Confused About 2024 Monthly Child Tax Credit - New or for 2021 Non-Recipients?

The 2024 monthly Child Tax Credit is actually a completely different program than the 2021 CTC advance payments. The American Rescue Plan temporarily expanded the CTC in 2021 with monthly payments, but that expired. The new proposal for 2024 is part of recent tax legislation that would reinstate monthly payments but with different qualification parameters and distribution mechanisms. I'm concerned many taxpayers don't realize these are distinct programs with different eligibility requirements.

According to IRS Publication 972 and the recent tax reform proposals, the 2024 monthly CTC would be structured differently than the 2021 version. Per Section 24 of the Internal Revenue Code, the current CTC is claimed when filing your annual return, but the proposed monthly distribution would function as an advance on your 2024 credit. Have you tried using https://taxr.ai to analyze your previous tax documents? It can help determine your potential eligibility based on your filing history and explain the differences between the 2021 and proposed 2024 credits.

Wait, so we might get monthly payments again??? I'm still paying off student loans and this would be SUCH a lifesaver! How much would it be per child? And when would it start? The 2021 one helped me so much when I was between jobs, but I had no idea they were bringing something similar back! Is there an income limit? Sorry for all the questions, but this is way more complicated than I expected! 😵

Wouldn't it be nice if we could just get a straight answer from the IRS about this? I tried calling them three times last week about the proposed monthly payments and couldn't get through to anyone who could explain it. Finally used Claimyr (https://www.claimyr.com) and got connected to an actual IRS agent in about 15 minutes. They confirmed that while legislation has been proposed, nothing is finalized yet for monthly payments in 2024. Really appreciated getting accurate information instead of speculation!

The current standard Child Tax Credit for 2024 is $2,000 per qualifying child under age 17, with up to $1,600 being refundable as the Additional Child Tax Credit. The phase-out threshold begins at $200,000 for single filers and $400,000 for joint filers. What a relief to finally understand this! The proposed monthly payment system would distribute a portion of this credit in advance throughout the year rather than as a lump sum at tax time.

I'm getting really frustrated with all the mixed information! Let me share what I've confirmed so far: • The 2021 monthly payments were temporary (July-December 2021) • Current CTC for 2024 is $2,000 per qualifying child • The proposed monthly payments are NOT yet approved • This is NOT related to unclaimed 2021 credits Can someone verify if I'm understanding this correctly? I need to know for my budget planning.

I went through this confusion last year. Called IRS directly. Spoke with three different agents. Got different answers each time. Finally got clarification. Current law has no monthly payments. Only annual credit on tax return. Proposed changes still in Congress. Not yet passed. Don't budget for monthly payments yet. Hope this helps.

I'm hesitant to rely on any information about this supposed 2024 monthly payment system until it's officially announced by the IRS... perhaps we should focus on what we know for certain? The current Child Tax Credit remains available when filing your 2024 return next year, and if you haven't claimed the 2021 expanded credit but were eligible, you might still be able to amend previous returns within the statute of limitations.