TWELVE states add their own child tax credits as federal payments fall $1,600 this year.
The additional tax credits are valued at between $100 and $1,000 and are intended to support families who are facing higher costs due to inflation.
The Federal Child Tax Credit (CTC) was cut back to $2,000 per child this year after temporarily increasing the payment amount to $3,600 due to the pandemic.
States with supplemental child tax credits include California, Colorado, Connecticut, Idaho, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oklahoma, and Vermont.
The total amount you earn from these credits depends on your income level, marital status, and the number of dependent children in your household.
Nationwide, the child allowance is intended to lift around two million children out of poverty every year.
Read our Child Tax Allowance live blog for the latest news and updates..
Colorado offers extra money
In Colorado, the legislature has authorized an additional tax credit on top of the federal CTC.
However, only families with children under the age of six are entitled to claim.
Beginning in January, it will be 5 to 30 percent of the federal credit for each qualifying child.
California offers $1,000 boost
The California Child Tax Credit offers $1,000 to any eligible family with an income of less than $25,000.
If you make between $25,000 and $30,000 you can still get some money, but it will be less than $1,000.
The child tax credit is also fully refundable.
The federal CTC stated continued
In 2017, the tax credit doubled to $2,000, capping the reimbursable amount at up to $1,400 per child.
The pandemic sparked additional support for American families as the child tax credit was expanded to $3,600 per child under the age of six and $3,000 per child up to the age of 17.
Still, many states introduced their own parental support credits before and after the pandemic.
Nine of the states (California, Colorado, Connecticut, Maryland, Massachusetts, New Jersey, New Mexico, New York, and Vermont) have elected to make tax credits recoverable for their children.
The federal CTC explained
The federal child tax credit was first created under the Taxpayer Relief Act of 1997.
It works so that recipients can deduct the loan amount from their federal income taxes owed.
Initially, the tax credit was $400 per child under age 17, but in 1998 the credit was increased to $500 per child under age 17.
However, in 2001 the tax credit was increased and became refundable to coordinate with the earned income tax credit.
By 2012, the loan had changed again: it was now worth $1,000 and the income limit went up.
https://www.the-sun.com/money/7587573/ctc-child-tax-credit-2022-direct-payment-date-live/ 2023 Child Tax Credit – 12 states look at ‘top-up’ checks as federal payments fall $1,600 – see if your region is doing so