The Child Tax Credit (3,600) is designed to ease the financial burden of inflation and the Covid-19 Pandemic. This CTC expansion is part of a continuing effort to help families with children. We’ll examine the latest news and eligibility criteria for the $3,600 CTC in 2024.
Child Tax Credit
Families with children under six receive a $3,600 CTC. Families will receive $3,600 for each child under the age of six, and $3,000 for children aged 6-17, in tax year 2021. This credit is intended to help families who are struggling with rising costs.
Eligibility Criteria
The applicant must meet certain requirements to qualify for the Child Tax Credit of $3,600.
- Age of Dependency: Each dependent child must be aged 17 or younger.
- Relationship to Applicant A child must be related, for example, a son, daughter, stepchild or niece, nephew or grandchild.
- Residency The applicant must have resided with the child for at least 6 months (3 months in exceptional circumstances).
- Citizenship Applicants must have a valid social security number and be U.S. residents.
- Income Limits The adjusted gross income for single households must not exceed $75,000. For married households it cannot exceed $150,000. The cap for heads of families is $11,2,500. The CTC is phased out at incomes over $200,000 for single-person households and $400,000 married couples.
Latest News
As part of Covid-19, the CTC of $3,600 was temporarily increased. In 2022, however, the CTC will return to its prepandemic level. New rules in 2023 increased the maximum amount per child refundable from $1,600 up to $1.800. It is expected that this will rise to $2,000 by 2025.
Dates of Payment
The American Rescue Plan temporarily increased CTC payments to help families during pandemic. The CTC payment for 2021 will be distributed half monthly, from July to December. The remaining half can be claimed through tax returns.
IRS has not yet announced official payment dates for 2024. According to previous years, payments are expected on the 15th day of every month: August 15, Sept 15, Oct 15, Nov 15, and Dec 15.
How to Claim
Follow these steps to claim your $3,600 CTC:
- Verify Eligibility: Make sure you meet all the eligibility criteria.
- Complete the Online Application: Visit IRS’ website to complete the application online.
- Submit Documents Provide the necessary documents for verification.
- Receive Notification Await the IRS’s acknowledgement or rejection.
Typically, refunds are issued within 21 business days after filing. Paper returns can be delayed, particularly if there are errors. Contact the IRS for help in such cases.
The CTC of $3,600 is a significant financial help to families who are in need. Visit the IRS official website to stay up-to-date with the latest information.