In today’s digital world information spreads rapidly through social media but not all of it is accurate A recent Facebook post for instance claims that the Internal Revenue Service (IRS) will begin issuing monthly payments of $300 for children under six and $250 for children aged six to seventeen starting in 2024 This post accompanied by a screenshot of a supposed Google search result has garnered significant attention illustrating how easily misinformation can spread online.
The Truth Behind the $300 Monthly Stimulus Payment
The information circulating on social media regarding new monthly child tax credit payments is not accurate and does not reflect any new IRS policies This confusion likely stems from the temporary changes to the Child Tax Credit (CTC) under the American Rescue Plan Act of 2021 which provided enhanced benefits for a limited time
Under the provisions of the American Rescue Plan eligible families received monthly advance payments of child tax credits from July to December 2021 However these payments were directed to parents and guardians not the children themselves Currently there are no such monthly payments scheduled for 2024.
Current Child Tax Credit Regulations
As of the most recent updates the Child Tax Credit continues to offer support to parents and guardians but the enhancements that were available during the temporary period of the American Rescue Plan no longer apply Here’s a look at the current structure of the CTC.
Basic Structure of the Child Tax Credit
- Credit Amount: Eligible parents or guardians can claim up to $2,000 per qualifying child
- Age Limit: The credit applies to children under the age of 17 at the end of the tax year
- Refundability: A portion of the credit is refundable which means that if the amount exceeds your tax liability you can receive the difference as a refund This is known as the Additional Child Tax Credit (ACTC)
- ACTC Amount: The maximum refundable amount is $1,400 per child This ensures that even families who owe little to no taxes can still benefit from the credit.
Eligibility Criteria for the Child Tax Credit
- Income Limits: Families with incomes up to $200,000 for single filers and $400,000 for married couples filing jointly are eligible for the full credit The credit gradually phases out for incomes above these thresholds
- Residency and Relationship: The child must have lived with the taxpayer for more than half of the tax year and must be a qualifying relative such as a son daughter foster child or sibling
- Support: The child must not have provided more than half of their own support during the year.
Comparing 2021 Provisions to Current Regulations
It’s important to remember that during 2021 under the American Rescue Plan the Child Tax Credit was temporarily increased Children under six received $3,600 while children aged six to seventeen received $3,000 Additionally the credit was fully refundable and families received monthly advance payments However these enhancements expired at the end of 2021 and the CTC has returned to its pre-2021 structure.
Potential Future Changes and Political Context
In 2025 President Joe Biden proposed reintroducing the enhanced Child Tax Credit and distributing payments monthly However this proposal faces significant hurdles in Congress particularly with the Republican-controlled House of Representatives As of now it remains unclear whether such changes will come to fruition and the proposal largely reflects the President’s campaign priorities rather than an imminent policy shift.
Conclusion: A Reminder About Misinformation
The claim that the IRS will issue monthly child tax credit payments starting in 2024 is false It’s crucial for individuals to consult reliable sources such as official government announcements for accurate information regarding tax policies Misleading posts on social media can easily distort the facts so it’s important to stay informed and understand the legislative process that shapes these policies.
