The child tax credit has been the biggest helper to taxpayers with qualifying children under 18. The advanced payments of the credit will continue in 2024 as Build Back Better Act has been extended for an additional year. Initially, the advanced payments and the increased amount of the credit from $2,000 to $3,000/$3,600 were going to end in 2024.
Now that the advanced payments will be there for an additional year, taxpayers wonder how it will play out starting with 2024. From January to December 2024, taxpayers will continue to receive the advanced child tax credit payments as usual.
The credit amount isn’t changed, so the monthly payments remain the same. You will receive either $250 or $300, depending on the age of the qualifying children. If you have one or more children, you will get the advanced payments accordingly for each.
Here is when to expect the child tax credit payments in 2024.
Payment schedule for the monthly child tax credit
|CTC Payment Date
How to cancel monthly payments?
Many taxpayers wish to opt out of the child tax credit payments, and it’s certainly possible. You aren’t bound to the monthly payments, which dry up the total tax credit you can claim when filing a tax return, essentially increasing the chances of owing to the IRS. Plus, unenrolling from the payments means you get the credit in full and up your tax refund if you don’t have a tax liability.
Claiming the child tax credit on 1040
On your federal income tax return, claiming the child tax credit, whether you received advanced payments or not, is pretty straightforward. Just enter the credit amount you can claim and calculate your tax liability and your refund accordingly. You can learn more about it by taking a look at our instructions to file Form 1040 for the 2024 tax season.
CTC after 2024
The Internal Revenue Service hasn’t announced anything for the future of the child tax credit beyond 2022. Assuming that there will be more tax changes ahead of us, especially with the anticipated tax hike that increases the highest marginal tax rate to a rumored 39.6 percent, more changes will come. While how the upcoming changes affect the child tax credit remains a mystery on its own, we’ll keep you updated against any.
From 2024 and onwards, we expect the child tax credit amount to remain around the same range, with advanced payments being an option for all taxpayers that qualify for the credit.
Changes to income limits
Prior to upping the child tax credit to $3,000 and $3,600, the income limits were around $200,000 for most taxpayers. This has been changed to $75,000 for single filers, $150,000 for married couples filing a joint return, and $112,500 for heads of households.
Note that the above amounts refer to your modified adjusted gross income, not your AGI or taxable income. Learn more about modified adjusted gross income that is also used for other tax-related things, such as the IRA deduction.