Every year, millions of Americans claim the Child Tax Credit (CTC) to reduce their tax bill or boost their refund. However, even a small mistake can delay your refund or make you ineligible for the credit altogether. That is money you do not want to lose.
For 2024 tax filings, you can receive up to $2,000 per qualifying child under the age of 17. But if your adjusted gross income (AGI) exceeds $200,000 (single) or $400,000 (married filing jointly), the credit begins to phase out.
Refundable Credit
Many taxpayers do not realize that part of the CTC is refundable. This portion, called the Additional Child Tax Credit (ACTC), can provide up to $1,700 per child. The best part is that even if you do not owe any taxes, you could still receive the ACTC, which is particularly helpful for lower-income families.
If You Make a Mistake
According to Erin Collins, the National Taxpayer Advocate, many low-income families lose out on thousands of dollars simply because they do not know how to claim the credit correctly.
To put things in perspective, more than 18 million people applied for this credit in 2022. If you need this financial boost, you are not alone.
Refund Delays
Even if you file everything correctly, the IRS cannot issue ACTC refunds before mid-February. If you filed before February 22, you can check your refund status on the IRS website using the “Where’s My Refund?” tool.
Avoid Costly Mistakes
Not every child qualifies for the Child Tax Credit. To be eligible, your child must:
- Be under 17 years old at the end of the tax year
- Have lived with you for more than half the year
- Not file their own tax return as an independent taxpayer
- Have a valid Social Security Number (SSN)
Tax software or professional preparers can help you verify your child’s eligibility, reducing the chances of mistakes.
Social Security Number
One of the most common mistakes is filing your return before obtaining your child’s Social Security Number (SSN).
If you recently had a baby, it can take one to six weeks to receive their SSN. Filing without it could mean missing out on the credit. If you do not have the number yet, consider filing for an extension—but remember, you must still pay any taxes owed by the original deadline.
Get Professional Help
Even a small error could cost you thousands. If you are unsure how to claim the Child Tax Credit, consider using tax software or consulting a tax professional. The IRS will not correct mistakes for you, so it is worth double-checking everything before you file.
FAQs
How much is the Child Tax Credit in 2024?
The credit is up to $2,000 per qualifying child under 17.
What is the Additional Child Tax Credit (ACTC)?
ACTC is a refundable credit of up to $1,700 per child, even if you owe no taxes.
When will the IRS issue ACTC refunds?
The IRS cannot issue ACTC refunds before mid-February.
Can I claim the Child Tax Credit without a Social Security Number?
No, your child must have a valid SSN to qualify for the credit.
What happens if I make a mistake on my CTC claim?
Mistakes can delay your refund or make you ineligible for the credit.
