Which States Offer the Child Tax Credit?

You may have heard about the child tax credit and what may or may not happen to it after 2025, but if you’re a parent heading into tax season, you should know that 16 states offer their own child tax credit to dependent children. like that.

Whether at the state or federal level, child tax credits can give parents a financial lifeline, helping to put more money in their pocket each year for each child they have. Although the temporary extension of the child tax credit is set to expire in 2026 unless Congress acts, parents in several states may be eligible for additional state-level credits, although the amounts offered and eligibility requirements vary by law. quite a bit.

The impact of child tax credits has been great, even a few years ago, with studies of the temporary extension of the federal credit for 2021 that it was an important factor in reducing child poverty. Columbia University’s Center on Poverty and Social Policy found that the payments reduced monthly child poverty estimates by about 30%, with payments reaching about 61 million children.

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

What is the child tax credit?

With the child tax credit, eligible taxpayers can reduce their tax bill based on how many children they claim to support.

First introduced in 1997, the federal credit currently provides $2,000 per child, and only $1,600 of that amount is refundable, meaning you can get that amount or not owe that amount in taxes. The remaining $400 is non-refundable, so it can only be used to reduce your tax burden.

The current federal credit limit was set by the American Rescue Act of 2021, which temporarily lowered the credit until Dec. 31, 2025. After that date, without further extension by Congress, the credit is set to return to its previous amount: $1,000, nonrefundable, for each dependent child under 16.

Which states offer the child tax credit?

Regardless of what happens to the child tax credit in 2026, parents in the following 16 states can rest easy knowing they can still claim the state credit: Arizona, California, Colorado, Idaho, Illinois, Maine, Maryland. , Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oklahoma, Oregon, Utah and Vermont.

However, the specifics of these credits — including how much they cost, how much is refundable and what counts as a dependent — will vary greatly from state to state.

How much is the federal child tax credit and who is eligible?

Here are 16 states offering child tax credits as of October 2024, according to the National Conference of State Legislatures. Eligibility and amount vary by state, 12 states make the credit refundable, so you can get a refund even if you don’t owe taxes.

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

California: $1,117 for each eligible dependent child under 6, refundable. Income must be less than $25,000 in full, with the amount reduced for families with incomes between $25,000 and $30,931. It must also be eligible for the Federal Earned Income Tax Credit.

In Colorado: Up to $3,200 per eligible dependent under 16, refundable. The exact amount will vary based on income and filing status.

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

Illinois: A credit worth 20% of the federal Earned Income Tax Credit for each dependent child under the age of 12, is refundable.

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

Maryland: $500 per eligible dependent child under 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: $180 for one dependent child under 12, or $360 for two or more, refundable. The credit also applies to seniors 65 or older and anyone with a disability.

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

New Jersey: $500 per dependent child under 6 for taxpayers making less than $30,000, refundable. The credit decreases in $100 increments as the income bracket increases, with the smallest credit, $100 per dependent, available to those with incomes of $120,000-$150,000.

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

New York: The credit is the higher of any amount to the taxpayer: either 33% of the portion of the federal child tax credit and the additional federal child tax credit attributable to qualifying children, or $100 times the number of qualifying children. Credit is refundable, children must be 16 years of age or younger.

In Oklahoma: 5% federal child tax credit per household, non-refundable. It is not available to married couples who file a joint income of more than $100,000.

In Oregon: $1,000 per dependent child under 5 years of age, refundable. It is only available to families making less than $30,000.

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

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

For more, check out CNET’s picks for the best tax software to buy in 2024.