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Monthly Child Tax Credit: Advance Payments and Increased Financial Support for Families

This act establishes a new, fully refundable Child Tax Credit (CTC) that will be paid to eligible families monthly, rather than annually. This provides consistent financial support, offering up to $3,600 annually for children under age 6 and $3,000 for older children. It also introduces a separate $500 credit for other dependents who do not qualify for the main child credit.
Key points
Families will receive monthly advance payments (instead of an annual tax refund) of up to $300 per month for young children and $250 for children aged 6-17.
The credit is fully refundable, ensuring that low-income or no-income families receive the full benefit amount.
New rules are established for handling advance payments, including procedures for recapturing overpayments and resolving disputes when multiple taxpayers claim the same child.
Monthly payments are protected from garnishment, levy, attachment, or offset by federal or state debts.
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Additional Information
Print number: 118_HR_3899
Sponsor: Rep. DeLauro, Rosa L. [D-CT-3]
Process start date: 2023-06-07