Here Are the States Providing Child Tax Credits in 2024

Childcare costs are skyrocketing, leaving many parents feeling financially overwhelmed. Fortunately, some states have adopted versions of the child tax credit to help ease this burden.

These credits offer much-needed financial relief, providing families with extra income to cover essentials like nutrition, housing, clothing, and educational expenses.

The U.S. Census Bureau has reported that the federal child tax credit has significantly reduced childhood poverty across the country, and state-level programs are helping to extend this benefit even further.

As of 2024, fifteen states, plus the District of Columbia, have implemented their own child tax credit programs. These state credits vary in amount, depending on factors such as filing status, income, and the age of your child.

Many states have made these credits refundable, meaning that even households with little or no income may qualify for the full benefit.

Some have even expanded eligibility by removing the requirement of a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

Let’s dive into some of the states offering these programs and how much you can expect when you file your state return.

California: Young Child Tax Credit (YCTC)

California’s Young Child Tax Credit provides up to $1,117 per eligible child under 6 years old for the 2024 tax year.

Families with qualifying children who meet the California Earned Income Tax Credit (CalEITC) requirements can apply, even with minimal or no income.

To claim the YCTC, you must fill out the California Earned Income Tax Credit form (FTB 3514) when filing your state taxes.

Colorado: Child Tax Credit

Colorado residents earning $75,000 or less ($85,000 for married couples) can receive a state child tax credit worth between 10-60% of the federal child tax credit, depending on income.

The credit is refundable and available to families with children under 6 years old who qualify for the federal child tax credit. Families with incomes under $25,000 are eligible for the maximum benefit.

Maine: Dependent Exception Tax Credit

In Maine, families can claim up to $300 per qualifying child under 17. The credit is fully refundable and indexed to inflation, meaning it can increase each year. The benefit begins to phase out for households earning over $400,000 (married filing jointly) or $200,000 (single filers).

Maryland: Child Tax Credit

Maryland’s child tax credit offers $500 per child under 6 years old for households earning $15,000 or less. Children under 17 with a disability are also eligible. The credit is refundable, providing extra support for low-income families.

Massachusetts: Child and Family Tax Credit

Massachusetts offers a child and family tax credit of $440 per eligible dependent, with no limit on the number of dependents that can be claimed.

This refundable credit applies to children under 13, disabled dependents, or dependents over 65, provided they live with the taxpayer for more than half the year.

Minnesota: Largest State Child Tax Credit

Minnesota offers the largest state child tax credit in the country, providing up to $1,750 per eligible child with no cap on the number of children you can claim. The credit amount phases out for households earning over $29,500 (or $35,000 for married filing jointly).

New Jersey: Child Tax Credit

In New Jersey, families with children under 5 can claim up to $1,000 per child, provided their taxable income is $80,000 or less. The credit is fully refundable and available to residents with a valid SSN or ITIN.

New Mexico: Child Income Tax Credit

New Mexico offers a sliding scale child tax credit between $25 and $600, depending on your income. Families with higher incomes receive less, while low-income households benefit the most.

New York: Empire State Child Tax Credit

New York’s Empire State Child Tax Credit provides a credit equal to 33% of the federal child tax credit or $100 per child. Families with children under 17 who meet specific requirements, including having a valid SSN or ITIN, are eligible.

Oregon: Oregon Kids’ Credit

Oregon families with children under 5 can claim up to $1,000 per child through the Oregon Kids’ Credit, which phases out for households with incomes over $30,000. The credit is refundable and designed to help low-income families manage the costs of raising young children.

Vermont: Child Tax Credit

Vermont offers a refundable child tax credit worth up to $1,000 for children under 6 years old. The credit phases out for households with adjusted gross incomes over $125,000 and ends entirely at $175,000.

Washington, D.C.: Keep Child Care Affordable Tax Credit

The District of Columbia’s tax credit provides $420 per qualifying child under the age of 6, with a maximum of three children per household. The credit amount is adjusted annually for inflation and is based on household income and filing status.

States Offering Non-Refundable Credits

Some states, like Arizona, Idaho, Oklahoma, and Utah, offer non-refundable child tax credits. These credits can lower your tax bill but won’t provide a refund if the credit exceeds your tax liability.

For example, Arizona provides $100 per dependent under 17 and an additional $25 for dependents over 17. Idaho offers $205 per qualifying child under 17, while Oklahoma allows up to 5% of the federal child tax credit. Utah provides up to $1,000 per child for families with incomes below specific thresholds.

Conclusion

Childcare costs can strain family budgets, but state-level child tax credits can help ease some of the financial pressure. With a variety of programs available across the country, parents should explore their eligibility to take advantage of these credits when filing their state returns. Make sure to check your state’s specific requirements and income limits to see how much you can benefit from these programs.

Source