You might need heard of the federal little one tax credit score and what might or might not occur to it after 2025, however in the event you’re a mother or father heading into tax season, you must also know that 16 states provide their very own little one tax credit score for dependent kids as effectively.
Either on the state or the federal degree, little one tax credit can provide a monetary lifeline to folks, serving to to place cash into their pocket annually for every little one they’ve. While the short-term growth of the federal little one tax credit score credit score is ready to run out in 2026 except Congress acts, mother and father in a handful of states may also be eligible for extra state-level credit, although the quantities on provide and the necessities for eligibility range by fairly a bit.
The impression of kid tax credit has been appreciable, even simply in the previous few years, with research into the 2021 short-term growth of the federal credit score discovering that it was a important think about decreasing childhood poverty. Columbia University’s Center on Poverty and Social Policy discovered that the funds lowered the month-to-month charges of kid poverty by almost 30%, with funds reaching roughly 61 million kids.
Read on to search out out in case your state presents a little one tax credit score and if your loved ones qualifies for it. For extra on taxes, learn the way the IRS could be dealing with fee apps and the way new revenue tax brackets may have an effect on you.
What is a little one tax credit score?
With a little one tax credit score, eligible tax payers could possibly scale back their revenue tax based mostly on what number of kids they declare as dependents.
First launched in 1997, the federal-level credit score at present presents $2,000 per little one, with solely $1,600 of that quantity being refundable, which suggests you can obtain that quantity even in the event you do not owe that a lot in taxes. The remaining $400 is nonrefundable, so it may solely be used to decrease your tax burden.
The federal credit score’s present worth was set by the American Rescue Plan Act of 2021, which briefly bumped the credit score by means of Dec. 31, 2025. After that date, with none further growth by Congress, the credit score is ready to revert to its earlier quantity: $1,000, nonrefundable, per dependent little one underneath 16.
Which states provide a little one tax credit score?
Whatever occurs to the federal little one tax credit score by 2026, mother and father within the following 16 states can relaxation a little simpler understanding that they could additionally be capable to get a state-level credit score: Arizona, California, Colorado, Idaho, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oklahoma, Oregon, Utah and Vermont.
However, the specifics of those credit — together with how a lot they’re value, how a lot is refundable and what counts as a dependent little one — will range significantly relying on the state.
How a lot is every state little one tax credit score and who’s eligible?
Here are the 16 states providing little one tax credit as of October 2024, in accordance with the National Conference of State Legislatures. Eligibility and quantity varies by state, with 12 of the states making the credit score refundable, so you will get a refund even in the event you do not owe tax.
Arizona: $100 per dependent little one underneath the age of 17, nonrefundable.
California: $1,117 per qualifying dependent little one underneath the age of 6, refundable. Income have to be underneath $25,000 for full quantity, quantity lowered for households with revenue between $25,000 and $30,931. Must additionally qualify for the state’s Earned Income Tax Credit.
Colorado: Up to $3,200 per qualifying dependent underneath the age of 16, refundable. Exact quantity will range based mostly on revenue and submitting standing.
Idaho: $205 per dependent little one underneath the age of 17, nonrefundable.
Illinois: Credit value 20% of the state’s Earned Income Tax Credit per dependent little one underneath the age of 12, refundable.
Maine: $300 per dependent little one underneath the age of 17, refundable.
Maryland: $500 per qualifying dependent little one underneath the age of 17, refundable. However, the kid should have a incapacity and the household’s adjusted gross revenue have to be $6,000 or much less to qualify.
Massachusetts: $180 for one dependent little one underneath the age of 12, or $360 for 2 or extra, refundable. Credit additionally relevant for adults 65 or older or anybody with a incapacity.
Minnesota: $1,750 per dependent little one, refundable, for particular person filers making $29,500 or much less, or $35,000 for joint filers.
New Jersey: $500 per dependent little one underneath the age of 6 for taxpayers making lower than $30,000, refundable. Credit decreases in increments of $100 as revenue bracket will increase, with the smallest credit score, $100 per dependent, out there to these with revenue of $120,000-$150,000.
New Mexico: Between $75 and $175 per dependent little one underneath the age of 17, relying on revenue degree, refundable.
New York: Credit is whichever worth is greater for the taxpayer: both 33% of the portion of the federal little one tax credit score and federal further little one tax credit score attributable to qualifying kids, or $100 occasions the variety of qualifying kids. Credit refundable, kids have to be 16 or youthful.
Oklahoma: 5% of the federal little one tax credit score per family, nonrefundable. Not out there for married {couples} submitting collectively with gross revenue over $100,000.
Oregon: $1,000 per dependent little one underneath the age of 5, refundable. Only out there for households making lower than $30,000.
Utah: $1,000 per dependent little one between the ages of 1 and three, nonrefundable. Credit decreases by $10 for each $1 of revenue over a sure threshold: $27,000 for married submitting individually filers, $43,000 for single filers or $54,000 for joint filers.
Vermont: $1,000 per dependent little one underneath the age of 5 for taxpayers making lower than $125,000, refundable.
For extra, try CNET’s decide of the finest tax software program you will get in 2024.