Refundable Child Tax Credit – CTC Amount, Eligibility, How to apply?

One federal tax advantage that is crucial in helping taxpayers with children financially is the CTC. Legislators’ efforts to increase the credit have put the CTC in the headlines this year. Those with children who are dependent under the age of 17 are eligible for a $2,000 benefit known as the child tax credit.

Refundable Child Tax Credit

The new regulations would raise the total refundable amount per child from $1,600 to $1,800 in the tax year 2023, $1,900 in the tax year 2024, and $2,000 in the tax year 2025, with the 2024 and 2025 amounts that are adjusted for the rate of inflation. 

The new child tax credit is going to continue to be available as partially refundable, meaning that you could receive a refund for a portion of the credit even if you did not owe any taxes. You could only utilize the tax credit against taxes you owe because the remaining $2,000 after the amount that is refunded ($200 for tax year 2023) would be not refundable.

You won’t receive any further funds after your tax bill is zero. The more moderate new regulations for the $2,000 child tax credit, if passed, would apply to the next three tax years: 2023, 2024, and 2025. If authorized, you may submit your 2023 tax returns this tax year and get the enlarged benefit. 

• $300 CTC 2024
• CTC Payments 2024
• IRS Child Tax Credit Refund Date
• Additional Child Tax Credit Refund Date

Who is eligible for the Refundable CTC 2024? 

The eligibility of child tax credit 2024 is given below. 

• You meet the eligibility requirements if your modified adjusted gross income (MAGI) is $200,000 or less, or $400,000 if you’re filed together.
• On December 31, 2023, the child for whom you are requesting credit was younger than 17 years old.
• Their Social Security number is up to date.
• They may be your sibling, stepchild, foster child, accepted by-law child, half-brother, half-sister, or a descendant of one of these (such as a granddaughter, niece, or nephew).
• In the applicable tax year, they have contributed no more than 50% of their funds.
• They have spent more than half the year residing with you.
• On your tax return, you are listing them as a dependent.
• You are an immigrant or a citizen of the US. 

What is the child tax credit amount for 2023?

Child tax credit (2023) that is filed in the 2024 tax season. For 2023, if your modified adjusted gross revenue is $400,000 or less (if you register jointly) or $200,000 or less (for other types of registrants), you will receive a child tax credit of $2,000 per qualified dependent child. 

In short, For 2023 taxes paid in 2024, the highest refundable amount currently placed at $1,600 per dependent would rise to $1,800. The refundable child tax credit payment will be raised to $1,900 and $2,000 in tax years 2024 and 2025.

The additional child tax credit, or refundable component, has a maximum value of $1,600.

For every $1,000 that your income is over the threshold, your credit is lowered by $50 if your MAGI is higher than the previously mentioned limits.

How do I apply for the 2024 Child Tax Credit? 

The child tax credit and the additional child tax credit are available for the tax year 2023 if you file your federal tax return (Form 1040 or 1040-SR) by April 15, 2024, or by 15 October 2024, if you are filing for an extension of tax season. Here is the step-by-step procedure to apply for the child tax credit 2024 provided. 

• Navigate to the https://www.irs.gov/ webpage. 
• Hit and locate the child tax credit. 
• You must have an eligible child and a valid social security number. 
• Fill up your 1040 form completely and attach the required documents if needed. 
• Along with your form 1040, you must complete Schedule 8812, “Credits for Qualifying Children and Other Dependents. 
• You can use this schedule to calculate the amount of your child tax credit and, if appropriate, the amount of the partial refund that you may be eligible to receive. 
• Verify your details and then submit your form. 

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