2025 Tax Time Guide: Key Updates and Filing Essentials Part 2
Significant Changes to the Additional Child Tax Credit for 2024
The 2024 tax year brings important updates to the Additional Child Tax Credit (ACTC):
Maximum ACTC increased to $1,700 per qualifying child1.
Bona fide Puerto Rico residents now eligible with one or more qualifying children1.
Refunds claiming ACTC won’t be issued before mid-February 20251.
Key Tax Changes for 2024
Single or married filing separately: $14,600
Head of household: $21,900
Married filing jointly or qualifying surviving spouse: $29,2001
Child Tax Credt (CTC) Updates
Base amount remains $2,000 per qualifying child
Phases out for AGI over $200,000 ($400,000 for joint filers)
Child must be under 17 by the end of 20241
File Early: The IRS will automatically adjust returns if CTC legislation changes1.
Other Credit Updates
- Earned Income Tax Credits (EITC): Claimants without qualifying children must be 25-64 years old1.
- Adoption Credit: Limit increased to $16,810 per eligible child5.
- Clean Vehicle Credit: Reported on Form 8936 and Schedule 3 (Form 1040), line 6f5.
IRS Contributions and 1099-K Reporting
- IRA Contribution Limit: Increased to $7,000 ($8,000 for 50 and older)5.
- 1099-K Reporting:: Third-party settlement organizations must report transactions exceeding $5,0005.
Conclusion
Stay informed about these tax changes to maximize your credits and ensure accurate filing. Review all necessary documents, track contributions and credits, and utilize available resources for a smooth tax season.
For comprehensive information, consult the IRS Tax Time Guide 2025 and Publication 17