2024 Child Tax Credit: What parents need to know

A new year is here and with it comes a vision of warmer temperatures, spring days ahead…and taxes. Benjamin Franklin once wrote that “In this world, nothing is certain except death and taxes.” While that remains true, parents and guardians can find some relief through the Child Tax Credit (CTC), which provides financial benefits for those raising children. Here’s what you need to know for the 2024 tax year (to be filed in 2025).

Age and residency matter

In order to qualify for the Child Tax Credit, your child must be a dependent under the age of 17 at the end of the year. They also must possess a Social Security number and be a U.S. citizen, national or resident. 

Additional requirements, according to the IRS, include:

• They’ve lived in your home for more than half the tax year. (There are exceptions for children who are born or die during the year, along with dependents who split their time between parents due to divorce or separation. A Schedule 8812 is needed and instructions for that form can be found here.)
• The child is your son, daughter, legally adopted child, stepchild, or eligible foster child. Brothers, sisters, step siblings, half-siblings, nieces, nephews, and grandchildren are also eligible for the tax credit, assuming they meet requirements.  
• They are claimed as a dependent on your tax return or Form 1040.
• The dependent does not provide more than half of their own financial support during the year.

Who qualifies for the Child Tax Credit?

To claim the Child Tax Credit, your child must meet the following criteria:

• Age & Relationship: Your child must be under 17 by the end of the tax year and be your biological, adopted, stepchild, foster child, sibling, stepsibling, or a descendant (like a grandchild, niece, or nephew).
• Residency: Your child must have lived with you for more than half the year. Exceptions apply for children born or who passed away during the year, as well as custody-sharing parents. In cases of divorce or separation, Schedule 8812 is required.
• Citizenship: Your child must be a U.S. citizen, national, or resident alien.
• Financial Support: Your child must not have provided more than half of their own financial support.
• Social Security Number: Your child must have a valid Social Security Number issued before the tax filing deadline.

For more detailed guidelines, consult the IRS’s Child Tax Credit page.

How much is the 2024 Child Tax Credit?

For the 2024 tax year (to be filed in 2025), the maximum Child Tax Credit remains $2,000 per qualifying child.

• Refundable Portion: Up to $1,700 of the credit is refundable,  meaning you could receive this amount as a refund even if you owe no federal taxes.

Income Limits: If your Adjusted Gross Income (AGI) exceeds $200,000 (or $400,000 for married couples filing jointly), your credit amount will be reduced by $50 for every $1,000 over the threshold.

How to claim the Child Tax Credit

To claim the Child Tax Credit, you must:

1. File Form 1040 or 1040-SR.
2. Include Schedule 8812 (“Credits for Qualifying Children and Other Dependents”) with your tax return. This form calculates the amount of credit you qualify for and identifies any refundable portion.

Make sure to have documentation like your child’s Social Security Number and proof of residency to substantiate your claim. Filing electronically and consulting a tax professional can help ensure your tax return is accurate and complete.

When will I get my refund if I claim the additional Child Tax Credit?

If you claim the Additional Child Tax Credit (ACTC), federal law mandates that the IRS cannot issue refunds before mid-February. This delay allows the IRS to implement additional fraud prevention measures.

“By law, we can’t issue EITC or ACTC refunds before mid-February,” the Internal Revenue Service explained on its website, irs.gov. “This includes your entire refund, not just the part that’s related to the credit you claimed on your tax return.”

 Most taxpayers who file electronically, choose direct deposit, and have no issues with their tax return can expect their refund by early March. To track your refund, use the IRS “Where’s My Refund?” tool, which updates refund statuses in late February.

The Internal Revenue Service started accepting income-tax returns on Jan. 27, opening the spigots of refund money shortly thereafter. But taxpayers who claimed the Earned Income Tax Credit or the Additional Child Tax Credit will need to wait a bit longer.

If you claimed one of those credits, plan on a refund showing up by around March 3, the IRS said. Refund money generally will appear faster if you have it directly deposited to a bank account. The delays are designed to protect taxpayers from fraud, reducing the possibility that crooks might get in early and file for refunds in someone else’s name.

What happens to the Child Tax Credit after 2025?

Right now, families can receive up to $2,000 per child through the Child Tax Credit—a boost introduced as part of the Tax Cuts and Jobs Act of 2017 and set to remain in place through the end of 2025. 

But unless Congress steps in to extend or expand the credit, it will drop back down to $1,000 per child starting in 2026.

Lawmakers are currently debating potential changes:

• Expanding the refundable portion to benefit lower-income families
• Raising income thresholds so more middle-class families qualify
•  Adjusting for inflation to ensure the credit keeps up with economic realities

One proposal—introduced by Congressman Blake Moore—aims to strengthen these benefits. While it’s still under review, parents should stay informed about potential tax law changes that could impact their families in the coming years.

Need more help?

Taxes can feel overwhelming, but understanding the Child Tax Credit can help you make the most of your refund. If you’re feeling unsure, consider these resources:

• IRS Child Tax Credit Overview
• Schedule 8812 Instructions
• IRS Form 1040
• Taxpayer Advocate Service for personalized support

The Child Tax Credit can provide valuable relief to families, but navigating tax rules can be tricky. Filing early, ensuring accuracy, and staying informed about policy changes can help you maximize your benefits—so you can focus on what truly matters: your family.