TAXES
Which states will offer child tax credits in 2024?
In addition to the federal tax credit, here is a list of those available at the state level as well as information on who qualifies.
In addition to the Federal Child Tax Credit, residents of nearly a dozen states can claim an additional credit if they are in the care of dependent children.
Fully refundable Child Tax Credits
Altogether, fourteen states have established their own Child Tax Credit, with the majority having imposed limits on the total that can be claimed, according to the National Conference of States Legislatures. Some of these states allow the credit to be claimed for those caring for elder dependents and children.
The following states have established refundable tax credits. This means that the value of the credit will be distributed to the taxpayer, regardless of whether a balance is due when filing a return.
California’s Child Tax Credit
In California, the state provides a tax credit to parents and guardians of young children valued at up to $1,117 for those who qualify. According to the California Franchise Tax Board, to be eligible, a taxpayer must have an earned income of $30,931 or less, and the child claimed as a dependent must be six years of age or younger.
Colorado’s Child Tax Credit
Colorado offers a Child Tax Credit to those with dependents who qualify for the Federal Child Tax Credit or those who would if they had a Social Security Number. Like California’s, the tax credit is for those with children aged six or under in their care and is worth up to $1,200. Thanks to a bill that expanded access passed in 2023, around 195,000 children will benefit from the credit this year.
Maine’s Child Tax Credit
The credit is worth up to $500, with the state determining the amount that can be claimed by calculating 25 percent of the value of the federal Child and Dependent Care Credit. To be eligible, a taxpayer must send their child to a “child care center or a home with a Quality Certificate.”
Maryland’s Child Tax Credit
Like in Maine, those eligible for the federal Child and Dependent Care Credit may claim a refund at the state level worth thirty-two percent of the federal credit. A taxpayer with incomes over $102,600 ($159,500 for those filing jointly) will start to see the value of their credit decrease and eventually phase out.
Massachusetts’ Child Tax Credit
In Massachusetts, taxpayers who care for a child or elderly parent can claim a tax credit that is worth $440 for each individual claimed on one’s return. More information can be found on the state tax authority’s website.
Minnesota’s Child Tax Credit
Starting last year, Minnesota allowed taxpayers to claim a Child Tax Credit worth $1,750 per child. Unlike some of the other states on this list, no limit is placed on how many dependent children one can claim.
“This is a refundable credit, meaning you can receive a refund even if you do not owe tax,” reports the state’s tax authority. To qualify, the taxpayer must have lived in Minnesota the entire year, been unable to claim the federal Earned Income Tax Credit, not be claimed as a dependent on a tax return, and can’t file separately if married. Find out more information on the state’s website.
New Jersey’s Child Tax Credit
In the Garden State, families that can claim the federal Child and Dependent Care Credit can claim a similar credit at the state level. There is an income limit of $150,000, and depending on one’s income, the value of the credit changes. For instance, those under $30,000 will receive fifty percent of the credit, whereas those who make between $120,000 and $150,000 will receive only ten percent. Read more about the credit here.
New Mexico’s Child Tax Credit
In New Mexico, parents or legal guardians can claim a Child Tax Credit, which can be worth up to $600 per child. However, the actual value of the credit varies depending on their income. If their income is less than $25,000, they are eligible to receive the full amount of the credit. For those making between $25,000 and $50,000, the amount of the credit is reduced to $400. And for those who earn between $50,000 and $75,000, the credit amount is further reduced to $200 per child.
New York’s Child Tax Credit
In New York, those who meet certain income and residency requirements can claim the Empire State child credit. This credit is worth either thirty-three percent of the federal tax credit or $100 per qualifying child. For those that do not claim the federal Child Tax Credit, the income limits determine eligibility:
- For single filers, the income limit is $75,000 or less
- For those who are married and file jointly the limit is $110,000 or less; and
- For those who are married but file separately the upper limit is $55,000.
Read more on the credit and the changes made this year on the state’s dedicated webpage.
Oregon’s Child Tax Credit
A new credit worth $1,000 per child will be available to low-income tax filers in 2024. Parents can claim up to five dependents under five, and only those making between $25,000 and $30,000 are eligible for the credit. Only those making $25,000 or less will be able to claim the full value of the credit.
Vermont’s Child Tax Credit
The credit in Vermont is similar to that available in Oregon. Only parents and guardians with children under five can claim the credit, and those eligible will receive up to $1,000. The income limits are higher in Vermont, with filers making $125,000 able to receive the full value and the credit only decreasing in value after the $175,000 threshold is met.
Non-refundable tax credits
In the states of Idaho, Oklahoma, and Utah, the state legislature has established a non-refundable credit. This credit is different from other tax credits as it cannot be refunded in cash. However, if the filer owes taxes to the state, they can subtract the credit from their tax liability.
In Idaho, the credit is worth $205 per child. In Utah, the credit is worth $1,000 but is only available to families with dependents between zero and five years old. Lastly, in Oklahoma, the credit is worth five percent of the claim of the federal child tax credit.