Childcare costs are steadily rising, and that is putting a strain on a lot of US families. The burden on families with children involved in child care is such that several states have enacted their own state-level child tax credits to supplement the federal child tax credit. Such help can really help families cut the financial load and enable parents to handle necessary expenses such as food, housing and education better.
Like many of the nation’s other powerful tools for reducing child poverty, the federal child tax credit has existed for a long time. Several states have stepped up and are in fact providing their own credits at the local level in order to help families based on their situation and how many kids we have in our home. If you live in one of these states, below, we’ll break down which ones are offering this benefit in 2024, how the programs work, and what you can take away when combined.
States offering the child tax credit in 2024
Eleven states plus the District of Columbia have already implemented child tax credit programs as of 2024. Particularly noteworthy about some of these credits is that they are refundable. So even if you don’t owe much in taxes, you can get the rest as a tax refund. More families are being able to qualify because you don’t even need a Social Security number or an Individual Taxpayer Identification Number (ITIN) in some states.
California: the young child tax credit
The Young Child tax credit can provide up to $1,117 per child in 2024 in California, while families with kids under the age of 6 can register to apply. Families must earn under a certain income to be eligible and be eligible for the California Earned Income Tax Credit (CalEITC). Designed specifically to serve low-income families, this program, more than anything, is helping those who are actually most in need.
Colorado: income-based credit
Residents can use a child tax credit in Colorado as long as you don’t earn more than $75,000 (or $85,000 joint). The federal child tax credit is this refundable credit that allows families to get between 10% and 60% of the tax credit, based on their income. This means families at the lowest incomes can take up to 60% of the support they need.
Maine: a credit adjusted for inflation
The Dependent Exception Tax Credit fills in for low earners in Maine who don’t qualify for the Earned Income Tax Credit and provides up to $300 for each child under the age of 17 or full-time student who is under the age of 24. This credit is fully refundable with no income requirement of any type, so it may be claimed by a vast majority of the population. Moreover, it is indexed to inflation so that the benefit changes in line with the economy as a whole.
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Other states offering the child tax credit
In addition to California, Colorado, and Maine, several other states have implemented child tax credits to provide financial relief to families:
- Maryland: Will offer up to $500 to each child under 6 years old, with exceptions for children with disabilities.
- Massachusetts: The Child and Family Tax Credit pays out up to $440 per child or dependent, which is one per child or dependent, with no limiting number of children you can claim.
- Minnesota: Minnesota has one of the most generous child tax credits in 2024, up to $1,750 per child and no limit on the number of children that can be helped.
- New Jersey: If you earn less than $75,400 per year, up to $1,000 can be paid per child (children under 5 years).
- New Mexico: offers a credit ranging from $25 to $600 per child based on a family’s income.
How to know if you qualify for the child tax credit in your state
The child tax credit requirements are tailored to each state so it’s important to check out what the conditions are for your state of residence. The amount you can receive depends on your income, how many children you have, how old your children are, and whether or not you’re married.
Most states, however, require that you file a state tax return in order to receive the credit. If your credit is automatically granted, it will be automatically granted by some states without additional forms, while others will require additional forms. Make sure you don’t miss out on this valuable support by understanding the process in your state.
For many parents already on their financial feet, that child tax credit is a key tool. That means more states than ever will be implementing child tax credits in 2024, which will provide incredible relief for many people. Check if you have to live in a state that provides this benefit and then check the eligibility requirements and file the required forms.
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And you also have to look at your state’s tax calendar to know when you are going to receive this critical financial support. These credits are important to many families because they reduce the rising costs of raising children, particularly as inflation drives up the price of everyday things. Examining how to get the child tax credit in your own state and knowing how it fits in with your overall tax status could mean a substantial increase in your financial wallop when you most desperately need it.
To help you get started on the 2024 tax season, don’t be shy exploring the resources in your state offered through online portals and including tax assistance services that will help you through the application process.
If you’re unsure how to navigate the complexities of tax credits or are a low-income family, then some states offer free tax preparation assistance. The purpose of these programs is to ensure that all who are eligible receive the benefits of paying into those programs.
So remember, the child tax credit is geared to help families and ease our finances so you can continue to provide a better future for your children. If you are proactive and stay informed, then you are able to take full advantage of these programs and ensure that your family takes full advantage of the relief they can offer.