There are currently discussions going on in several states about the possibility of instituting a state child tax credit or providing deductions for families who have children.
Even though a new child tax credit bill is not likely to be signed into law any time soon (since it wasn’t included in the Inflation Reduction Act), several states are working on their own legislation in this regard.
Roughly sixteen states are making preparations to increase the amount of money that will be sent to families to mitigate the effects of inflation and a potential economic downturn.
The last payment of the improved monthly child tax credit was sent to the parents in December, and they got the final check with their tax returns this year.
There is currently no intention to restart the payments for the child tax credit at the federal level; however, there is a proposal before the Republican-controlled Senate that would send up to $350 per kid and add a stipulation that parents work.
At this time, it is up to the states to decide whether or not they will offer financial assistance to low-income families.
Only one of the sixteen states that are considering implementing a state child tax credit or offering deductions for households with children is now awaiting permission from the governor of that state.
Check the list below to determine whether or not your state now offers (or intends to offer) child tax credit relief, as well as the qualifications necessary to qualify under your state’s programme.
Checking to see if your state is delivering gas rebate checks or stimulus money in the form of inflation-relief checks or tax rebates is a good place to start if you want additional information on this topic.
Which states are planning to mail child tax credit cheques and are thinking about offering tax deductions?
These are the states that currently intend to send payments to families to reimburse them for the child tax credit.
It is important to keep in mind that not all of them are fully refundable, which means that you might be required to have an income to get the whole amount that is owed to you.
In the state of California, families with annual incomes of less than $25,000 are eligible to obtain a one thousand dollar rebate or reduction in the amount of state taxes owed.
Those with incomes between $25,000 and $30,000 would be eligible for a credit that is decreased in amount. Only children younger than six years old are eligible for the credit, and their families also need to be eligible for the Earned Income Tax Credit in California.
Families in Colorado with incomes of $75,000 or less (or $85,000 for married taxpayers filing jointly) will be eligible to receive between 5% and 30% of the federal credit for each child who meets the requirements.
This programme will begin in January 2023. Only children younger than six years old are eligible for this credit.
Families in Connecticut that meet the requirements can now submit an application for a one-time tax rebate that will provide $250 for each kid who is under the age of 18.
The maximum reimbursement that can be received is $750 for three children. Check out this list (PDF) to see who qualifies: those who filed as single in 2021 and made no more than $100,000, those who filed as married and made no more than $200,000, and those who filed as heads of household and made no more than $160,000.
Nearly 59,000 families in Florida will each receive $450 as a result of this programme; however, it is not yet apparent who will qualify for this assistance. Foster families are eligible to receive some of this hardship funding as well.
Georgia: As a response to its decision to prohibit access to abortion in the state, Georgia will now allow taxpayers to claim their unborn foetuses as dependents on their tax returns.
This move was made in response to Georgia’s decision to ban abortion access in the state. Taxpayers who have an unborn child with a detectable heartbeat between July 20 and December 31 of the following year are eligible for a credit of up to $3,000 for the 2022 tax year.
Idaho’s nonrefundable child tax credit gives eligible families the potential to receive $205 for each kid in the family that meets the eligibility requirements.
Under the dependent exemption tax credit, Maine taxpayers who are residents of the state can claim a total of $300 in tax savings for each qualifying child and dependent they have.
Those children and dependents who are eligible for the credit are the same ones who were eligible to be claimed for the federal child tax credit.
According to a plan that is currently before the governor for approval in Maryland, individuals with an annual income of $6,000 or less would be eligible to receive a tax credit of $500 that is refundable for each kid that meets the requirements.
Families in Massachusetts could earn $180 for a single dependant or $360 for multiple dependents if they qualify for the state assistance programme. For dependents to be eligible, they must be younger than 12 years old.
New Jersey: Families with an annual income of $30,000 or less are eligible to receive a refundable $500 tax credit for each child under the age of 6 thanks to the recently enacted New Jersey Child Tax Credit Program. Those living in households with an annual income of up to $80,000 may be eligible for $300.
Beginning with the tax year 2023 and continuing through the tax year 2031 in the state of New Mexico, families may be eligible for a tax credit ranging from $25 to $175 per qualifying kid, depending on the amount of money they bring in.
In the state of New York, eligible families have the option of claiming either 33 per cent of the federal child tax credit and the federal supplementary child tax credit for qualified children or one hundred dollars for each qualifying kid.
Taxpayers in the state of North Carolina may be eligible to get a deduction of up to $2,500 for each child who meets the requirements, depending on their income and filing status.
In the state of Oklahoma, families whose annual income is less than $100,000 are qualified for a credit equal to 5% of the amount of the federal child tax credit.
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Rhode Island offered families the opportunity to receive child tax credit rebates of up to $250 per child under the age of 18, with a maximum of three children receiving these rebates.
The maximum allowable income for a household with a single filer is $100,000, and the maximum allowable income for a home with joint filers is $200,000. Beginning in October, people who are qualified will receive these checks through an automated process.
In Vermont, families with an annual income of less than $125,000 are eligible for a one thousand dollar payment for each kid under the age of five.