For the 2024 tax year, the Child Tax Credit (CTC) offers eligible families a credit of up to $2,000 per qualifying child, with a significant portion being refundable.
The Child Tax Credit remains a key benefit for families, designed to help offset the costs of raising children. For the 2024 tax year, its structure provides clarity on the maximum amount available, eligibility criteria, and the extent of its refundability.
Key Details of the Child Tax Credit for 2024
Understanding the specifics of the CTC for 2024 is essential for families planning their finances. The credit has specific limitations and criteria that determine eligibility and the amount received.
Credit Amount and Eligibility
The maximum credit amount for the 2024 tax year is set at $2,000 for each qualifying dependent. To be considered a qualifying dependent for the Child Tax Credit, the child must meet certain age requirements. Specifically, the dependent must be 17 years old or younger as of the last day of the tax year.
Refundability of the CTC
While the Child Tax Credit is not fully refundable, a notable portion of it can be received even if it exceeds your tax liability. For both the 2024 and 2025 tax years, up to $1,700 of the Child Tax Credit is refundable per qualifying child. This refundable portion is often referred to as the Additional Child Tax Credit (ACTC) and can result in a refund even if you owe no taxes.
To summarize the key aspects of the 2024 Child Tax Credit:
| Aspect | Details for 2024 |
|---|---|
| Maximum Credit | $2,000 per qualifying dependent |
| Age Requirement | Dependent must be 17 or younger as of the last day of the tax year |
| Refundable Portion | Up to $1,700 per qualifying child (applicable for 2024 and 2025) |
| Full Refundability | The credit is not fully refundable; only a portion is |
For more detailed information on tax credits and planning, you can consult reputable financial resources like SmartAsset.
