2024 Child Tax Credit: With more than $1.7 trillion in federal and private student loans in the United States, the student loan landscape is more challenging than ever.
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Despite recent attempts to expand the Child Tax Credit (CTC) for the 2024 filing season, it remains a significant federal tax benefit for families with children.
As a result of this financial burden, which affects one in five adults nationwide, mainstream attitudes toward student debt forgiveness have changed.
The credit remains unchanged, with eligible filers able to claim up to $2,000 per qualifying dependent, $1,600 of which is potentially refundable.
It is a nonrefundable tax credit designed to reduce tax bills dollar-for-dollar, potentially eradicating all tax obligations.
Taxpayers may also qualify for a partial refund through the Additional Child Tax Credit.
Also Read: Student Loan Consolidation Deadline for Forgiveness Eligibility Revealed
Does the child tax credit apply to everyone?
This year, you and your family must meet the following requirements to qualify for the tax break:
- Your modified adjusted gross income, or MAGI, is less than $200,000, or $400,000 if you are married filing jointly.
- You are claiming credit for a child who was under 17 on Dec. 31, 2023.
- Their Social Security number is valid.
- A legally recognized child, stepchild, foster child, sibling, half-sibling, or descendant of one of these categories (like a grandchild).
- In the relevant tax year, they contributed no more than half of their own financial support.
- Over half of the year has passed since they have lived with you.
- On your tax return, you claim them as a dependent.
- Citizenship or residency in the United States.
What to expect from the Child Tax Credit in 2024
By October 30, 2024, the Child Tax Credit payment will be credited with higher credit limits, full refundability, and broader eligibility.
Monthly payments will be issued on the fifteenth of each month, either as a refund or directly into bank accounts.
Before contacting the authorities, wait three business days if you have not received your payment.
Also Read: Student Loan Forgiveness: Will Your Consolidated Loans Qualify for Forgiveness?
Child Tax Credits 2024: How do I apply?
You can apply for the child tax credit and the additional child tax credit on your federal tax return (Form 1040 or 1040-SR), which was due by April 15, 2024, or by October 15, 2024, if you received a tax extension.
To help you file for benefits easily, here is a step-by-step procedure for applying for a child tax credit.
- Go to the IRS website for more information.
- Select the child tax credit by clicking the claim button.
- To determine your eligibility, visit the qualifying criteria section.
- For this payment to be made, each beneficiary must have a unique social security number.
- By accessing the official website, you can download Schedule 8812 and Form No. 1040.
- If any paperwork is required, please enclose it with the form.
- Submitting it successfully is the last step.
Is it better to file my tax return now or wait?
Changes to the child tax credit have passed the House, but will not be passed by the Senate in time for this tax season.
You should file your tax return or request an extension if you haven’t already.
You should always consult your tax advisor regarding your individual tax situation.
