IRS CTC Monthly Payment – Payout Amount, Eligibility, How to apply?

The US government introduced the child tax credit expansion of $300 for children under age 6 and $250 for children aged between 6 and 17 in 2021 to provide financial assistance to people in raising their children. The American people who are wondering about the child tax credit expansion in 2024 can read the article to learn everything about the IRS CTC monthly payment. 

IRS CTC Monthly Payment

The Child Tax Credit (CTC) has been a blessing and support for millions of low-income taxpayers to manage the cost of raising a child. Since 1997, the government has presented its support to American families through CTC financial assistance.  Currently, 40 million families benefit from CTC to raise their dependent child every year. 

The historic expansion in 2021 has helped many families and relieve their financial burden. This year, Americans can expect the same CTC expansion.

Earlier this year, the government proposed the idea of expanding the child tax credit to improve the lives of hundreds of children. If the expansion happens families with dependent kids under age 18 can receive annual payments of $3,600 for children under age 6 and up to $2000 to $3000 for a child aged over 6 and under 17.

Here’s the monthly payment distribution of IRS CTC payments:

  • $250 per qualifying child aged over 6 and under 17 
  • $300 per qualifying child aged under 6

The IRS has not confirmed the date of the CTC payments, but seeing the past trends, the taxpayers eligible for CTC can expect the payment to be processed on their account on the 15th of every month starting from 15 July 2024. 

Eligibility for the IRS CTC monthly payment

The American people who meet the following eligibility requirements will receive the CTC monthly payment, whenever the government approves the CTC expansion:

  • The child and the parent or guardian must be a US citizen. 
  • The child’s age should be under 17 years old at the end of the tax year 2023.
  • The child and applicants must have a valid social security number.
  • You can claim the CTC payment when the child biologically relates to you or they are your stepbrother/sister, adopted child, half-sibling, foster child, stepchild, grandson/daughter, or a descendant of any of these. 
  • The child must be dependent on your tax return. 
  • This child should not provide more than half of their financial support during the tax year 2023.
  • The child must be living with you for more than a half year.
  • You make less than certain income limits, such as:
  • MAGI for Joint filers married couples should not exceed $400,000
  • For Single filers, the MAGI should not exceed the $200,000 limit. 

How to claim the CTC monthly payment? 

Eligible American people who wish to receive the CTC monthly payments must submit their claim. You can claim the IRS CTC Credit in the following ways:

  • You can claim the CTC payment when you file your tax return. The CTC credits are fully refundable, meaning you can claim the CTC financial aid even when you don’t have any income to report.
  •  You must check the eligibility on the Child Tax Credit portal and file Form 1040 with the attached Schedule 8812 ( credits for Qualifying Children and other dependents). 
  • You can see the updates of CTC on the Child Tax Credit portal and update your family circumstances on the portal to receive your eligible and timely payment. 

The eligible recipients who filed their tax returns timely with CTC attached forms will receive their CTC payments if the government approves the CTC expansion. 

CTC Expansion 2024 Latest Updates Updates

The expansion of IRS CTC monthly payment is still cloudy as the expansion proposal is pending. The chances of making the 2024 CTC expansion a law are still low. 

The bill was passed in the House of Representatives earlier this year, but it still awaits the Senate’s approval to become a law. The specific date of discussion on passing this bill is still unknown. 

However, if the expansion happens, the taxpayers will receive the modified amount in the upcoming month as per the proposal. 

The CTC payments aimed to help US citizens manage the cost of raising children and provide the children with the best facilities they deserve. If the expected expansion happens, it will be a great win for low-income families who are struggling with rising inflation and the expenses of raising a child. 

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