Child Tax Credit: Which States Offer Additional Money This Tax Season?

Under the American Rescue Plan of 2021, the enhanced federal Child Tax Credit (CTC) provided working American families with $3,000 per child under 18 years of age and $3,600 per child age five and younger. It also let families receive monthly checks of $250 or $300 per child instead of getting the credit in the form of a tax refund.

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According to the U.S. Census Bureau, child poverty fell to its lowest recorded level in 2021, declining 46% from 9.7% in 2020 to 5.2% in 2021. That year, the CTC helped lift 5.3 million people out of poverty, including 2.9 million children.

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The fully refundable credit was only available in an enhanced version for 2021 and has since reverted to its original maximum amount of $2,000 per child up to age 16. However, eligible families living in states that passed their own legislation when the federal enhanced CTC was discontinued can still get a tax credit, according to the National Conference of State Legislatures and the Institute of Taxation and Economic Policy.

Here’s a look at what 15 states are offering:

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Arizona

At the end of October 2023, Arizona Gov. Katie Hobbs announced the one-time nonrefundable Families Tax Rebate for the 2023 tax year, which will aid nearly 750,000 state families. The rebate provides $250 per dependent under age 17 and $100 per dependent over age 17 as claimed on taxpayers’ 2021 returns. A taxpayer cannot claim more than three dependents, regardless of age, and the maximum amount is $750.

California

Families eligible for the CalEITC — the state’s Earned Income Tax Credit — who have a child under the age of six at the end of the tax year may also be able to receive the Young Child Tax Credit, which provides up to $1,117 to eligible families with earned income of $30,931 or less. This is a refundable credit.

Colorado

You may qualify for the state Child Tax Credit if you’re a single filer who makes up to $75,000 or you’re a joint filer who makes up to $85,000 and you have a child or dependent under the age of six as of Dec. 31. The tax credit maximum is $1,200 and is refundable.

Idaho

In 2018, Idaho tacked on nonrefundable dependent credits worth $205 to their tax codes. Children must be under the age of 17 or have a permanent disability to qualify.

Maine

Maine’s Dependent Exemption Tax Credit is now refundable and is worth $300 per qualifying child and dependent under the age of 17. This is a permanent credit.

Maryland

New legislation signed into law in April 2023 permanently expanded eligiblity for the state’s Child Tax Credit by allowing individuals making $15,000 per year or less to claim a tax credit of $500 per child under age six, The Center Square, Maryland, reported.

Massachusetts

In Massachusetts, the new Child and Family Tax Credit replaced the state’s two-dependent cap and increased the limit from $180 per dependent child under the age of 12, seniors over 65 and anyone with a disability to $310 for 2023 and $440 on a permanent basis starting in 2024.

Minnesota

Minnesota lawmakers created the CTC of $1,750 per qualifying child under 18 for households with income up to $29,500 for singles filers and $35,000 for married joint filers. The credit phases out above these income thresholds.

New Jersey

New Jersey’s Child Tax Credit program caps at a $500 credit tax credit for families with an income of $30,000 or less and is available for children under the age of six. The credit phases out by $100 for different income ranges, per NCSL.

New Mexico

A brand new refundable child tax credit for New Mexico families has been announced that is expected to provide $180 million to 292,000 state families. The credit has a maximum amount of $600 per qualifying child and is dependant upon income.

New York

New York has a refundable credit worth 33% of the portion of the federal child tax credit and federal additional child tax credit attributable to qualifying children, or $100 multiplied by the number of qualifying children, per NCSL. This refundable credit is available for children under age 17 as of Dec. 31, and families must qualify for the federal child tax credit to be eligible.

Oklahoma

According to ITEP, Oklahoma offers families a choice between a nonrefundable credit worth 5% of the federal CTC or a nonrefundable credit worth 20% of the federal Child and Dependent Care Tax Credit. Taxpayers’ federal adjusted gross income must be less than $100,000.

Oregon

Oregon’s Child Tax Credit provides $1,000 per child, for up to five dependent children, under the age of six. Families making $25,000 or less receive the full credit. The credit begins phasing out after $25,000 of modified adjusted gross income and phases out completely at a MAGI of $30,000.

Utah

Utah’s Child Tax Credit allows eligible families to claim up to $1,000 per child each year. This tax credit is for children ages one through three. Full amounts are available to singles filers making $43,000 or less and married joint filers who earn $54,000 or less. The credit phases out at incomes above these thresholds.

Vermont

Vermonters can receive a child tax credit of $1,000 per child under the age of six if they earn less than $125,000 per year. Households earning $125,000 to $175,000 receive a reduced amount, per the Vermont Department of Taxes.

Nicole Spector contributed to the reporting for this story.

This article originally appeared on GOBankingRates.com: Child Tax Credit: Which States Offer Additional Money This Tax Season?