Child Tax Credit 2024: A Smart Investment In Our Children

The Child Tax Credit (CTC) is a tax credit that can help families reduce their tax bills. It’s also refundable, which means families can receive the credit even if they owe no taxes. CTC is available to families with children under 17 years of age.

CTC is a smart investment in our children because it helps families nurture their children and give them the best possible start in life. Research shows that CTC has many positive benefits for children, including:

• Reducing child poverty: The CTC is one of the most effective tools we have to reduce child poverty. In 2021, CTC lifted 3.7 million children out of poverty.
• Improving health outcomes: Children who grow up in poverty are more likely to develop health problems such as asthma, obesity, and mental health problems. CTC can help families provide healthy food, health care, and other essential items that can improve the health of their children.
• Boosting educational attainment: Children who grow up in poverty are less likely to graduate from high school and college. CTC can help families pay for educational expenses, such as child care, after-school programs, and college tuition.
• Increasing economic mobility: CTCs can help children break the cycle of poverty and achieve financial success. Children who grow up in families receiving CTC tend to earn higher wages and have higher levels of educational attainment as adults.

In addition to the benefits for children, CTC also benefits the economy as a whole. When families have more money to spend, they are more likely to buy goods and services, which increases economic growth. CTC also helps reduce crime and improve public health.

CTC is a smart investment in our children and our future. This is a policy we should support and expand.

How to claim the Child Tax Credit

To claim the Child Tax Credit, you must file a tax return. You can claim the credit for your children under 17, even if they are not your biological children, as long as they depend on you. You can also claim the credit for children who are disabled, regardless of their age.

The amount of the Child Tax Credit depends on your income and the number of children you have. For 2023, the credit is $2,000 per child under 17 and $500 per child under 6. If your income is above a certain threshold, the credit is reduced.

You can claim the child tax credit on Form 1040. You can also use the IRS Child Tax Credit Estimator to see how much credit you’ll get.

How to make the Child Tax Credit permanent

The child tax credit was expanded in 2021 as part of the American Rescue Plan Act. However, the extension is set to expire at the end of 2022.

Support is growing in Congress to make the child tax credit permanent. A number of bills have been introduced to do this. One bill, the American Families Plan, would extend the Extended Child Tax Credit through 2025. Another bill, the Make the Child Tax Credit Permanent Act, would make the credit permanent.

If you support making the child tax credit permanent, you can contact your elected officials and let them know. You can also help organizations that are working to stabilize credit.

Conclusion

This is a smart investment in our children. It’s a tax credit that helps families with the costs of raising children, and it has some positive benefits for children. If you qualify for the child tax credit, be sure to claim it on your federal income tax return.