Minnesota Child Tax Credit: Eligible Families To Get $1,750 in 2024

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After the end of the federal monthly child tax credit, several states came up with their own version of the credit. Minnesota is one such state, offering eligible families up to $1,750 in Minnesota child tax credit.

Minnesota child tax credit: how much money to expect  

Under Minnesota’s child tax credit program, eligible families will get up to $1,750 in 2024. This new refundable Minnesota child tax credit of $1,750 per child will go to households with a child under 18 years and income less than $29,500 (below $35,000 for married filers).

There is no limit to the number of children in a household who could qualify for the rebate. The state is estimated to use about $900 million to pay for the credit over the next two years. The credit amount is fully refundable, i.e., even if a person owes less in taxes than the credit, the difference will accrue to the taxpayer.

Although the child tax credit program has been designed to cover more families, it gives more money to those who need it the most. It means that not all families will receive the full credit of $1,750. The credit amount will be reduced if the earnings go above the threshold.

Families could get more in child tax credit than under the current working family credits. For instance, a couple with a child under 17 years old and earning $35,000 could get about $1,000 more than they could get in working family credits. Similarly, a family with four children and an annual income of $90,000 could get around $750 total in a child tax credit.

The credit also works well for single-parent households. For instance, a single parent of four with an annual income of $40,000 could get $4,200 more than current tax credits.

Who qualifies for the credit?

According to the Institute on Taxation and Economy Policy, the credit amount and the income brackets are indexed to inflation. The child tax credit from Minnesota is available to those who file with an individual taxpayer identification number (ITIN) or Social Security number.

The following residents won’t be eligible for the Minnesota child tax credit:

  • If they are a full-year nonresident.
  • If they are facing a 2- or 10-year IRS ban on claiming the federal earned income tax credit.
  • Those claimed as a dependent or qualifying child of another person or have a filing status of “Married Filing Separately.”

According to the Minnesota Department of Revenue, households need to complete “Schedule M1CWFC, Minnesota Child and Working Family Credits” to check if they qualify for the child tax credit. The schedule will be available before the 2024 filing season, the department says.

According to the institute, the child tax credit can help counter some “deficiencies in the federal CTC,” as well as, “lead to meaningful reductions in child poverty and deep poverty.”

Visit the state Department of Revenue website for more information on the Minnesota child tax credit.