“A bill 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 a new IRC §24A (inserted after §24) equal to the sum of monthly specified child allowances for qualifying children under age 18 and authorizes disbursements for such refunds from the permanent IRS refund appropriation (31 U.S.C. §1324(b)). For each calendar month, the allowance is $300 per specified child age 6 or older (as of month-end) and $360 (120% of $300) per younger child, increasing to $2,400 (800% of $300) for children under 1 month old; amounts inflate after 2025 based on CPI (rounded to nearest $10). The allowance phases out by 5% of modified adjusted gross income (MAGI) exceeding initial thresholds of $150,000 (joint filers/surviving spouses), $75,000 (married filing separately), or $112,500 (others)—capped such that it does not fall below $200 monthly ($166.67 per child)—and by an additional 5% above secondary thresholds of $400,000 (joint), $200,000 (married filing separately), or $300,000 (others), with thresholds inflating after 2024 (rounded to nearest $5,000); MAGI for phaseout may be based on the current, prior, or second-prior year via taxpayer election. A specified child is an individual under age 18 sharing the taxpayer's principal abode for over half the month, receiving uncompensated care from the taxpayer, who is not the taxpayer's spouse, and who is a U.S. citizen, national, or resident (or, if the taxpayer is a U.S. citizen/national, legally adopted by or placed with the taxpayer for adoption). (As background, 31 U.S.C. §1324 provides a standing appropriation for refunds of specified pre-1978 credits, certain later credits, and other accounts without need for annual funding; this amendment adds §24A to that list.)