Even though Senate Democrats voted to keep the child tax credit out of the Inflation Reduction Act, some states are taking it upon themselves to make plans for sending parents more money. The payout is an effort by the government to lessen the impact of inflation and the looming recession.
Despite the fact that there are no plans to reinstate the child tax credit at the federal level, the Senate Republicans have cooked up a proposal to give up to $350 per child, with work requirements. However, for now, it is up to the states to decide if they will provide the money to families in need. 16 states have already stated their intent to enact a child tax credit or offer household deductions. So far, only one of the states is pending the governor’s approval.
Who Is Eligible?
Here are the states that have stated their intention to have their own version of the child tax credit. Please note that not all of them are fully refundable, which means you will need to have an income to be able to receive the full amount of financial aid.
California: Families who earn less than $25,000 will be eligible for $1,000, either as a reduced state tax bill or refund. Those who earn between $25,000 and $30,000 will receive a reduced credit. The credit will only be available for children under the age of six, and the family must qualify for the California Earned Income Tax Credit.
Colorado: Starting in January 2023, families who earn $75,000 or less ($85,000 for married taxpayers filing jointly) could receive 5% or 30% of the federal credit for each child who qualifies. This credit is also only available for children under 6.
Florida: Florida has not stated who exactly will be eligible for this relief money, but they have stated that nearly 59,000 families, including foster families, will receive $450 per child.
Georgia: In the wake of the decision to ban pregnancy terminations, Georgia now lets taxpayers claim their unborn fetuses as dependents on tax returns. Taxpayers are eligible for up to $3,000 for the tax year if they have an unborn child with a detectable heartbeat between July 20 and December 31.
Idaho: Families are eligible for $205 per child with a nonrefundable tax credit.
Maine: Taxpayers who are state residents are eligible for $300 per child and qualifying dependent.
Maryland: People who make $6,000 or less could be eligible for a $500 refundable tax credit per child. This tax credit is currently pending approval by Governor Larry Hogan.
Massachusetts: Families could be eligible for $180 for one dependent or $360 for multiple dependents. Dependents must be under twelve to qualify.
New Jersey: New Jersey recently passed the New Jersey Child Tax Credit Program, which gives families with an income of $30,000 or less a refundable tax credit of $500. This tax credit is eligible only for children under 6.
New Mexico: Families could be eligible for $25 to $175 per qualifying child beginning in the 2023 tax year and continuing through the 2031 tax year.
New York: Families could be eligible to claim either 33% of the federal child tax credit and federal additional child tax credit for qualifying children or $100 for each child who qualifies.
North Carolina: Taxpayers could be eligible to receive a deduction of up to $2,500 for each qualifying child. It depends on income and filing status.
Oklahoma: Households with a combined income of less than $100,000 are eligible to receive 5% of the federal child tax credit.
Rhode Island: Families could be eligible to receive child tax credit rebates for up to $250 per child under the age of 18. This rebate maxes out at three kids. Eligibility caps off at $100,000 for a single filer and $200,000 for joint filers. Checks will automatically be issued starting in October.
Vermont: Households with a combined income of less than $125,000 could be eligible for $1,000 per child age five and under.
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