Taxes 2024: Politicians Urge Parents to Apply for Child Tax Credit — Should You Wait?
Written by
Dawn Allcot
Edited by
Travis Woods
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Since the U.S. tax season officially began on Monday, January 29, 2024, Americans should begin gathering their tax paperwork and reviewing any credits and deductions in preparation to file. Additionally, taxpayers in Puerto Rico should remember to file for the Child Tax Credit (CTC), Resident Commissioner Jenniffer González-Colón told TheWeeklyJournal.com.
Prior to the American Rescue Plan (enacted in March 2021), parents in Puerto Rico could only claim the Child Tax Credit if they had three or more children. Now, any parent who files U.S. taxes in Puerto Rico can claim up to $1,600 for each qualifying child as a fully refundable tax credit, according to a report from El Pais. Even if you don’t owe taxes, you can still receive the credit as long as you don’t exceed the income threshold of $200,000.
Additionally, if you failed to claim the CTC in recent years (including 2021 when payments were mailed directly to parents with dependent children), you can still claim that money on your 2023 taxes, which you must file by April 15, 2024.
Should You Wait to File in 2024?
The House Ways and Means Committee recently approved a bill that would expand the CTC to $1,800 in 2023, $1,900 for 2024 and $2,000 for 2025. However, it hasn’t passed in Congress yet. As such Puerto Rico residents might be wondering if they should wait to file taxes in case the CTC increases.
For now, it is recommended that residents still file now, and then take advantage of the option to file an amended return if and when the credit actually increases.
Benefits of Filing Early
Filing taxes early has several benefits, including simply having the peace of mind that comes with knowing you’ve filed and that it’s done. Further, filing early reduces the risk of fraud. Fraudsters who obtain your personal information can file a tax return in your name and take your refund if you wait too long to file. However, if a thief files after you’ve already submitted your return, the fraudulent return is more likely to be flagged by the IRS.
Morever, the most obvious benefit to filing early is that you’ll receive your refund faster. You can use that money to pay down debt or invest in a high-yield savings account to earn interest rather than letting the government hang onto it.
