Sponsors (45)
Introduced April 9, 2025 by Michael F. Bennet · Last progress April 9, 2025
The bill provides predictable, refundable monthly child tax credit payments that boost cash flow and poverty relief for families, but it introduces administrative complexity, reconciliation risks (including possible year‑end liabilities), eligibility/documentation hurdles for some groups, and added burdens for tax authorities and financial institutions.
Parents and families (including low‑income households) receive predictable monthly child tax credit payments (roughly $300/month per child 6–17 and $360/month per child under 6 before phaseouts), increasing household cash flow.
Low‑income households and non‑filers get refundable monthly benefits, boosting poverty relief and direct child support for families who do not owe income tax.
Newborns' parents can be automatically treated as presumptively eligible so families receive timely support immediately after a birth.
Families who received advance monthly payments may face large year‑end tax liabilities if payments exceed the allowable credit, creating unexpected debts and financial stress.
Estimating monthly advance payments from a prior reference year can misstate current eligibility or amounts, producing overpayments or underpayments and creating burdensome reconciliation for families.
The program increases administrative burden on the IRS, state agencies, and taxpayers because of monthly eligibility rules, facts‑and‑circumstances determinations, and extensive coordination and regulatory requirements.
Based on analysis of 3 sections of legislative text.
Creates a refundable monthly child tax credit ($300/month per child ages 6–17; $360/month under 6) with income-based phaseouts, monthly advance payments, and inflation adjustments.
Creates a new, refundable monthly child tax credit that pays families a fixed monthly allowance for each qualifying child and allows the IRS to make monthly advance payments. The credit is $300 per month for each child ages 6–17 and 120% of that amount ($360) per month for each child under 6, with income-based phaseouts and annual inflation adjustments. Requires the IRS to estimate and deliver monthly advance payments during periods of "presumptive eligibility," subject to documentation, annual renewal, and termination rules; allows taxpayers to elect prior-year income for computing eligibility; and defines how the credit is computed, phased down by modified adjusted gross income, and adjusted for inflation after specified dates.