The $3,600 CTC is intended to reduce the financial burden caused by inflation and the Covid-19 epidemic. For the tax year 2021, the CTC has been expanded to $3,600. It is provided to households with a dependent kid aged six or younger. Similarly, $3,000 is paid to families with a dependent kid aged 6 to 17.
Taxpayers can use the new maximum tax credits in conjunction with their modified adjusted gross income. To qualify for the new maximum tax credits, a single household’s modified adjusted gross income should be $75,000, a married household’s should be $1,50,000, and the head of the household should be $1,12,500.
$3,600 Child Tax Credit – Latest News
The yearly CTC for basic expenses is $3,600 for qualifying single households and married families, with a maximum of $7,200. The monthly CTC amount is $300. According to sources, Congress increased the CTC temporarily as part of the Covid-19 aid package. However, because the government did not expand it in 2022, the CTC rate returned to pre-pandemic levels.
If the CTC expansion is granted, it will become partially refundable. The maximum refundable amount per child will be increased from $1,600 to $1,800 in tax year 2023, under the new rules. The amount grew to $1,900 in 2024 and $2000 in 2025.
Child Tax Credit Eligibility: $3,600
To receive the $3,600 Child Tax Credit, a claimant must meet certain eligibility requirements. A few of them are listed below:
To be eligible for payment benefits, each dependent kid in the family must be 17 or younger.
The child must be related to the applicant. The child could be the claimant’s daughter, son, stepdaughter, nephew, niece, or grandchild.
The youngster must have been living with the petitioner for more than six months. However, in extreme circumstances, three months of residency may be considered.
The candidate must be an American resident with a valid Social Security number.
It is vital to note that the claimant’s gross income cannot exceed a particular deduction. If it surpasses, the CTC will begin to phase out. Single households began to phase out at an income of more than $2,00,00, and married families at an income of more than $4,00,000. However, depending on future circumstances, the eligibility requirements may be changed. As a result, viewers must stay up to date on the official US government website.
Payout dates for the $3,600 child tax credit
The US government implemented the America Rescue Plan, which temporarily increased the CTC to assist filers financially in dealing with the pandemic. At the time, the CTC was worth up to $3,600. Half of the 2021 extended CTC payment was delivered on the 15th of each month from July to December, with the other half going to families that filed tax returns. As of today, the increased CTC is no longer in effect, so the payment will be issued only after submitting the taxes.
The official 2024 $3,600 CTC dates have yet to be revealed by the IRS. However, based on prior year’s payment dates, the payment may be paid on the 15th of each month, such as August 15, September 15, October 15, November 15, and December 15, 2024.
