Stimulus Update: These 12 States Are Keeping Child Tax Credits Alive. Did Your State Make the List?
KEY POINTS
- Twelve states have either updated or initiated Child Tax Credits.
- Most credits are earmarked for low-income households.
None of these credits will make a family wealthy, but may help put food on the table.
Despite a highly divided Congress, President Joe Biden has been able to sign significant legislation into law. For example, there's the American Rescue Plan, the Infrastructure Investment and Jobs Act, and the sweeping climate and healthcare bill, the Inflation Reduction Act. One thing the president has not been able to get through Congress is a continuation of the expanded Child Tax Credit.
The expanded Child Tax Credit not only raised the tax credit per child from $2,000 per year to either $3,000 or $3,600 (depending on the age of the child), but it also allowed parents to receive a portion of the credit each month rather than wait until tax time. President Biden hoped the program would last until at least 2026, but Republican lawmakers and Sen. Joe Manchin ended the expanded Child Tax Credit.
For a while, it looked like all hope of renewing the expanded Child Tax Credit was dead, but these 12 states have stepped up to the plate, determined to help struggling families get by.
| State | Program | Amount of Tax Credit | Eligibility |
|---|---|---|---|
| California | Young Child Tax Credit | $1,000 to qualifying families earning under $25,000. A reduced credit for qualifying families earning between $25,000 and $30,000 | Available for children under age 6 who qualify for the California Earned Income Tax Credit |
| Colorado | Child Tax Credit | Beginning January 2023: 5% to 30% of the federal credit for each qualifying child (the actual amount depends on family income and filing status) | Available for children under age 6 |
| Connecticut | Child Tax Rebate | $250 per child, up to three children | Income limits of $100,000 for single filers, $160,000 for head of household, and $200,000 for joint filers. Phased out at a rate of 10% for every $1,000 over thresholds |
| Idaho | Child Tax Credit | $205 per qualifying child | At this point, the credit appears to be available for children under the age of 17 |
| Maine | Dependent Exemption Tax Credit | $300 | Available to dependents for whom the federal tax credit is claimed |
| Maryland | Child Tax Credit | $500 per child | Available to children under the age of 17 with a disability. Household AGI must be $6,000 or less |
| Massachusetts | Household Dependent Tax Credit | $180 for one dependent, $360 for 2 or more | Available for children under the age of 12, adults 65 or older, and anyone with a disability |
| New Jersey | Child Tax Credit | $500 per child | Must be under the age of 6 with a family income no greater than $30,000 |
| New Mexico | Child Income Tax Credit | $75 to $175 per child, depending on income | Available to any minor who qualifies for federal income tax credits |
| New York | Empire State Child Tax Credit | Either 33% of the federal Child Tax Credit and federal additional Child Tax Credit or $100 per qualifying child, whichever is greater | Available to children who are at least 4 years of age |
| Oklahoma | Child Tax Credit | 5% of federal credit | Available to households with a federal AGI of $100,000 or less |
| Vermont | Child Tax Credit | $1,000 per child | Available for children under the age of 5 with a family income below $125,000 |
If you get the sense that the list is always changing, you're right. Some states have had these tax credits on the books for some time, while others are adding credits as budgets allow.
While none of these credits are going to build generational wealth, they may put enough money in a household's bank account to get by for the month. In the meantime, Democratic lawmakers continue to call for the renewal of the federal expanded Child Tax Credit. Time will tell if they can make it a reality.
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