Families with children may benefit from the Child Tax Credit (CTC) for the 2024 tax year, which provides up to $2,000 per qualifying child. Designed to offer financial relief to parents and guardians, the credit includes a partially refundable portion that can put more money back into taxpayers’ pockets.
The Child Tax Credit helps families with qualifying children receive a tax break. Even if you do not typically file a tax return, you may still be eligible to claim this credit. To qualify, the child must have a Social Security number that is valid for employment in the United States.
For the 2024 tax year, a qualifying child must be under 17 years old at the end of the tax year. The child must also be related to the taxpayer as a son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these relatives, such as a grandchild, niece, or nephew. Additionally, the child cannot have provided more than half of their own financial support during the year and must have lived with the taxpayer for more than half of the tax year.
To be eligible, the child must be claimed as a dependent on the taxpayer’s return and must not file a joint tax return for the year unless the return was filed only to claim a refund of taxes withheld or estimated tax payments. The child must also be a U.S. citizen, U.S. national, or U.S. resident alien. Furthermore, the child’s Social Security number must be issued before the due date of the taxpayer’s return, including any extensions.
Taxpayers qualify for the full amount of the 2024 Child Tax Credit for each eligible child if their annual income does not exceed $200,000 for single filers or $400,000 for those filing jointly. Parents and guardians with incomes above these thresholds may still qualify for a partial credit, depending on their adjusted gross income.
A portion of the Child Tax Credit is refundable, meaning that even if a family owes little or no federal income tax, they may still receive a refund. This refundable portion, known as the Additional Child Tax Credit (ACTC), allows families to receive up to $1,700 per child.
To claim the Child Tax Credit, you must list your children and other dependents on Form 1040, U.S. Individual Income Tax Return, and attach a completed Schedule 8812, Credits for Qualifying Children and Other Dependents.
The Internal Revenue Service (IRS) encourages eligible taxpayers to ensure they meet all requirements and to file their tax returns accurately to claim the credit. Experts recommend consulting a tax professional or using IRS resources to determine eligibility and maximize benefits.