Congress is now working on a proposal to enhance the child tax credit by raising the maximum refundable amount and this tax season may bring in more cash for you and your family if you have children. Moreover, you may reside in a state that is distributing extra child tax credit funds this year.

Minnesota lawmakers expect 300,000 residents to qualify for a $1,200 average child tax benefit. California, Massachusetts, and New Jersey, like Minnesota, offer child tax credits beyond federal benefits, as per to CNET.

Child Tax Credit Eligibility

In 2024, families in these states are set to receive child tax credit checks. Keep in mind that not all credits are fully refundable, potentially requiring a certain income level to receive the full amount.

• Arizona: Families can expect a non-refundable $100 credit for dependents under 17, with an additional $25 per dependent above 17.

• California: Eligible families earning less than $25,000 may receive $1,000, focused on children under 6 and tied to California Earned Income Tax Credit qualification.

• Colorado: Families with incomes of $75,000 or less ($85,000 for joint filers) could receive up to $1,200 per qualifying child under 6.

• Idaho: Non-refundable child tax credit offers $205 for each qualifying child under 16.

• Maine: Residents can claim $300 for each qualifying child and dependent under the dependent exemption tax credit.

• Maryland: Those earning $6,000 or less may receive a $500 refundable tax credit for each qualifying child under 17.

• Massachusetts: Families qualify for $180 for one dependent or $360 for multiple dependents, limited to children under 12.

• Minnesota: Families may receive $1,750 per qualifying child, with phase-outs based on income.

• New Jersey: The child tax credit Program offers a refundable $500 tax credit for each child under 6 for households with incomes of $30,000 or less, with varying credits for higher incomes.

• New Mexico: Eligible families could receive $25 to $600 per qualifying child based on income, applicable through the 2031 tax year.

• New York: Families can claim 33% of federal child tax credit or $100 for each qualifying child, now expanded to include children under 4.

• Oklahoma: Households with income below $100,000 are eligible for 5% of the federal child tax credit.

• Oregon: Families with income below $30,000 qualify for $1,000 per child under 5.

• Utah: Eligible households can receive $1,000 per child aged 1 to 4, decreasing based on income.

• Vermont: Households with income below $125,000 are eligible for $1,000 per child under 5.

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Proposed Child Tax Credit Adjustments

Meanwhile, major federal adjustments are proposed to improve child tax benefits. Taxpayers who qualify may get $200 in refunds this year, $300 and $400 in the next two years. In tax years 2024 and 2025, the maximum $2,000 credit would be increased for inflation to help households cope with growing expenditures.

The measure also increases low-income families with multiple children's maximum refundable credit. Taxpayers could utilize their past tax year's earned income, ensuring that the credit amount stays steady despite income variations.

The Center on Budget and Policy Priorities estimates that the expansion would help 16 million children in the first year. About 400,000 children might be pushed above the poverty line, with variable financial gains for their families.

The Center on Budget and Policy Priorities says, "The idea would benefit 16 million children in the first year, half of whom live in homes that would receive $630 or more. Nearly 40% of children would benefit from a $1,000 or more family gain, and 25% would gain more than $1,400 in the first year." These measures are a major step toward helping families nationwide, according to Silive.

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