“To amend the Internal Revenue Code of 1986 to establish a refundable child tax credit with monthly advance payment.”
No CRS summary available for this bill.
This section establishes a new refundable Monthly Child Tax Credit under IRC §24A (inserted after §24) and amends 31 U.S.C. §1324(b)(2) to authorize disbursements for refunds attributable to the new credit from the permanent indefinite appropriation for refunding internal revenue collections (i.e., permits IRS advance payments without further annual appropriations). The credit equals the sum of monthly specified child allowances for each month of the taxable year. Each allowance is $300 ($360 for children under age 6 at month-end; $2,400 for children under 1 month old), phased out by 5% of modified adjusted gross income (MAGI) exceeding an initial threshold ($150,000 joint filers/surviving spouses, $75,000 married filing separately, $112,500 others; with cap) and a secondary threshold ($400,000/$200,000/$300,000, respectively). A specified child is under age 18 at month-end, shares the taxpayer's home for over half the month, receives uncompensated care from the taxpayer, is not the taxpayer's spouse, and meets U.S. residency/citizenship rules (or qualifying adoption rules if taxpayer is a U.S. citizen/national). Amounts inflate after 2025 (rounded to $10); thresholds after 2024 (rounded to $5,000). MAGI is based on the current, prior, or second-prior year (taxpayer's election).