Rising childcare costs are straining many families across the U.S., but several states are stepping in to offer some relief through state-level child tax credits. These credits, designed to complement the federal child tax credit, provide crucial financial support, especially for low- and middle-income families. Knowing which states offer these credits and how to qualify can help you manage your household expenses more effectively.
Here’s a breakdown of the states offering child tax credits in 2024, how much you can receive, and how these credits work.
Child Tax Credits
In 2024, 11 states and the District of Columbia offer child tax credits to families. These programs vary by state, with some offering refundable credits, meaning that even if you owe little or no tax, you could receive the difference as a refund. Some states even extend eligibility to families without Social Security numbers or Individual Taxpayer Identification Numbers (ITINs).
California
- Benefit: Up to $1,117 per child under six.
- Eligibility: Must qualify for the California Earned Income Tax Credit (CalEITC), primarily aimed at low-income families.
- Refundable? Yes.
California’s Young Child Tax Credit helps families with children under six, providing much-needed financial assistance to those struggling the most.
Colorado
- Benefit: Between 10% and 60% of the federal child tax credit, depending on income.
- Eligibility: Household income must not exceed $75,000 (or $85,000 for joint filers).
- Refundable? Yes.
Low-income families in Colorado can receive up to 60% of the federal credit, helping to supplement the cost of childcare, education, and other essential expenses.
Maine
- Benefit: Up to $300 per child under 17.
- Eligibility: Available to most families, with no minimum income requirement.
- Refundable? Yes.
Maine’s tax credit, adjusted for inflation, is accessible to a wide range of families, ensuring financial support for families of various income levels.
Other States
Several other states have implemented their own child tax credits to assist families:
- Maryland: Offers up to $500 per child under 6, with additional benefits for children with disabilities.
- Massachusetts: Provides up to $440 per child, with no limit on the number of children you can claim.
- Minnesota: One of the most generous programs, offering up to $1,750 per child, with no cap on the number of children.
- New Jersey: Families with children under 5 can receive up to $1,000 per child, based on income.
- New Mexico: Credits range from $25 to $600 per child, depending on family income.
Each state sets its own rules, so the benefits vary widely depending on where you live. It’s important to understand your state’s requirements and available benefits.
How to Qualify
Each state’s child tax credit program has specific eligibility criteria. In most cases, you’ll need to file a state tax return to claim the credit, even if you already claimed the federal child tax credit. Factors like income, the number of children, and their ages play a role in determining how much you can receive.
Some states automatically apply the credit if you qualify for the federal child tax credit, while others require additional forms. Make sure to check your state’s specific guidelines to ensure you don’t miss out on this valuable benefit.
Benefit
State-level child tax credits can significantly ease the financial burden of raising children, especially in an environment of rising costs for housing, food, and education. These credits directly support families by reducing tax bills or providing refunds, which can help cover essential expenses.
- Plan your finances: Since child tax credits can boost your family’s budget, consider how this extra money can be used to improve your financial stability.
- Monitor your state’s tax calendar: Be aware of deadlines and filing requirements to ensure you receive your child tax credit on time.
| State | Maximum Credit Per Child | Refundable? |
|---|---|---|
| California | $1,117 | Yes |
| Colorado | Up to 60% of federal credit | Yes |
| Maine | $300 | Yes |
| Maryland | $500 | Yes |
| Massachusetts | $440 | Yes |
| Minnesota | $1,750 | Yes |
| New Jersey | $1,000 | Yes |
| New Mexico | $25–$600 | Yes |
In 2024, many U.S. states are stepping up to offer child tax credits that can provide meaningful relief for families. If you live in one of these states, take the time to review the requirements and claim your credit to benefit from this financial support. These credits can help you manage the rising costs of raising children, ensuring that your family has the resources it needs to thrive.
Make sure to keep track of your state’s tax deadlines, investigate any available assistance, and consult online tax resources if needed. By staying informed and proactive, you can maximize the impact of these programs and improve your family’s financial outlook.
FAQs
Which states offer a child tax credit in 2024?
Eleven states, plus Washington D.C., offer child tax credits in 2024.
How much is California’s Young Child Tax Credit?
California offers up to $1,117 per child under six years old.
Are child tax credits refundable in all states?
Most states, including Colorado and Maine, offer refundable child tax credits.
Do I need to file a state return to claim my child tax credit?
Yes, in most states, you’ll need to file a state tax return to claim the credit.
What is the maximum child tax credit in Minnesota?
Minnesota offers up to $1,750 per child, with no cap on the number of children.
