The Child Tax Credit (CTC) is a key financial support provided by the US Government to help families manage the costs of raising children. If you’re a parent or guardian, understanding how this credit works, when to expect payments, and who qualifies can significantly ease your financial planning. This article explains the latest updates on CTC payments, eligibility criteria, and how to check your payment status.
Starting Date
Starting from July 15, 2024, eligible families will begin receiving CTC monthly payments. Here’s what you need to know:
- Children Under Six: Families will get $300 per month, which totals $3,600 annually.
- Children Aged Six to Seventeen: The monthly payment will be $250, amounting to $3,000 annually.
The first payment is expected around July 15, though the exact date may vary slightly. This program helps families lower their federal income tax by a set amount for each qualifying child under seventeen.
Monthly Payment Schedule
CTC payments in 2024 will be distributed monthly. You can expect to receive payments on the 15th of each month. If this date falls on a public holiday, the payment will be made on the next business day. The schedule is:
- July 15
- August 15
- September 15
- October 15
- November 15
- December 15
These consistent monthly payments replace the lump sum payment that used to be provided at tax time. The CTC has been expanded several times since its introduction in 1997 to offer better support to families.
Eligibility Criteria
To be eligible for the CTC, you must meet certain requirements:
- Age: The child must be under 17 at the end of the tax year.
- Relationship: The child should be a direct descendant, such as a niece, grandchild, stepchild, nephew, foster child, or sibling.
- Residency: The child must have lived with you for more than half of the tax year.
- Income: Full benefits are available to:
- Married couples earning up to $150,000
- Heads of households earning up to $112,500
- Other taxpayers earning up to $75,000
Families who filed a 2023 federal income tax return, signed up for the 2023 Economic Impact Payment Program, or used the IRS non-filer tool for the Advanced Child Tax Credit will automatically receive these payments. The IRS will use 2023 tax return records to determine payment amounts, or 2022 tax data if necessary.
| Topic | Details |
|---|---|
| What is the Child Tax Credit (CTC)? | A financial benefit from the US Government to help families with child-rearing costs, reducing the amount of federal income tax owed. |
| Starting Date | Payments will begin on July 15, 2024, and continue monthly on the 15th of each month. If the 15th is a public holiday, payments will be made on the next business day. |
| Payment Amounts | – Children under six: $300 per month ($3,600 annually) – Children aged six to seventeen: $250 per month ($3,000 annually) |
| Monthly Payment Schedule | Payments will be made on the 15th of each month. The schedule is: – July 15 – August 15 – September 15 – October 15 – November 15 – December 15 |
| Eligibility Criteria | – Age: Child must be under 17 at the end of the tax year – Relationship: Direct descendant (e.g., niece, grandchild) – Residency: Lived with taxpayer for > 50% of the year – Income: Full benefits for married couples earning up to $150,000, heads of households up to $112,500, and other taxpayers up to $75,000 |
| Checking Payment Status | Track payment status online through the IRS website or IRS2Go app. Requires Social Security Number or ITIN, filing status, and exact payment amount. |
| What to Do if Payment is Delayed | If you haven’t received your payment after 21 days, ensure information is correct and up-to-date. Delays might be due to errors or additional reviews. |
| Updating Information | Update information through the Child Tax Credit Update Portal to ensure accurate and timely payments. |
| Impact of 2023 Tax Return | IRS will use 2023 tax return data to determine payment amounts. If unavailable, 2022 tax return data may be used. |
| For Non-Filers | Families who didn’t file a 2023 tax return but signed up for the 2023 Economic Impact Payment Program or used the IRS non-filer tool will still receive payments if eligible. |
Checking Payment Status
You can track the status of your payments online through the IRS website or the IRS2Go mobile app. To check your payment status, you will need:
- Social Security Number or ITIN
- Filing Status
- Exact Payment Amount
The IRS usually issues payments within 21 days of receiving your tax return. However, if you filed a paper return, there might be delays. If you don’t receive your payment after 21 days, it may be due to errors or additional reviews. Be patient, as the portal might not immediately reflect these updates.
Additional Information
To stay updated on your payments and manage your information, use the Child Tax Credit Update Portal. To claim the credit, ensure your dependent child has a valid social security number and lived with you for more than half of the tax year. The $300 monthly payment is part of a larger economic support plan designed to provide steady financial aid to families.
FAQs
FAQs
What is the Child Tax Credit (CTC)?
The Child Tax Credit is a financial benefit provided by the US Government to help families with the costs of raising children. It reduces the amount of federal income tax owed by qualifying families.
When will the 2024 Child Tax Credit payments start?
The 2024 Child Tax Credit payments will begin on July 15, 2024. Payments will be made monthly on the 15th of each month.
How much will families receive through the 2024 Child Tax Credit?
For children under six, families will receive $300 per month, totaling $3,600 annually. For children aged six to seventeen, the monthly payment will be $250, amounting to $3,000 annually.
How often will Child Tax Credit payments be made in 2024?
Payments will be made monthly, on the 15th of each month. If the 15th falls on a public holiday, the payment will be made on the next business day.
If you encounter issues with receiving your payment, check your eligibility and update your information on the IRS portal.
