The Child Tax Credit is a good way to lower your federal income tax bill. Taxpayers with kids can get a dollar-for-dollar cut in their tax bill. It gives up to $3,600 in tax breaks to every child younger than 6 years old. In addition, the Child Tax Credit gives a credit of up to $3,000 to each child between the ages of 6 and 17.
This guide tells you everything you need to know about the US $3,600 Child Tax Credit Per Child. It says who can get it, how much they can get, and how to claim it. Get the IRS Child Tax Credit if you are a parent, guardian, or family member taking care of a child. This guide will help you figure out if you qualify and how to get it.
$3,000 Tax Break for Each Child
The Child Tax Credit scheme helps families in the United States pay less in income taxes. They can get up to $3,600 for each child younger than 6 years old and up to $3,000 for each kid 6 to 17 years old. People who are struggling to make ends meet will get more money back thanks to this helpful tax break. You can take these credits right off of the taxes you owe.
The original purpose of this tax credit was to help make having children more affordable. It was created in 1997. But it was only $1,000 per child and could only be refunded in part. Because of this, low-income people who owed little or no taxes could not get the full credit amount.
When it was passed in 2021, the American Rescue Plan Act made the IRS Child Tax Credit a lot better by:
- Increasing the largest credit amount to up to $3,600 for each young child and $3,000 for each older child
- The age limit for the Child Tax Credit will be raised to 17 from 16 instead of 16.
- Making sure that even the poorest people can get their full credit amount back
As a fully refundable tax credit, the Child Tax Credit can now be used as a tax return if it is more than what a family owes in income taxes. It is thought that the changes to the IRS Child Tax Credit will help more than 65 million kids from all walks of life.
A Look at The IRS Child Tax Credit
| Program Name | Child Tax Credit |
| Country | USA |
| Provided By | Internal Revenue Service |
| Benefit Amount | Up to $3,600 per child under 6Up to $3,000 per child 6-17 |
| Child Age Eligibility | Under 18 at the end of the tax year |
How to Understand the $3,600 Increase in The Child Tax Credit
The Child Tax Credit gives you the following for the tax years 2022 and 2023:
- Each child under 6 years old can get a credit of up to $3,600.
- Getting up to $3,000 back for each child ages 6 to 17.
- Credit can be used again and again; families can get their whole amount back as a tax return.
Before this rise, the Child Tax Credit was only $2,000 for each child under 17 and could only be used once. The American Rescue Plan raised the amount and let more people get the full credit.
Which People Can Get the $3,600 Child Tax Credit?
To get the Child Tax Credit in 2024, you must meet the following requirements:
- The child must be under 18 years old at the end of the tax year.
- The child needs to have a Social Security number.
- People who want to claim the credit must have had the child live with them for more than half of the tax year.
- The person applying must be single, head of home, married filing jointly, or a qualifying widow or widower.
- The maximum amount of money that can be credited is $400k for married couples filing equally or less than $200,000 for single people. Credit slowly ends above those amounts
The person applying for the Child Tax Credit 2024 must also be able to claim the child as a dependent. The person applying for the credit does not have to be the child’s parent. For instance, a grandmother who is taking care of a grandchild can claim the CTC.
How to Get the $3600 Child Tax Credit
If you want to get the most out of the Child Tax Credit 2024, do these things:
- Get your 2023 federal income tax return ready and file it by April 15, 2024 (or later if you need to). Use Form 1040 or 1040-SR.
- For each eligible child, fill out Schedule 8812 “Credits for Qualifying Children and Other Dependents” with their name, SSN, and connection to the taxpayer when you file.
- If you haven’t already, go to www.irs.gov after filing your tax return and finish registering for the IRS Child Tax Credit.
Based on the information in your tax return, the IRS will figure out if you are eligible for the CTC and send you payments throughout 2024. - The extra CTC you are eligible for can be claimed when you file your 2024 tax return if you get more than you are paid in advance.
The IRS may be able to send families funds equal to half of their total Child Tax Credit 2024 ahead of time. If you need help figuring out if you are eligible for the $3,600 Child Tax Credit from the IRS in 2024 or how to figure it out, talk to a tax professional.