The House of Representatives recently passed the Tax Relief for American Families and Workers Act of 2024, which includes an expansion of the Child Tax Credit (CTC) for 2024. Did the child tax credit pass in 2024? However, the bill still awaits Senate approval before becoming law. If enacted, this expansion would provide greater financial relief to low-income families with multiple children.
The Child Tax Credit serves as a federal tax benefit, offering financial assistance to households with children under 17. The refundable portion of the credit would gradually increase, reducing tax liability and potentially leading to larger refunds for qualifying families.
Did The Child Tax Credit Pass in 2024
Certain taxpayers may also be qualified for a partial credit score refund through the ‘Extra Child Tax Credit’ (ACTC) score.
As of now, it is still uncertain whether the expanded Child Tax Credit will take effect, as the bill has passed the House but awaits Senate approval. If enacted, qualified families could benefit when filing their 2024 tax returns in 2025. The proposed expansion would increase the maximum refundable portion of the credit to $1,800 for the 2024 tax year, providing greater financial relief to low-income families.
What Are The Key Changes Proposed In The Bill?
According to the House version of the bill, the expansion would ensure a greater share of the credit is available to families with numerous children and lower incomes. For the 2024 tax year, the maximum refundable portion of the Child Tax Credit will increase from $1,600 to $1,800.
Maximum Credit Amount Per Child For 2024
The child tax credit’s refundable variant requires taxpayers to make at least $2,500 to be eligible. For taxes filed in 2025 and 2026 or 2024 and 2025, filers may meet this requirement by using their earned income from the previous or current year. This is particularly important for a large number of lower-class families who would not otherwise be eligible due to their low annual income.
How Fast Could You Receive The Additional Child Tax Credit Money?
In contrast to the 2021 credit system, where you could get half of your payments upfront, the new proposed rule suggests that you claim your refund when filing your taxes. The child tax credit would then be applied to your tax refund. If you owe money, you can use it to reduce your tax debt. The IRS mentioned that adjustments will be made for those who have already filed their taxes, saving them from having to submit an updated return. The waiting period is generally longer if you file on paper.
How Much Could I Receive With The Proposed Expansion ?
Under the current Child Tax Credit (CTC) structure, eligible families can receive up to $2,000 per qualifying child under 17. Previously, only $1,600 of that amount was refundable. However, if the proposed expansion is approved, the maximum refundable portion will increase to $1,800 for the 2024 tax year. The refundable credit is set to rise further to $1,900 in 2025 and $2,000 in 2026, unless additional legislative changes are made.
Parents and caregivers can calculate their total credit eligibility based on the number of qualifying children, starting with 2024 tax returns filed in 2025. This expansion aims to provide greater financial relief to low-income families by making more of the credit refundable.
The Child Tax Credit can help reduce or eliminate tax liability on a dollar-for-dollar basis. Additionally, eligible taxpayers may qualify for a partial refund through the Additional Child Tax Credit (ACTC) if their total credit exceeds their tax liability. Families with qualifying children under 17 may receive a total credit of up to $2,000 per child, depending on income eligibility and filing status.
Read related blogs: Do Teachers Owe Taxes?
Conclusion
According to the Tax Policy Center, households receiving the Child Tax Credit (CTC) in 2024 are expected to see an average tax savings of $680. Nearly 50% of families earning less than $21,000 annually would benefit from the expanded credit, providing much-needed financial relief. Additionally, 25% of households with annual incomes below $40,500 would also see a reduction in their tax burden.
Even high-income earners could see some impact—those in the top 1% of income brackets (earning over $980,000 annually) may still qualify for a portion of the credit. Overall, more than 16% of Americans would experience a decrease in their total tax liability under the proposed changes for the 2024 tax year.
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FAQs
Did they pass the child tax credit 2024?
No, the expanded **Child Tax Credit (CTC) for 2024 has not yet been fully approved. While the House of Representatives passed the Tax Relief for American Families and Workers Act of 2024, the bill still awaits Senate approval before becoming law.
When to expect tax refund 2024?
If you previously submitted your tax return and were eligible for a refund, you may have gotten it by February. Otherwise, how and when you file will determine when your return is issued. E-filed returns with direct deposit are usually handled within 7 to 21 days of IRS acceptance, although paper-filed returns might take 4 to 6 weeks, or up to 120 days in some situations.
Returns requiring additional examination, such as those flagged for mistakes or identity verification, may take 90 days or more. To check the status of your return, go to the IRS’s “Where’s My Refund?” function on their official website.
What is the income tax credit for 2024?
Income tax credits can vary. As of 2024, the income tax credit can be anywhere between $1800 to $2000, depending on the household’s annual income.
What is the kiddie tax for 2024?
The kiddie tax is imposed on individuals under a certain age whose investment and unearned income is higher than an annually determined threshold. However, as of 2024, the kiddie tax is $2600.
