The IRS has recently issued a warning about rising scams related to the Child Tax Credit (CTC). False information about new CTC payments has been circulating on social media, misleading many parents and guardians.
Understanding the current state of the Child Tax Credit is crucial to avoid falling victim to these scams.
False Claims About New Child Tax Credit Payments
A recent Facebook post claimed that starting this month, children would receive hundreds of dollars per month from a federal agency in Child Tax Credit-like payments. This post, along with similar claims on Facebook and Threads, quickly gained traction, misleading many with incorrect information.
The False Claims
The post asserted that the IRS would make monthly direct deposits of $300 for children under six and $250 for children aged six to seventeen, starting July 15, 2024. However, this information is incorrect.
The Truth
These claims appear to misrepresent a program from the American Rescue Plan, which provided advance child tax credit payments to parents from July to December 2021.
Tax experts and the IRS confirm that no such program is set to start in July 2024. Always verify the information you come across on social media to avoid misinformation.
Proposed Reintroduction of the Expanded Child Tax Credit
President Joe Biden’s proposed 2025 budget seeks to reintroduce the expanded child tax credit from 2021, which allowed households to receive their tax credits through monthly payments.
However, the likelihood of this proposal passing in the Republican-controlled House remains low.
Details of the Expanded Child Tax Credit
The original program, which ended in December 2021, provided significant financial support to families:
- Up to $300 per month for children under 6 years old
- Up to $250 per month for children aged 6 to 17 years old
These payments were sent directly to parents, offering substantial relief. Despite the program’s success, there has been no indication of its revival since it ended.
Current Legislative Landscape
Although the House passed a bill in January to increase the refundable child tax credit, it has yet to advance to a Senate vote. This indicates the challenges ahead for any new proposals aimed at expanding the child tax credit.
Current Child Tax Credit Options
Presently, taxpayers with dependent children can benefit from:
- A nonrefundable tax credit of up to $2,000 per qualifying child, which reduces their overall tax liability
- A refundable credit of up to $1,600 per child available under the additional child tax credit
These existing credits still offer support, but many families who benefited from the 2021 expanded credit are eagerly awaiting potential new legislation.
The Importance of Accurate Information
The future of the child tax credit remains uncertain, but it continues to be a crucial topic of discussion as lawmakers consider how best to support families. It is essential for individuals to stay informed and verify information from reliable sources to avoid scams.
Scams related to the Child Tax Credit are on the rise, with false claims about new payments misleading many.
It’s important to stay informed and verify information through reliable sources like the IRS to avoid falling victim to these scams.
While proposals to reintroduce expanded child tax credits exist, their future remains uncertain. Current options still provide valuable support, and ongoing discussions aim to find the best ways to assist families.
FAQs
Are new Child Tax Credit payments starting in July 2024?
No, there are no new Child Tax Credit payments starting in July 2024.
What was the expanded Child Tax Credit program?
The program provided monthly payments of up to $300 for children under 6 and $250 for children aged 6 to 17 from July to December 2021.
What are the current Child Tax Credit options?
A nonrefundable credit of up to $2,000 per qualifying child and a refundable credit of up to $1,600 per child are available.
Will the expanded Child Tax Credit be reintroduced?
President Biden has proposed reintroducing it, but its approval is uncertain due to the political landscape.
Where can I find reliable information about the Child Tax Credit?
Visit the official IRS website for accurate information: IRS Child Tax Credit Information.
