The Child Tax Credit (CTC) has undergone significant changes for the 2024 tax year (tax returns filed in 2025). MillerThayer is here to help you understand these updates and how they might impact your tax situation.

Changes to the Child Tax Credit:

• Credit Amount: The maximum credit amount per qualifying child has remained at $2,000.
• Refundability: Previously, a portion of the credit was refundable, meaning you could receive a tax refund even if you didn’t owe any taxes. However, for tax year 2024, the refundable portion has increased to $1,900, with the remaining $100 potentially refundable through the Additional Child Tax Credit.
• Monthly Payments: The option for monthly CTC payments, which was available in 2021, is not currently offered. The full credit will be claimed when you file your tax return.

Who Qualifies for the Child Tax Credit?

To be eligible for the Child Tax Credit, you must meet the following criteria:

• Qualifying Child: You must have a qualifying child under the age of 17 on December 31st of the tax year.
• Income Limits: Your income may affect the amount of credit you receive. Generally, the credit begins to phase out for higher income earners. Consult the IRS website or a tax professional for specific income thresholds.
• Tax Filing Status: You must file a tax return as a single filer, head of household, or married filing jointly to qualify for the CTC.

How to Claim the Child Tax Credit:

You will claim the Child Tax Credit on your federal tax return (Form 1040 or 1040-SR) for the tax year 2024. Gather your child’s Social Security number and any relevant documents proving your income and childcare expenses (if applicable).

Additional Resources:

• IRS Child Tax Credit Information: https://www.irs.gov/credits-deductions/individuals/child-tax-credit
• MillerThayer Tax Planning Services: Consider consulting with MillerThayer’s tax professionals to ensure you maximize your child tax credit and other tax benefits. We can help you navigate the complexities of the tax code and ensure you claim all the deductions and credits you deserve.

MillerThayer: Your Partner in Tax Planning

The Child Tax Credit can offer significant financial relief for families with children. At MillerThayer, we stay up-to-date on the latest tax laws and regulations. We can help you understand how the Child Tax Credit changes impact you and ensure you claim this valuable benefit accurately.

Contact MillerThayer today to schedule a consultation and discuss your tax planning needs!