IRS CTC Monthly Payment Renewed? Child Tax Credit Expansion Updates!

The IRS may return $250 to $300 per month to US families that are eligible for the Child Tax Credit (CTC).  It is expected that the IRS CTC Monthly Payment Renewed will begin on July 6, 2024.

IRS CTC Monthly Payment Renewed?

The Child Tax Credit (CTC) for US families may receive monthly payments from the IRS ranging from $250 to $300. The possibility of resuming $250–$300 monthly Child Tax Credit (CTC) payments to families in the United States has been verified by the Internal Revenue Service (IRS). 

The credit would rise from $2,000 to $3,600 for children under the age of six and to $3,000 for children six and older under the proposed modifications in the 2019 budget. The IRS CTC Monthly Payment Renewal is anticipated to begin on July 6, 2024. 

Regardless of income, parents and guardians of children under 17 benefit from the IRS’s Child Tax Credit (CTC), which helps working families, reduces child poverty, and improves children’s welfare nationally.

Key Features Of the Proposed Child Tax Credit

Weekends and holidays could cause a few minor changes. For instance, the money may be released one or two days early if the 15th comes on a weekend. 

The following dates (which might vary) are the dates of 2024’s disbursements: July 15, August 15 (perhaps on August 13), September 15, October 15, November 15, and December 15.

  • Increase in Credit Amounts: The existing $2,000 per child’s credit amount would be increased to $3,600 for children under the age of six, and $3,000 for children six and over.
  • Monthly Payments: Rather than being claimed once a year during tax filing, the enhanced credit would be paid out monthly in amounts of $250 for older children or $300 for children under the age of six.
  • Refundability: Families may get the whole credit amount even if it exceeds their entire tax bill since the credit is completely refundable.

CTC Monthly Payment Eligibility

For qualified American taxpayers with dependent children, the Child Tax Credit (CTC) is a tax credit. 

  • (Exceptions exist for unusual situations like birth, death, temporary absences, abduction, or divorced/separated parents). You need to have had the kid as a primary resident for at least half of the tax year.
  • If your Modified Adjusted Gross Income (MAGI) is less than these limits, you are eligible for the full credit: $200,000 for heads of household and single filers, and $400,000 for a jointly filed married couple.
  • If your income exceeds the threshold by $1,000, the credit amount is lowered by $50.
  • The kid must be a citizen, national, or resident alien of the United States.
  • The youngster must not have turned 17 before the end of the tax year.
  • For the tax years 2024 and 2025, there is a minimum earned income threshold to claim the refundable component of the CTC. You had to have made a minimum of $2,000.
  • The kid must be one of the following: your son, daughter, stepchild, foster child eligible, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these (grandchild, niece, or nephew, for example).
  • Over half of their annual financial assistance cannot have come from the child.

Where Did The Monthly Child Tax Credit Payments Come From?

Previous to the American Rescue Plan Act of 2021, qualifying households were able to deduct the CTC from their annual taxes. The American Rescue Plan Act of 2021, which Congress enacted, gave the Child Tax Credit a facelift. 

Eligible families got a partially refundable credit of up to $2,000 per kid via this tax credit, which was not a direct payment. Partially refundable tax credits allow you to use a portion of the credit against your taxes. What altered is as follows:

  • More funds. The maximum CTC was raised to $3,600 for children under the age of six and $3,000 for those under the age of 17.
  • installments due each month. Depending on the age of the children and the family’s income, families may be eligible for advanced CTC payments of up to $300 per qualifying child each month.
  • increased qualification. Families with low incomes might get the entire tax benefit.
  • Refunds for credit are complete. In contrast to before the Act, the CTC was granted full return.
  • Use our helpful child tax credit calculator to see how much you qualify for.

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