Millions of Americans claim the Child Tax Credit (CTC) every year, but even a small mistake on your tax return could delay your refund or even cause you to miss out on the credit entirely. No one wants that.
For 2024 tax filings, the Child Tax Credit offers up to $2,000 per child under 17. However, if your adjusted gross income (AGI) exceeds $200,000 for single filers or $400,000 for married couples filing jointly, the credit starts to phase out.
Additional Child Tax Credit
Many people don’t realize that there is a refundable portion of the CTC called the Additional Child Tax Credit (ACTC). This can provide up to $1,700 per child. The best part? Even if you don’t owe taxes, you may still be eligible for the ACTC, which primarily benefits lower-income families.
However, the IRS does not issue ACTC refunds before mid-February. If you filed before February 22, you can check the status of your refund on the IRS website under the “Where’s My Refund?” section.
Common Mistakes to Avoid
Filing errors can delay your refund or even disqualify you from receiving the credit. Here are some of the most common mistakes and how to avoid them.
Incorrect Child Qualification
The IRS has specific requirements for a child to qualify for the CTC. The child must:
- Be under 17 years old at the end of the tax year
- Have lived with you for more than half of the year
- Not file their own tax return
- Be related to you (biological, adopted, foster child, sibling, etc.)
Using tax software or consulting a tax professional can help ensure your child meets all the eligibility requirements.
Missing Social Security Number
Another frequent mistake is filing without your child’s Social Security Number (SSN). If you recently had a baby, it can take up to six weeks to receive their SSN. Filing without it can result in losing the credit.
If your child’s SSN hasn’t arrived yet, consider filing an extension. However, any taxes owed must still be paid by the original deadline to avoid penalties.
Maximize Your Refund
To ensure you receive the maximum credit without errors:
- Double-check your child’s eligibility
- Wait for your child’s SSN before filing
- Use tax software or hire a professional for guidance
A simple mistake can cost you thousands of dollars, so taking extra care when filing your return can make all the difference. If you’re unsure about the process, seeking professional help is a smart move.
FAQs
Who qualifies for the Child Tax Credit?
Children under 17 who live with you for over half the year and have an SSN.
How much is the Child Tax Credit in 2024?
Up to $2,000 per child, with a refundable portion up to $1,700.
When will ACTC refunds be issued?
The IRS cannot issue ACTC refunds before mid-February 2024.
What if I don’t have my child’s SSN yet?
Wait for the SSN or file an extension, but pay any taxes owed on time.
How can I avoid mistakes when filing for CTC?
Use tax software, check eligibility, and ensure you have the correct SSN.
