Tax season 2023: Here are nine states where families can apply for tax credits worth up to $3,400
Asher Notheis
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Tax season 2023 is starting to wrap up, but there is still time for taxpayers, especially those with children, to take advantage of credits when filing their taxes.
The increases made to the federal child tax credits in response to the coronavirus pandemic have expired for the 2022 tax year, but that does not mean state residents cannot partake in similar tax credits offered in their state this year. Each of these credits corresponds to the states that taxpayers are residents of and can be used to help reduce the taxes they may owe.
TAX SEASON 2023: WASHINGTON RESIDENTS CAN APPLY FOR CREDIT WORTH UP TO $1,200
California
The California Earned Income Tax Credit is intended for low-income taxpayers and can provide up to $3,417. To qualify, applicants must have made at least $1 but no more than $30,000 in the year they are filing for, be at least 18 years old or have a qualifying child, and have lived in the state for more than half of the year they are filing for, among other qualifications.
A qualifying applicant with no children will get up to $275 from this credit, while those with three children or more will get up to $3,417.
Colorado
To qualify for the state’s Child Tax Credit, a Colorado resident must either be a single filer with a federal adjusted gross income of up to $75,000 or a joint filer with a federal adjusted gross income of up to $85,000. Additionally, the filer must have a child and/or a dependent under the age of 6 by the end of 2022.
The amount recipients will receive from this credit will depend on their income and filing status. The credit is also refundable, meaning recipients can receive the credit as a refund even if they owe no state income tax.
Idaho
Families in the Gem State can use a state Child Tax Rebate to receive a $205 child tax credit for every child they have. This credit is nonrefundable, so however much the credit is worth is deducted from the amount of tax they may owe, according to the state legislature.
This offer was first made available on Jan. 1, 2018, and is set to expire on Jan. 1, 2026.
Maine
A resident of Maine can receive a credit of $300 for each qualifying child and/or dependent the taxpayer has. This credit will go down by $7.50 for every $1,000 of adjusted gross income that goes above $400,000 for joint returns and $200,000 for all other cases, according to the Maine legislature.
Maryland
Taxpayers who are making $15,000 or less annually can claim a tax credit that will give them $500 for every child under the age of 6 they have. This legislation was signed into law by Gov. Wes Moore (D) on Tuesday.
“This is a historic tax cut for working families in Maryland,” Moore said when signing the legislation along with another bill. “It attacks child poverty at its root causes and together, these two programs will lift at least 34,000 Maryland children to the next rung of the economic ladder.”
New Jersey
The state’s Child Tax Credit will provide anywhere between $100-$500 per child, depending on the filer’s annual income. Additionally, a child must be 5 or younger by the end of the tax year the filer is filing for.
Taxpayers making $30,000 or less will get $500 per child with this credit, with the credit decreasing as the filer’s income increases. For filers making between $60,000 and $80,000 annually, they will only get a $100 credit per child, according to New Jersey’s Department of Taxation.
New York
Families in New York can take advantage of the Empire State Child Credit, which will give the filers either 33% of the federal child tax credit or $100 multiplied by the number of qualifying children, whichever is greater, according to the state’s Department of Taxation and Finance.
To be eligible, an applicant must have been either a full-year resident or married to a full-year resident of the state and have at least one qualifying child who is at least 4 years old but no older than 17. Additionally, a filer must either have a federal child tax credit, additional child tax credit or credit for other dependents, or have their state-adjusted gross income be no more than $75,000 for single filers, $110,000 for married filers, or $55,000 for married filers filing separately.
New Mexico
In March 2022, Gov. Michelle Lujan Grisham (D) signed House Bill 163, which included a new refundable child tax credit of up to $175 per child, saving families $74 million every year, according to a press release.
“New Mexico’s Child Income Tax Credit will provide much-needed relief to hardworking parents doing their best to raise their children in these trying times,” state Rep. Micaela Lara Cadena said.
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Vermont
This child tax credit, which was signed into law in May last year, will send $1,000 payments out to recipients for every child 5 and younger and are making $125,000 or less. Families making more than $125,000 can still claim this credit, though they will lose $20 for every $1,000 more they earn over $125,000, with the limit being $175,000, according to the state legislature.