$3,600 Child Tax Credit Latest Update In 2024: Know Eligibility & Payout Dates

The $3,600 Child Tax Credit (CTC) was a lifeline for many American families during the pandemic, offering significant financial relief.

As we head into 2024, families are eager to know if this expanded credit will return and how it can help them cope with ongoing economic challenges.

This article covers the latest updates, eligibility criteria, and anticipated payout dates for the $3,600 CTC in 2024.

$3,600 Child Tax Credit 2024 Update

The $3,600 CTC was initially introduced as part of the American Rescue Plan in 2021, designed to assist families during the Covid-19 pandemic.

The expanded credit provided up to $3,600 per child under the age of six and $3,000 per child aged 6 to 17. These payments helped offset increased living costs caused by inflation and other economic factors.

As of 2024, there is no official announcement for the full reinstatement of the expanded $3,600 CTC. However, discussions are ongoing in Congress about reviving this support to aid low- and middle-income families.

For now, the Child Tax Credit has returned to its pre-pandemic level of $2,000 per child. However, the amount is expected to increase slightly each year, rising to $1,900 in 2024 and $2,000 in 2025 for refundable amounts.

Eligibility for the $3,600 Child Tax Credit

To qualify for the $3,600 CTC, families must meet specific eligibility requirements. These criteria determine who can claim the benefit and how much they can receive.

Key Eligibility Criteria:

1. Age of Children: The child must be 17 years old or younger.
2. Relationship: The child must be related to the taxpayer, such as a son, daughter, stepchild, foster child, niece, nephew, or grandchild.
3. Residency: The child must have lived with the applicant for at least six months of the year. Exceptions may apply in special cases.
4. Social Security Number: The child must have a valid Social Security Number.
5. Income Limits: The CTC phases out based on income. For the 2021 expanded CTC, the phase-out began at:
   • $75,000 for single filers,
   • $112,500 for heads of households,
   • $150,000 for married couples filing jointly.

For the regular $2,000 CTC, the phase-out begins at $200,000 for single filers and $400,000 for married couples. This phase-out threshold is expected to stay the same in 2024 unless changes are made by Congress.

$3,600 Child Tax Credit Payout Dates

During the 2021 expanded CTC, payments were distributed monthly, with half of the credit paid upfront between July and December 2021.

Families received up to $300 per child per month. The remaining half was claimed when filing tax returns in the following year.

For 2024, if the expanded CTC is reinstated, payments may follow a similar schedule. Based on previous years, monthly payouts could occur on the 15th of each month, such as:

• 15 August 2024
• 15 September 2024
• 15 October 2024
• 15 November 2024
• 15 December 2024

However, as of now, families can only receive the current $2,000 CTC by filing their tax returns. The refund is processed by the IRS within 21 days if filed electronically, though paper filings or errors can delay the process.

How to Claim the Child Tax Credit

To claim the CTC, families need to file their annual tax returns. Here’s how you can apply:

1. File Your Taxes: Use the IRS website or tax preparation software to file your returns. Ensure you have your child’s Social Security Number and income details ready.
2. Attach Documentation: Include any required forms or proof of eligibility.
3. Check IRS for Updates: Keep an eye on the IRS portal for the latest updates on eligibility changes, payouts, or errors in your application.

The $3,600 Child Tax Credit played a significant role in helping families during the pandemic. While the expanded credit ended in 2021, there is hope it may return in 2024 due to ongoing economic pressures.

Until then, families can still claim the regular $2,000 CTC and monitor IRS announcements for any changes.

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