IRS Child Tax Credit $300 Payment 2024: The issue of information and misinformation traveling rapidly through social media is increasing in the digital age, affecting perception and knowledge on a grand scale. One example of this came to light in a Facebook post regarding the Internal Revenue Service (IRS). Starting in 2024, it will start providing monthly payments of $300 for children younger than six and $250 for those aged six to seventeen.
The screenshot is seemingly taken from the search results of a Google search, and this post has been widely seen and shared, reflecting how quickly wrong information can spread on the internet.
Introduction to the Child Tax Credit (CTC)
The Child Tax Credit (CTC) is one of the most generous forms of economic relief for families in the United States, intended to help with the costs of raising children. In 2024, $300 per child is available, so this payment gives much needed relief to parents and caregivers of kids.
The CTC was greatly expanded during the COVID-19 pandemic, with the benefit sending families direct monthly payments. While the expanded benefits may have disappeared, the $300 direct deposit will hopefully help eligible families in 2024.
Knowing the eligibility requirements, how to apply for the CTC and when to receive the payment is critical to ensuring you don’t miss out.
Basic Structure of the Child Tax Credit
- The CTC lets qualifying parents or legal guardians claim up to $2,000 for each qualifying child.
- The credit applies to children under age 17 at the end of the tax year. A portion of the CTC is refundable.
- That means if the amount of the credit exceeds the taxes you owe, you can receive the difference as a refund. This refundable part is the Additional Child Tax Credit (ACTC).
- The refundable amount can be as high as $1,400 per child. And because the credit is fully refundable, families that owe little or no income tax still benefit.
Eligibility Criteria IRS Child Tax Credit $300 Payment 2024
However, you do have to qualify to receive that $300 direct deposit. Here’s a look at how to know if you’ll receive this benefit:
- To qualify for the CTC for a child, the child must be under age 17 at the end of the tax year (Dec. 31, 2024).
- To qualify for the credit, your child must be under 17 at the end of the year.
- The Child Tax Credit is income based. To qualify for the full credit, families must have an Adjusted Gross Income (AGI) below certain levels: Single filers $200,000 AGI and Married couples filing jointly $400,000 AGI.
- If your income is above those income thresholds, the credit amount starts to phase out gradually.
- According to the IRS, you must file a tax return to qualify for the CTC.
- Families who don’t file a tax return may still be able to claim the credit through the IRS Non-Filer Tool, which lets lower-income individuals provide some basic information to access tax credits.
- To qualify for the CTC, a child must live with you for more than half the year, and must meet Internal Revenue Service criteria to be your dependent.
Application Process for the CTC in 2024
The majority of families will automatically qualify for the Child Tax Credit with their 2024 tax return. Here’s how you can make sure your $300 direct deposit arrives:
- File your tax return: You must include all dependents, including children eligible for the credit.
- Include direct deposit information: If the IRS already has your bank account details on file, that’s how they will send the payment.
- Claim all allowable credits: In addition to the CTC, you may qualify for other tax credits (like the Earned Income Tax Credit (EITC)), which can boost your refund even higher.
- If you receive a pre-filled tax return from last year, check that any information is still valid.
Common Mistakes to Avoid
Claiming the CTC is fairly straightforward, but there are common mistakes families make that might also delay payments:
- Verify your dependents’ ages and Social Security numbers. So do checks written on paper.
- If you miss the filing deadline, your payment could be late.
Future Proposals and Political Context
Former President Joe Biden had proposed in his 2025 budget reinstating the enlarged child tax credit from 2021 and sending it out to families through monthly payments. But the proposal has significant hurdles in Congress, especially in the Republican-led House of Representatives.
This budget proposal is more of an indication of the president’s priorities while he runs for re-election than an impending policy shift. First, the Facebook post is misleading about new IRS child tax credit payments beginning in Winters 2024.
We recommend that the public continue to rely on credible sources and official pronouncements for information on tax policies and stay attuned to the legislative path that resulted in such changes.
