State Child Tax Credit 2024: Which States Are Offering the Largest CTC This Year?

State Child Tax Credit 2024

State Child Tax Credit 2024: Well-designed child tax credits can significantly reduce child poverty for low- and middle-income families.

14 states will offer CTCs in 2024 that are specifically intended to benefit families in need, ensuring full benefits for children from low-income families.

The collective effort represents a significant investment in the future.

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Who are the states sending the largest CTCs this year?

CTCs are fully refundable in California, Colorado, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, and Oregon, while nonrefundable credits are available in Vermont, Idaho, Oklahoma, and Utah.

Minnesota, Oregon, and Utah launched new CTCs this year, while seven other states expanded their existing ones.

Arizona also added a one-time kid tax rebate that can’t be returned.

Five states—Colorado, Minnesota, New Jersey, Oregon, and Vermont—now offer refundable credits of $1,000 or more per child who qualifies. This means that the number of states offering these CTCs has hit a level that has never been seen before.

Also Read: Child Tax Credit: Guidelines for Claiming a Child on Taxes When Married and Filing Separately

All together, these programs are an investment of many billions of dollars in the health and happiness of children.

To get the most out of these credits, lawmakers should make sure they are fully refundable, get rid of the requirements that you have to show proof of income, set a maximum amount per child instead of per household, make sure that low- and middle-income families are targeted by state-specific phase-out ranges, make sure that the credits are linked to inflation, and think about offering options for early payment.

Except for the rebate in Arizona in 2023, the credit in Oregon (expiring in 2029), and the credit in New Mexico (expiring in 2022).

There are now refundable credits of $1,000 or more per qualifying child available in Colorado, Minnesota, New Jersey, Oregon, and Vermont.

Also Read: 2024 Child Tax Credit: How much and When to expect? Eligibility, How do I apply?