Updated on August 4, 2024
$512 New Direct Stimulus Payments 2024 – Who is Eligible to Claim this Payment? Fact Check
As tax season rolls around, many Americans eagerly anticipate their returns and potential credits or refunds. In Maryland, taxpayers stand to benefit from the possibility of receiving a $512 New Direct Stimulus Payment this year. However, there are specific criteria that must be met to qualify for these payments.
To be eligible for the $512 New Direct Stimulus Payments in 2024, Maryland residents must fulfill two key requirements. Firstly, they must qualify for the federal Child Tax Credit (CTC), which Maryland contributes to based on income. The amount available from Maryland varies, but many individuals can access the full federal amount of $1,600 per dependent.
Moreover, Marylanders earning $30,000 or less may be entitled to an additional 32% of their federal benefit. However, to qualify for the Maryland child tax credit, individuals need to meet certain eligibility requirements for the federal benefit. This includes having a child aged 17 or younger who resides with them for more than half of the year. Additionally, accurately registering the child as a dependent is essential.
Navigating the tax system can be complex, but understanding these eligibility requirements is crucial for Maryland residents seeking to maximize their returns and potential stimulus payments.
$512 New Direct Stimulus Payments
If you received a credit on your federal income tax return (Form 1040) for the relevant tax year, you might be eligible to claim the credit on your Maryland state income tax return as well. However, the benefits gradually reduce for taxpayers with a federal adjusted gross income (FAGI) exceeding $102,600 ($159,500 for married couples filing joint income tax returns), starting at 32% of the federal credit allowed.
This credit is an additional benefit on top of the child and dependent care expenditure deduction adjustment that could be noted on your Maryland return. To qualify for the credit, you must complete Part B of Form 502CR and submit it along with your Maryland income tax return. The credit should be disclosed on Maryland Form 502, 505, or 515. You can use the provided tables below to determine the portion of the Federal Child Tax Credit (FCTC) you’re eligible to claim on your Maryland tax return.
To calculate the proper quantity in decimal for your Federal Adjusted Gross Income (FAGI), you’ll need to refer to the relevant table provided by the Maryland tax authorities. Once you find the decimal value corresponding to your FAGI, divide it by that value.
After determining your FAGI decimal value, you’ll use it to fill out your Maryland tax return, specifically on Form 502CR. Complete Form 502CR according to the provided guidelines, making sure to include all necessary information and calculations.
Include your completed Form 502CR along with your Maryland tax return when you submit it.
If the credit you’re eligible for exceeds your tax due and your FAGI is not greater than $55,750 ($83,650 for married couples filing jointly), you may be entitled to a refund of the excess credit. Refer to the instructions for Form 502CR, Worksheet 21B, for guidance on calculating any refundable credits. Fill out Part CC of Form 502CR accordingly.
Ensuring accuracy and completeness in filling out your forms will help streamline the tax filing process and maximize any potential refunds you may be eligible for.
Maryland Child Tax Credit (CTC) 2024 Details
| Post theme | $512 New Direct Stimulus Payments |
| Authority | COMPTROLLER of MARYLAND |
| Category | Government Aid |
| Benefit Amount | $512 |
| Region | Maryland |
| Official Website | www.marylandtaxes.gov |
Child and dependent Credit- care expenses chart
The following FAGI figures have been adjusted in accordance with Maryland law.
