As 2024 ends, families across the United States are eagerly awaiting their Child Tax Credit (CTC) payments, hoping for the same benefits that were available during the American Rescue Plan (ARP) in 2021. However, families should not expect to receive $1,400 per child or $3,600 annually this December. The temporary expansions of the CTC under the ARP have expired, and the rules for 2024 have reverted to pre-2021 levels.

In this article, we will break down the details about the 2024 CTC payments, what families can expect, and how they can maximize their benefits. Let’s dive into the specifics.

What is the Child Tax Credit (CTC)?

The Child Tax Credit (CTC) is a tax benefit provided by the U.S. government to help families with the costs of raising children. This tax credit reduces the amount of taxes owed, and in some cases, it can even result in a refund if the credit exceeds the tax liability.

The CTC was expanded significantly in 2021 under the American Rescue Plan, offering higher amounts per child. The expansion included payments of $3,600 for children under 6 years old and $3,000 for children aged 6 to 17, along with monthly payments to provide immediate relief to families.

Changes in the Child Tax Credit for 2024

For 2024, the enhancements introduced by the American Rescue Plan have expired. This means that families will no longer receive the larger amounts that were part of the 2021 temporary expansion. Instead, the Child Tax Credit has reverted to its pre-2021 structure, providing:

• Up to $2,000 per child for the 2024 tax year.
• Up to $1,400 refundable, meaning that if the credit exceeds your tax liability, the IRS will refund the difference.

While the credit has been reduced compared to 2021, the CTC still provides valuable financial relief for families, helping them reduce their tax burden or receive a refund.

Who is Eligible for the Child Tax Credit in 2024?

To qualify for the Child Tax Credit in 2024, families must meet certain requirements:

1. Income Limits:
   • For single filers, the credit begins to phase out at an income of $200,000.
   • For married couples filing jointly, the phase-out starts at $400,000.
2. Age Requirements:
   • The child must be under 17 years old by the end of the tax year.
   • The child must be related to the taxpayer (e.g., biological, adopted, stepchild, or foster child).
   • The child must have lived with the taxpayer for at least half the year.
3. Other Requirements:
   • The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
   • The child must have a valid Social Security number.

Why Are $1,400 and $3,600 Payments Not Available in December 2024?

There has been some confusion about whether the $1,400 per child or $3,600 per year payments will return in December 2024. Here’s why these amounts are no longer available:

• The $1,400 Payment: This amount was part of the stimulus checks issued by the federal government in 2021. These payments were separate from the Child Tax Credit and are not part of the 2024 CTC program.
• The $3,600 Amount: This was the enhanced CTC amount for 2021, specifically for children under 6. The $3,000 amount applied to children aged 6 to 17. Since the ARP enhancements ended in 2021, these higher amounts are no longer available for 2024.

For 2024, families can expect up to $2,000 per child, with a refundable portion of up to $1,400, depending on their tax liability.

When Will You Receive Your CTC Payments?

Unlike in previous years, where monthly payments were sent, the CTC for 2024 will be issued after families file their taxes for the year. The tax filing deadline for the 2024 tax year is April 15, 2025.

Here’s a general timeline for how CTC payments work in 2024:

• File Your Taxes: To receive your CTC, you need to file your tax return for the 2024 tax year.
• Refundable Portion: If your tax liability is lower than the credit amount, the IRS will refund the difference, up to $1,400.
• Direct Deposit: If you have filed your taxes electronically and provided bank account details, your CTC refund will be deposited directly into your bank account.

Practical Tips for Maximizing Your CTC Benefits

To make sure you’re getting the most out of your Child Tax Credit, consider these tips:

1. File Your Taxes Early: Filing early can help you receive your refund sooner, especially if you’re eligible for the CTC.
2. Ensure Eligibility: Double-check that all the children listed on your return meet the IRS’s eligibility criteria.
3. Keep Your Information Updated: Make sure your address, bank account details, and other personal information are correct with the IRS.
4. Seek Professional Help: If you’re self-employed or have other complicated financial circumstances, it may be worth consulting a tax professional to ensure you’re claiming all available credits.

Conclusion

While the enhanced Child Tax Credit payments from 2021 are no longer available, families can still benefit from the 2024 CTC, which offers up to $2,000 per child and up to $1,400 refundable. To maximize your benefits, ensure that you meet all eligibility criteria and file your taxes on time. If you’re unsure about your eligibility, a tax professional can help you navigate the process.

FAQs About $1,400 Per Child & $3,600 Per Year CTC Payments in December 2024

1. Will the $3,600 payments return in December 2024?
   • No, the $3,600 payments were part of the 2021 expansion and will not return in 2024. The current CTC is up to $2,000 per child, with a refundable portion of up to $1,400.
2. How do I know if I’m eligible for the Child Tax Credit in 2024?
   • Eligibility depends on factors like income, your child’s age, and IRS criteria. You can check the IRS Child Tax Credit page for full details.
3. When will I receive my CTC payment?
   • CTC payments are issued after you file your taxes for 2024. If you’re eligible, you should receive your refund within 21 days after the IRS processes your return.
4. Can I claim the CTC if I don’t owe taxes?
   • Yes, the CTC is partially refundable. If you don’t owe taxes, you can still receive up to $1,400 per child as a refund.
5. Can I still get the Child Tax Credit if I am self-employed?
   • Yes, self-employed individuals can claim the CTC if they meet all other eligibility requirements.