$3600 Child Tax Credit September 2024: Check CTC Eligibility, Payment Date & Benefits

$3600 Child Tax Credit September 2024: The Child Tax Credit serves as a financial benefit for American taxpayers who have dependent children under the age of 17 at the conclusion of the tax year. For the 2023 tax year, which corresponds to returns filed in 2024, the credit amount is set at $2,000 for each eligible child. Taxpayers can receive the full credit if their income does not exceed $200,000 for single filers or $400,000 for those filing jointly. However, this $3600 Child Tax Credit benefit is gradually reduced for individuals with higher income levels. Following a temporary increase during the COVID-19 pandemic, which raised the credit to as much as $3,000 per child and $3,600 for children under six, the Child Tax Credit has reverted to its pre-2021 amounts.

The CTC enables parents and guardians to lower their tax obligations and potentially receive a refund of up to $3,600 per qualifying child. It is important to note that while the credit can provide a refund; it is not fully refundable, meaning that the entire amount may not be returned in cash if there is no tax liability. This includes families that have not filed tax returns or lack recent income, as long as they have a child with a Social Security number.

For those who have already submitted their tax returns, there is no need for further action; payments will be issued automatically, either via paper checks or direct deposit, even if the Child Tax Credit was not explicitly claimed. The beneficiaries can make themselves updated by visiting into the IRS CTC Update Portal. For those not required to file taxes, the IRS Non-Filer portal is available to claim the tax credit and initiate payments.

IRS $3600 Per Child Payment In September 2024

How the tax credit works?

The Child Tax Credit functions by directly reducing the total tax liability of taxpayers on a dollar-for-dollar basis, which is more advantageous than a tax deduction that merely decreases taxable income and typically yields lesser savings. To qualify for this $3600 Child Tax Credit, it is necessary to possess a Social Security number for the dependent child.

The credit can be claimed by submitting Schedule 8812, Credits for Qualifying Children and Other Dependents, alongside Form 1040. According to the American Rescue Plan there has been a grant permanently extended the full Child Tax Credit to Puerto Rico and the U.S. Territories, in which the families who are under low-income category, they will get the essential financial support for enhancing their children’s development, health, and educational success for the first time.

$3600 Child Tax Credit Eligibility criteria

The eligibility criteria for the credits are as follows for the dependent child or children: 

• The beneficiary child must be under the age of 17 at the end of the tax year. 
• The child can be a biological child, stepchild, foster child, sibling, stepsibling, half-sibling, or a descendant of any of these relatives.  
• The child should cater the need of residency i.e. he should be with you for more than half of the year. 
• The child should not have provided more than half of their own financial support. 
• The child must have been claimed as a dependent on your tax return. 
• The child must not have filed a joint tax return with a spouse, or if they have, it should only be to obtain a refund of estimated taxes paid. 
• The child must be a U.S. citizen, national, or resident alien. 

Recent updates about Child tax credit

• For the tax year 2024, to be filed in 2025, the child tax credit is $2,000 for each eligible child. 
• The modified adjusted gross income (MAGI) limit is $400,000 for married couples filing jointly and $200,000 for other filers. 
• If the MAGI goes over these limits, the credit reduces by $50 for every $1,000 over the threshold. 
• This reduction can lead to a total loss of the credit. 
• The additional child tax credit, which is refundable, will rise to a maximum of $1,700, up from $1,600 last year. 

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How to claim $3600 Child Tax Credit?

• Taxpayers can apply for the 2024 child tax credit when filing their taxes in 2025. 
• If you haven’t filed your 2023 tax return, which was due on April 15, 2024, or by October 15, 2024, with an extension, you can still claim the child tax credit on Form 1040 or 1040-SR. 
• To determine your credit amount, you must complete Schedule 8812, which goes along with your 1040 form. 
• Many tax software programs provide step-by-step guidance for claiming the child tax credit, making the process easier and often filling out forms automatically. 
• If your income is below a specific level, you may qualify for free tax software through IRS Free File. 

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Facts check: IRS $3600 Per Child Tax Credit Payment In September 2024

The Internal Revenue Service (IRS) projects that the majority of taxpayers will obtain their refunds within a 21-day timeframe following the electronic submission of their tax returns provided they opt for direct deposit and encounter no complications with their filings. To minimize the risk of processing delays, individuals are encouraged to refrain from submitting paper returns whenever feasible. Although the CTC is nonrefundable, the Additional Child Tax Credit (ACTC) offers a partial refund option, allowing taxpayers who do not have any income tax liability to receive a portion of the credit as a refund.

The IRS calculates the extra child tax credit by considering income earned over $2,500 and multiplying it by 15%. You can claim this amount or the part of the CTC credit you couldn’t fully use, whichever is smaller. For the tax year of 2024, the maximum refund the beneficiaries can get up to $1700.

Fact Check

Rumors of specific checks often arise from misunderstandings of existing government benefits or exaggerated claims made online. It’s important to rely on official sources for accurate information.

There has been no federal announcement in 2024 about deposit payments. Most deposits for government programs will vary based on individual circumstances, including income, work history, and eligibility. To avoid becoming a victim of misinformation, always verify claims through official government websites or consult a financial advisor.

FAQs: $3600 Child Tax Credit September 2024