In the digital era, the quick transmission of information and disinformation via social media platforms has become a common problem, impacting public perception and comprehension on a massive scale.
A new Facebook post claims that the Internal Revenue Service (IRS) would begin paying monthly payments of $300 for children under six and $250 for those aged six to seventeen beginning in 2024.
This article, which includes a screenshot apparently taken from a Google search result, has received a lot of attention and distribution, demonstrating how easily erroneous information can propagate online.
CTC Monthly $300 Stimulus Payment Coming for Kids?
The information provided in the post is incorrect and does not represent existing or forthcoming IRS rules. This mistake seems to originate from uncertainty about the temporary modifications to the Child Tax Credit 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 sent directly to parents or guardians, not children.
Current Child Tax Credit Regulations
According to the most current changes, the Child Tax Credit (CTC) offers financial assistance to parents and guardians to help cover the expenses of raising children. The current rules, after the expiry of the temporary upgrades from the American Rescue Plan Act of 2021, are as follows:
Basic Structure of the Child Tax Credit
- Credit Amount: The CTC allows eligible parents or guardians to claim up to $2,000 per qualifying child.
- Age Limit: The credit is applicable for children under the age of 17 at the end of the tax year.
- Refundability: Part of the CTC is refundable. This means that if the credit amount exceeds the taxes you owe, you can receive the difference as a refund. This refundable portion is known as the Additional Child Tax Credit (ACTC).
- ACTC Amount: The maximum refundable amount is up to $1,400 per child. This refundability ensures that even families who owe little to no income tax can benefit.
Eligibility Criteria
- Income Requirements: The full credit is available to families with incomes up to $200,000 for single filers and $400,000 for married couples filing jointly. Above these income levels, the credit begins to phase out.
- Residency and Relationship: The child must have lived with the taxpayer for more than half of the tax year and must be related to the taxpayer (son, daughter, stepchild, foster child, sibling, or a descendant of any of these).
- Support: The child must not have provided more than half of their support during the year.
Tax Year 2021 vs. Current Regulations
It is worth noting that, under the American Rescue Plan’s interim provisions, the CTC was doubled to $3,600 for children under the age of six and $3,000 for children from six to seventeen in 2021, and it was totally refundable. These additions also included monthly advance payments for families. However, the amendments were not extended beyond 2021.
The current laws have returned to the pre-2021 system, which, although less generous, nevertheless offers considerable assistance to families across the United States. As political talks continue, the CTC may undergo adjustments or upgrades in the future, but for the time being, it works as stated above.
Future Proposals and Political Context
Former President Joe Biden suggested in his 2025 budget to reinstate the enhanced child tax credit from 2021 and deliver it in monthly installments. However, this approach will encounter significant legislative obstacles, notably in the Republican-controlled House of Representatives. This budget request reflects the president’s goals as he campaigns for re-election, rather than an impending policy shift.
The Facebook post’s assertion concerning new IRS child tax credit payments beginning in Winter 2024 is incorrect. The public must rely on credible sources and official pronouncements about tax policy, as well as be informed about the legislative process that determines such changes.
Also See: 800 Stimulus Check Payment in 2024, Should you expect a disbursement or is it just a hoax?
