According to Marca, A Facebook post that went viral on June 9 claimed that families with children would receive a $300 monthly direct deposit from the IRS starting in July 2024 as part of the Child Tax Credit (CTC). The post inaccurately stated:
“In 2024, the IRS will make a $300 direct deposit payment on the 15th of each month to children under six years of age. Those aged six to 17 will receive $250 each month. Monthly payments from the IRS 2024 CTC are expected to begin on July 15, 2024, for all eligible individuals.”
Clarifying the Facts
However, this information is incorrect and stems from a misinterpretation of data from a U.S. Rescue Plan program that provided advance payments of the CTC to parents, not children, from July to December 2021. This initiative was part of the COVID-19 pandemic support programs and was not anticipated to continue beyond that period.
What About the Child Tax Credit for 2024?
Rumors of renewed support for the CTC have resurfaced due to President Joe Biden’s proposed budget for 2025, which includes plans to reinstate the expanded child tax credit from 2021. This proposal aims to enable families to receive their tax credits through monthly payments. However, it is unlikely to pass in the Republican-controlled House due to the upcoming elections.
Earlier in January, the House of Representatives passed a bill to increase the refundable child tax credit, but the initiative did not progress to a Senate vote.
Also read: SSI Update: New Payment Dates and Amounts Following the 2025 COLA Increase
Changes to the Child Tax Credit Structure
For 2024, the CTC has reverted to its original structure as a partially refundable tax credit. This means taxpayers can reduce their tax liability to zero and receive a portion of any remaining credit as a refund. Taxpayers must claim the CTC when filing their annual returns. If your tax liability is already zero, you could receive up to $1,700 per qualifying child as a refund.
Current Benefits for Taxpayers with Dependent Children
Currently, taxpayers with dependent children can claim a non-refundable tax credit of up to $2,000 for each child, provided they meet the program’s requirements. This credit helps reduce their overall tax liability. Additionally, there is a refundable credit of up to $1,600 per child available as part of the additional child tax credit.
In summary, while there are ongoing discussions about reinstating expanded child tax credits, the viral claims about direct payments beginning in July 2024 are misleading and do not reflect the current tax landscape.
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