As the year 2024 comes to a close, many families are asking if they will receive special Child Tax Credit (CTC) payments this December.
The CTC has been an important source of financial support for families, especially after the changes brought by the American Rescue Plan (ARP) in 2021.
But what does December 2024 hold for families when it comes to CTC payments? Will you see payments of $1,400 per child or $3,600 per year in your bank account? Let’s take a closer look at what’s going on.
In this article, we will explain what the Child Tax Credit (CTC) is, how much families can expect in 2024, and how you can make sure you’re eligible for the benefits. We will also give you helpful advice on how to manage these benefits and make the most of them.
What is the Child Tax Credit (CTC)?
The Child Tax Credit (CTC) is a government program designed to help families cover the costs of raising children.
It directly reduces the amount of taxes a family owes. In some cases, if the credit is larger than the taxes you owe, you can receive the difference as a refund. The CTC has gone through important changes in recent years.
In 2021, the American Rescue Plan temporarily expanded the CTC. It increased the credit to $3,600 per child for children under the age of 6, and $3,000 for children aged 6 to 17.
Families also received monthly payments instead of waiting until tax time. These changes were designed to provide immediate financial relief to families during the economic struggles caused by the COVID-19 pandemic.
What Does the CTC Look Like in 2024?
For the 2024 tax year, the Child Tax Credit is returning to its pre-2021 structure. This means that:
- Families can receive up to $2,000 per child who is under 17 years old.
- Of that $2,000, up to $1,400 is refundable. This means if your total tax liability is less than the credit, you could get the difference as a refund.
- The full $2,000 per child is available if your income is below certain limits.
The key difference for 2024 is that the expanded benefits from the American Rescue Plan are no longer in effect. Families won’t be receiving the $3,600 per child or $3,000 per child for different age groups as they did in 2021.
Who is Eligible for the Child Tax Credit in 2024?
To qualify for the CTC in 2024, families must meet certain eligibility requirements:
Income Limits:
- For single filers, the credit starts to phase out when your income exceeds $200,000.
- For married couples filing jointly, the phase-out begins when your combined income exceeds $400,000.
Age Requirements:
- The child must be under the age of 17 by the end of the year.
Other Requirements:
- The child must be your biological, adopted, stepchild, or foster child.
- The child must live with you for at least half the year.
- The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
- The child must have a valid Social Security number.
What About the $1,400 & $3,600 Payments?
You may have seen mentions of $1,400 per child or $3,600 per year payments for December 2024. However, this is a common source of confusion.
The $1,400 and $3,600 amounts were part of the temporary increase in 2021 under the American Rescue Plan. For 2024, these amounts will not apply.
- The $1,400 was part of the stimulus checks issued by the government in 2021, not the Child Tax Credit.
- The $3,600 amount was the temporary enhanced CTC for children under the age of 6 in 2021. For 2024, the CTC has returned to the $2,000 per child structure.
Families in 2024 can expect up to $2,000 per child, with a refundable portion of up to $1,400, depending on their tax situation.
How Are CTC Payments Made?
CTC payments will not be automatically paid in December 2024 unless you are filing your taxes for the year.
The IRS typically starts processing Child Tax Credit payments after tax season begins, usually from January or February onwards.
To receive your CTC payment, you must:
- File Your Taxes: You need to file your taxes for the 2024 tax year (due by April 15, 2025).
- Refundable Portion: If the CTC exceeds the taxes you owe, you may receive the excess as a refund. The IRS will process your refund after your taxes are filed.
- Direct Deposit: If you file your taxes electronically and provide your bank details, you’ll typically receive your refund via direct deposit.
Practical Tips for Maximizing Your CTC Benefits
If you want to ensure you’re getting the maximum benefit from the Child Tax Credit, consider the following tips:
- File Your Taxes Early: The sooner you file, the sooner you can receive your refund. Filing online speeds up processing.
- Double-Check Eligibility: Make sure your children meet the IRS requirements, including age, residency, and relationship.
- Update Your Information: If you’ve moved or changed bank accounts, ensure your information is up-to-date with the IRS.
- Keep Track of Your Payments: If you received CTC payments in previous years, keep a record of how much you received. This will help you avoid mistakes when filing your taxes.
- Consult a Tax Professional: If your financial situation is complicated (e.g., self-employment, multiple dependents), consulting a tax expert is a good idea.
How to Prepare for the $2,000 Per Child CTC in 2024?
Although the enhanced payments of 2021 are no longer in place, you can still take steps to ensure you get the full Child Tax Credit in 2024. Here’s how:
- Gather Necessary Documents: Collect your child’s Social Security number, income documents, and any other tax-related records.
- Verify Your Bank Account: Make sure the IRS has your correct bank account details for direct deposit.
- Review Your Filing Status: Whether you file as single, married, or head of household, your filing status will impact your eligibility for the full credit.
Conclusion
While the $1,400 per child and $3,600 per year CTC payments from 2021 may seem like a distant memory, families can still benefit from the $2,000 per child tax credit for 2024.
Make sure you understand the eligibility requirements and file your taxes correctly to maximize your benefits. With some preparation, you can ensure that your family gets the financial support it deserves.
Note- Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If any error is identified we promptly correct it and strive for transparency in all updates.
Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
