09/11/2024
In 2024 (taxes filed in 2025), the child tax credit will be worth $2,000 per qualifying dependent child for married couples filing jointly with a MAGI of $400,000 or less and all other filers with a MAGI of $200,000 or less. The credit will be reduced by $50 for every $1,000 of income above the threshold until it phases out completely. The additional child tax credit, which is the refundable portion, will be worth up to $1,700, an increase from $1,600 in 2023.
2024 child tax credit news update:
The Tax Relief for American Families and Workers Act of 2024, a piece of nonpartisan legislation that would have modified the CTC to benefit lower-income families, failed to pass the Senate during an Aug. 1 vote. Had the bill passed, it would have made several changes to the credit, including:
Raising the refundable amount to $1,900 and $2,000 in tax years 2024 and 2025 and adjusting the base credit amount for inflation.
Allowing parents and caretakers to factor in how many children they have when determining the total credit amount they are eligible for.
Letting filers use their earned income from either the current year or the prior year to meet CTC eligibility requirements. This is especially significant for many lower-income families who might not otherwise qualify because they earned too little in a given year
Financial Freedom Taxes
