As a parent, you may receive two child tax credit payments this year – one from the federal government and another from the state you live in. Currently, 16 states are providing additional child tax credit money, and Congress is considering expanding the federal child tax credit by increasing the maximum refundable amount. Minnesota, California, and Wisconsin, among others, have child tax credits beyond the federal benefit, with Minnesota estimating that around 300,000 residents will qualify for the credit with an average amount of $1,200. This additional relief is aimed at helping families cope with the financial burdens of raising children.
Various states have different eligibility requirements and amounts for their child tax credit programs. For example, California offers $1,000 to families earning less than $25,000 with children under age 6 who qualify for the California Earned Income Tax Credit. Colorado provides up to $1,200 for each qualifying child under age 6 to families with incomes of $75,000 or less. Maryland offers a $500 refundable tax credit for each qualifying child under 17 to those making $6,000 or less. These credits can help alleviate some of the financial stress that families face in providing for their children.
New Jersey, New Mexico, and New York are among the states offering child tax credits as well. New Jersey provides a $500 tax credit for each child under 6 years old for households with incomes of $30,000 or less, while New Mexico offers between $25 to $600 per qualifying child based on income. New York allows families to claim 33% of the federal child tax credit or $100 for each qualifying child, now including children under age 4. These programs aim to provide financial assistance to families in need and support the well-being of children in those states.
Oregon, Utah, and Vermont have their own child tax credit programs in place. Oregon offers $1,000 per child under age 5 to families with incomes less than $30,000, while Utah provides $1,000 per child between the ages of 1 and 4 for eligible households. Vermont offers $1,000 per child under age 5 for households with incomes less than $125,000. These credits can help families cover the costs of childcare, education, and other expenses related to raising children.
Wisconsin has updated its child tax credit program to provide between $2,000 and $3,500 for one qualifying dependent and between $4,000 and $7,000 for two or more qualifying dependents. This increased financial support aims to assist families with multiple children by offering them additional relief. As more states decide to send out child tax credit payments, the list of states offering these benefits may expand. Keeping track of these programs and understanding their eligibility requirements can help families maximize their tax benefits and alleviate financial burdens associated with raising children.
