If you’re a parent struggling to manage your household budget, here’s some good news. In 2024, families in the U.S. may be able to get up to $1,700 per child as part of the Child Tax Credit. Even if you didn’t earn much or didn’t owe any taxes, you may still qualify to get this money. It’s a helpful way for families to reduce their financial stress and receive some support from the government.
What Is the Child Tax Credit?
The Child Tax Credit is a benefit that helps families with children under the age of 17. For each child, you can claim up to $2,000, and up to $1,700 of that is refundable. This means that even if you don’t owe any federal income tax, you could still get money back from the government.
According to federal rules, families may qualify even if they had little or no income in 2024.
Who Can Claim This Credit?
To claim the Child Tax Credit:
- The child must be under 17 years old and have a valid Social Security Number (SSN).
- Only one parent or guardian can claim the credit.
- The child must have lived with you in the U.S. for more than half of the year.
- Your income must be below $200,000 (for individuals) or $400,000 (for married couples filing jointly).
- The child can be your biological child, stepchild, adopted child, sibling, or grandchild.
- The child should not provide more than half of their own support.
This credit doesn’t count as income, so it won’t affect your eligibility for public benefit programs like food stamps or Medicaid.
Child and Dependent Care Credit in New York
If you live in New York State and paid for child care for children under 4 years old in 2024, you may also qualify for a Child and Dependent Care Credit.
To be eligible:
- Your federal adjusted gross income must be below $30,000.
- You must qualify for the New York State credit.
- The credit equals 75% of the state credit amount.
- You can apply for both state and city-level credits.
- You can still qualify if you lived in New York for only part of the year.
- The child does not need an SSN, but the filer must have an SSN or ITIN.
This credit is refundable for some, but non-refundable for others depending on income and filing status. If your income is up to $12,500 (for singles) or $22,500 (for married couples), you may still receive the credit, but the amount will vary. It is calculated based on forms IT-201 or IT-360.1.
Note: If you are claimed as a dependent on someone else’s return, you cannot claim this credit. Those who are married but file separately must follow special rules.
How to Apply and What Documents You Need
To claim the Child Tax Credit, you’ll need to:
- File your taxes using Form 1040 or 1040-SR.
- Provide your child’s SSN. If the child is adopted, an ATIN (Adoption Taxpayer Identification Number) is needed.
- If you don’t have an SSN, you must use an ITIN (Individual Taxpayer Identification Number).
For the New York Child and Dependent Care Credit, you must:
- Show proof of child care expenses like receipts from daycare or babysitters.
- Use Form IT-216 to calculate your credit and transfer the amount to your main tax form.
- Use Form IT-201 if you are a New York resident or Form IT-203 if you’re a non-resident.
The Child Tax Credit and the New York Child and Dependent Care Credit are powerful tools that can ease the financial burden for families. Even if your income was low in 2024, you could still get money back through these programs.
Make sure to check the rules, collect your paperwork, and file your taxes correctly to get the full benefit. This money can make a real difference in helping you manage everyday expenses, especially with the rising cost of living.
