Families all over the United States have gotten a lot of cash help from the American Rescue Plan.
The Child Tax Credit (CTC) and a $1,400 payment for each qualified person will still be available in 2024 to help Americans pay for things like raising children and other necessities.
Here’s everything you need to know about these benefits, like who can get them, when they will be paid, and how to apply.
$3,600 Child Tax Credit (CTC) and $1,400 Per Person Payment
The $3,600 Child Tax Credit (CTC) and the $1,400 payment for each person are meant to help families with a lot of money. At first, the CTC was $2,000 per child, of which $1,400 was refunded.
For kids younger than six, the CTC went up to $3,600 under the American Rescue Plan. For kids six to seventeen, it went up to $3,000. Because of this change, the whole credit could be returned for that year.
The CTC should be changed to account for inflation in 2024. The proposed Tax Relief for American Families and Workers Act of 2024 would gradually raise the maximum amount that can be refunded. It would hit $1,900 in 2024 and $2,000 in 2025.
Changes in the CTC 2024
In 2021, the American Rescue Plan raised the CTC by a large amount. In the coming years, the CTC is likely to go up a little to keep up with the rising cost of living. Reports say that the largest amount that can be refunded will go up to $1,900 in 2024, which will continue to help families pay their bills.
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Eligibility for the American Rescue Plan
People and families must meet certain income standards in order to be eligible for the stimulus checks and the increased CTC:
- Single Individuals: Must earn less than $75,000 annually.
- Joint Filers: Must earn up to $150,000 annually.
- Head of Household: Must earn less than $112,500 annually.
In addition, families with children who meet the requirements set out in the American Rescue Plan can get up to $1,400 for each kid.
Detailed Eligibility for CTC
To qualify for the CTC, households must meet several requirements:
- Age: Each child must be under 17 years old before the tax year ends.
- Social Security Number: Each child must have a valid Social Security Number.
- Residency: The child must have lived with the applicant for more than half the year.
- Citizenship: The child must be an American citizen, national, or resident alien.
- Support: The child must not have provided more than half of their own support.
Families that did not file their taxes or sign up for monthly payments by the due date should file a tax return to get the full amount of the CTC they are legally owed.
Payment Dates
Starting in August 2024, the $1,400 payment for each person and the higher CTC will be given out in stages throughout the year.
The IRS will let eligible people know when their payments are due, and they can expect to get money in their bank accounts or through the mail, based on how they filed their taxes in the past.
How to Apply
Applying for the CTC and the $1,400 per person payment is straightforward:
- File a Tax Return: Ensure you file your federal tax return for the applicable year.
- Use Form 1040: Attach Schedule 8812 to claim the CTC.
- Update Information: Ensure your bank details and personal information are current to receive direct deposits.
People who have already filed their 2019 or 2020 taxes or got stimulus checks will automatically get their CTC payments. They will not need to do anything else to get them.
Additional Support
The CTC and the $1,400 payment for each person do not change the way other government benefits work, like Medicaid or unemployment insurance. Families can get more than one type of help without losing any of their advantages.
The CTC and the $1,400 payment for each person are important parts of the American Rescue Plan, which is meant to help families with their money problems. Families can make sure they get the help they need to pay their bills by learning about the requirements for qualifying and the application process.
The changes to the CTC for 2024 show that the government is still committed to helping families even though living costs are going up.
FAQs
How much is the CTC in 2024?
The CTC will likely go up to $1,900 per child, and parents can get their money back in full.
How do I get the $1,400 payment for each person?
People whose income is less than certain limits, such as $75,000 for single filers and $150,000 for joint filers.
What do I need to do to get the CTC?
Send in Form 1040 along with Schedule 8812 with your federal tax return.
How does the CTC change other government benefits?
Because of the CTC, payments from programs like Medicaid and unemployment insurance do not go down.