Inflation Relief for Families: Biden Wants Expanded Child Tax Credit Back — These States Provide Their Own

State of the Union Address in Washington, US - 07 Feb 2023
Michael Brochstein / SOPA Images /

During his second State of the Union address on Feb. 7, President Biden put a focus on children, with initiatives that would introduce Universal Pre-K, higher public school teacher’s salaries and bring back the expanded Child Tax Credit.

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As part of the American Rescue Plan in 2021, families who fell below certain income thresholds received $3,000 for dependent children between the ages of 6 and 17, and $3,600 for children under 6. Half of that money was disbursed through monthly payments. The other half was claimed on income tax returns as a fully refundable tax credit.

A study from Columbia University found that the extra money, distributed monthly to families, reduced child poverty by more than 25%. The Center on Poverty & Social Policy also reported that the child poverty rate rose from 12.1% in December 2021 to 17% in January 2022, after the enhanced CTC payments ended.

Ten states implemented their own child tax credits after the federal program expired, Fortune reported.

New York issued a check in late 2022 or early 2023 that was between 25% to 100% of a taxpayer’s 2021 Empire State child credit or New York State earned income credit. For instance, Vermont provided families earning $125,000 or less with $1,000 per child 5 and under.

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Massachusetts turned tax deductions for dependents into refundable tax credits worth as much as $240 per child for up to two children in a household, according to Forbes.

The Center on Budget and Policy Priorities shared a list of states that have created or expanded tax credits. New Mexico offers a child tax credit of $175 per child for children under 17. New Jersey provides a tax credit of up to $500 per child for each child under the age of six. California has made it possible for families without any earnings to claim a $1,000 per child tax credit for each child under age 6.

See: Child Tax Credit and Other Incentives Return to 2019 Levels — How Much You Can Claim
Learn: Will Ending SNAP Emergency Funds Hurt Biden 2030 Anti-Hunger Goal?

Other states are looking to pass legislation for 2023 and beyond. Illinois legislators, for instance, want to introduce a child tax credit of up to $700 per child for low- and middle-income families.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.
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