The government is subject to providing many policies and initiatives to support growing individuals and families. One such policy includes the Child Tax Credit. But when will the child tax credit be released in 2024? It is anticipated to be released soon!
Families nationwide wait for this annual financial assistance and make sure to apply if eligible. This scheme was created to elevate the economy and relieve American households. Let’s understand the complexities and procedures of acquiring a Child Tax Credit and look into this scheme to help you achieve the perfect economic year ahead!
When is the Child Tax Credit Being Released in 2024?
The Child Tax Credit isn’t actually “released” in a specific time frame in 2024. It’s a credit you claim for the previous year’s income on your tax return. Here’s why:
While people await the implementation of the Child Tax Credit and the newly-created bill, they ask when it will be released in 2024. The Child Tax Credit has not been ‘released’ specifically for 2024. Here are a few things to keep in mind.
- The Child Tax Credit is included in the tax return and can be calculated based on the previous tax year’s income, meaning you will claim the credit on your 2023 tax return filed in 2024.
- After filing your taxes, you can learn about your return per paid taxes and Child Tax Credit eligibility for 2023.
- The IRS typically starts issuing refunds for taxpayers who file their taxes in mid-February. Those who file electronically and opt for direct deposit receive refunds faster.
What Are the Key Changes Made in 2024
Before we move forward, you should understand that the House recently passed a bill about Child Tax Credit for 2024. This bill aims to improve the condition of low-income families and help them sustain in today’s economy.
Let us understand some fundamental pointers and changes that can unfold in 2024.
Current Scenario
A child has to be under 17 years of age for the parent to qualify for Child Tax Credit. The maximum credit amount is $2000. Further, the government can return $1500 as a potential refund.
Increased Refundable Credits
According to CBS News, if the bill (called The Tax Relief for American Families and Workers Act of 2024) gets passed by the Senate, the maximum refundable amount for the child can expand from $1600 (2023) to $1900 in 2024.
This decision will allow more credits as tax refunds, even for people who don’t owe taxes to the government.
Change in Eligibility Criteria
Although the Senate has yet to finalize something, this Child Tax Credit bill can change the eligibility criteria for children and their families.
How to Claim the Child Tax Credit in 2024
You can claim the Child Tax Credit for 2023 after filing your tax return for that year. Here is a step-by-step guide to follow!
Collect the Necessary Documents
You should fill out Form 1040 and Schedule 8812. This schedule is “Credits for Qualifying Children and Other Dependents.” You should have proof of your child’s social security number, date of birth, and proof of relationship. Finally, gather your income documents. These records may include W-2s, 1099s, and others.
Ensure You Are Eligible
Your child should be under 17 to be eligible by the end of 2023. You and your child should have a legally dependent relationship. This includes biological, adopted, stepchildren, foster children, grandchildren, nieces, nephews, or other dependents. Your child should be a U.S. citizen, resident alien, or U.S. national. The parent should provide more than half of a child’s financial support in 2023. Your yearly income should be within the IRS guidelines.
Filing Your Tax Return
You can file your tax return using reliable software like Beem. You can use the IRS File program as well. Further, calculate your credit. Include forms, documents, and other required records while filing.
Receiving Refunds
If you are an applicable candidate, you will receive the projected refund from the IRS. You will get your refund within some weeks of filing and processing your return.
Read Related Blogs: Will SSDI Recipients Get the Child Tax Credit?
Impact of the Child Tax Credit
You may wonder about the direct and indirect impact of the Child Tax Credit on society and people. Well, here is a summary!
Reduction in Poverty
Many say the Child Tax Credit helped uplift millions of children nationwide. These families could sustain themselves, especially after the credit bracket was enhanced in 2021.
Financial Security and Stability
The Child Tax Credit is an extra source of income for some families, allowing them to afford everyday living expenses and buy necessities. After implementing this policy, children had better health, education, and overall development.
Country’s Economic Boost
Child tax credit improves the spending ability of families, indirectly helping the market and economy.
How to Prepare For Next Year’s Child Tax Credit?
- It would help if you prepared for next year’s Child Tax Credit by gathering all necessary information from the judicial and legislative branches. Staying updated about the IRS and government bills can help.
- Collect your child’s information, prepare the necessary documentation, and create an estimate of your income.
- Finally, start organizing your tax documents and research dependable tax software. Try Beem, the perfect platform to file your taxes!
Conclusion
Now you have an answer to the question: When will the child tax credit be released in 2024? Although the Child Tax Credit dates have yet to be finalized for the year, you understand the importance of filing taxes. The best way to file taxes and determine returns is to find the perfect online software that performs everything in one go.
Go to Beem – the ideal platform for 24/7 support, maximum refunds, and easy switching options! Beem’s Tax Filing feature is the solution to smooth tax-related calculations!
FAQs
Did the child tax credit pass for 2024?
The Child Tax Credit still has to be approved for 2024. (This credit is for tax filing in 2023.) The measure is now being reviewed by the Senate. Updates on its progress are expected in the following months.
When can I get my tax refund in 2024?
According to the IRS processing timeframe, you should get your tax return within a few weeks of completing your taxes. Electronic filers who choose direct deposit often get their refunds sooner than those who file paper returns. The actual timing may also be determined by any further processing requirements or faults in the return.
What is the child-earned income credit for 2024?
The child-earned income credit for 2024 has yet to be disclosed after expansion. The House has passed the bill due to a decision from the Senate. According to the current scenario, the child’s earned income is $1600 if the parent is eligible.
What are the IRS changes for 2024?
The IRS changes for 2024 would enhance child-earned income and returns. Moreover, the eligibility criteria may shift. These measures seek to further financial assistance to low-income households and make it easier for qualified households to obtain the Child Tax Credit.