Some Minnesota families could be eligible for a new child tax credit of up to $1,750 this year. The new child tax credit from Minnesota could help almost 300,000 lower-income households save thousands of dollars this tax season. Households need to file their state tax return to claim the credit.
New child tax credit from Minnesota: how it could help
Last year, state lawmakers approved the new $900 million child tax credit program to help lower-income households. Now, officials are encouraging households to benefit from the new child tax credit from Minnesota by filing their taxes.
On Monday, revenue officials joined Gov. Tim Walz and Lt. Gov. Peggy Flanagan to discuss the new child tax credit program. The state leaders said the new program has the potential to reduce the state’s child poverty rate by a third, provided all 300,000 families eligible for the credit claim it.
“And if this works by the end of the year, Minnesota should have the lowest childhood poverty rates in the entire country,” Gov. Walz said. The program is expected to cover about 513,000 children across the state.
Further, revenue officials said about 48,000 filers took advantage of the credit in the first week of the tax filing season. Also, officials said they plan to campaign around the state to spread awareness of this new child tax credit program.
Gov. Walz informed that those who qualify for the credit this year will receive it every year, provided they meet the income requirements, and their child is under 18 years old. The new child tax credit from Minnesota is estimated to cost the state about $400 million a year.
According to the Department of Revenue, it is developing an online calculator to help taxpayers determine if they qualify for the credit.
Who will get it and how to claim it
Individual taxpayers with annual income less than $29,500 per year (below $35,000 for joint filers) will get the full credit of $1,750 per child. The credit amount will be reduced for those earning more than the threshold income. There is no limit on the number of children in a home who could qualify for the credit.
To claim the new child tax credit, households need to file their regular tax forms, including the federal 1040 and the state form, as well as two additional forms. These forms include details of taxpayers’ children, such as their names and Social Security numbers. According to the department, required forms are already built-in in software like Turbo Tax.
Minnesota’s Department of Revenue recommends taxpayers use the help of the free tax preparation sites for low-income people around the state. More than 170 free tax preparation sites are now open across the state to help low-income and property tax filers through April 15. Free electronic filing is also available to taxpayers with AGI (adjusted gross income) of $79,000 or less.
Visit the Department of Revenue website for more information on the new child tax credit program.