As we approach the end of 2024, there are no remaining advance payments for the Child Tax Credit (CTC). Unlike in 2021, when families received monthly advance payments as part of a temporary enhancement due to the pandemic, 2024 follows the pre-expansion conditions of the CTC. This means families will not receive any more payments this year.
What to Expect for the Child Tax Credit
Families eligible for the Child Tax Credit can claim the full amount when they file their tax returns in 2025. The credit remains up to $2,000 per child under 17, with certain limitations based on household income:
- Full Credit Eligibility: Families with incomes up to $200,000 ($400,000 for married couples filing jointly) can claim the full $2,000 per child.
- Phase-Out: The credit begins to phase out for incomes above these thresholds, reducing the amount families can claim.
Refundable Portion
The Child Tax Credit includes a refundable portion known as the Additional Child Tax Credit (ACTC). Up to $1,400 of the credit can be refunded even if the family’s tax liability is less than the credit amount.
This means that lower-income families, who owe little or no taxes, may still receive a portion of the credit as a refund.
State-Level Credits
Some states, like California and New York, offer additional child tax credits that can be claimed when filing state tax returns. These state credits vary in amount and eligibility, providing further financial relief to families with children.
It’s advisable to check with local tax authorities or state websites to see if you qualify for these additional benefits.
Planning for 2025
Families who were used to receiving monthly payments in 2021 will need to plan for the lump sum payment that will be available when filing 2024 tax returns.
Reviewing your tax situation now and considering how the change might impact your finances can help avoid surprises. Consulting a tax professional can also ensure you’re maximizing your benefits.
In summary, no further Child Tax Credit payments are expected for 2024. Families will need to claim the full credit when filing taxes in 2025.
FAQs
Will there be any more Child Tax Credit payments in 2024?
No, all remaining payments must be claimed on your 2024 tax return in 2025.
What is the maximum Child Tax Credit per child?
The maximum credit is $2,000 per child under 17.
Is any part of the Child Tax Credit refundable?
Yes, up to $1,400 per child is refundable through the Additional Child Tax Credit (ACTC).
When can I claim the Child Tax Credit?
You can claim the full credit when you file your tax return in 2025.
Are there state-level Child Tax Credits available?
Yes, some states offer additional credits, which vary by location.
