The American Rescue Plan has delivered significant 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 assist eligible Americans, aiding them in managing the costs of raising children and other essential expenses.
Here’s what you need to know about these benefits, including eligibility criteria, payment dates, and application procedures.
$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 substantial financial support to families. Initially, the CTC was set at $2,000 per child, with $1,400 being refundable.
However, under the American Rescue Plan, the CTC was increased 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.
For 2024, the CTC is expected to adjust for inflation. Under the proposed Tax Relief for American Families and Workers Act of 2024, the maximum refundable amount is set to gradually rise, reaching $1,900 in 2024 and $2,000 in 2025.
Changes in the CTC for 2024
The American Rescue Plan significantly enhanced the CTC in 2021. Looking ahead, the CTC for 2024 is anticipated to increase slightly to keep pace with the rising cost of living. Reports suggest that the maximum refundable amount will increase to $1,900 in 2024, continuing to provide support for families to cover their expenses.
Eligibility for the American Rescue Plan
To qualify for the stimulus checks and the 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 advise filing a tax return to claim the full CTC amount owed under the law.
Payment Dates
The $1,400 per person payment and the enhanced CTC will be distributed in phases throughout the year, starting 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 via 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 needing 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 vital components of the American Rescue Plan, designed to provide 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.
