Families with children living in Minnesota may get their child tax credit payments earlier under a new plan announced by Gov. Tim Walz, D-MN.
In a Wednesday news release, Gov. Walz announced that taxpayers who are qualified to receive child tax credits would be given the option to receive advance payments. This would make Minnesota the first state in the United States to offer such an option.
"The goal of this nation-leading tax credit is to lower child poverty and provide tax relief for working-class families in Minnesota. With the advance payment option, we're making it easier for families to manage their annual household budget," Walz said in a news release.
How Would the Advance Child Tax Credit Payments Work?
Under the new option, families would be allowed to receive parts of the following year's child tax credit in three installments---all of which will be sent in the second half of 2025. Those advance payments would be on top of a full child tax credit for the current filing year. The rest of the 2025 child tax credit will then be applied to the tax return in the following year.
Prior to that, tax filers had to wait until the following April to receive their child tax credit payments.
Walz noted that the new option aims to keep children out of poverty and provide their families with financial freedom. Families who qualify for child tax credits can receive $1,750 for each qualifying child.
There were no limits on the number of children claimed. That said, the sum will decrease for individuals who are earning more than $31,090 and couples filing jointly over $36,880, per KSTP.
Which States Offer Child Tax Credits?
Apart from Minnesota, 15 other states offer child tax credits as of October 2024. Of those, only 12 states are offering refundable child tax credits.
- Arizona: $100 per dependent child under the age of 17
- California: $1,117 for each qualifying dependent child under the age of 6.
- Colorado: up to $3,200 for each qualifying dependent under the age of 16
- Idaho: $205 for each dependent child under 17
- Illinois: 20% of the Earned Income Tax Credit for each dependent under 12
- Maine: $300 per dependent child under 17
- Maryland: $500 for each dependent child under 17. The child must have a disability.
- Massachusetts: $180 for each child under 12
- New Jersey: $500 for each dependent child under 6
- New Mexico: $75 to $175 per dependent child under 17
- New York: 33% of the federal child tax credit or $100 times the number of qualifying children under the age of 16
- Oklahoma: 5% of the federal child tax credit for each household
- Oregon: $1,000 per dependent child under 5
- Utah: $100 for each dependent child aged 1 to 3
- Vermont: $1,000 for each dependent child under the age of 5
