How Much Is the Child Tax Credit for 2024?
Tax season is just around the corner, and if you’re a parent or guardian, you might qualify for the Child Tax Credit. This special credit could significantly lower your tax bill. Keep reading to find out who qualifies and how much you could receive.
What is the Child Tax Credit?
The Child Tax Credit was first introduced in 1997. It’s designed to help families cover the cost of raising children. With this credit, you can either reduce your tax debt or increase your annual refund.
2024
The credit is worth variable amounts depending on current law. For tax years 2024 and 2025, eligible taxpayers can receive a credit of up to $2,000 per qualifying child. Please note that this amount is based on your modified adjusted gross income (MAGI) level, and you may receive less if you’re a high earner. Credit reductions begin when you earn above $200,000 as a single filer. For couples filing jointly, the income threshold is $400,000.
Age Limit
There is no age limit to claim this credit for 2024. However, your child must be under 17 on the last day of the tax year.
Partial Refund
If you don’t owe any taxes, you can still get up to $1,700 of the Child Tax Credit as a refund. This is known as the Additional Child Tax Credit, and it’s available if you’ve earned at least $2,500 in income.
Who qualifies for the Child Tax Credit?
To qualify for the Child Tax Credit in 2024, you and your child must meet specific criteria. You need to be a U.S. citizen or resident alien. Your child must:
- Be a U.S. citizen, resident alien, or national
- Live with you for at least six months
- Be claimed as a dependent on your tax return
- Have a valid Social Security number
There’s no limit to the number of children you can claim for this credit.
How to claim the Child Tax Credit?
To claim the Child Tax Credit in 2024, you’ll need to fill out Form 1040 and attach Schedule 8812. This form will ask for information about your children, such as their names and Social Security numbers. You’ll also be able to use this form to see if you qualify for the entire credit.
State child tax credits
In addition to the federal child tax credit, 16 states also offer their own tax credits for families with children. These include California, Illinois, Maine, New Mexico, New York, New Jersey, and Oregon.
State tax credits for families vary significantly in amount and eligibility requirements, so working with a tax expert is a good idea. These valuable credits can provide even more savings for your family.
2026 and Beyond
The Tax Cuts and Jobs Act of 2017 boosted the child tax credit limit to $2,000. However, unless Congress intervenes, the limit will revert to $1,000 in 2026. The income thresholds will also change. The credit will start to phase out at $75,000 for single filers and $110,000 for married couples filing jointly.
Final Thoughts
As a parent, taking care of your children is your number one priority. The Child Tax Credit can help make this a little easier by reducing your tax burden. If you think you qualify, let the team at Kondler & Associates, CPAs, guide you through the process and ensure that you receive all the credits and deductions you’re entitled to. We’re well-versed in all things tax, and we’d love to help. Contact us today to learn more!
