The Child Tax Credit is a valuable federal income tax credit. It allows taxpayers with children to reduce their tax bill dollar-for-dollar. It provides a credit of up to $3,600 for each child under age 6. Additionally, it provides a credit of up to $3,000 for each child with Child Tax Credit age limit of 6-17.
This article provides complete information on the $3,600 Child Tax Credit Per Child For US. It includes eligibility, amount, and how to claim it. This guide will help you understand if you qualify and how to get the IRS Child Tax Credit, whether you are a parent, guardian, or family member caring for a child.
$3,600 Child Tax Credit Per Child
The Child Tax Credit program allows eligible American families to reduce their income tax bill. They can get up to $3,600 for each child under age 6 and up to $3,000 for each child aged 6-17. This valuable tax credit puts more money back in the pockets of families working to make ends meet. These credits can be subtracted directly from taxes owed.
This tax credit was originally established in 1997 to help ease the financial burden of raising children. However, it was limited to only $1,000 per child and only partially refundable. This meant that lower-income families who owed little or no taxes were unable to benefit from the full credit amount.
The American Rescue Plan Act, passed in 2021, significantly improved the IRS Child Tax Credit by:
- Increasing the maximum credit amount to up to $3,600 per young child and $3,000 per older child
- Extending Child Tax Credit age limit to 17-year-olds instead of cutting off at 16
- Making the full credit amount fully refundable for even the lowest-income families
As a fully refundable tax credit, families can now get the full Child Tax Credit paid out as a tax refund if the amount exceeds what they owe in income taxes. In total, the expansions to the IRS Child Tax Credit are estimated to benefit over 65 million children across the economic spectrum.
Overview of IRS Child Tax Credit
|Child Tax Credit
|Internal Revenue Service
|Up to $3,600 per child under 6
Up to $3,000 per child 6-17
|Child Age Eligibility
|Under 18 at end of tax year
Understanding the $3,600 Child Tax Credit Increase
For the 2022 and 2023 tax years, the Child Tax Credit provides:
- Up to $3,600 credit for each child under age 6
- Up to $3,000 credit for each child aged 6-17
- Credit is fully refundable – families can get the full value as a tax refund
Before this Child Tax Credit increase, the Child Tax Credit was only $2,000 per child under 17 and only partially refundable. The American Rescue Plan boosted the amount and made the full credit accessible to more families.
Who is Eligible for the $3,600 Child Tax Credit?
The basic requirements to claim the Child Tax Credit 2024 are:
- The child’s age must not exceed 18 at the end of the tax year
- Social Security number is a must-have for the child
- The child must have lived with the taxpayer who is claiming the credit for more than half of the tax year.
- The filing status for the one who is applying must be single, head of household, married filing jointly, or qualifying widow(er).
- Income limits: Full credit if income below $200k for single filers, $400k for married filing jointly. Credit phases out above those amounts
In addition, the person claiming Child Tax Credit 2024 must be eligible to claim the child as a dependent, though they don’t have to be the child’s parent. For example, a grandparent caring for a grandchild can claim the CTC.
How to Claim the Child Tax Credit of $3600
Follow these steps to claim the maximum Child Tax Credit 2024 you are eligible for:
- Prepare your federal income tax return for 2023 – file by April 15, 2024 (extend if needed) using Form 1040 or 1040-SR.
- When filing, complete Schedule 8812 “Credits for Qualifying Children and Other Dependents” with info on each eligible child (name, SSN, relationship).
- After filing a return, visit www.irs.gov and complete the IRS Child Tax Credit registration if you haven’t already.
- The IRS will calculate your CTC eligibility and send periodic payments during 2024 based on your tax return info.
- If you qualify for more CTC than you receive in advance payments, you can claim the remainder when you file your 2024 return.
Families can potentially receive half of their total Child Tax Credit 2024 in advance through periodic payments from the IRS. Consult a tax professional if you need help determining eligibility or calculating your IRS $3600 Child Tax Credit amount in 2024.