The Child Tax Credit has been a great relief for many Americans. Fortunately, this credit would be even more beneficial this year as the United States government has increased the payment from $3,600 to $4,000. Managed by the IRS, this tax credit could greatly impact the financial well-being of many families. If you want to know if you qualify for this tax credit and how much you could receive, continue reading.
What is the new child tax credit 2024 payment?
Qualifying families with children under 18 will receive monthly payments distributed through the IRS. The tax credit can be used for a maximum of two years, and a credit of $2,000 is given per child, depending on qualifications.
If you are a US family that is taking care of or supporting children under the age of 17, you may also be eligible for the tax credit and payment.
Eligibility requirements
To see if you qualify, review the following requisites:
- You can claim on behalf of a child as long as you’ve been with that child for 6 months and have financially supported them.
- You must be a US resident and have filed a tax return in 2019,2020 and 2021.
- Income qualifications include an adjusted gross income or AGI of up to $150,000 for married couples filing jointly. For heads of households, AGI can be up to $112,500 and for other taxpayers and AGI of up to $75,000.
- Qualifying children must be under 17 years old by the end of the tax year, have a valid Social Security number and be claimed as a dependent on a tax return. The child also must be a direct descendant of any of the filing taxpayers.
2024 Payment schedule
Once you’ve completed the application form and are approved, you can expect to be credited by October 30, 2024. Payments will be transferred directly to your bank account or through a tax refund.
If you are receiving monthly payments, you can expect to receive them on the 15th of every month. If the payment has not been received by the 15th, wait three business days before contacting the IRS through their toll-free number or through the official website, www.irs.gov.
Other important information
If you meet all the eligibility criteria but don’t owe taxes or owe less than the amount given, then you can still claim a partial refund. Here are the additional requirements.
- They must earn money through employment, have a monthly income of $2500, and have at least three dependents.
- Must include income that was earned abroad
Financial relief for citizens is greatly needed during questionable times in the U.S. Extra support can help people make long-term plans and better support their future.