MINNEAPOLIS — A change for tax season means parents could get additional money for their kids. Minnesota state leaders say the average tax credit should be just over $1,200.
The child tax credit is $1,750 for anyone earning less than $29,500 per year, or $35,000 per family. But — and it’s a significant “but” — people earning more than that can also qualify; they will just get less than the $1,750. The state estimates there are 300,000 Minnesotans who will qualify.
A single parent of one child who makes up to $47,500 would still end up getting something back. For example, if Victoria Gustafson, a mother of five children who plans to apply, qualified for the full $1,750 per child credit, she would get $8,750 back in the form of a check.
For those who do qualify, this is a tax credit you will get every year as long as you still meet the income requirements and your child is under 18. Gov. Tim Walz believes this tax credit will reduce the child poverty rate in Minnesota.
“That is how we get to reducing childhood poverty in Minnesota by one-third. And if this works by the end of the year, Minnesota should have the lowest childhood poverty rates in the entire country,” Walz said.
The total cost to the state is $400 million a year.
How do you get this tax credit?
You have to file your regular tax forms — the federal 1040 and the state form — and you also have to file two additional forms. Those forms cover things such as your children’s names and Social Security numbers.
The state is advising people to consult with one of 170 free tax preparation sites for low-income people around the state. The Department of Revenue also says if you software like Turbo Tax, those forms are already built in.
As for knowing whether you qualify, They are working on getting a calculator up on their website, which would be the easiest way. They say the best way is to either call the Department of Revenue or you can consult with one of those free tax preparation sites around the state. Below are some examples of outcomes among those who have slightly higher incomes:
Income Phase Out – Child Tax Credit by WCCO – CBS Minnesota on Scribd
- In:
- Taxes
- Child Tax Credit
