The USA government has enacted the Tax Relief for American Families and Workers Act, 2024. This law is passed to give financial support to the weaker and low income families with dependent children below the age of 17 years. Originally the US government enforced this act in 1997 with the name Taxpayer Relief Act 1997. The Child Tax plan is enforced to provide financial relief to the families with children below 17 years. Government will also provide credit to the families who don’t pay taxes. Now with passing the new law there are certain Child Tax Credit Changes 2024 observed which are detailed below in the post. Before applying for the tax relief one needs to check the Child Tax Credit Eligibility 2024.
Child Tax Credit Changes 2024
The Government of America enforced law for the betterment of the citizens to give them relief from paying heavy taxes. The families who have children below the age of 17 years are eligible to claim the child tax relief and credit. In the year 2024 the US has made some laws regarding the Now with passing the new law there are certain Child Tax Credit Changes 2024 observed which are detailed below in the post., and the legislature planned to expand the CTC this year. The CTC increased to $2000 per child and partial refund will be given to the non tax payer amounting $1600 and for the consecutive three years 2023,2024 and 2025. The highest income holder of a family can claim Child Tax Credit 2024. The individual needs to meet the Child Tax Credit Eligibility 2024 to claim the Child Tax Credit 2024. The child or dependent must be below 17 years old and the family must have the proof of dependent child. The applicant must apply by filling the form 1040 along with the complete schedule 8812 for credit.
irs.gov Child Tax Credit 2024- Overview
| Programme Name | Child Tax Credit 2024 |
| Governed By | US Government |
| Beneficiary | Citizens of US |
| Country | United States Of America |
| Child Tax Credit Eligibility 2024 | Families with children below 17 years |
| Child Tax Credit Amount 2024 | $2000 |
| Partial Refundable Amount 2024 | $1600 |
| Application Form | US Individual Income Tax Return Form 1040 |
| Category | Finance |
| Website | irs.gov |
USA Child Tax Credit Changes 2024
On 31st January 2024 the US legislation enacted the Tax Relief for American Families and Workers Act 2024, to provide the tax relief to the families with qualified children. Following are the changes in the Child Tax Credit Amount 2024 and tax credit:
| Year | Child Tax Credit Amount 2024 (Year Wise) | Refundable tax Credit |
| 2021 | $3600 for not more than 5 children$3000 per child for 6 to 17 years old | Nil |
| 2023 | $2000per child below 17 years of age | $1800 |
| 2024 | $2000 per qualified child | $1600 |
| 2025 | $1900 per qualified child | $2000 |
Benefit of USA Child Tax Credit 2024
- To reduce the heavy tax burden on families with low income.
- Benefit to the individual who is not filing a tax return.
- Not only the parents, also the caregivers can claim CTC 2024 with dependent proof.
- For the betterment of kids and families to uplift the living standards with inflation rate.
Child Tax Credit Amount 2024
The eligible family member can claim tax relief of $2000 per child under Child Tax Credit 2024 and the individual who hasn’t filled the tax return ever can also claim the refundable amount of $1600 by filling the correct forms and attaching all the required documents.
Child Tax Credit Eligibility 2024
The applicants must qualify the eligibility criteria to apply for the claim of Child Tax Credit 2024:
- The child must be below the age of 17 years.
- The child must be your son, daughter, step child, eligible foster child, brother, sister, step brother, step sister,grandchild, niece or nephew
- Applicant must provide the valid dependent proof
- The child must be US citizen, US national or US resident Alien
- Claimants must not support the child more than half of their own income in a year.
- The child must have lived with you at least 6 months in a year
- The tax return must be filed individually not combined with the spouse.
- The income must be not more than $200,000.
How To Claim Child Tax Credit Changes 2024?
The individual can claim the Child Tax Credit 2024 benefit by following ways:
- You need to add the child or dependent name in US Individual Income Tax Return Form 1040
- Do attach all the required documents and valid proofs
- Attach the complete schedule 8812 along with the form 1040 for credit
- You are advised to file the form 1040 before or by 15th April 2024
- The US government provides tax extension till October 2024 with valid reasons.
FAQs on Child Tax Credit Changes 2024
The US lawmakers have expanded the claim amount to $2000 and refundable amount $1600 per child in 2024 under the Child Tax Credit Act 2024.
The eligible individual must file the form 1040 along with the complete schedule 8812 before or on 15th April 2024 or by 0ctober 2024 with tax extension.
You can get more information and updates regarding Child Tax Credit Changes 2024 on irs.gov.