States to offer their own child tax credit: Minnesota to debut large early payments in 2025

As 2025 approaches, you may be seriously thinking about how you’ll handle your taxes in the new year. If those plans involve a claim Federal Child Tax CreditYou should also be aware that your state may offer its own version of this credit to further assist you, especially if you live in Minnesota.

Whether at the state or federal level, child tax credits can provide a financial lifeline to parents, helping to put money in their pockets each year for every child they have. While the temporary expansion of the federal child tax credit It is scheduled to end in 2026 (PDF) Unless Congress acts to extend it, parents in a few states may also be eligible for additional state credits, although the amounts provided and eligibility requirements vary slightly.

The impact of child tax credits has been significant, even just in the past few years, with studies on the 2021 temporary expansion of the federal credit finding that it was an important factor in reducing child poverty. Columbia University Center on Poverty and Social Policy I found that the payments reduced monthly rates Eliminate child poverty by about 30%, with payments reaching nearly 61 million children.

Read on to find out if your state offers a child tax credit and if your family qualifies for it. To learn more about taxes, find out how The IRS may handle payment applications And how New income tax brackets may affect you.

What is the child tax credit?

With the child tax credit, eligible taxpayers may be able to reduce their income tax based on the number of children they claim as dependents.

The credit was first offered at the federal level in 1997, and currently provides $2,000 per child, with only $1,600 of that refundable, meaning you can get that amount even if you don’t owe that much in taxes. The remaining $400 is non-refundable, so it can only be used to reduce your tax burden.

The current value of the federal credit was set by the American Rescue Plan Act of 2021, which temporarily increased the credit until December 31, 2025. After that date, without any further expansion by Congress, the credit is scheduled to return to its previous amount: $1,000, non-refundable For every dependent child under 16 years of age.

Which states offer a child tax credit?

Whatever happens to the federal child tax credit in 2026, parents in the following 16 states can feel more comfortable knowing they may also be able to get a credit at the state level: Arizona, California, Colorado, Idaho, Illinois, Maine, Maryland, Massachusetts, and Minnesota New Jersey, New Mexico, New York, Oklahoma, Oregon, Utah, and Vermont.

However, the details of these credits — including their value, refundable amount, and what constitutes a dependent child — will vary widely depending on the state.

What is the prepayment option for the Minnesota Child Tax Credit?

On Tuesday, Minnesota Gov. Tim Walz New child tax credit option unveiled Available to North Star State taxpayers known as “advance payment.” If a Minnesota resident who qualifies for the state credit files for this new option during the 2025 tax season, not only will they receive their full credit for that year as usual — the amount you can find below — but they will also receive the credit they would have received in 2026 early. Under the new policy, the advance payment for next year’s child tax credit will be paid in installments throughout the second half of 2025.

“The goal of this nation-leading tax credit is to reduce child poverty and provide tax relief to working-class families in Minnesota,” Walz said. “With the prepaid option, we are making it easier for families to manage their annual household budget. This new option will increase financial freedom and ensure families get the support they need throughout the year.”

How much is the child tax credit in each state and who qualifies?

Here are the 16 states offering child tax breaks as of October 2024, according to National Conference of State Legislatures. Eligibility and amount vary by state, with 12 states making the credit refundable, so you can get your money back even if you don’t owe tax.

Arizona: $100 per dependent child under 17, non-refundable.

ca: $1,117 per qualifying dependent child under 6, refundable. Income must be less than $25,000 for the full amount, and the amount is reduced for families with income between $25,000 and $30,931. Must also be eligible for the state earned income tax credit.

Colorado: Up to $3,200 per qualifying dependent under age 16, refundable. The exact amount will vary Based on income, registration status, and age of the child.

Idaho: $205 per dependent child under 17, non-refundable.

illinois: A credit of 20% of the state earned income tax credit for each dependent child under age 12, refundable.

who: $300 per dependent child under 17, refundable.

Maryland: $500 per qualifying dependent child under age 17, refundable. However, the child must have a disability and the family’s adjusted gross income must be $6,000 or less to qualify.

Massachusetts: USD 180 for one dependent child under 12 years of age, or USD 360 for two or more children, refundable. The credit also applies to adults 65 or older or anyone with a disability.

Minnesota: $1,750 per dependent child, refundable, for single filers making $29,500 or less, or $35,000 for joint filers.

New Jersey: $500 per dependent child under 6 for taxpayers with income less than $30,000, refundable. credit Discounts in increments of $100 As the income bracket increases, with the smallest credit, $100 per dependent, is available to those with income between $120,000 and $150,000.

New Mexico: Between $75 and $175 per dependent child under 17, depending on income level, is refundable.

New York: The credit is any value greater to the taxpayer: either 33% of the portion of the Federal Child Tax Credit and Additional Federal Child Tax Credit attributable to qualifying children, or 100 times the number of qualifying children. Credit is refundable, and children must be 16 or under.

Oklahoma: 5% of the federal child tax credit per family, non-refundable. Not available to married couples filing jointly with a combined income of more than $100,000.

Oregon: $1,000 for each dependent child under 5 years old, refundable. Only available to families with incomes under $30,000.

Utah: $1,000 per dependent child between 1 and 3 years old, non-refundable. The credit decreases by $10 for every $1 of income above a certain threshold: $27,000 for married couples filing separately, $43,000 for singles or $54,000 for joint filers.

Vermont: $1,000 per dependent child under 5 for taxpayers with income less than $125,000, refundable.

For more, check out CNET’s pick for The best tax software you can get in 2024.