For the 2024 tax year, the federal child tax credit gives each child under 17 up to $2,000.
Maximize Your Child Tax Credit: Eligibility, Amount, and Filing Requirements
According to the report of Kiplinger, the federal child tax credit (CTC) provides significant support to many U.S. families by offering up to $2,000 per child under 17 for the 2024 tax year. Established by the 2017 Tax Cuts and Jobs Act (TCJA), You may be able to get up to $1,700 back for each child if your tax bill is less than the amount of the credit. This credit lowers your tax bill.
When a single person makes more than $200,000 a year or a married couple makes more than $400,000 a year, the credit starts to disappear. This year, the refundable part has been changed to account for inflation. This helps families with lower incomes who might not owe enough taxes to use the full non-refundable credit.
To get the child tax credit, you need to meet certain requirements, such as having a child, living in the United States, and making a certain amount of money. If you don’t normally file taxes, you can use the IRS Non-filer Sign-up Tool or Form 1040 and Schedule 8812 to get the refund.
Families must make at least $2,500 a year to be eligible, and the credit goes up by 15% for every dollar made above that amount. This credit system is meant to help families with a range of incomes by giving those with more than two suitable children extra tax breaks.
Will Congress Make Changes to Support Families?
In the future, the child tax credit could be changed while Congress decides whether to extend it or make it better. The parts of the TCJA that raised the credit to $2,000 and made it available to more people will no longer apply after 2026. If we don’t pass new laws, the credit will go back to $1,000 per child and will only be available to kids under 16.
Recent attempts in Congress to make the credit even bigger have failed, with bills failing to pass. As the 2024 election for president gets closer, the child tax credit may become a major issue, with candidates like Vice President Kamala Harris pushing for its increase to help families and reduce child poverty.
There is still a lot of uncertainty about the future of the child tax credit. There may be changes after 2025. The ongoing discussion in Congress, which is marked by different proposals and agreements that have been put on hold, shows how important the credit is for families.
If no new laws are passed, the credit will go back to lower amounts. This means that it will probably be a big issue in the next election and a key part of talks about tax policy.