For many families, the Child Tax Credit (CTC) is a crucial source of financial support. It helps reduce the financial burden of raising children by providing direct payments to eligible families.
In 2024, the IRS has already announced the payment dates for the CTC, giving parents and caregivers clarity about when they can expect their payments.
Whether you are a new recipient or have been receiving the credit for years, understanding these payment dates is essential for budgeting and planning ahead.
What is the Child Tax Credit?
The Child Tax Credit is a federal benefit aimed at helping parents and caregivers with the cost of raising children. The credit was expanded significantly as part of the American Rescue Plan in 2021, temporarily increasing the amount families could receive and providing monthly payments instead of lump sums. For the years following, the credit returned to its pre-2021 structure, but the IRS continued to make periodic payments to eligible families.
The credit amount can vary based on a family’s income, the number of children they have, and other factors such as age and filing status. In 2024, the standard Child Tax Credit is $2,000 per eligible child under the age of 17. Of this, $1,500 per child may be refundable, meaning families can receive the money even if they don’t owe taxes.
When Are the Child Tax Credit Payment Dates in 2024?
The IRS has already confirmed that monthly payments of the Child Tax Credit will continue in 2024 for those who qualify. Here’s what parents need to know about the payment schedule:
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- Monthly Payments: The IRS will issue monthly payments for the Child Tax Credit from January to December 2024. These payments will be made on the 15th of each month, or the nearest business day if the 15th falls on a weekend or holiday. These regular monthly payments are designed to help families manage expenses throughout the year.
- Start Date: The first payment in 2024 is scheduled for January 15th. This is the first opportunity for eligible families to receive their Child Tax Credit for the new year. After that, monthly payments will be issued on the 15th of every subsequent month through December.
- Payment Amounts: The amount of the payment you receive will depend on your total income and the number of eligible children you have. For each eligible child under the age of 17, families can receive $200 per month. However, this is for the non-refundable portion of the Child Tax Credit. Families who are eligible for the refundable portion may receive additional amounts.
- Refundable Portion: If you qualify for the refundable portion of the Child Tax Credit (up to $1,500 per child), you may receive additional payments. These payments will be processed after your tax return is filed, and they will be issued separately from the monthly payments. If you are eligible for this refundable portion, it’s important to file your 2024 tax return as soon as possible to ensure you receive the maximum credit.
- Changes in Eligibility: The eligibility for the Child Tax Credit is determined by your income level and the number of children you are claiming. The IRS uses the information on your 2024 tax return to determine your eligibility and the amount you will receive. Keep in mind that changes in your family circumstances, such as the birth of a child or changes in income, may impact your eligibility and the amount of your payments.
How Will Payments Be Made?
Just like previous years, Child Tax Credit payments will be made through direct deposit if you have set up your payment information with the IRS. If you have not set up direct deposit, payments may be issued as paper checks or prepaid debit cards, depending on your preference when filing your tax return.
What Happens If You Miss a Payment?
If you miss a scheduled payment, the IRS advises families to wait until the next scheduled payment date. If you believe there is an issue with your payment, you can check your IRS account or use the IRS Child Tax Credit Portal to verify your information and payment status.
What to Do if Your Circumstances Change
It’s important to notify the IRS if there are changes to your family circumstances that may affect your eligibility for the Child Tax Credit. This includes changes like:
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- The birth of a child: If you have a new baby or add a dependent to your family, you may qualify for an increased amount.
- Changes in income: If your income changes significantly, it may affect your eligibility or the amount of the credit.
- Filing status changes: If you switch from filing jointly to filing separately, or if your marital status changes, this could impact your payments.
You can update your information through your IRS online account or by filing your 2024 tax return.
Key Takeaways
- The Child Tax Credit payments for 2024 will begin on January 15th and will continue on the 15th of every month through December.
- Eligible families will receive $200 per month per qualifying child under the age of 17.
- The refundable portion of the Child Tax Credit may provide additional funds, but these payments will be issued after you file your tax return.
- If you haven’t set up direct deposit, you may receive your payments as a paper check or prepaid debit card.
- Be sure to keep track of changes in your family circumstances and update your information with the IRS as necessary to ensure you get the right amount.
Conclusion
The Child Tax Credit is a vital resource for many families, helping to reduce the financial strain of raising children. Knowing the payment dates for 2024 ensures that parents can plan ahead and budget accordingly.
By staying informed and ensuring your information is up to date with the IRS, you can maximize the benefits of this valuable credit. Don’t forget to file your tax return to claim the refundable portion and ensure that you receive all the support you’re eligible for.