Child Tax Credit – Eligibility Criteria to get payout of upto $1,700!

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For the 2024 tax year, the CTC which aims to reduce the financial burden offers up to $2,000 per child, with a refundable portion of $1,700. The IRS is expected to start accepting returns in late January 2025, with the filing deadline around mid-April 2025. 

Child Tax Credit

The CTC for the year 2024, which will be filed in 2025, remains a financial benefit for families with dependent children. The maximum credit available per qualifying child is $2,000 and the refundable part of the CTC, also referred to as the additional child tax credit, will rise to $1,700 in 2024, compared to $1,600 in 2023. 

Eligibility for the Child Tax Credit is determined based on several factors, including the taxpayer’s income and the age of the child. The Child Tax Credit application process involves filing a federal tax return and providing documentation, such as a child’s Social Security number, to prove eligibility.

Who is eligible to file Child Tax Credit 2024?

To be eligible to file for the Child Tax Credit (CTC) for the 2024 tax year (to be filed in 2025), you need to meet several criteria:

  • A valid Social Security number and a U.S. citizenship, U.S. national, or U.S. resident alien are some requirements. The child must be less than 17 years old by December 31st of the year.
  • Taxpayers income should fall within designated limits. The credit phases out if your modified adjusted gross income (MAGI) exceeds $200,000 for single filers or $400,000 for married couples filing jointly. If the income exceeds these limits, the credit amount is gradually reduced.
  • You must file as single, head of household, qualifying widow(er), or married filing jointly. 
  • Both you and your child must have valid taxpayer identification numbers (TINs) by the due date of your tax return.
  • The child can be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or any of their descendants, such as a grandchild, niece, or nephew.
  • The child must have spent more than six months living with you during the year. 
  • The child must not have provided more than half of their own financial support during the year.

Child Tax Credit

What deductions will apply to the 2024 Child Tax Credit if my income goes up?

When your income increases, the Child Tax Credit (CTC) for the 2024 tax year (to be filed in 2025) will be subject to phase-out rules based on your modified adjusted gross income (MAGI). For Single Filers, Head of Household, or Qualifying Widow(er), the phase-out begins if your MAGI exceeds $200,000.

For married Filing Jointly, the phase-out starts if your MAGI exceeds $400,000.

For every $1,000 (or fraction thereof) that your MAGI exceeds the threshold for your filing status, the Child Tax Credit is reduced by $50.

What type of information is required to file Child Tax Credit 2024?

To file for the Child Tax Credit for the 2024 tax year (to be filed in 2025), you will need the following information and documents:

Personal Information:

  • Your Social Security Number (SSN)
  • Your spouse’s SSN (if filing jointly)
  • Your filing status (e.g., single, married filing jointly)

Dependent Information:

  • Each child’s full name
  • Each child’s SSN
  • Each child’s date of birth
  • Proof of relationship to each child (e.g., birth certificate, adoption papers)
  • Proof that the child lived with you for more than half of the year (e.g., school records, medical records)

Income Information:

  • W-2 forms from all employers
  • 1099 forms for other income (e.g., freelance work, interest income)
  • Records of any other income received during the year

Adjusted Gross Income (AGI):

  • Documentation of any deductions or credits that affect your AGI
  • Information on any other tax credits or deductions you are claiming

Residency Information:

  • Proof of U.S. residency for you and your dependents (e.g., utility bills, lease agreements)

Childcare Information (if applicable):

  • Details of childcare expenses
  • Information about the childcare provider, including their name, address, and Taxpayer Identification Number (TIN)

Bank Information:

  • Bank details, including account and routing numbers, for refund direct deposit.

How and where to file Child Tax Credit 2024?

The step-by-step guide on how and where to file for the Child Tax Credit for the 2024 tax year is available below.

  • Collect all necessary personal, dependent, income, and residency information as well as any other relevant documents (e.g., W-2s, 1099s, birth certificates).
  • Choose a Filing Method:
    • Online: Use the IRS’s e-file system or a trusted tax preparation software (e.g., TurboTax, H&R Block).
    • Paper: Obtain the necessary IRS forms (e.g., Form 1040) from the IRS website or a local IRS office.
  • Complete the Tax Return:
    • Online: Follow the prompts in the tax software to enter your information.
    • Paper: Fill out the forms manually, ensuring all information is accurate and complete.
  • On your tax return, locate the section for the Child Tax Credit.
  • Enter the required information about your dependents, attach a completed Schedule 8812, and calculate the credit amount based on your income and cover other criteria.
  • Review and Submit:
    • Online: Make sure your tax return is accurate before submitting it electronically via the e-file system.
    • Paper: Double-check all entries, sign the form, and mail it to the appropriate IRS address (found on the IRS website).
  • Once you’ve filed, you can monitor your refund status using the IRS’s “Where’s My Refund?” tool on their website.

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