The Child Tax Credit | The White House (2024)

FAQs

Did they pass the $3600 Child Tax Credit? ›

The 2021 pandemic child tax credit increased the credit amount up to $3,600 per child under age 6 and $3,000 per child ages 6 to 17.

Specifically, the Child Tax Credit was revised in the following ways for 2021: The credit amount was increased for 2021. The American Rescue Plan increased the amount of the Child Tax Credit from $2,000 to $3,600 for qualifying children under age 6, and $3,000 for other qualifying children under age 18.

At the beginning of 2024, the U.S. House of Representatives passed $78 billion tax legislation that includes a newly expanded child tax credit (CTC) and various tax breaks for businesses. Since then, the bipartisan tax package has been stalled in the U.S. Senate.

Child tax credit 2024 (taxes filed in 2025)

For the 2024 tax year (tax returns filed in 2025), the child tax credit will be worth $2,000 per qualifying child, with $1,700 being potentially refundable through the additional child tax credit.

Under the American Rescue Plan, most eligible families received the first payment on July 15, and payments will continue each month for the rest of 2021. For these families, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17.

If you chose direct deposit as your refund method and your return was error-free, the IRS estimates you should have received your refund by Feb. 27, 2024.

Currently, only middle- and upper-income families receive the full $2,000 credit per child. That is because the credit reduces taxes owed and is not fully refundable, meaning many low-income families who don't earn enough to owe more than the credit is worth can't take full advantage of it.

Under section 7508A, the IRS gives affected taxpayers until Sept, 3, 2024, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information ...

In general, disqualifying income is investment income such as taxable and tax-exempt interest, dividends, child's interest and dividend income reported on the return, child's tax-exempt interest reported on Form 8814, line 1b, net rental and royalty income, net capital gain income, other portfolio income, and net ...

The Tax Cuts and Jobs Act doubled the child tax credit to $2,000 per child and added another $500 credit for older children and other dependents. The Treasury Department estimates that about 39.4 million families received child tax credits and additional child tax credits in 2019, totaling $88.1 billion.

Is there really a Child Tax Credit? ›

Who Qualifies. You can claim the Child Tax Credit for each qualifying child who has a Social Security number that is valid for employment in the United States. To be a qualifying child for the 2023 tax year, your dependent generally must: Be under age 17 at the end of the year.

In 1991, the bipartisan National Commission on Children,1 which was established to provide solutions to a variety of problems facing children, recommended in its final report to the President the creation of a $1,000 refundable child tax credit for all children through age 18.

Both the corporate provisions and the Child Tax Credit provisions would be in place for three years — for tax years 2023, 2024, and 2025 — expiring at the end of 2025 like many tax provisions from the 2017 tax law. The package includes several additional modest provisions.

Earned income tax credit 2024

For the 2024 tax year (taxes filed in 2025), the earned income credit will range from $632 to $7,830, depending on your filing status and the number of children you have.

For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.

But the expanded CTC failed to materialize ahead of the April 15 tax deadline, and its future appears uncertain. The bill, called the Tax Relief for American Families and Workers Act of 2024, easily passed the House in February with bipartisan support.

The Child Tax Credit is a tax benefit to help families who are raising children. Nearly all families with kids will qualify. Couples making less than $150,000 and single parents (also called Head of Household) making less than $112,500 will qualify for the additional 2021 Child Tax Credit amounts.

The kiddie tax threshold, adjusted each year for inflation, is the following for each tax year: 2022: $2,300. 2023: $2,500. 2024: $2,600.