The $300 advance payment ended in 2023, not 2024

There is no $300 direct deposit for the Child Tax Credit in 2024. The advance payments you may have received in 2023 were a one-time program that ran from July through December of that year. Those payments have ended.

The advance payments were part of the expanded Child Tax Credit created by the American Rescue Plan Act of 2021. The IRS sent monthly deposits of up to $300 per child under age 6 and up to $250 per child ages 6 to 17 to people who met income thresholds. When that law expired at the end of 2021, Congress did not extend it. The advance payments in 2023 were a separate, temporary program that also ended.

In 2024, the Child Tax Credit returned to its permanent form: a one-time annual credit you claim on your tax return, not monthly payments. The credit amount and income limits are different from the expanded version.

Key Takeaways

  • The $300 monthly advance payments ended on December 31, 2023, and do not continue in 2024.
  • In 2024, the Child Tax Credit is a one-time annual credit claimed on your tax return, worth up to $2,000 per child under age 17.
  • You must have earned income and file a tax return to claim the credit in 2024, even if you received advance payments in 2023.
  • The income limits for the full credit in 2024 are $400,000 for married couples filing jointly and $200,000 for single filers.

How the 2024 Child Tax Credit works

The current Child Tax Credit is a tax credit, not a payment. That means you claim it when you file your 2024 tax return with the IRS, usually between January and April 2025. You do not receive money in the mail or by direct deposit during the year.

The credit is worth up to $2,000 per child under age 17 at the end of 2024. The amount you receive depends on your income. If your income is below the threshold, you get the full $2,000 per child. If your income is above the threshold, the credit begins to phase out—it decreases by $50 for every $1,000 of income above the limit.

The income thresholds are $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household. These thresholds have been the same since 2018 and are not adjusted for inflation each year.

Who can claim the Child Tax Credit in 2024

To claim the Child Tax Credit, the child must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a niece or nephew). The child must be under age 17 at the end of 2024, have a valid Social Security number, and live with you for more than half the year.

You must have earned income during 2024 to claim the credit. This includes wages, self-employment income, or other earned income reported on your tax return. If you had no earned income, you cannot claim the credit, even if you received advance payments in 2023.

You must also file a tax return to claim the credit. If your income is below the filing requirement for your filing status, you may still want to file to claim the credit and any refund you are owed.

What changed from the 2023 advance payments

The advance payments in 2023 were different from the current credit in three main ways. First, they were paid monthly throughout the year, not claimed on a tax return. Second, the amount per child was higher—up to $300 for children under 6 and up to $250 for children 6 to 17. Third, the income thresholds were lower, so more families received the full amount.

The 2023 advance program also did not require you to have earned income. If you met the income limits and had a valid Social Security number for each child, you could receive the payments. The 2024 credit requires earned income.

If you received advance payments in 2023, you may have had to reconcile them on your 2023 tax return. This means comparing the payments you received to the credit you were actually owed based on your final 2023 income. If you received more than you were owed, you may have owed money back to the IRS. If you received less, you could claim the difference on your return.

How to claim the credit on your 2024 tax return

When you file your 2024 tax return, you will report each child's name, date of birth, and Social Security number. You will also report your income for the year. The IRS will calculate how much credit you are owed based on this information.

If you file using tax software, the software will walk you through the questions and calculate the credit automatically. If you file with a tax professional, they will gather this information from you and claim the credit on your return. If you file by paper, you will use Schedule 8812 to calculate the credit and attach it to your Form 1040.

You must file your return by the tax important date, usually April 15, to claim the credit for that year. If you file late, you can still claim the credit, but you may lose other benefits or owe penalties.

What to do if you think you are owed money from 2023

If you received advance payments in 2023 but your final income was lower than you reported when you signed up, you may have been owed more credit than you received. When you file your 2023 tax return, the IRS will reconcile the payments and send you the difference as a refund.

If you have not yet filed your 2023 tax return, you can still do so. The IRS does not have a important date for claiming refunds, but you must file within three years of the original important date to claim a refund. If your 2023 return is still being processed, you can check the status on the IRS website using the "Where's My Refund?" tool.

Keep any letters or documents you received about the 2023 advance payments. These show how much you were paid and can help you or a tax professional reconcile the payments correctly on your 2023 return.

Frequently Asked Questions

Can I get the $300 payments back if I need them in 2024?

No. The advance payment program ended on December 31, 2023. The only way to receive a Child Tax Credit in 2024 is to claim it on your tax return when you file. There are no monthly payments in 2024.

Do I have to pay back the 2023 advance payments?

Only if you received more than you were owed based on your final 2023 income. When you file your 2023 tax return, the IRS compares what you received to what you were owed. If there is a difference, it will be shown on your return. Some people owe money back; others receive a refund.

What if I had a child in 2024 but did not have one in 2023?

You can claim the Child Tax Credit for the new child on your 2024 tax return. The child must be under age 17 at the end of 2024 and have a valid Social Security number. You will report the child's information when you file your return.

Can I claim the credit if I did not have earned income in 2024?

No. The 2024 Child Tax Credit requires earned income. If you had no wages, self-employment income, or other earned income during 2024, you cannot claim the credit. This is different from the 2023 advance payments, which did not require earned income.

Where do I find my 2023 advance payment amount?

The IRS sent a letter (Form 6419) in early 2024 showing how much you received in advance payments during 2023. If you cannot find it, you can create an account on IRS.gov and view your tax records, or call the IRS at 1-800-829-1040.