The total number of states providing relief child tax credits or deductions has risen to 12, as New Jersey recently passed its own child tax credit legislation.
The federal enhanced Child Tax Credit provided working American families with $3,000 per child under 18 years of age and $3,600 per child six and younger. But the refundable credit was only available in an enhanced version for 2021 and has since reverted to its original maximum amount of $2,000 per child for 2022.
On June 29, the New Jersey legislature voted to approve a $500 tax credit for families with children that earn $30,000 or less a year. According to NorthJersey.com, credits decrease by $10 for every $1,000 of yearly family income above $30,000, until reaching a minimum of $300 per child for a household earning up to the cut-off of $80,000 per year.
“It helps New Jerseyans live in place and work to raise a family,” said Assemblywoman Verlina Reynolds-Jackson before the vote. “The child tax credit directly provides assistance to families without the necessity of submitting additional applications.”
The other new addition was from Republican governor Phil Scott, who introduced the Vermont Child Tax Credit at the beginning of June, enabling households to receive a $1,000 child tax credit for children under 5 years in families earning $125,000 or less per annum. The program is expected to benefit over 30,000 children in Vermont.
The North Carolina Child Deduction isn’t new, but it often gets left out of discussions concerning child tax credits, because it is a deduction, not a credit. However, the top amount available to taxpayers is a generous deduction if you qualify.
Depending on adjusted gross income (AGI) and tax income filing status, families in North Carolina could receive a tax deduction up to $2,500 per qualifying child. Residents of the Tar Heel State can see what deduction they may be eligible to receive by checking out the Child Deduction Table on the NC Department of Revenue site.
Just because a state isn’t participating in a CTC program, it doesn’t mean it doesn’t have respite available to its residents. Many states are experimenting with gas rebate checks and inflation stimulus programs to provide relief to citizens as state coffers are flush and federal programs are scarce.
To see if your state has a child tax credit program in place, check the chart below, which has information provided by the National Conference of State Legislatures.
|State||Program Name||Tax Credit Amount||Eligibility||Refundable|
|California||Young Child Tax Credit||$1,000 to each qualifying family with earnings under $25,000, reduced credit of less than $1,000 to each qualifying family with earnings between $25,000 to $30,000||Only available for children under age 6 and must qualify for the California Earned Income Tax Credit||Yes|
|Colorado||Child Tax Credit||Beginning Jan. 2023, 5% to 30% of the federal credit for each qualifying child (depends on income and filing status)||Only available for children under age 6||Yes|
|Idaho||Child Tax Credit||$205 per qualifying child||Qualifying child is defined by section 24(c) of the Internal Revenue Code||No|
|Maine||Dependent Exemption Tax Credit||$300 per qualifying child and dependent||Same as federal Child Tax Credit||No|
|Maryland||Child Tax Credit||$500 per child for families making less than $6,000||Child under the age of seventeen must have a disability and taxpayers federal adjusted gross income must be $6,000 or less||Yes|
|Massachusetts||Household Dependent Tax Credit||$180 for one dependent, $360 for 2 or more dependent||“Dependents” are considered children under 12 years old, adults 65 or older, and anyone with a disability||Yes|
|New Jersey||Child Tax Credit Program||$500 tax credit for families with an income of $30,000 or less ($300 for families earning up to $80,000)||Available to each child under 6 years old||Yes|
|New Mexico||Child Income Tax Credit||$75 to $175 per qualifying child, depending on income||Any minor child or stepchild of the taxpayer who would be a qualifying child for federal income tax purposes||Yes|
|New York||Empire State Child Tax Credit||The greater of: 33% of the portion of the federal child tax credit and federal additional child tax credit attributable to qualifying children OR $100 multiplied by the number of qualifying children||Child must be at least age 4 and must qualify for the federal child tax credit||Yes|
|North Carolina||Child Deduction||$500-$2,500 federal tax deduction depending on AGI and tax income filing status||Age of eligible child not specified||No|
|Oklahoma||Child Tax Credit||5% of federal credit||Taxpayers federal adjusted gross income cannot exceed $100,000 for married couples filing jointly||No|
|Vermont||Child Tax Credit||$1,000 child tax credit||For every child aged 5 and under to households earning under $125,000||Yes|
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