Families across the United States received much-needed financial relief in November 2024, with some qualifying for up to $1,500 in state child stimulus payments. This comes alongside the ongoing federal Child Tax Credit (CTC) program, offering additional financial benefits to help ease the burden on parents and guardians.
Let’s break down how these payments work, who qualifies, and when to expect them.
Federal Child Tax Credit Explained
The federal Child Tax Credit (CTC) remains one of the largest support systems for families with children. In 2024, families could claim up to $2,000 per child under the age of 17. For some families, up to $1,700 of that credit could be refunded if they had little to no tax liability.
However, unlike the advance payments provided during the pandemic in 2021, this year’s CTC is only available as a lump sum when filing taxes. Families who qualify will receive the full credit once they submit their tax returns in early 2025.
Who Is Eligible for the Federal CTC in 2024?
To qualify for the federal CTC, families need to meet the following criteria:
- Age Requirement: The child must be under 17 years old by the end of 2024.
- Relationship to the Claimant: The child must be related by birth, adoption, foster care, or as a sibling.
- Dependent Status: The child must be listed as a dependent on the taxpayer’s return.
- Citizenship: The child must be a U.S. citizen or resident alien.
- Residency: The child must live with the taxpayer for more than half of the year.
- Income Limits: The credit begins to phase out for individuals earning over $200,000 ($400,000 for married couples filing jointly).
What About State-Level Child Tax Payments?
Many states have stepped in with their own versions of the Child Tax Credit, offering additional relief. Some states, like Minnesota, are even providing partial payments throughout the year to help families balance ongoing expenses. Here’s what you need to know about state programs and when you could expect your payment.
Minnesota’s State Child Tax Credit Payments
Minnesota implemented a state-level CTC with advance payment options to ease the financial strain on families.
- Advance Payments: Families could opt to receive three payments spread across July, September, and November 2024.
- Final Credit: The remainder of the credit can be claimed when filing 2024 state tax returns in early 2025.
New York’s Empire State Child Credit
New York offers its own child tax relief through the Empire State Child Credit. Payments are processed after residents file their tax returns.
- Payment Timeline: While New York began sending out payments in August 2024, families who filed later in the year may have received theirs in November.
- Automatic Eligibility: Families who met income and dependent requirements automatically received their payments without needing to take additional action.
What Should You Do Next?
If you think you qualify for federal or state child tax benefits, check with your state’s Department of Revenue or the IRS for updates. Ensure your tax returns are filed correctly to avoid delays in receiving payments. With inflation impacting daily expenses, maximizing these credits can be a game-changer for many families.
As tax policies continue to evolve, staying informed is key to ensuring you don’t miss out on financial aid that you may be entitled to.
