The CTC has been a subject of concern and discussion recently, especially regarding reforms made by the American Rescue Plan Act of 2021. As we count down to 2024, many families are asking about the sustainability of this federal tax incentive and their potential to receive monthly cheques like in 2021. Here, we have identified the current state of the Child Tax Credit for 2024, responded to recent assertions about monthly checks, and looked forward to the possibilities.
Due to confusion caused by erroneous information spreading through the internet and social networks, it is crucial to clear out misconceptions and help families get precise and reliable information on this essential financial assistance program.
The current status of child tax credit payments: Why monthly checks aren’t happening now
Contrary to what is being circulated over the internet, there is no ongoing scheduling for monthly Child Tax Credit payments of $300 per child or $250 per child as of July 2024. The additional CTC program, in which households received advanced monthly payments in 2021, ceased for the expanded CTC program in December of that year.
At present, the credit where taxpayers can claim a child is a nonrefundable tax credit of up to $2,000 for each qualifying child in addition to the refundable credit of $1,600 under the additional child tax credit. These are claimed at the time of annual tax returns, and it is also important to note that they are not paid monthly. Many families must effectively grasp this difference to budget for their needs the following year.
Future reform efforts: What’s on the table for child tax credit expansion
Even though there is no plan for emulating the CTC program with monthly payments in 2024, some steps have been taken to reinstate and augment the program. For 2025, President Biden also proposed a Budget in which the child tax credit of the 2021 option will be restored, together with the alternative to monthly checks. However, this proposal has problems with approval, first of all, in the Republican-controlled House of Representatives.
Moreover, a bill to raise the refundable child tax credit approved by the House in January 2024 failed to move to the Senate for a vote, demonstrating that the struggle for the CTC expansion was still far from over. Such legislative activities mean that the CTC debate remains an ongoing policy concern even though there is no agreement on implementing the CTC.
Looking ahead: What families should know about the future of child tax credit payments
Whether the future holds the permanency of the Child Tax Credit shall be continued in the Congress legislative agenda. If people love the CTC and easily remember it, proponents say they can slash child poverty; monthly checks are proposed to revive as essential for working families. According to a recent Politico report, Senate Majority Leader Chuck Schumer is pressured by his Democratic senators to vote for a bill increasing the Child Tax Credit.
However, politics make it difficult to discuss, as there is a debate on whether such a bill can pass in the Senate with 60 votes to overcome a filibuster. For this reason, the stakes in this debate can have tremendous implications for millions of American families and their children.
Important takeaways: No monthly payments for child tax credit in 2024
Thus, unlike other rumors, families need to know that there will be no monthly child tax credit of $300 or $250 in 2024. The current Child Tax Credit is retained as an annual tax credit but does not come as monthly checks. Despite all the discussions and proposals for increasing the CTC or bringing back monthly payments, any significant modifications would need new legislation approved.
Families should always keep abreast of these developments, but this should be done using credible sources, such as the IRS, concerning tax credits and other benefits. While it continues to change and political debates progress on the subject, the Child Tax Credit may change in the future, but it is based on the annual credit structure for now. Families, therefore, need to plan their financial situation adequately and avoid basing their expectations on rumors that may indicate a shift in CTC structure or payments.
