Child Tax Credit July 2024 – Fixed Payout Date, Payment Amount, Potential Increase, and Updates

The Child Tax Credit (CTC) is a vital tax benefit program established by the U.S. government to provide financial support to families raising children. This article provides essential information on the Child Tax Credit for July 2024, including payout dates, payment amounts, possible increases, and recent news.

Child Tax Credit July 2024

The CTC is designed to reduce the amount of federal income tax owed by families or to provide a refund if no tax is owed. As of 2024, the CTC has reverted to its pre-2021 structure, meaning there are no monthly payments. The credit is claimed when filing individual tax returns based on specific eligibility criteria.

The CTC for July 2024 falls within the tax filing period for the 2023 tax year. Thus, there is no separate CTC payout scheduled for July 2024. Discussions are ongoing about potential changes, such as increasing the refundable portion of the credit, raising the credit amount per child, and reintroducing monthly payments.

CTC Payout Date

The maximum credit amount for 2024 is $2,000 per qualifying child, with up to $1,700 refundable. This means eligible families can receive the credit even if they owe no federal income tax.

If You’re on this List, You Can Retire Before 65 – Major Changes Coming in 2025

Important Dates:

• Tax Filing Period: The CTC for 2024 is claimed when filing the 2023 tax return, which is due by April 2024.
• Refund Timeline: Eligible families will receive their CTC as part of their tax refund, typically processed after filing.

Eligibility Criteria

To claim the Child Tax Credit, you must meet certain eligibility requirements:

• Income Limits: The credit phases out for higher-income families. The phase-out starts at a modified adjusted gross income (MAGI) of $200,000 for individuals and $400,000 for married couples filing jointly.
• Child Criteria: The child must be a dependent under the age of 17.
• Residency and Citizenship: The child must be a U.S. citizen, and the claimant must file a U.S. income tax return.

Payment Amount

The amount of the Child Tax Credit for the 2024 tax year remains at $2,000 per qualifying child. Up to $1,700 of this credit is refundable. Here are the specifics:

• Standard Credit Amount: $2,000 per child
• Refundable Portion: Up to $1,700

Claiming the Credit

• Tax Return: The credit is claimed on the tax return filed in April 2024.
• Refund Eligibility: Even if no tax is owed, the refundable portion can provide significant financial relief.

Possible Increases

There are ongoing discussions in Congress about expanding the CTC. Potential changes include:

• Increased Refundability: Proposals aim to make a larger portion of the credit refundable, benefiting low-income families.
• Higher Credit Amounts: Discussions include increasing the credit amount, especially for younger children.
• Monthly Payments: The reintroduction of monthly payments, similar to those seen in 2021, is under consideration.

Staying Updated

To keep abreast of the latest updates, regularly check the following sources:

Bank of America to Close More Branches Nationwide – See the Full List of Locations Affected

• IRS Official Website: For detailed guidelines and updates.
• Tax News Websites: For the latest legislative changes and proposals.
• Federal Congressional Websites: For information on ongoing discussions and potential changes.

The CTC remains a valuable resource for families raising children, providing substantial tax relief. While monthly payments are not available for the 2024 tax year, knowing and claiming the credit during tax filing can offer significant financial support.

FAQs