The American Rescue Plan has provided substantial financial relief to families throughout the United States.
In 2024, the Child Tax Credit (CTC) and a $1,400 per person payment will continue to support eligible Americans, helping them manage child-rearing costs and other essential expenses.
Here’s what you need to know about these benefits, including eligibility criteria, payment dates, and how to apply.
$3,600 Child Tax Credit (CTC) and $1,400 Per Person Payment
The $3,600 Child Tax Credit (CTC) and the $1,400 per person payment are designed to offer significant financial assistance to families. Initially, the CTC was $2,000 per child, with $1,400 being refundable.
However, the American Rescue Plan increased the CTC to $3,600 for children under six and $3,000 for children aged six to seventeen in 2021, making the entire credit refundable for that year.
In 2024, the CTC is expected to be adjusted for inflation. The proposed Tax Relief for American Families and Workers Act of 2024 aims to gradually increase the maximum refundable amount, reaching $1,900 in 2024 and $2,000 in 2025.
Changes in the CTC for 2024
The American Rescue Plan significantly boosted the CTC in 2021. Looking forward, the CTC for 2024 is expected to increase slightly to keep pace with inflation. Reports indicate that the maximum refundable amount will rise to $1,900 in 2024, offering continued support for families to cover their expenses.
Eligibility for the American Rescue Plan
To qualify for the stimulus checks and enhanced CTC, individuals and families must meet specific income requirements:
- Single Individuals: Must earn less than $75,000 annually.
- Joint Filers: Must earn up to $150,000 annually.
- Head of Household: Must earn less than $112,500 annually.
Additionally, families with qualifying children can receive up to $1,400 per child if they meet the criteria outlined in the American Rescue Plan.
Detailed Eligibility for CTC
To qualify for the CTC, households must meet several requirements:
- Age: Each child must be under 17 years old by the end of the tax year.
- Social Security Number: Each child must have a valid Social Security Number.
- Residency: The child must have lived with the applicant for more than half of the year.
- Citizenship: The child must be an American citizen, national, or resident alien.
- Support: The child must not have provided more than half of their own support.
For families who missed filing taxes and the signup deadline for monthly payments, officials recommend filing a tax return to claim the full CTC amount owed.
Payment Dates
The $1,400 per person payment and the enhanced CTC will be distributed in phases throughout the year, beginning in August 2024.
Exact payment dates will be announced by the IRS, and eligible recipients can expect to receive payments directly in their bank accounts or through mailed checks, depending on their previous tax filing preferences.
How to Apply
Applying for the CTC and the $1,400 per person payment is straightforward:
- File a Tax Return: Ensure you file your federal tax return for the applicable year.
- Use Form 1040: Attach Schedule 8812 to claim the CTC.
- Update Information: Make sure your bank details and personal information are current to receive direct deposits.
For those who have already filed their taxes for 2019 or 2020 or received stimulus checks, the CTC payments will be processed automatically without additional signup.
Additional Support
The CTC and the $1,400 per person payment do not affect other federal benefits such as unemployment insurance or Medicaid. Families can receive multiple forms of assistance without any reduction in their benefits.
The CTC and the $1,400 per person payment are key components of the American Rescue Plan, aimed at providing financial relief to families. By staying informed about eligibility criteria and the application process, families can ensure they receive the support they need to manage living expenses effectively.
The adjustments in the CTC for 2024 reflect the government’s commitment to supporting families amidst rising living costs.
FAQs
What is the CTC amount for 2024?
The CTC is expected to rise to $1,900 per child, with full refunds available.
Who qualifies for the $1,400 per person payment?
Individuals earning below specific income thresholds, including $75,000 for singles and $150,000 for joint filers.
How do I apply for the CTC?
File a federal tax return with Form 1040 and attach Schedule 8812.
Does the CTC affect other federal benefits?
No, the CTC does not reduce benefits from programs like Medicaid or unemployment insurance.
When will the payments be disbursed?
Starting in August 2024, with specific dates to be announced by the IRS.
