If you have children and then you are claiming the child tax credit this year, you can wait before you file. The Senate is considering an expansion of the CTC.
The child tax credit — both the current credit and the one making its way through Congress — is partially refundable, meaning that for a part of the credit you can get a refund even if you don’t owe any tax. The remainder is nonrefundable, so you can use that part of the tax credit only against taxes you owe. We’ll explain the requirements that must be met to be eligible for the child tax credit in 2024.
Find out below if you’re eligible for the child tax credit in 2024 and how much money you could get.
Amount of 2024 child tax credit?
The maximum CTC available per kid is $2,000 for each child under 17 on Dec. 31, 2023. Only a portion is refundable this year 2024 and it is up to $1,600 per child.
Who is eligible for the child tax credit?
To be eligible for the tax break this year, you and your family must meet these requirements:
- You have a modified adjusted gross income, or MAGI, of $200,000 or less, or $400,000 or less if you’re filing jointly.
- The child you’re claiming the credit for was under the age of 17on Dec. 31, 2023.
- They have a valid Social Security number.
- They are your legally recognized child, stepchild, foster child, sibling, half-brother or half-sister, or a descendant of one of these categories (like a grandchild or niece or nephew).
- They have contributed no more than half of their own financial support in the relevant tax year.
- They have lived with you for over half the year.
- You are claiming them as a dependent on your tax return.
- You are a US citizen or resident alien.
If your MAGI is higher than the income limits, the amount of child tax credit you receive will decrease by $50 for every $1,000 above the limit. For example, a MAGI of $210,000 as an individual would allow you to claim $1,500 for each eligible child.
The child tax credit is phased out completely at $240,000 for individuals and $480,000 for married couples filing jointly.
Note: If you search online for information on the child tax credit, you may come across details on the 2021 expanded tax breaks, so double-check that you’re viewing the most recent information.
Will Congress expand the child tax credit in 2024?
As part of a massive COVID-19 aid package, Congress in 2021 temporarily expanded the child tax credit, Congress didn’t extend the expanded credit in 2022, and the credit returned to its pre-pandemic rate.
If approved, the new rules around the $2,000 child tax credit would be more modest and cover three tax years: 2023, 2024 and 2025. That means if it’s approved you could claim the expanded credit this tax season when you file your 2023 tax returns.
As proposed right now, the new child tax credit would continue to be partially refundable (so, for a part of the credit you could get a refund even if you didn’t owe any tax) and the new rules would increase the maximum refundable amount per child from $1,600 per child to $1,800 in tax year 2023, to $1,900 in tax year 2024 and to $2,000 in tax year 2025, with the 2024 and 2025 amounts adjusted for inflation.
The remainder of the $2,000 after the refundable amount ($200 for tax year 2023) would be nonrefundable, so you could use the tax credit only against taxes you owe — after your tax bill hits $0, you won’t get additional money.
Should I wait to file my taxes?
Though the proposed changes have cleared the House, it’s up in the air whether the Senate will approve the bill. Until the legislation is actually signed into law, you may wonder if you should hold off on filing your tax return.