IRS Child Tax Credit Update: Is the $300 Payment Coming Your Way in 2024?

As we approach 2024, many families are wondering whether they will receive a $300 Child Tax Credit (CTC) payment from the IRS.

The Child Tax Credit has been a crucial form of financial assistance for parents and guardians, offering direct payments to help with the costs of raising children.

But as the tax landscape changes, so do the details about who qualifies and how much they will receive. In this article, we’ll explore the status of the $300 CTC payment in 2024 and whether you should expect to see this money soon.

What is the Child Tax Credit (CTC)?

The Child Tax Credit is a federal program designed to provide financial relief to parents and guardians of children under the age of 17. It was expanded significantly in 2021 as part of the American Rescue Plan, offering larger payments and making them available monthly.

In 2021, eligible families could receive up to $3,600 per child under 6 and $3,000 per child ages 6 to 17. The monthly payments ranged from $250 to $300 depending on the child’s age.

However, the expanded payments were temporary, and as 2022 approached, the payments reverted to their pre-2021 levels. This means the CTC was reduced, and the monthly payments stopped, but parents were still able to claim the credit when filing their taxes. The focus now shifts to 2024 and whether the $300 payment will continue.

Will There Be a $300 Payment in 2024?

As of now, the IRS is not offering a direct $300 Child Tax Credit payment in 2024. While the 2021 American Rescue Plan temporarily increased the CTC and allowed for monthly payments, the full monthly payments expired at the end of 2021. The credit for 2024 will return to its previous structure, with a maximum of $2,000 per eligible child under the age of 17.

The $300 monthly payments that families received during 2021 were part of a temporary expansion of the credit, and this expansion was not extended for 2024. However, families may still qualify for up to $2,000 per child when filing their 2024 taxes, and they can claim it as a lump sum rather than monthly payments.

How Much Will Families Receive in 2024?

US Child Tax Credit: Upcoming Payments and Schedule for the Rest of 2024

Confirmed! Tennessee Declares New Tax Status: State Income Tax Eliminated for Good

In 2024, the Child Tax Credit will revert to its pre-2021 structure, which means:

• Up to $2,000 per child for children under 17, with the credit phased out at higher income levels.
• $1,500 of the $2,000 will be refundable for families with low income, meaning you could receive part of the credit even if you owe little or no federal taxes.
• Families with a higher income may receive a reduced amount or no credit at all. The credit begins to phase out for individuals with an adjusted gross income (AGI) above $200,000 ($400,000 for married couples filing jointly).

How Does the Credit Work in 2024?

Unlike the monthly payments of 2021, in 2024, families will need to claim the Child Tax Credit when filing their 2024 tax return in 2025. The credit will appear on your tax return as a lump sum, and the IRS will issue your refund after your taxes are processed. For those who have previously received the CTC payments, the tax filing process may seem familiar, though you should ensure that you accurately report your eligible children to avoid delays or issues.

Who Is Eligible for the Child Tax Credit in 2024?

To qualify for the Child Tax Credit in 2024, you must meet certain criteria:

• Age Requirement: Your child must be under the age of 17 at the end of 2024.
• Relationship Requirement: You must be the child’s parent or legal guardian.
• Residency Requirement: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
• Income Limitations: For individuals, the credit begins to phase out when your adjusted gross income (AGI) exceeds $200,000, and for married couples filing jointly, it begins to phase out at $400,000.

Additionally, your child must live with you for more than half the year, and they must not have provided more than half of their own support.

What Happens if You Don’t Receive the Full $2,000 in 2024?

Some families may not receive the full $2,000 Child Tax Credit if their income is above certain thresholds. However, if you don’t get the full amount, you may still qualify for a refundable credit of up to $1,500, which means you could receive part of the credit even if you don’t owe any taxes.

It’s important to file your taxes correctly to ensure you claim the credit to which you are entitled. Even if you don’t owe taxes, filing a tax return can ensure you get any refund, including the refundable portion of the Child Tax Credit.

Conclusion: Should You Expect the $300 Payment in 2024?

Unfortunately, the $300 Child Tax Credit payments that were part of the temporary 2021 expansion will not continue into 2024. However, the Child Tax Credit will still offer up to $2,000 per eligible child, with up to $1,500 of that amount potentially refundable for lower-income families.

For many families, the credit will be a significant financial boost, but it will be received as a lump sum when filing your taxes in 2025. While the payments are not monthly anymore, the CTC remains a valuable resource for parents and guardians, and ensuring that you meet the eligibility requirements will allow you to claim the full credit on your 2024 tax return.

So, while you won’t see a $300 monthly payment in 2024, you can still look forward to receiving up to $2,000 per child when you file your taxes next year. Make sure to consult with a tax professional or use tax software to maximize your Child Tax Credit and any other available benefits.