In today’s digital age, misinformation can spread rapidly through social media platforms, significantly affecting public understanding and perceptions. A recent Facebook post illustrates this issue by claiming that the Internal Revenue Service (IRS) will start issuing monthly payments of $300 for children under six and $250 for those aged six to seventeen beginning in July 2024.
This post, featuring a screenshot of a supposed Google search result, has garnered widespread attention and sharing, showcasing how easily misleading information can circulate online.
Understanding the Facts About Child Tax Credit Payments
The Claim: The Facebook post suggests that a new IRS policy will provide monthly payments for children starting July 2024. This information is incorrect and appears to confuse the temporary Child Tax Credit (CTC) enhancements from the American Rescue Plan Act of 2021 with current IRS policies.
Current Child Tax Credit Regulations:
Basic Structure:
- Credit Amount: Eligible parents or guardians can claim up to $2,000 per qualifying child.
- Age Limit: The credit applies to children under 17 at the end of the tax year.
- Refundability: A portion of the CTC is refundable, known as the Additional Child Tax Credit (ACTC). The maximum refundable amount is up to $1,400 per child, allowing families with little or no income tax liability to benefit.
Eligibility Criteria:
- Income Requirements: The full credit is available to families with incomes up to $200,000 for single filers and $400,000 for married couples filing jointly. The credit phases out above these income levels.
- Residency and Relationship: The child must have lived with the taxpayer for more than half of the tax year and must be related to the taxpayer (e.g., son, daughter, stepchild).
- Support: The child must not have provided more than half of their own support during the year.
Comparison: 2021 vs. Current Regulations: In 2021, the American Rescue Plan temporarily increased the CTC to $3,600 for children under six and $3,000 for those aged six to seventeen, along with monthly advance payments. These enhancements expired at the end of 2021, and the current CTC has reverted to its pre-2021 structure.
Future Proposals and Political Context: President Biden has proposed in his 2025 budget to reinstate the expanded child tax credit, potentially including monthly payments. However, this proposal faces significant legislative hurdles, especially in the Republican-controlled House of Representatives. For now, the CTC remains as outlined above.
The claim about new IRS child tax credit payments starting in July 2024 is inaccurate. It is crucial for the public to rely on credible sources and official announcements regarding tax policies and stay informed about the legislative process that could influence future changes.
