In today’s digital world, social media spreads information quickly, but not always accurately. A recent Facebook post claims that the IRS will start issuing $300 monthly payments for children under six and $250 for those aged six to seventeen starting in July 2024. This claim has garnered a lot of attention, but what’s the real story? Let’s break down the facts about the Child Tax Credit (CTC) and clarify this situation.
CTC Monthly $300 Stimulus Payment Coming for Kids?
The Facebook post about $300 monthly payments for kids is incorrect. This confusion likely arises from changes made under the American Rescue Plan Act of 2021. During this period, families received enhanced Child Tax Credit payments as advance monthly payments from July to December 2021. However, these payments were made to parents or guardians, not to the children themselves.
Current Child Tax Credit Regulations
Here’s a breakdown of the current regulations for the Child Tax Credit (CTC):
| Aspect | Current Regulations |
|---|---|
| Credit Amount | Up to $2,000 per eligible child |
| Age Limit | For children under 17 at the end of the tax year |
| Refundability | Up to $1,400 per child can be refunded if the credit exceeds your tax bill |
| Income Requirements | Full credit available to families with incomes up to $200,000 (single filers) or $400,000 (married couples) |
| Residency and Relationship | Child must live with you for more than half of the year and be related to you |
| Support | Child must not provide more than half of their own support during the year |
Tax Year 2021 vs. Current Regulations
In 2021, the Child Tax Credit was temporarily increased to $3,600 for children under six and $3,000 for children aged six to seventeen. These changes also included monthly advance payments. However, these enhancements expired at the end of 2021, and the CTC has returned to its pre-2021 structure.
Future Proposals and Political Context
President Joe Biden has proposed reinstating the enhanced Child Tax Credit in his 2025 budget, including monthly payments. However, this proposal faces significant challenges in Congress and is more of a campaign promise than an imminent change.
Conclusion
The claim about new IRS child tax credit payments starting in July 2024 is inaccurate. For reliable information, refer to official sources and stay informed about legislative changes. Always verify online claims with trusted sources.
FAQ’s
What is the Child Tax Credit for 2024?
The Child Tax Credit (CTC) for 2024 allows eligible parents to claim up to $2,000 per child under 17. A portion of this, up to $1,400 per child, is refundable, meaning you could receive a refund if the credit exceeds your tax bill.
Will there be $300 monthly payments for children in 2024?
No, the claim about $300 monthly payments starting in July 2024 is incorrect. The Child Tax Credit currently follows the pre-2021 structure, without additional monthly payments.
Are there any proposed changes to the Child Tax Credit?
President Joe Biden has proposed reinstating enhanced Child Tax Credit payments in his 2025 budget, but this proposal is still under review and faces significant legislative challenges.