Child tax credit: Utah families can receive $1,000 for children under 4 years old in 2024
Rachel Schilke
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Utah families can receive $1,000 for their children beginning January 2024 after the state enacted its first child tax credit in March.
The Beehive State was one of three states that created new Child Tax Credits in 2023. Utah offers a nonrefundable CTC, which allows taxpayers to lower their tax liability to zero but not below zero. Refundable tax credits allow taxpayers to lower their tax liability to zero but still receive a refund.
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Gov. Spencer Cox (R-UT) signed the CTC into law on March 22. The bill will take effect for a taxable year beginning on or after Jan. 1.
In Utah, families can receive $1,000 per child for children ages 1 to 3. To be eligible, filers with “married filing separately” status must earn $27,000 or less. Filers with “single filing” status must earn $43,000 or less, and filers with a “married filing jointly” status must earn $54,000 or less.
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Utah residents can also receive money through the Earned Income Tax Credit, a different program Cox expanded on March 22 as part of a larger tax cut bill. The rate, which is also nonrefundable, was expanded from 15% to 20% of the federal credit rate.
The state currently does not offer a child and dependent care tax credit. Some states, like Minnesota, offer both the CTC and the CDCTC.