For countless American families, this is a pivotal topic. Let’s be real; bringing up kids isn’t just emotionally taxing – it’s financially taxing too. A ton of families in the United States find it tough to bear these costs on their own, without a helping hand. Here’s the good news: The Child Tax Credit is that much-needed boost for many. Though its specifics might evolve annually, the core intent remains the same.
Not just a short-term relief, the 2024 Child Tax Credit has a bigger vision. It aims to lighten the family’s load, ultimately benefiting the kids. The outcome? Happier families, thriving kids. With this credit, families can funnel funds towards essentials: think schooling, medical care, or even day-to-day child-rearing costs. This isn’t just about immediate relief; it’s about leveling the playing field, granting everyone a fair shot. And guess what? This isn’t a new fad. It began in 2021 and, based on the applause it’s received, it’s sticking around through 2024.
Applying for the 2024 Child Tax Credit: A Quick Guide
Wondering how to get on this? Here’s your step-by-step rundown in order to apply for the Child Tax Credit today:
1. Check if You’re In First off, peek at the IRS guidelines. They’ll let you know if you fit the bill based on things like your earnings, how you file taxes, and the kiddos you’re claiming.
2. File Those Taxes Haven’t submitted your federal tax return for the year? Time to do so. This step’s non-negotiable, as it’s where you’ll claim your Child Tax Credit.
3. Kid Details: Get ‘Em Right On your tax form, ensure you’ve got the full lowdown on your qualifying kiddos. This means their full names, SSNs, and any other must-know info.
4. IRS Forms: Which One’s for You? Your situation dictates the IRS form you need. Like if you’re reaching for Form 1040 or 1040-SR, you’re looking at the Child Tax Credit and Credit for Other Dependents Worksheet.
5. Do the Math: With the IRS forms in hand, figure out your Child Tax Credit amount. Your income, the number of kids you’re claiming – it all plays a part.
6. Dot the I’s and Cross the T’s: Accuracy’s key. Ensure your info’s spot-on and aligns with your tax return data.
7. Review, Then Send Off: Once you’ve filled everything out, give it another once-over. When all looks good, send it off to the IRS.
8. Advance Payments? Claim Them: If you qualify for Child Tax Credit advance payments, make sure the IRS has what they need to get those to you month by month.
9. Keep a Copy, Just in Case: Lastly, always hold onto your tax return and any related docs. It’s just good practice.
What Will Happen to the Child Tax Credit Next Year?
The Joe Biden administration and the Democrats are pushing for the Child Tax Credit to be expanded again and, if that happens, you will be able to apply for more of these benefits next year. New figures show that since it ended, child poverty has doubled. New Jersey Sen. Cory Booker (D) says Congress allowed child poverty to rise.
Based on the report, the official poverty rate remained relatively stable from 2021 to 2022, holding steady at 11.5 percent. However, the supplemental poverty measure (S.P.M.) experienced a notable uptick, rising by 4.6 percent to reach 12.4 percent in 2022. The Census Bureau noted that this marks the first increase in the overall S.P.M. rate since 2010.
Critics argue that entitlement programs such as the expanded Child Tax Credit impose a heavy financial burden and significantly add to the growing national debt. However, Senator Booker asserts that the cost of inaction carries even more significant consequences. “This moral obscenity of the richest nation in the world having the highest poverty rates is not an accident,” he said.
Now, how does the Child Tax Credit helps households? Well, Families receive direct payments, which can help cover essential expenses like food, clothing, and housing. This extra income can significantly alleviate financial strain for struggling families. Since it was implemented, it has helped families with children get out of poverty, by reducing how they struggle to make ends meet.
