Recently, a viral Facebook post claimed that beginning in July 2024, families would receive monthly Child Tax Credit (CTC) payments from the IRS. The post stated that these payments would amount to $300 per month for children under six and $250 for those aged six to 17, beginning July 15, 2024.
However, this claim misused past data from the American Rescue Plan of 2021, which included temporary monthly CTC advance payments as pandemic relief measures. The current structure of the CTC is different, and no new monthly payment program is planned for 2024.
2021 Expanded CTC
During the COVID-19 pandemic, the U.S. government implemented several financial relief programs to support struggling families. One of the most significant changes came from the American Rescue Plan Act of 2021, which expanded the CTC:
- Monthly advance payments: From July to December 2021, families received monthly CTC payments of up to $300 for each child under six and $250 for children aged six to 17.
- Full refundability: The expanded CTC was fully refundable, allowing even low-income families to benefit from the full credit amount, which helped reduce child poverty rates.
These temporary monthly payments ended in December 2021, and there were no extensions or new monthly CTC programs implemented in subsequent years.
What Happened?
The Child Tax Credit reverted to its original form after 2021. In 2024, families could still claim a partially refundable tax credit of up to $2,000 per qualifying child:
- Non-refundable portion: This part helps reduce a taxpayer’s liability but cannot exceed the amount owed.
- Refundable portion (ACTC): If the credit exceeds the taxpayer’s liability and their tax drops to $0, they could receive up to $1,600 per qualifying child as a refund.
Monthly Payments
The idea of reviving monthly payments resurfaced because of President Joe Biden’s 2025 budget proposal, which included resources to reinstate the 2021-style expanded CTC. This proposal aimed to provide monthly payments to help families manage ongoing expenses throughout the year. However, political challenges have stymied these efforts:
- Republican-controlled House: The proposal faced resistance and was unlikely to pass, particularly given the upcoming elections.
- Legislative attempts: The House passed a bill in early 2024 to increase the refundable portion of the CTC, but it did not receive a vote in the Senate.
Current CTC Structure
As of now, the CTC remains partially refundable, and families must claim the credit when filing their annual tax return:
- Maximum credit: Up to $2,000 per child, with a non-refundable portion that reduces tax liability.
- Refundable credit: Up to $1,600 per child is available as part of the Additional Child Tax Credit (ACTC) for families whose tax is reduced to $0.
- Claim process: Taxpayers need to file their annual return to claim these credits; there are no monthly disbursements.
Clarifying Misinformation
Social media posts and viral claims can easily spread confusion about tax policies and credits. The IRS has cautioned taxpayers to verify such information using trusted and official sources:
- IRS resources: The IRS website and reputable news outlets are the best places for accurate information.
- Misinformation risks: False claims may cause unnecessary concern and lead to financial planning errors.
The viral post about the supposed 2024 monthly payments likely stemmed from misunderstandings or a desire for financial relief similar to that provided during the pandemic. However, these claims do not reflect current tax policy.
While the idea of monthly Child Tax Credit payments gained attention due to past relief programs and recent legislative proposals, no such program is active or planned for 2024. Families can still access the CTC and ACTC through their annual tax filings, with up to $2,000 per child available as a non-refundable credit and a potential refund of up to $1,600. To avoid being misled, it’s essential to rely on official sources and remain cautious about viral posts.
FAQs
Will there be monthly CTC payments in 2024?
No, the IRS has not announced any monthly payments for 2024.
What is the maximum Child Tax Credit?
Up to $2,000 per qualifying child for 2024.
Is the CTC refundable?
Partially; up to $1,600 can be refundable through the ACTC.
Where did the viral CTC post originate?
It likely reused information from the 2021 pandemic relief program.
How can I claim the CTC?
By filing your annual tax return and meeting eligibility criteria.
