Child Tax Credit 2024: Find Out If You’re Eligible
With 2025 upon us, we are less than a month away from the official start of tax filing season, which means many people will now start to seriously consider what deduction and credit options they have. You may have heard a lot about the Child Tax Credit – and its uncertain future — But how do you know if you and your family qualify?
The federal child tax credit was first introduced in the United States in the late 1990s to help people reduce the tax they pay based on the number of dependent children. In the decades since then, the amount of credit offered has grown, and, at least this year, it can now also increase your tax refund.
Recent research shows that the child tax credit can have a meaningful impact on the quality of life for many families by lifting them out of poverty. Columbia University Center on Poverty and Social Policy Discover Payments lowers monthly fees Child poverty will be reduced by nearly 30% in 2021 after the American Rescue Plan expands, sending benefits to approximately 61 million children through tax-paying parents.
Read on for everything you need to know about federal child tax credit eligibility. For more tax help, find out if Child tax credit will delay your return and See if your state has its own version of the credit.
What is the child tax credit?
As the name suggests, the federal child tax credit, first written into U.S. tax law in 1997, provides a tax credit for each dependent child you claim on your tax return. Depending on your situation, this can help lower the amount of tax you owe or it can help increase the amount of tax refund you will receive.
Currently, the tax credit is limited to a maximum of $2,000 per dependent child. The full amount is “non-refundable,” meaning you can only receive so much to lower your tax liability. However, you can claim up to $1,700 per child as a “refundable” credit, meaning it can be used to increase the amount of tax refund you receive.
These amounts will remain in effect for the 2025 tax season. Unless Congress passes another expansion, the child tax credit will drop to $1,000 in 2026 and is non-refundable.
How do I qualify for the Child Tax Credit?
this IRS Child Tax Credit webpage Parameters for qualifying dependent children are listed. By the end of 2024, the child is mostly younger than 17 years old and, according to the IRS, must be “your son, daughter, stepchild, qualified adopted child, brother, sister, stepbrother, stepsister, half-brother A brother, half-sister, or descendant of one of them (such as a grandson, niece, or nephew).”
Additionally, the child cannot provide more than half of the support in the 2024 tax year and must live with you for at least half the year. The child must also be a U.S. citizen, national, or resident alien and must have a valid Social Security number issued before the tax return due date.
Do I make too much money to qualify for the child tax credit?
While anyone with dependent children can claim the child tax credit, only those below a certain income threshold are eligible for the full tax credit. To do this, your 2024 income must be $200,000 or less if you file as an individual, or $400,000 or less if you file jointly. If your income exceeds these thresholds, the credit you can receive begins to decrease by $50 per child for every additional $1,000.
For more information, learn how Savers’ credit may help lower your tax bill.
