$3,600 Child Tax Credit September 2024: Check CTC eligibility, payment dates, benefits

$3,600 Child Tax Credit September 2024: The child tax credit is an economic benefit for U.S. taxpayers who have dependents under the age of 17 as of the end of the tax year. For tax year 2023 equivalent tax returns filed in 2024, the exemption is $2,000 per qualifying child. Taxpayers can receive the full exemption if their income does not exceed $200,000 if filing separately or $400,000 if filing jointly. However, the $3,600 child tax credit is phased out for higher-income earners. After a temporary increase in the tax credit during the COVID-19 pandemic to a maximum of $3,000 per child and $3,600 for children under the age of 6, the child tax credit has reverted to its pre-2021 amount.

The CTC allows parents and guardians to potentially reduce their tax liability and receive a refund of up to $3,600 per eligible child. It is important to note that while the credit may provide a refund, it is not a full refund. This means that if you do not owe any tax, you may not be able to get the full amount back in cash. This also applies to families who have not filed a tax return or currently have no income, as long as they have a child with a Social Security number.

Those who have already filed a tax return do not need to take any further action. Payments will be automatically made by check or direct deposit, even if the Child Tax Credit is not specifically claimed. Beneficiaries can stay up to date through the IRS CTC Update Portal. People who are not required to file taxes can apply for the tax credit and begin receiving payments through the IRS Non-Filer Portal.

IRS to pay $3,600 per child in September 2024

How does the tax credit work?

The child tax credit works by directly reducing a taxpayer’s total tax liability, dollar for dollar. This is more beneficial than a tax credit, which simply reduces taxable income and typically results in less savings. To qualify for this $3,600 child tax credit, you must have a Social Security number for your dependent child.

You can claim this credit by filing Schedule 8812, “Credit for Qualified Children and Other Dependents,” with your Form 1040. Under the American Rescue Plan, the Child Tax Credit was permanently expanded to Puerto Rico and U.S. territories. For the first time, low-income families can get the financial support they need to promote their children’s development, health, and educational success.

Eligibility Criteria for the $3,600 Child Tax Credit

Eligibility for benefits for dependent children is as follows:

• The beneficiary child must be under 17 years of age at the end of the tax year.
• The child may be a biological child, stepchild, foster child, sibling, step-sibling, half-sibling, or the descendant of any of these relatives.
• The child must meet the residency requirement. h. Must be with you for more than half of the year.
• The child may not be providing more than half of his or her own financial support.
• Children must be listed as dependents on the tax return.
• Children must not file a joint tax return with spouse. If they do, it should only be for a refund of the advance paid.
• Children must be U.S. citizens, nationals, or resident aliens.

Child Tax Benefit Updates

• For the 2024 tax year that must be filed in 2025, the child tax credit is $2,000 per qualifying child.
• The modified adjusted gross income (MAGI) limit is $400,000 for married couples filing jointly and $200,000 for other taxpayers.
• If your MAGI exceeds these limits, the credit is reduced by $50 for every $1,000 above the threshold.
• This reduction could result in the credit being lost entirely.
• The additional child tax credit is refundable and has been increased to a maximum of $1,700, up from $1,600 last year.

How do I claim the $3,600 child tax credit?

• Taxpayers can claim the 2024 child tax credit on their 2025 tax returns.
• If you haven’t yet filed your 2023 tax return that was due by April 15, 2024, or the October 15, 2024 extension, you can still claim the child tax credit on Form 1040 or 1040-SR.
• To determine your exemption amount, you must complete Form 8812, which is included with your Form 1040.
• Many tax software programs offer step-by-step instructions for claiming the child tax credit, which can simplify the process and often fill out the form for you.
• If your income is below a certain amount, you may be able to get free tax software through IRS Free File.

Fact check: IRS plans to pay $3,600 per child tax credit in September 2024

The Internal Revenue Service (IRS) expects the vast majority of taxpayers will receive their refund within 21 days of e-filing their return, if they choose direct deposit and don’t have any complications while filing.

We recommend that you avoid filing paper returns whenever possible to minimize the risk of processing delays. While the CTC is non-refundable, the Additional Child Tax Credit (ACTC) offers a partial refund option, allowing taxpayers who have no income tax liability to receive a portion of the tax credit as a refund.

The IRS calculates the Additional Child Tax Credit by multiplying income over $2,500 by 15%. You can claim this amount or the portion of your CTC benefit that you were not able to fully use, whichever is less. For the 2024 tax year, the maximum refund a beneficiary can receive is up to $1,700.