How Much You Could Get and Who’s Eligible

If you have children, this credit has been providing a nice boost for your family during tax season.

If you have any children under the age of 17, including any born during 2023, you could be eligible for the child tax credit. If you’re eligible, it could reduce how much you owe in taxes, but it won’t provide you with a refund because it’s nonrefundable this year. Also, you must meet several requirements to be eligible for the child tax credit in 2024.

The child tax credit is still at its pre-pandemic amount; however, lawmakers are working on restoring the expanded child tax credit. We’ll help you find out if you’re eligible for the child tax credit in 2024 and how much money you could get.

The child tax credit in the past.

The maximum tax credit available per child is $2,000 for each child under 17 on Dec. 31, 2023.

For tax year 2021, the expanded child tax credit was $3,600 for children 5 and under, and $3,000 for children ages 6 to 17. That’s no longer the case. The age requirement was also temporarily extended to under 18 on Dec. 31, but that’s gone, too.

The child tax credit in 2024

To be eligible for the tax break this year, you and your family must meet these requirements:

• You have a modified adjusted gross income, or MAGI, of $200,000 or less, or $400,000 or less if you’re filing jointly.
• The child you’re claiming the credit for was under the age of 17 on December 31^st, 2023.
• They have a valid Social Security number.
• They are your legally recognized child, stepchild, foster child, sibling, half-brother or half-sister, or a descendant of one of these categories (like a grandchild or niece or nephew).
• They have contributed no more than half of their own financial support in the relevant tax year.
• They have lived with you for over half the year.
• You are claiming them as a dependent on your tax return.
• You are a US citizen or resident alien.

If your MAGI is higher than the income limits, the amount of child tax credit you receive will decrease by $50 for every $1,000 above the limit.

If you search online for information on the child tax credit, you may come across details on the 2021 expanded tax breaks, so double-check that you’re viewing the most recent information.

Will Congress expand the child tax credit in 2024?

As part of a massive COVID-19 aid package, Congress in 2021 temporarily expanded the child tax credit, which helped drive child poverty to a record low. Congress didn’t extend the expanded credit in 2022, however, and the credit returned to its pre-pandemic rate.

This year, Congress is working to expand the credit again, pushing to have a deal in place by Jan. 29, the first day you can file your tax return this year. According to a Washington Post report, the plan, if approved, would allow the lowest-income families to claim the credit for each child.

How do I claim the child tax credit?

You can claim the child tax credit by entering your eligible children on your Form 1040 and attaching a completed Schedule 8812, Credits for Qualifying Children and Other Dependents.

Is the CTC refundable this year 2024?

The child tax credit this year is nonrefundable. That means that if your tax liability exceeds what you get from the credit, you forfeit the difference.

You may still be able to claim the additional child tax credit, which refunds up to $1,500 per child. The Additional Child Tax Credit (ACTC), unlike the Child Tax Credit (CTC), is a refundable tax credit
meaning that the taxpayer may claim the credit even though he or she has no federal income tax liability. The ACTC – a tax credit that may not exceed a maximum amount of $1,600 per qualifying child – is
available only to taxpayers who receive less than the full amount of the CTC. Only the CTC may be used to figure the amount of any ACTC that can be claimed by a taxpayer; the ODC is not taken into
account for purposes of figuring the ACTC. To see if you qualify for the additional child tax credit, fill out the worksheet for IRS Form 8812.

If you paid for childcare, you may also qualify for the child and dependent care credit. Depending on your circumstances, you can declare 20% to 35% of your childcare expenses. The maximum you can claim is $3,000 for one child under 13 or a dependent with disabilities, or $6,000 for two or more.

You are required to have earned some income to qualify for this credit, and the care must not have been provided by a spouse or family member.

Other federal income tax breaks available to families include adoption credits, education credits and the earned income tax credit.

Requirements and benefits vary, so check with US Tax Consultants for details. info@ustaxconsultants.pt Phone: +351 211 380 833

Dan Avery from CNET