What is the Tax Refund for Children? What does the Tax Refund for Children consist of?
The Children's Tax Credit (CTC) is a non-refundable federal tax credit available to taxpayers who have children and meet certain requirements. In order to be eligible, your child must be under 17 years old, have a valid Social Security Number, and be listed as a dependent on your tax return. The credit can reduce the amount of your taxes dollar for dollar, potentially resulting in a zero tax liability.
For the year 2023 (when taxes are filed in 2024), the CTC has a value of $2,000 for each qualifying child if their modified adjusted gross income is $400,000 or less (married couples filing joint returns), or $200,000 or less (all other individuals filing returns). If you meet the necessary requirements, you may receive a refundable portion called the Additional Child Tax Refund, worth up to $1,600 per child. Some families may also receive monthly payments instead of waiting for tax dates.
The Tax Relief for American Families and Workers Act of 2024, a bipartisan proposal introduced on January 16, 2024, aims to increase the maximum refundable amount per child in the upcoming fiscal years. The suggested increases are $1,800 for fiscal year 2023, $1,900 for fiscal year 2024, and $2,000 for fiscal year 2025.