Enhanced Child Tax Credit

Biden administration has been working on a few changes to the existing tax code and one of the changes is going to bring an enhancement to the existing child tax credit. For the 2024 taxes taxpayers filed in 2023, eligible families and individuals received up to $3,600 in child tax credit, and $3,000 of it is refunded per qualifying child. The Internal Revenue Service shared the details and those with a qualifying child get more in the child tax credit with this change with a full amount refundable. Here is everything you need to know about the enhanced child tax credit for the 2024 tax season.

Age requirement changes

Currently, every qualifying child under the age of 17 is eligible for the child tax credit. First off, the enhanced child tax credit will make the credit available for families and individuals with a qualifying child under the age of 18. So, you can claim the credit for your 17-year-old child. 

Enhanced credit amount

The age requirement isn’t the only thing that is going to see an increase. The credit amount is also increased to $3,000 and $3,600 for children under the age of 6. This boost is a significant one after the Tax Cuts and Jobs Act of 2017. The child tax credit was doubled and now we see another 50 percent increase and an extra boost to qualifying children under 6. 

Child tax credit is now fully refundable

The child tax credit was always refundable but not all the amount would add up to the taxpayer’s refund. The Internal Revenue Service will now issue refunds at the full credit amount to taxpayers. Regardless of how many children you have and their age, you will get a tax cut off of your tax liability or get an increased refund thanks to the enhanced tax credit.

As for when you can start claiming this tax credit, these changes are for the 2024 taxes. Therefore, you will be able to claim the credit when you file your federal income tax return in 2023. For the 2024 tax season, the old child tax credit rules and the amounts remain the same. If you have a child that qualifies for the child tax credit at the moment but won’t next year, there is nothing you can do as you’re not eligible.