For 2024, the CTC offers up to $2,000 per qualifying child under 17. Of this, up to $1,700 is refundable as the Additional Child Tax Credit (ACTC).
What's new?
The Child Tax Credit (CTC) for the tax year 2024 was increased from $1,600 to $1,700 per child. The age limit for qualifying children remains the same; under 17 years of age (16 or younger). All working families will get the full credit if they make up to $400,000 for a couple or $200,000 for a family with a single parent (also called Head of Household).
Important note: This year, the credit is limited to Social Security and Medicare withholding. For example, if you have two qualifying dependents and you only contributed $800 to Social Security and Medicare through withholding, then you are only eligible for a refundable credit of $800.
How do I qualify?
- Have been a resident of Puerto Rico (for the current year to which you are applying).
- Have one (1) or more eligible children:
- Qualifying children are those known as a son or daughter, stepson or stepdaughter, foster son or daughter, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandson, your niece, or his nephew).
- The child must be under 17 years of age at the end of 2024 and be younger than you (or your spouse, if you file a joint return) unless you are permanently and totally disabled (handicapped).
- You did not provide more than half of your own support during the year 2024.
- The child lived with you for more than half of the year 2024.
- The child is a citizen, national, or resident alien of the United States.
- There is no minimum income requirement, although the amount of the credit begins to decrease from the reported $400,000 for a couple or $200,000 for a family with a single parent (also called Head of Household).
How do I apply for the Child Tax Credit (CTC)?
To request it, you must fill out Form 1040-SS or Taxmania's CTC questionnaire. If you are a taxpayer who did not have a source of income from the United States and you are not required to file the federal return. In the case of taxpayers who have a source of income from the United States, you must use Form 1040.
Taxmania offers a simple way to fill out the Child Tax Credit. To get to this option you must choose the tax year 2024, then the Child Tax Credit or 1040-SS option. Upon arrival, the steps are as follows:
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Basic information
- Fill in your personal information as a taxpayer. Choose your marital status. If you are married, add your spouse's information
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Dependents
- Enter at least one (1) dependent under the age of 17. He must have lived with you, the taxpayer, for more than half the year
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Income
- Enter your W-2 form(s)
- Enter your refund information.
- Here you will be told whether or not you are eligible for the credit. If eligible, you will be asked for an account number and routing number where the refund will be deposited.
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File return
- Here you will be asked for the electronic signatures and information necessary to file your return
Note: Only one taxpayer can claim the Child Tax Credit, even if the eligible child lived in more than one household during the tax year. If one parent has primary custody of the child, that parent usually receives the tax credit. In joint custody cases, the parents must come to an agreement on when each will claim the credit, in alternate years or in some other way.
IRS makes available an online tool for families with dependents who qualify can check whether they are registered or update their bank details to begin receiving benefits.
Do you feel ready to apply for the CTC? Take advantage and fill out your 1040-SS form today in an easy, fast, and secure way in Taxmania.
Claiming the credit only takes a few minutes in Taxmania!
Date: January 30, 2025
Author: Carlos A. Nazario