The federal child tax credits may not be the only credit you qualify for, depending on where you live. There are currently nine states that provide state-based child tax credits that can further reduce the amount you may pay or receive come tax time:
- New Mexico
- New York
Of these nine states, only six provide parents and guardians with a refundable child tax credit. The three states that do not are Idaho, Maine, and Oklahoma.
A refundable tax credit can provide a larger tax refund than the total amount of taxes you’ve paid during the tax year. Non-refundable tax credits have a capped value equal to your tax liability.
The amount of these credits and their program requirements vary from state to state.
- California: Qualifying California residents can take advantage of the Young Child Tax Credit if they qualify for the Earned Income Tax Credit and have a child younger than 6. This tax credit is refundable and provides $1,000 to qualifying families with earnings that do not exceed $25,000. In addition, a reduced credit is available for families with incomes between $25,000 and $30,000.
- Colorado: Colorado plans to begin issuing a Child Tax Credit to qualifying families starting in January of 2023. This credit is refundable in Colorado, and the amount of the credit will be between 5 and 30% of the federal credit for every qualifying child. However, Colorado only plans to issue a Child Tax Credit to families with children under 6 years of age.
- Idaho: While Idaho’s Child Tax Credit is nonrefundable, it provides families with $205 in tax relief for each qualifying child. To qualify, married couples filing jointly may not have an income exceeding $110,000 on their joint return. Married couples filing separately cannot have incomes that exceed $55,000 on their return. Finally, unmarried individuals cannot have an income over $75,000. Furthermore, the child must be younger than 17 years of age.
- Maine: Maine issues a nonrefundable tax credit between 5 and 12% of the federal Child Tax Credit to families with dependent children younger than 18.
- Maryland: Maryland families can receive a $500 refundable tax credit per qualifying child. To qualify, a family’s federal adjusted gross income must be $6,000 or less, the child must be younger than the age of 17, and the child must be disabled.
- Massachusetts: Massachusetts provides a Household Dependent Tax Credit based on the number of dependents in a household. For one dependent, the credit is capped at $180. A $360 credit is available for families with two or more dependents. Children younger than age 12, adults 65 years of age or older, and disabled persons of any age are considered dependents.
- New Mexico: If a family has a qualifying minor child under the federal income tax guidelines, they can receive a refundable tax credit of $75 to $175 per child. The amount a family receives is based on their income.
- New York: Families with children 4 years of age or older may qualify for the Empire State Child Tax Credit. This credit provides the greater of $100 for each qualifying child or 33% of the federal Child Tax Credit.
Oklahoma: Oklahoma families can receive a nonrefundable Child Tax Credit equal to 5% of the federal Child Tax Credit. Eligibility is based on income, and married couples filing jointly cannot have an income higher than $100,000.