With tax season already underway, many can’t wait to get their refunds. For the 2024 filing season, here are the essential adjustments regarding the Child Tax Credit, refund schedules, and other pertinent information.
Delays in Child Tax Credits and Refunds
According to the IRS, people usually have to wait 21 days after submitting their tax returns before they can get their refunds. On the other hand, those seeking extra credits like the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) can experience delays. While millions of Child Tax Credit applicants may have to wait longer, not all of them will.
Overview of the Child Tax Credit
Families with qualified children may get a tax savings of up to $2,000 per child via the Child Tax Credit. Only a part, known as the extra Child Tax Credit, is refundable; the $1,600 refundable amount for this year is one of them.
Expected Dates of Child Tax Credit Refunds
The IRS predicts that by February 27, the majority of extra refunds connected to the Child Tax Credit will be accessible in bank accounts or on debit cards, provided that taxpayers choose direct deposit and have no problems with their returns. Processing is delayed until mid-February and is linked to preventing fraudulent returns.
Taxpayers can check their personalized refund date using the “Where’s My Refund?” tool, which will be updated with projected deposit dates for early EITC/ACTC refund filers by Feb. 17.
Details for the 2024 Tax Filing Season
The IRS opened for tax returns on January 29 and April 15 is the deadline for filing. Due to state holidays, residents of Maine and Massachusetts have until April 17; however, residents of places where a federal disaster has been declared may be given an extension for filing. Additionally, filing extensions are offered, giving people until the middle of October to submit their tax forms.
2024 Tax Refunds
Expectations for Refunds in 2024
The IRS attempts to process refunds in less than 21 days, but this deadline is not always met. Certain returns can need further examination, which would cause the processing time to go above the 21-day limit. Returns filed electronically are usually processed more quickly than paper returns.
Verifying the Status of a Refund
Using the updated “Where’s My Refund?” function on IRS.gov or the IRS2Go app, taxpayers can keep watch on the progress of their return. This year, the tool offers additional details on the progress of a taxpayer’s return, along with any further information that could be required.
Deal to Expand the Child Tax Credit
A deal is in place to increase the Child Tax Credit, possibly extending back to 2023. Tax professionals caution against waiting to file taxes in hopes of receiving a larger credit, however. Should the agreement be signed into law and applied retroactively, the IRS would probably send out another check to make up the difference.
Adjustments to the 2023 and 2024 Tax Brackets
For 2023 and 2024, the IRS changed tax brackets to account for inflation. The limitations were raised by around 5.4% in 2024 and the brackets by almost 7% in 2023.
Possibility of Larger Refunds in 2024
In 2024, certain taxpayers—especially those whose income did not increase in line with inflation—may get higher refunds. A larger refund might be given to those whose salaries increased less than the IRS-adjusted tax brackets. According to Credit Karma, almost 75% of Americans anticipate receiving a tax return, with 25% expecting a bigger check from the IRS.