Tax Credit For Children 2024 – Child Tax Credit Latest Updates!

Vice President Kamala Harris introduced a populist economic platform that included a $6,000 tax credit for families in the first year of a child’s life. This will help shift part of the financial burden from new parents during the first very expensive months of raising a newborn.

Tax Credit For Children 2024

The CTC has served as one of the most important drivers of income support for families in the United States, alleviating some of the rising expenses of rearing children. Multiple changes are coming into play as we near the 2024 tax year.

A new initiative Vice President Kamala Harris touts to expand benefits to families with newborns. Vice President Kamala Harris introduced a major policy initiative that would include a $6,000 tax credit for families in the first year of a child’s life.

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Tax Credit For Children 2024 Eligibility Requirements 

You and the child you care for must meet several criteria to claim the Child Tax Credit for the 2024 tax year, which will be filed in 2025:

Requirements of Child:

• The child, at the end of the tax year, should be below 17 years old. It means for the tax return year 2024, the child should be born after December 31, 2007.
• He/ she must be your biological child, adopted child, stepchild, foster child, or a descendant of any of the aforementioned—the sibling, stepsibling, niece, or nephew.
• Residence: The child must have been a member of your household for over half of the tax year .
• Financial support: The child did not provide more than half of his or her own support for the year.
• Social Security Number: The child must have a valid Social Security number which is in effect and valid for employment in the United States. Neither US citizenship nor residency is necessary. 

Requirements for Taxpayers:

• Filing Status: You must be single, head of household, qualifying widow(er), or married filing jointly.
• Adjusted Gross Income (AGI): The AGI must be less than certain thresholds for the full credit. These thresholds begin at $200,000 for single filers and $400,000 for married couples who file jointly. For every $1,000 over these thresholds, the credit goes down by $50.
• Social Security Number: The applicant must have a valid Social Security number.

• You and your child must be a U.S. citizen, U.S. national, or U.S. resident alien.
• Dependent Status The child must be claimed as dependent on your tax return.
• Joint Return If the child is married, they generally cannot file a joint return unless it’s solely to claim a refund of withheld income tax or estimated tax paid.

How to Claim the Child Tax Credit 2024?

The Child Tax Credit is part of your annual tax return; there is no separate online application.

• Select a Tax Filing Method
  • Do-It-Yourself Software The majority of online tax preparation products will walk you through this process.
  • Tax Professional You can use a tax accountant or enrolled agent to prepare your return.
• Start Your Tax Return Provide personal info, your income, deductions, and anything else that applies to you.
• State the number of qualifying children. Complete the appropriate schedules and forms for the CTC.
• Claim the CTC. The tax software or professional will guide you through claiming the CTC.
• You will generally need to answer questions about each qualifying child, such as their
  • Social Security number for you, your spouse, and each qualifying child.
  • Information about your income and deductions.
  • Information about your children, including their birth dates and dependency status.
• Review and File. Carefully review your tax return for accuracy. E-file your return for a faster refund.

Tax Credit For Children 2024 Amount

There has been a federal tax credit to try and lighten the load of taxes on families with children. The amount of the credit has changed throughout the years because of changes that have been made and that have been proposed.

Current Child Tax Credit

• Base amount: $2,000 for each qualifying child.
• Refundable amount: Of the total credit, $1,700 is refundable; families receive this amount even if they pay no federal income tax. This offers huge financial relief to low- and moderate-income households.

Proposed Changes and Future Outlook

• H.R. 7024: This bill, as passed in the House, would increase the refundability of the CTC, benefiting low-income families and likely pushing hundreds of thousands of children out of poverty. 

• As important as this step forward is, it does very little to put back in place the expanded benefit offered during the pandemic.

Vice President Kamala Harris Plan

• First-Year Child Tax Credit: Offer a $6,000 tax credit to assist families during a child’s first year of life, when many of them face new financial responsibilities.
• Restoring Enhanced CTC: Restores the larger credit amounts included in the American Rescue Plan, which allowed $3,600 per child under six and $3,000 for children between 6-17.
• Other Economic Measures: Some of the larger economic themes in Harris’s platform include subsidies for housing, the cancelation of medical debt, and the banning of price gouging to support families and help correct economic inequalities.