Child tax credit worth up to $1,750: Who qualifies and how to apply?
Minnesota expanded its Child Tax Credit in an attempt to cut child poverty by one-third. Who qualifies, and how can it be claimed?
Tax season is here, and parents and guardians in fifteen states may be eligible for larger refunds thanks to their state Child Tax Credits, which are offered in addition to the federal benefit for families.
- Refundable: California, Colorado, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon and Vermont
- Non-Refundable: Arizona, Idaho, Oklahoma, and Utah
Minnesota’s credit leads the nation in terms of value
Last year, leaders in Minnesota decided to increase the value of its Child Tax Credit (CTC) to $1,750, making it the most valuable in the United States. The office of Governor Tim Walz has stated that this expanded credit is expected to reduce child poverty in the state by a third. It will be received by almost 300,000 households, including 513,000 children. These figures represent about 10 percent of households in the state and more than a third of households with children. The Governor emphasized that there are five Minnesota counties with at least one in five children living in poverty, and each of those counties is located outside the seven-county metro area that includes Minneapolis and St. Paul.
Who is eligible?
Starting in 2023, families in Minnesota will be eligible for an enhanced Credit for Minnesota Children and Working Families when they file their income tax returns in 2024. This credit is aimed at helping economically vulnerable households and is worth $1,750 per qualifying child. There is no limit to the number of dependents that can be claimed.
Income Limits
- Joint Filers with one child: $52,500;
- ... with two children: $67,000;
- ... with three children: $82,000;
- ... with four children: $96,000.
- Single filers with one child: $47,000;
- ... with two children: $61,500;
- ... with three children: $76,000;
- ... with four children: $91,000.
Those with incomes under these levels will be able to claim the credit, but those with an annual income over $29,500 (single filers) or $35,000 (joint filers) will see the value begin to fall.
Additionally, a tax filer must meet five requirements:
- Residency: One must have been a resident of Minnesota during the year you are claiming the credit
- Federal Earned Income Tax Credit: You cannot have a two-or-ten-year ban on claiming the federal Earned Income Tax Credit
- Qualifying Dependents: Those claimed must be younger than eighteen years of age.
- Dependent Status: You cannot be claimed as a depedent on another tax return
- Filing Status: If you are married but file your taxes separately you cannot claim the credit.
How to request the credit
Low-income households who are eligible to receive the credit can claim it during the tax filing season, which begins in early 2024. If you were eligible in 2023 but did not receive the credit, based on your income in 2022, you can still claim it by submitting a 2022 Schedule M1WFC, Minnesota Working Family Credit. Once you submit the form, the Minnesota Department of Revenue will determine your eligibility and the amount you will receive, if eligible.