In recent months, rumors have circulated about a new monthly Child Tax Credit (CTC) stimulus payment for 2024 with claims abounding online that the IRS will be issuing $300 payments per child each month. This article aims to clarify these claims and provide accurate information about the current status of the CTC and any potential stimulus payments.
Background on the Child Tax Credit
The Child Tax Credit (CTC) is a tax benefit granted to eligible families with dependent children. Historically, the CTC has been a significant financial relief for many American families, helping to reduce their federal income tax liability. In 2021, under the American Rescue Plan, the CTC was temporarily expanded, allowing families to receive advance monthly payments of up to $300 per child under six and $250 per child aged six to seventeen.
The 2021 CTC expansion and its impact
The 2021 expansion of the CTC was a response to the economic challenges posed by the covid-19 pandemic. From 15 July to December 2021, eligible families received monthly payments directly from the IRS. This initiative provided immediate financial support to millions of households, helping them to cover essential expenses during a difficult period.
Current status of the expanded CTC in 2024
As of 2024, there have been no new legislative measures passed to reinstate the monthly advance payments of the CTC. The expanded CTC provisions from 2021 expired at the end of that year, and no similar programs have been implemented since. Despite various claims circulating on social media and other platforms, there is no official IRS program providing $300 monthly payments per child in 2024.
Debunking the $300 Monthly Payment Claim
Several posts on social media and in articles on the web have falsely claimed that the IRS will begin issuing $300 monthly payments to children under six and $250 to those aged six to seventeen starting in July 2024. These claims are incorrect and misleading. The IRS has not announced any such program, and tax experts have confirmed that no legislation has been passed to authorize these payments.
What families can expect in 2024
While these rumored monthly CTC payments will not be being paid, eligible families can still benefit from the standard Child Tax Credit when they file their federal income tax returns. For the 2024 tax year, the CTC remains a valuable tax benefit, allowing families to claim up to $2,000 per qualifying child. This credit can significantly reduce the amount of federal income tax owed, providing substantial financial relief.
President Biden’s Proposed Budget
President Joe Biden’s proposed budget for 2025 includes a provision to reinstate the expanded CTC, similar to the 2021 model. If approved, this could potentially bring back monthly advance payments. However, as of now, this proposal has not been enacted into law, and families should not expect any changes to the CTC for the 2024 tax year.
Demystifying the rumors
The rumors about a new monthly CTC stimulus payment of $300 per child in 2024 are unfounded. While the expanded CTC provided significant relief in 2021, no similar program is currently in place. Families should rely on accurate information from credible sources and be cautious of misleading claims circulating online. For the latest updates on tax credits and other financial benefits, always refer to official IRS announcements and trusted news outlets.
