The Child Tax Credit (CTC) is a significant financial aid program launched by the US government to support low-income families with dependent children. This article provides the latest updates on the starting date for CTC deposits in July 2024, payment amounts, and the process for claiming the credit.
The US government introduced the Child Tax Credit to assist low-income households and families with dependent children by reducing their federal income tax burden. The IRS is anticipated to start CTC deposits on July 15, 2024. Typically, the IRS makes $300 direct deposits on the 15th of each month. Similarly, $250 direct deposits will also be made monthly.
While these dates are expected, the official payment dates have not yet been confirmed. There are also rumors that the government might discontinue the monthly child tax credits, making future claims dependent on the individual’s payment details and eligibility criteria.
CTC Payment Amount
The amount of the Child Tax Credit is determined by the tax year. For July 2024, this falls under the 2023 tax year. Therefore, the credit claimed in July 2024 will align with the 2023 tax year amounts. Claimants can receive their CTC when they file their tax returns by April 2024.
For a qualifying child, the maximum amount for 2024 is $2,000 per eligible child, with up to $1,700 being refundable. Congress is currently discussing the possibility of reinstating monthly payments, potentially increasing both the refundable and total credit amounts.
The CTC amount begins to phase out if an individual’s Modified Adjusted Gross Income (MAGI) exceeds certain limits:
Married Filing Jointly: Phase-out starts at MAGI $200,000.
Head of Household: Phase-out starts at MAGI $112,500.
Single Filers: Phase-out starts at MAGI $75,000.
For more detailed information, individuals should visit the IRS and US government official websites.
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Elena is a seasoned tax consultant with a decade of expertise in income tax management. Graduating with top honors in Finance, she embarked on a career journey focused on simplifying tax complexities. Elena's insightful articles on thecsc.org provide practical guidance to taxpayers.
