Get the latest updates on the $1,400 per person payment and $3,600 Child Tax Credit (CTC) for Americans. The Child Tax Credit is a financial benefit designed to ease the burden on families with dependent children in the United States. Established in 1997, this credit helps households manage the costs associated with raising children. Here’s what you need to know about the CTC payment for 2024.
Overview Of The $1,400/Person + $3,600 CTC Payment
Originally set at $2,000 per child with a $1,400 refundable portion, the Child Tax Credit (CTC) has seen significant changes in recent years. The American Rescue Plan of 2021 increased the CTC to $3,600 for children under six and $3,000 for children aged six to seventeen, making the credit fully refundable for that year. However, these enhancements were adjusted in 2022.
For the fiscal year 2024/25, adjustments to the CTC are anticipated under the proposed Tax Relief for American Families and Workers Act of 2024. The maximum refundable credit is expected to gradually increase, reaching $1,900 in 2024 and $2,000 in 2025 to accommodate inflation and rising living costs.
Changes To The CTC in 2024
In 2021, the American Rescue Plan led to a temporary increase in the CTC, providing $3,600 per child under six years old, with the full amount refundable. This allowed families to receive money back even if they owed no taxes.
Looking ahead to 2024, the CTC is expected to rise slightly to keep pace with inflation. Reports suggest that the maximum refundable amount will increase to $1,900 in 2024 and $2,000 in 2025. This adjustment aims to provide continued support to families facing higher living expenses.
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Eligibility For The $1,400/Person + $3,600 CTC Payment
To qualify for the $1,400 per person stimulus checks under the American Rescue Plan, individuals must meet the following income thresholds:
- Single Individuals: Earn less than $75,000
- Married Couples Filing Jointly: Earn up to $150,000
- Head of Household: Earn up to $112,500
Families with children can receive up to $1,400 per child if they meet the eligibility criteria. Additionally, individuals without children can qualify for income tax credits ranging from $543 to $1,502. For families with children, the CTC provides $2,000 to $3,000 for each child aged six and older and $3,600 for children under six years of age. The age limit for qualifying children has been extended to seventeen years, up from sixteen.
Who Is Eligible For The $1,400/Person + $3,600 CTC Payment?
To be eligible for the CTC, the following requirements must be met:
- Social Security Number: Each child must have a valid Social Security Number.
- Age: The child must be under 17 years old before the end of the tax year.
- Residency: The child must have lived with the applicant for more than half the year.
- Citizenship: The child must be a U.S. citizen, national, or resident alien and cannot have provided more than half of their own support.
Families who missed the sign-up deadline for monthly payments or did not file their taxes should file a federal tax return to claim the CTC. This ensures they receive the maximum benefits available. The CTC does not affect other federal benefits, such as unemployment insurance or Medicaid, allowing families to receive multiple forms of assistance without any reduction.
Also Read : IRS Tax Credit Schedule: August-December 2024 Payment Dates and Amounts
Conclusion
The CTC is crucial for helping families manage the costs of raising children, especially as living expenses increase. To claim the CTC, families must file a federal tax return using Form 1040 and include Schedule 8812. Those who filed taxes for 2019 or 2020 or received stimulus checks will automatically receive the CTC payments without needing to sign up again.
It is important to stay informed about changes to the CTC and eligibility requirements to ensure you benefit fully. The CTC provides vital support by alleviating the financial burden on families, contributing to better financial stability and improved household well-being.
For more details on the CTC and other related programs, continue to check our updates and consult the official IRS and U.S. government websites for the latest information.
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