Here, you will find all the essential information regarding the Child Tax Credit July 2024: Payout Date, Payment Amount, Possible Increase and News. The Child Tax Credit is a tax benefit program launched by the US government to support families raising children financially. It functions as a tax credit, which directly reduces the amount of the federal tax owed. All credit assistance is claimed according to the individual filing tax returns. To know more about the Child Tax Credit July 2024, its payment amount, date, and more, continue browsing this article.
Child Tax Credit July 2024
The CTC is a crucial tax benefit program in the United States designed to support families raising children. It offers a tax credit that decreases the amount of federal income tax owed or delivers a refund if no tax is owed. As of the year 2024, there is no further monthly child tax credit; the tax credit will be claimed based on individual payment details, eligibility, and requirements.
The Child Tax Credit July 2024 falls within the tax filing period for the 2023 tax year. Therefore, there is no confirmation of the July 2024 CTC. The discussion regarding expanding CTC is ongoing. They might be having some potential changes, like increasing the refundable portion of the credit, raising the credit amount per child, and reintroducing monthly payments.
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CTC Payout Date
The Child Tax Credit July 2024 has retreated to its pre-2021 structure. This means that the maximum credit amount is $2000 per qualifying child. Up to $1,700 of credit is refundable, pointing you can obtain it even if you don’t owe any federal income tax.
The July 2024 Child Tax Credit payment is not scheduled. If you have a qualifying child in 2024, you’ll claim the credit on your tax return filed in 2025. There will be no individual payout for the CTC.
To be eligible for the payout, you must fulfill certain eligibility circumstances. This includes the following: Your income in your MAGI plays a significant role, and there are phase-out limits for higher incomes, meaning the credit amount may decrease or disappear altogether depending on your income level.
The child you will be claiming the CTC must be your dependent and has to be under the age of 17. You must be a US citizen and file your income tax return, even if you owe no tax.
Payment Amount
The Child Tax Credit payment amount depends on the taxation year. July 2024 falls under the tax filing period for the 2023 tax year. Therefore, there wouldn’t have been a separate payment for the CTC in July 2024 for the 2023 tax year. You would have to claim the credit when you filed your tax return in April 2024.
Looking forward to the Child Tax Credit in July 2024, If you have a qualifying child, you have to make a claim while filling out your return in 2025. For the year 2024, the maximum tax filing amount is around $2,000 per qualifying child. However, up to $1,700 of credit is refundable, and under the ongoing discussion in Congress, CTC might have increased the refundable portion, extended the credit amount, and brought back monthly payments.
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Possible Increase and News
Under the Child Tax Credit July ongoing discussion, there are some proposals that aim to make a larger portion of the credit refundable, making it more accessible to low-income families.
The discussions also involve increasing the credit amount per child, particularly for younger children. The convenience of monthly payments seen in 2021 may be a point of discussion for future iterations of the CTC.
Therefore, till now, there haven’t been any concrete legislative changes to the Child Tax Credit. The discussions regarding its expansion are ongoing. With the help of the leading IRS web portal, tax news websites, and federal congressional websites, you can stay updated on the Child Tax Credit in July.
Overall, the CTC remains a valuable tax benefit for families raising children. While the 2024 tax year doesn’t have monthly payments, understanding your eligibility and credit when you file your tax return can provide significant financial relief.
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