Child Tax Credit 2024: How It Works and What’s New This Year

Child Tax Credit 2024: How It Works and What’s New This Year

As any parent will tell you, raising kids is expensive, and some places are more expensive than others.

New Hampshire is the seventh most expensive state in the U.S. to raise a child in, costing $27,849, according to a study by Smart Asset. The average annual cost is $22,850, according to the study.

That’s why politicians have been debating a child tax credit in recent years that could save families thousands of dollars.

With tax season fast approaching, here’s what you need to know about your 2024 tax eligibility.

Any parent will tell you that raising a child is expensive, and some places are more expensive than others.

New Hampshire is the seventh most expensive state in the U.S. to raise a child, at $27,849, according to a study by Smart Asset. The average annual cost is $22,850, according to the study.

That’s why politicians have been debating a child tax credit in recent years that could save families thousands of dollars.

With tax season fast approaching, here’s what you need to know about your 2024 tax eligibility.

Tax credit per child for 2024

The most tax credit per qualifying baby is $2,000 for kids under 17. For the refundable part of the credit score (or the extra baby tax credit score), you could acquire up to $1,seven-hundred consistent with qualifying baby.

Who qualifies for the child tax credit?

There are numerous necessities to qualify. The first is you ought to be a figure or father or mother who’s submitting taxes in 2025.

For your child or dependent to qualify, they ought to have a Social Security range this is legitimate for employment in the U.S., in line with the IRS. They ought to be under 17 years antique on the stop of the year. The different necessities are:

  • They are your son, daughter, stepchild, eligible foster baby, brother, sister, stepbrother, stepsister, 1/2 of-brother, 1/2 of-sister, step-sibling or descendant (inclusive of a niece, nephew or grandchild).
  • They offer no extra than 1/2 of in their very own financial aid during the tax year.
  • They have lived with you for extra than 1/2 of the tax year.
  • They are well claimed as your depending on your tax go back.
  • They do now no longer report a joint go back with their partner for the tax year, or they report it best to say a reimbursement of withheld earnings tax or estimated tax paid.
  • They are a U.S. citizen, U.S. countrywide or U.S. resident.

If the parent or guardian’s gross income exceeds $200,000 if filing individually or $400,000 if filing jointly with a spouse, the child tax credit and additional tax credit are reduced.

Except for income earned abroad, those who file Form 2555 or 2555-EZ are not eligible for the additional tax credit.

How do you claim the child tax credit?

You can claim the child tax credit by listing your children and other dependents on your U.S. income tax return, Form 1040. You must also complete a schedule 8812, which includes a credit for eligible children and other dependents.

 

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