$3,600 Child Tax Credit Financial Relief In 2024: Know Eligibility, Benefits & Claim Process

The Child Tax Credit (CTC) is a crucial benefit for American families with children, helping to reduce tax liability and provide financial relief.

While the $3,600 Child Tax Credit was available during the COVID-19 pandemic, this enhanced amount has reverted to pre-2021 levels for the 2023 and 2024 tax years.

Let’s explore the current status of the CTC, including eligibility, benefits, and how to claim it for the 2024 tax year.

Current Child Tax Credit Amount

For the 2023 tax year (tax returns filed in 2024), the Child Tax Credit is $2,000 per eligible child under the age of 17.

This is a return to the pre-pandemic credit amount after the temporary increase during the American Rescue Plan, which had raised the credit to $3,000 for children aged 6-17 and $3,600 for children under 6.

The $3,600 amount that was available in 2021 was a temporary measure during the pandemic to provide extra support to families.

As of now, the 2024 Child Tax Credit remains at $2,000 per child for qualifying families, with no confirmed return to the $3,600 amount in 2024.

Eligibility Criteria for the Child Tax Credit

To qualify for the Child Tax Credit for 2024, you must meet specific criteria regarding your income, dependent children, and filing status. Here’s a breakdown:

• Child’s Age: The child must be under 17 years old at the end of the tax year.
• Relationship: The child can be your biological child, stepchild, foster child, sibling, or descendant of these relatives.
• Residency: The child must have lived with you for more than half the year.
• Support: The child should not have provided more than half of their own financial support.
• Dependent Status: The child must be claimed as a dependent on your tax return.
• Citizenship: The child must be a U.S. citizen, national, or resident alien with a valid Social Security number.

Income Thresholds

The CTC begins to phase out for higher-income earners. The credit amount reduces by $50 for every $1,000 over the following income thresholds:

Filing Status	Income Limit for Full Credit	Phase-Out Begins at
Single Filers	$200,000	Above $200,000
Married Filing Jointly	$400,000	Above $400,000

Once your income exceeds these thresholds, the CTC gradually reduces until it is eliminated completely.

Claiming the Child Tax Credit

When it comes time to file your taxes, you can claim the Child Tax Credit on Form 1040 or 1040-SR.

To do this, you will need to fill out Schedule 8812, which calculates the amount of the credit you’re eligible for. Here’s the process for claiming the CTC in 2024:

1. File your tax return: You can claim the CTC when you file your 2024 tax return in 2025. If you missed your 2023 tax return, you can still claim the credit on your late filing.
2. Use tax software: Many tax software platforms will automatically help you fill out the necessary forms, making it easier to claim the CTC.
3. Non-Filers: If you’re not required to file taxes due to low income, the IRS provides a Non-Filer portal where you can still claim the CTC.
4. Direct Deposit: For faster processing and refunds, opt for direct deposit to receive your payment within 21 days of filing electronically.

Refundable Portion: Additional Child Tax Credit (ACTC)

If you owe less in taxes than the amount of your CTC, you can receive a portion of the credit as a refund, called the Additional Child Tax Credit (ACTC).

This refundable portion is based on your earned income and is capped at $1,700 for the 2024 tax year, an increase from $1,600 in 2023.

The ACTC is calculated as 15% of your income over $2,500 or the unused portion of the CTC, whichever is smaller. This means that even if you owe no tax, you can still receive up to $1,700 as a refund.

Misinformation Around a $3,600 CTC for 2024

There have been rumors circulating about a return of the $3,600 Child Tax Credit for 2024, but no official announcement supports this claim. The enhanced CTC was part of pandemic-related relief efforts and is no longer in effect.

For the 2024 tax year, the maximum CTC remains at $2,000 per child, with the refundable ACTC capped at $1,700. It is essential to rely on accurate sources like the IRS to avoid misinformation.

The Child Tax Credit for 2024 remains at $2,000 per child, with some additional benefits through the refundable ACTC.

While the temporary increase to $3,600 provided much-needed financial support during the pandemic, this enhanced credit is no longer in place.

Taxpayers can still benefit from the CTC by claiming it when filing their taxes and following the correct procedures for eligibility.

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