At at time of inflation, many parents are interested in what will happen with the Child Tax Credit (CTC) in 2024. Will they get checks every month like they did in 2021? We will talk about what’s going on now, bust some stories, and think about what might happen in the future related to Child Tax Credit.
Table of Contents
No Monthly Payments in 2024
Contrary to online rumors, there are no plans to send out monthly CTC payments of $300 or $250 per child starting in July 2024. The additional CTC program that allowed for advance monthly payments ended in December 2021. Currently, the credit is a non-refundable tax credit of up to $2,000 per child, plus a refundable credit of $1,600. These credits are claimed during tax season, not disbursed monthly.
Current Child Tax Credit 2024
Individuals need to understand this difference in order to properly plan their funds. There are no plans to bring back the monthly payment plan in 2024, but there are attempts to bring back and grow the CTC. In his budget proposal for 2025, President Biden wants to bring back the 2021 CTC, complete with monthly checks. But this plan will have trouble in the House, which is ruled by Republicans.
Refundable Child Tax Credit
A bill to increase the refundable child tax credit passed the House in January 2024 but stalled in the Senate. This highlights the ongoing debate over the CTC’s expansion. Despite the uncertainty, the CTC remains a top priority on Congress’s agenda.
Advocates argue that the CTC can reduce child poverty and that monthly checks are vital for working families. Senate Majority Leader Chuck Schumer is being urged to bring a bill to a vote that would increase the CTC. However, the political landscape complicates the discussion, making it uncertain whether such a bill can pass the Senate.
Key Points
- No monthly child tax credit payments in 2024
- Current CTC is an annual tax credit, not distributed monthly
- Changes require new legislation
- Families should rely on credible sources like the IRS for updates
Conclusion
As the debate continues, the CTC’s future remains uncertain. Families should stay updated with reliable information to manage their expectations and plan their finances effectively. While changes are possible, it’s essential to understand the current state of the CTC and avoid relying on rumors.
FAQs
Will I receive monthly Child Tax Credit payments in 2024?
No, there are no plans to send out monthly CTC payments in 2024.
How much is the Child Tax Credit for 2024?
The credit is a non-refundable tax credit of up to $2,000 per child, plus a refundable credit of $1,600.
When can I claim the Child Tax Credit?
The credit is claimed during the annual tax return process, not disbursed monthly.
Is the Child Tax Credit refundable?
Yes, part of the credit is refundable, up to $1,600 per child.
Why is the Child Tax Credit important?
Advocates argue that the CTC can reduce child poverty and provide vital support for working families.
