As of now, Congress has not passed new legislation to alter the Child Tax Credit for the 2024 tax year, so the current rules (a \$2,000 credit per qualifying child under age 17, with phase-outs) are expected to continue unless changes are enacted.
1. Current (and Likely 2024) Child Tax Credit Rules
For the 2024 tax year (filed in 2025), the Child Tax Credit (CTC) will most likely remain:
- \$2,000 per qualifying child under age 17 (per IRC § 24).
- Phase-outs begin at \$200,000 of modified adjusted gross income (MAGI) for single filers and \$400,000 for married filing jointly. For every \$1,000 of MAGI above the threshold, the credit is reduced by \$50.
- Refundability: Up to \$1,600 of the \$2,000 may be refundable for 2023 and future years (the exact refundable portion can be subject to small inflation adjustments each year). Historically, the refundability threshold has been \$1,400 or \$1,500 and is indexed over time.
Authoritative Sources (Paragraph 1)
- 26 U.S. Code § 24 – Child Tax Credit statutes
- IRS Publication 972: Child Tax Credit – Guidance on calculating and claiming the Child Tax Credit
2. Legislative Outlook
- Prior Enhancements: The American Rescue Plan Act of 2021 temporarily increased the CTC to \$3,000–\$3,600, but these enhancements expired at the end of 2021.
- No Current Extension: Congress has not enacted any law restoring the expanded credit for tax years beyond 2021, leaving the credit at the standard \$2,000 level. Future modifications would require legislative action.
Authoritative Sources (Paragraph 2)
- American Rescue Plan Act of 2021 (Public Law 117-2) – Provided temporary increase for 2021
- Congress.gov – Legislation Tracker – Monitor current and proposed bills related to the Child Tax Credit
3. Potential Inflation Adjustments
- Annual Adjustments: Certain tax provisions are adjusted annually for inflation. The nonrefundable and refundable portions of the CTC may see small increases.
- Watch IRS Guidance: The IRS typically releases Revenue Procedures in the fall that outline inflation-adjusted numbers for the upcoming tax year.
Authoritative Sources (Paragraph 3)
- IRS Revenue Procedure 2022-38 – Example of an annual revenue procedure that announces inflation adjustments for various tax provisions
- IRS.gov News Releases – Official IRS announcements on annual changes
4. Key Requirements for Claiming the Credit
- Qualifying Child: Must be under age 17 at the end of the tax year and meet relationship/residency/support tests.
- Social Security Number: Child must have a valid SSN issued on or before the due date of your return.
- Income Threshold: Phase-out starts at MAGI of \$200,000 for single and \$400,000 for married filing jointly.
- Filing Status: Credit amounts and phase-outs can vary based on filing status (e.g., married filing jointly, head of household, single).
Authoritative Sources (Paragraph 4)
- 26 U.S. Code § 152 – Defines qualifying child for tax purposes (dependencies)
- Form 1040 Instructions – Clarifies how to report dependent information and claim credits
5. Monitoring Official Guidance
- IRS Website: The IRS will post updates if Congress enacts new legislation affecting the Child Tax Credit.
- Tax Software & Professionals: Reputable tax software and CPAs will update automatically if there are any mid-season changes.
- Congressional Announcements: If lawmakers pass any enhancements or modifications, final rules typically appear on the IRS.gov site and in official guidance documents.
Authoritative Sources (Paragraph 5)
- IRS.gov – Credits & Deductions – Central hub for credit-related updates
- IRS Publications Index – List of publications and forms, including up-to-date instructions
6. Additional Resources
- IRS Publication 972: Offers step-by-step worksheets for claiming the Child Tax Credit.
- Instructions for Form 1040: Provides details on other child-related tax benefits (e.g., Child and Dependent Care Credit).
- Tax Professional Advice: A CPA or Enrolled Agent can clarify how to maximize credits based on your specific situation.
Authoritative Sources (Paragraph 6)
Bottom Line
- Status Quo: Absent new legislation, the Child Tax Credit remains \$2,000 per qualifying child under age 17, with partial refundability and phase-out thresholds starting at \$200,000 (single) or \$400,000 (married filing jointly).
- Potential Changes: Congress could still modify the credit before the 2024 tax year. Watch official IRS announcements and legislative developments for updates.
- Compliance Tip: Always check the latest authoritative sources, including the IRS website, Revenue Procedures, and official IRS publications, to ensure you have the most accurate, up-to-date information.
Disclaimer: The information provided is for general informational purposes and should not be considered legal or tax advice. Tax laws are complex and subject to change. For advice specific to your situation, consult a qualified tax professional or refer to official IRS resources.