,600 return. For the 2024 tax year, the maximum value per eligible child is $2,000, with a maximum full refund of $1,700. You must fulfill USA Child Tax Credit 2024 Eligibility Requirements to get this benefit.

Child Tax Credit 2024: Know about USA CTC Amount and How can You Receive it?

USA Child Tax Credit 2024 Eligibility Criteria

  • The qualified child’s age at the end of the tax year must not be more than 17.
  • There may be certain exclusions, such as if you are divorced or separated, but the eligible child must have lived with you for at least six months in 2023.
  • It is required that the eligible child did not supply more than 50% of their own financial assistance for the year you are claiming the credit
  • To be eligible, your income must be at least $2,500, or if it is less, you must have three dependents. Your eligibility for benefits such as the child tax credit may vary when your income rises, and it may also shift your federal income tax bracket.

Will taxpayers see increase in CTC in 2024?

Even if there has been a setback to the proposed deal, if President Biden’s tax accord is approved by Congress, certain taxpayers might benefit greatly from a higher CTC. The Senate is at a standstill, having lost all momentum before it ever reached this point, with only one month left in the tax reporting season. Currently, each child is entitled to a USD 2,000 child tax credit; however, the whole amount is not refundable. The maximum credit amount that may be refunded under the bill would rise gradually, from $1,800 for tax returns filed in 2023 to $1,900 for tax returns filed in 2024 and USD 2,000 for tax returns filed in 2025, if it is adopted.

How to Claim Child Tax Credit in USA?

You can apply for the Child Tax Credit by filing Form 1040 together with your annual tax return. You should fill and attach Schedule 8812, that is entitled to credits for eligible children and other dependents. This form can be used to determine how much of the Child Tax Credit or ACTC you are eligible to get.

Highest CTC this year

  • One of the rare states that does not impose the Child Tax Credit is Vermont. In Oklahoma, Utah, and Idaho, credits are not refundable. This year, new CTCs were introduced in Minnesota, Oregon, and Utah, while existing ones were extended in seven states. Additionally, Arizona implemented a one-time, nonrefundable CTC. The following five states offer record-high refundable credits, Vermont, Colorado, Minnesota, New Jersey, Oregon, and Minnesota, for each qualified child: $1,000 or more. Through these initiatives, billions of dollars are allocated to child welfare.
  • With the exception of the 2023 refund to Arizona, the 2029 credit to Oregon, and the 2032 credit to New Mexico, these freshly formed, enlarged benefits are permanent. Therefore, politicians in Vermont, Oregon, and Minnesota have passed legislation mandating that advanced CTC payments be delivered annually rather than in one big amount to help families better manage their finances.
  • Pennsylvania’s Expansion of CDCETC may be available to you if you are eligible for the federal child tax credit. The credit limit for a single child is $1,050, with a minimum of USD 650. The credit amount is between $1,200 and USD 2,100 for families with 2 or more than 2 children. Children have to be less than 13 or someone who is unable of taking care of themselves intellectually or physically.
  • There is a complete refund on the credit. You must complete a PA Schedule DC, a supplementary form that requests information about your dependents, together with a PA Personal Income Tax Return (PA-40) in order to file for this credit.

The Economic Impact of the US CTC

Experts highlighted that the child tax credit creates $2.50 in economic impact for every dollar that is used. Families benefit greatly from this essential assistance, that also significantly strengthens the local economy. The total cost of the strategy is expected to be $50 million in FY25 and $100 million in the following years.

Originally, lawmakers and supporters suggested a child tax credit of $300 for joint filers who earned less than $75,000 the year before, and $50,000 for single filers, regardless of age. The child tax credit acts as a key lifeline, assisting people and the larger community in thriving, by guaranteeing that families have this extra assistance.

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