Know about US Child Tax Credit Changes 2024 and what changes are predicted to happen in 2024. This article is stuffed with all the queries on US Child Tax Credit Changes 2024. We have brilliantly covered all the hot topics for the upcoming Child Tax Credits. The main purpose of imparting the credit was to strengthen the economic power of American parents with children.
US Child Tax Credit Changes 2024
Millions of citizens have expectations on its peak that in 2024 the Child Tax Credit will increase to a great extent. In the upcoming month, it is highly predicted that low-income holding families who have children will benefit from extra funds. With the rapid increase in the cost of living for every individual, the potential boost in the Child Tax Credit could be an essential step taken by US Congress.
As the individual is getting ready to pay taxes in 2024, know that the low-income family is getting more refundable tax for each child. The goal will be to pay more amount for the Child Tax Credit to Children under 17 years whose families were not benefited in previous years or were poorly benefited. Hence the modification was much needed in 2024 to improve the cost of living for children.
What Is Child Tax Credit?
The Child Tax Credit is a partial benefit made to the parents for their qualified children in America. Millions of families are receiving benefits of up to $300 monthly without applying to any Act. The aim of starting up the US Child Tax Credit was to help employed families in the upbringing of their children.
Families with low-income standards suffered a lot previously in nurturing their children. With the help of these funds the parents can be given financial relief and the fund can be used in child care, education, and for fulfilling their basic needs in times of crisis. More than 25% of children under 17 years miss out on the whole CTC amount because their parents do not generate sufficient income to meet the criteria.
US Child Tax Credit Eligibility Criteria
Certain eligibility factors are crucial before claiming the Child Tax Credit in America. We have listed below a few qualifications that must be followed to be eligible for 2024 Credits.
- By the close of 2024, the child must be below seventeen years old to qualify.
- In order to claim the benefit it is necessary that the child must possess a SSN.
- The child could be a son, daughter, grandchild, foster child, or could be the offspring of any of these.
- The child should have resided with the applicant for the majority of years.
- The applicant must be either an American citizen by birth or a resident alien receding in the U.S
- If the claimants are married they must not file the income tax return jointly. Instead, file for the tax solely.
These eligibility norms are as per the previous CTC new ones are yet to come but they will be quite similar to the ones we have mentioned.
What are the changes?
The refundable amount for the Child Tax Credit is expected to rise from $1800 to $1900 this year. Internal Revenue Service will provide $1900 for each child. And here is the coolest part even if the parents do not owe any money in federal income taxes. It is like a gift from God through the Government just for having kids born in a poverty-stricken family.
The CTC has certain eligibility norms, not every individual having a child is eligible for $1900 per child. No need to panic in this article we have even mentioned the eligibility criteria for CTC 2024.
What’s There for you?
If any applicant makes a lot of money, the extra funds for the eligible child will start to go down. For solo parents, it begins from $200 000 and for married it kicks in at $400 000. So, if you are rolling in dough you might get a bit less of the child credit.
To get any child credit money families need to have earned at least 2500 USD throughout the year. After that, for every extra dollar they earn beyond 2500 USD. The merit starts becoming in at the rate of 15%. So if a family does not make enough money they might only get part of the credit or sometimes not at all.
This is all from the latest update about the US Child Tax Credit Changes 2024. For more informative articles visit our website. Subscribe to the newsletter so that we can notify you of our new articles.