Congress did not renew the enhanced child tax credit, ending on December 31, 2021. Millions of people were left without assistance as the final cheques were sent out on the 15th of the month. For children over the age of 6, the extended child tax credit increased from $2,000 to $3,000 per kid under the American Rescue Plan, and for kids under the age of six, it grew from $2,000 to $3,600 per child.
Additionally, it raised the eligibility age from 16 to 17 and permitted families to receive monthly $250 checks or $300 per kid instead of receiving the credit as a tax refund.
Child Poverty Rate Fallen
The initiative helped about 35 million families, and the Columbia Center on Poverty & Social Policy reports that since July 2021, once the first round of monthly checks was distributed, the U.S. child poverty rate has fallen from 15.8% to 11.9%, the lowest rate since records began to be kept in the 1960s.
But as per the Institute of Economics and Taxation, qualifying families in some states can still receive some form of the enhanced child tax credit (ITEP). Here are some of the benefits that certain states are providing:
California
Families with children under six who qualify for the CalEITC, the state’s Earned Income Tax Credit, may also be eligible for the Young Child Tax Credit, which offers up to $1,000 to families regardless of their earnings status. Each year, the threshold will be changed to reflect inflation. This credit will last forever.
Colorado
For kids under the age of six, Colorado grants a refundable, income-restricted credit of $600. In January 2023, the benefit will be made available to eligible families. This credit will last forever.
Connecticut
Connecticut offered one-time tax breaks totaling $250 for each kid under 19. Families must make up to or less than the middle class.
Idaho
Nonrefundable dependent credits totaling $205 were added to Idaho’s tax laws in 2018. It will run out in January 2026. Children below the age of Seventeen are permitted.
Massachusetts
In Massachusetts, the state’s exemption for household dependents was replaced with the household dependent tax credit. The current amount is $180 for each dependent & $360 for two or more.
Dependents must be either younger than 12 or older than 65. Taxpayers may choose the dependent care tax credit or this credit, but not both. Adding to the state’s specific dependent exemption, certain credits are offered. This credit will last forever.
New Jersey
The credit limit in New Jersey is $500 for every child below the age of six. This credit will last forever.
North Mexico
For every child below the age of 17, New Mexico grants a max tax credit of $175. This credit is due to finish on January 1, 2027. For every kid under the age of 17 and older than four, New York offers a refundable credit worth $330, or 33% of the federal credit, whichever is greater. This credit will last forever.
Providence, RI
Rhode Island provided low- & middle-income households in their states with one-time tax rebates of $250 for each kid (up to three children) under 19 years old.
Vermont
The maximum Vermont child tax credit is $1,000 for children below six. This credit will last forever, reports Gobankingrates.
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