The Child Tax Credit (CTC) is a program established by the US government to provide financial assistance to low-income families or those with children. This program enables eligible families to receive a credit that reduces their federal income tax liability, thereby providing them with additional financial support.
Contents
CTC Payments Begin August 2024
The IRS, the tax department, is planning to start giving out the CTC money on 15 August 2024. They usually deposit $300 directly into people’s bank accounts on the 15th of every month and make monthly deposits of $250. But remember, these are just the expected dates. The official dates haven’t been announced yet.
How Much Money Do You Get?
The amount of money you get from the Child Tax Credit depends on the tax year. For example, August 2024 is part of the 2023 tax year. So, the tax credit paid in August 2023 will be the same as that for the 2023 tax year.
If you have a qualifying child, you need to file an income tax return in 2025 to claim the CTC for August 2024. The maximum you can get for 2024 is $2,000 for each eligible child. Plus, you can get a refund of up to $1,700.
Check This
How to Apply for CTC
Here’s how you can apply for the CTC:
- Gather your income documents and documents about your child’s expenses.
- Decide how to apply – online or through the IRS Free File Services.
- Fill in all the necessary information in the application, especially details about your child.
- Check the application carefully before you submit it.
- Make sure to file your tax return for 2024 before 15 April 2025.
If you’ve done all this and still haven’t received your payment, you can contact the IRS.
Who Can Get the CTC?
To be eligible for the CTC, you need to:
- Have a child who is under 17 years old.
- Be a US citizen.
- Earn less than $2,00,000 a year (or $4,00,000 if you’re filing a joint return).
Income Limits for CTC
The amount of CTC you get starts to decrease if your Modified Adjusted Gross Income (MAGI) is above a certain limit. This limit depends on your filing status. Here’s a table to help you understand:
If you’re… |
Your MAGI limit is… |
|---|---|
Married and filing jointly |
$2,00,000 |
Head of the family |
$1,12,500 |
Single |
$75,000 |
For more information, you can visit the official websites of the IRS and the US Government.
Important Things to Remember
The CTC helps families who have a child but don’t earn enough money for basic expenses. But some things can affect when you get your tax credits:
- If you apply online, you’ll get your money faster – in about 21 days. If you apply on paper, it can take 6 to 8 weeks.
- If you make a mistake on your application or break the government’s rules, your tax credits could be rejected.
- The process of checking your documents might delay your tax credit payments.
Click the link to know more.
Abhilash, an exam specialist with a passion for education, writes comprehensive articles on exam results and admit cards. His expertise ensures students receive reliable information and useful tips to excel in their exams.