| Individual taxpayer, if your federal AGI is: | Decimal Amount (multiplied by FC) | Married Taxpayer, if your federal AGI is: | ||
| At least | But less than | At least | But less than | |
| $0 | $30,001 | 0.32 | $0 | $50,001 |
| $30,001 | $32,001 | 0.3168 | $50,001 | $53,001 |
| $32,001 | $34,001 | 0.3136 | $53,001 | $56,001 |
| $34,001 | $36,001 | 0.3104 | $56,001 | USD 59,001 |
| $36,001 | $38,001 | 0.3072 | $59,001 | $62,001 |
| $38,001 | $40,001 | 0.304 | $62,001 | $65,001 |
| $40,001 | $42,001 | 0.3008 | USD 65,001 | $68,001 |
| $42,001 | $44,001 | 0.2976 | $68,001 | $71,001 |
| $44,001 | $46,001 | 0.2944 | $71,001 | $74,001 |
| $46,001 | $48,001 | 0.2912 | $74,001 | $77,001 |
| $48,001 | $50,001 | 0.288 | $77,001 | $80,001 |
| $50,001 | $52,001 | 0.2848 | $80,001 | $83,001 |
| $52,001 | $54,001 | 0.2816 | USD 83,001 | $86,001 |
| $54,001 | $56,001 | 0.2784 | $86,001 | $89,001 |
| $56,001 | $58,001 | 0.2752 | $89,001 | USD 92,001 |
| $58,001 | $60,001 | 0.272 | $92,001 | $95,001 |
| $60,001 | $62,001 | 0.2688 | $95,001 | $98,001 |
| $62,001 | $64,001 | 0.2656 | $98,001 | $101,001 |
| $64,001 | $66,001 | 0.2624 | USD 101,001 | $104,001 |
| $66,001 | $68,001 | 0.2592 | $104,001 | $107,001 |
| $68,001 | $70,001 | 0.256 | $107,001 | $110,001 |
| $70,001 | $72,001 | 0.2528 | $110,001 | $113,001 |
| $72,001 | $74,001 | 0.2496 | $113,001 | USD 116,001 |
| $74,001 | $76,001 | 0.2464 | $116,001 | $119,001 |
| $76,001 | $78,001 | 0.2432 | $119,001 | $122,001 |
| $78,001 | $80,001 | 0.24 | $122,001 | $125,001 |
| $80,001 | $82,001 | 0.2368 | $125,001 | USD 128,001 |
| $82,001 | $84,001 | 0.2336 | $128,001 | $131,001 |
| $84,001 | $86,001 | 0.2304 | USD 131,001 | $134,001 |
| $86,001 | $88,001 | 0.2272 | $134,001 | $137,001 |
| $88,001 | $90,001 | 0.224 | USD 137,001 | $140,001 |
| $90,001 | $92,001 | 0.2208 | $140,001 | $143,001 |
| $92,001 | $94,001 | 0.2176 | $143,001 | $146,001 |
| $94,001 | $96,001 | 0.2144 | $146,001 | USD 149,001 |
| $96,001 | $98,001 | 0.2112 | $149,001 | USD152,001 |
| $98,001 | $100,001 | 0.208 | $152,001 | $155,001 |
| $100,001 | $102,001 | 0.2048 | $155,001 | $158,001 |
| $102,001 | $102,601 | 0.2016 | $158,001 | $159,501 |
| $102,601 | and up | 0 | USD 159,501 | and up |
Child tax credit news update 2024
Financial assistance for taxpayers with children primarily comes in the form of the federal tax benefit known as the Child Tax Credit (CTC). This credit has been a focal point for lawmakers this year as they aim to enhance support for families. On January 31, the bipartisan Tax Relief for American Families and Workers Act of 2024, aimed at amending the child tax credit, was passed by the House of Representatives. However, before it can become law, the bill must undergo further review in the Senate. As it moves through this process, it remains subject to additional consideration and potential modifications.
What is the child tax credit in USA?
Taxpayers who have dependent children under the age of 17 can qualify for the current Child Tax Credit (CTC), which is a nonrefundable tax benefit. This credit can help reduce or completely eliminate your tax liability on a dollar-for-dollar basis. Additionally, some taxpayers may be eligible for the Additional Child Tax Credit (ACTC), which provides an approximate partial refund of the credit.
To be eligible for these credits, taxpayers and their children must meet specific requirements, including the child’s age and their relationship to the taxpayer. Meeting income requirements is also crucial, as the credit gradually phases out for higher earnings. If your modified adjusted gross income exceeds the income limit, you may receive a reduced credit amount or be deemed ineligible for the credit altogether.
Child tax credit expansion
If approved in its current form, the proposed increase in the child tax credit would offer a temporary boost in benefits for lower-income families and those who often struggle to fully benefit from this tax credit.
Currently set at $1,600 per dependent, the maximum refundable amount would rise to $1,800 for 2023 taxes filed in 2024. For the tax years 2024 and 2025, the refundable child tax credit would further increase to $1,900 and $2,000 respectively.
To ensure a fairer distribution of the credit, parents and caretakers would be allowed to include the number of children they have when calculating the total credit amount they are entitled to. This adjustment would begin with tax returns filed this year and extend through tax year 2025.
To be eligible for the refundable child tax credit, filers must earn at least $2,500. They can use their earned income from the current year or the previous year to meet this criterion for tax years 2024 and 2025 (taxes filed in 2025 and 2026). This provision is particularly important for many lower-income families who might not otherwise qualify due to their low annual income.
If enacted, the increased maximum refundable amount per child would be reflected in most major tax software programs, making it easier for taxpayers to claim the credit accurately.