Child Tax Credit in the United States: These are the States that Provide the Greatest Economic Benefit

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The Child Tax Credit (CTC) is a financial assistance program that greatly benefits American families with qualified children for this economic subsidy, established as part of the Taxpayer Relief Act of 1997.

Several states provide this aid to low-income households as a palliative to situations of high financial demand and to facilitate the economic security of children. It is estimated that the federal tax credit has lifted nearly 2 million children out of poverty each year.

The amount to be credited varies, not only depending on the financial income of the parents or marital status but also on the number of children and the city of residence.

In this regard, a total of 15 states in the U.S. continue the monetary collaboration of the Child Tax Credit in 2024, and they are as follows: Arizona, California, Colorado, Idaho, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oklahoma, Oregon, Utah, and Vermont.

However, only eleven of the states mentioned above have made the CTC refundable, with the exception of Arizona, Idaho, Oklahoma, and Utah.

Eligibility requirements vary from one area to another, for example, Oklahoma limits the child tax credit to families earning less than $100,000 dollars a year, while Colorado and New York have age restrictions for qualifying children (under 6 years old in Colorado, at least 4 years old in New York).

Regarding other differential details, Maryland’s CTC is specifically aimed at the lowest-income families, restricts eligibility to those earning $6,000 dollars or less per year, and also limits admission to families with disabled children.

According to the National Conference of State Legislatures (NCSL) Foundation website, the five states that stand out within the highest figures in monetary assistance are as follows, in ascending order.

CTC Amount in California: The figure rises to $1,000 dollars for each qualified family with incomes below $25,000 dollars.

It is valid to clarify that the credit is only applicable to households with children under 6 years old who qualify for the California Earned Income Tax Credit. On the other hand, families that qualify and have incomes between $25,000 and $30,000 dollars will receive a reduced credit.

CTC Amount in Oregon: The amount of the tax credit is up to $1,000 dollars per qualified child under 5 years of age. Families with incomes below $25,000 dollars are eligible for the grant, while those with earnings of more than $30,000 dollars are not applicable for financial assistance.

CTC Amount in Vermont: This state offers up to $1,000 dollars per child under 5 years old, and in such case, families with incomes below $125,000 dollars will be applicable.

The tax credit will be phased out at a rate of $20 for every $1,000 earned above the $125,000 threshold.

CTC Amount in Colorado: The tax credit is granted for an amount of $1,200 dollars per child, but this figure may be subject to other variables such as the income of the parent or guardian or marital status for tax filing purposes. Likewise, the aid is only provided to children under 6 years old.

In general, the figure of $1,200 dollars is the estimate for those households with incomes below $25,000 dollars. The credit is $600 for taxpayers with earnings between $25,000 and $50,000 dollars; and a partial of $200 is established for taxpayers with incomes between $50,000 and $75,000 dollars.

CTC Amount in Minnesota: The economic aid defines a maximum of up to $1,750 dollars per qualified child. The credit gradually phases out for individual monetary entries above $29,500 dollars, and $35,000 dollars for those who file jointly.

All the aforementioned states offer refundable tax credits. For more information regarding the general description of the Child Tax Credit, you can access this link and learn specific details of the fifteen states that provide credits to qualifying families.

Although state child tax credits are an effective strategy to improve and facilitate family economic stability, official sources indicate that recent legislative trends suggest that states are increasingly considering this economic subsidy, often with bipartisan support.

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Haymé Santoya Rodríguez

Licenciada en Historia del Arte por la Universidad de Oriente. Investigadora en Casa de la Nacionalidad Cubana. Se especializa en estudios sobre artes visuales y cine cubano. Ha realizado trabajos de curaduría de arte así como conferencias, presentaciones de libros, conversatorios y disertaciones sobre su especialización. Se ha vinculado al periodismo digital desde el 2018.