Rapid information and disinformation dissemination via social media platforms has become a major problem in the digital era, greatly impacting public perception and comprehension.
A recent Facebook post asserting that the Internal Revenue Service (IRS) will start paying out $300 monthly to children under six and $250 monthly to those between six and seventeen beginning in 2024 is an example of this phenomenon.
This post has received a lot of attention and distribution, demonstrating how easily false information can propagate online. It contains a screenshot that was allegedly taken from a Google search result.
CTC Monthly $300 Stimulus Payment Coming For Children?
The information in the post is incorrect and does not represent existing or upcoming IRS policies. This mistake appears to originate from uncertainty over the Child Tax Credit’s temporary adjustments under the American Rescue Plan Act of 2021.
From July to December 2021, qualifying families received improved child tax credits in the form of monthly advances. However, these payments were made directly to parents or guardians, not children.
Current Child Tax Credit Structure And Eligibility
The Child Tax Credit (CTC), according to the most recent revisions, helps parents and guardians with the expenses of raising children by giving them financial support. Following the expiration of the temporary upgrades from the American Rescue Plan Act of 2021, the following are the current regulations:
Fundamental Structure of The Child Tax Credit
- Credit Amount: Up to $2,000 may be claimed by qualified parents or guardians for each qualifying kid under the CTC.
- Age Limit: Children under the age of 17 at the end of the tax year are eligible for the credit.
- Refundability: A portion of the CTC can be reimbursed. This implies that you may be eligible for a refund if the credit amount is more than the amount of taxes you owe. The Additional Child Tax Credit (ACTC) is the name given to this refundable amount.
- ACTC Amount: Each child may receive a maximum of $1,400 in reimbursement. Even families with low or no income tax obligations can profit from this refundability.
Eligibility Standards
- Income Requirements: Families with earnings up to $200,000 for single filers and $400,000 for married couples filing jointly are eligible for the full benefit. The credit starts to phase off above these income thresholds.
- Residency and Relationship: The child must be connected to the taxpayer (son, daughter, stepchild, foster child, sibling, or a descendant of any of these) and have resided with the taxpayer for more than half of the tax year.
- Support: Over half of the child’s support must have been given during the year.
2021 Enhancements vs. Existing Regulations
The Child Tax Credit (CTC) underwent significant changes in 2021 due to the temporary provisions of the American Rescue Plan. For that year, the credit was increased to $3,600 for children under age six and $3,000 for children aged six to seventeen, and it became fully refundable. Additionally, families began receiving monthly advance payments.
However, these enhancements expired at the end of 2021. As of the current tax year, the CTC has reverted to its pre-2021 structure. The credit is now $2,000 per qualifying child under the age of 17, and it is partially refundable, subject to income limits. The monthly advance payments are no longer available. While there are ongoing discussions in the political sphere about the possibility of further changes to the CTC, these temporary increases are not currently in effect.
Biden’s Proposed Child Tax Credit Expansion Faces Hurdles
Former President Joe Biden has proposed reinstating the expanded child tax credit from 2021 and distributing it through monthly payments as part of his 2025 budget. However, this proposal faces significant challenges, especially in the Republican-controlled House of Representatives. This budget plan reflects the president’s priorities as he campaigns for re-election, rather than signaling an imminent policy change.
The claim circulating on Facebook about new IRS child tax credit payments starting in Winter 2024 is inaccurate. The public needs to consult reliable sources and official announcements for accurate information about tax policies, as these are subject to the legislative process.
FAQs
Q1: What is the IRS Child Tax Credit $300 Payment in 2024?
Ans: A payment of up to $300 per child under 6 and $250 for children 6-17, based on eligibility.
Q2: Who is eligible for the $300 payment?
Ans: Families meeting income and filing requirements, typically those with children under 17.