Podcast
Questions and Answers
What is the primary purpose of the child tax credit?
What is the primary purpose of the child tax credit?
Which act temporarily expanded the federal child tax credit for the 2021 tax year?
Which act temporarily expanded the federal child tax credit for the 2021 tax year?
How much was the federal child tax credit increased to in 2017?
How much was the federal child tax credit increased to in 2017?
What was the refundable portion of the child tax credit called after it was made refundable in 2001?
What was the refundable portion of the child tax credit called after it was made refundable in 2001?
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What income threshold is used to phase out the expanded benefit of the child tax credit for single filers under ARPA?
What income threshold is used to phase out the expanded benefit of the child tax credit for single filers under ARPA?
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Which tax year did the federal child tax credit revert to previous payment levels after the expansion?
Which tax year did the federal child tax credit revert to previous payment levels after the expansion?
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As of November 22, 2024, how many states have enacted a child tax credit in addition to the federal credit?
As of November 22, 2024, how many states have enacted a child tax credit in addition to the federal credit?
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Which of the following was true about the federal child tax credit established in 1997?
Which of the following was true about the federal child tax credit established in 1997?
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What is the income limit for families to qualify for the child tax credit in Oklahoma?
What is the income limit for families to qualify for the child tax credit in Oklahoma?
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Which state restricts its child tax credit eligibility to families earning $6,000 or less per year?
Which state restricts its child tax credit eligibility to families earning $6,000 or less per year?
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In which state are qualifying children required to be under age 6 to receive the child tax credit?
In which state are qualifying children required to be under age 6 to receive the child tax credit?
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Which states have introduced legislation to create state-level child tax credits since 2019?
Which states have introduced legislation to create state-level child tax credits since 2019?
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Which state had a one-time child tax rebate that expired in 2022?
Which state had a one-time child tax rebate that expired in 2022?
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What is the main purpose of child tax credits in the states mentioned?
What is the main purpose of child tax credits in the states mentioned?
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Which state did not implement its child tax credit due to lack of voter approval on a funding resolution?
Which state did not implement its child tax credit due to lack of voter approval on a funding resolution?
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Flashcards
State Child Tax Credit
State Child Tax Credit
A state-level tax break for families with children. These credits can reduce the amount of state income tax owed.
State Child Tax Credit Limit
State Child Tax Credit Limit
The amount of money a family receives from the state child tax credit can vary. Some states have a fixed limit, while others have income-based limitations.
State Child Tax Credit Age Restrictions
State Child Tax Credit Age Restrictions
Not every child qualifies. Some states have age restrictions for children to be eligible for the state child tax credit.
State Child Tax Credit Income Requirements
State Child Tax Credit Income Requirements
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Other State Child Tax Credit Eligibility Requirements
Other State Child Tax Credit Eligibility Requirements
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Claiming Both Federal and State Child Tax Credits
Claiming Both Federal and State Child Tax Credits
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Growing Trend in State Child Tax Credit
Growing Trend in State Child Tax Credit
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Purpose of State Child Tax Credits
Purpose of State Child Tax Credits
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Child Tax Credit
Child Tax Credit
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Federal Child Tax Credit
Federal Child Tax Credit
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1997
1997
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Original Federal Child Tax Credit
Original Federal Child Tax Credit
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Coordinate Child Tax Credit and EITC (Earned Income Tax Credit)
Coordinate Child Tax Credit and EITC (Earned Income Tax Credit)
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The Child tax credit was increased to $1,000 per child in 2012.
The Child tax credit was increased to $1,000 per child in 2012.
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The Child tax credit was doubled to $2,000 per child in 2017.
The Child tax credit was doubled to $2,000 per child in 2017.
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The ARPA temporarily expanded the Child Tax Credit in 2021.
The ARPA temporarily expanded the Child Tax Credit in 2021.
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Study Notes
Child Tax Credit Overview
- Federal and 16 state governments offer child tax credits to boost family economic security, particularly for lower- to middle-income families.
- Tax credit amounts depend on income level, marital status, and number of dependents.
- The federal child tax credit is estimated to lift nearly 2 million children out of poverty annually.
Federal Child Tax Credit
- Originated with the 1997 Taxpayer Relief Act.
- Initially, a nonrefundable credit of $400 per child under 17.
- Increased to $500 per child in 1998
- Made refundable in 2001 to align with the earned income tax credit (additional child tax credit).
- 2012 Act: Raised the credit value to $1,000 and increased the income threshold to match the earned income tax credit.
- 2017 Act: Doubled the credit to $2,000 and introduced phase-out thresholds for higher earners.
- Temporary measure, expires Dec. 31, 2025.
- 2021 ARPA temporarily expanded the child tax credit to $3,600 for children under 6 and $3,000 for children up to 17.
- Benefit levels were reduced for higher-income earners ($75,000+ single, $150,000+ married couples)
- Payments were made in monthly installments for the first six months.
- Credit reverted to annual payment schedule in 2022.
State-Level Child Tax Credits
- 16 states offer their own child tax credits in addition to federal benefits.
- 12 of these states offer refundable credits (California, Colorado, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon, and Vermont).
- Arizona, California, Colorado, Idaho, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, Utah, and Vermont set fixed limits on tax credits.
- Some states have age restrictions and/or income limits for the credits.
- For example, Oklahoma limits the child tax credit for families earning under $100,000 per year.
- Some states, like Colorado, Illinois and New York, have age restrictions for eligible children.
- Maryland's credit is specifically for low-income families ($6,000 or less yearly) and families with disabled children.
- All eight states allow filers to take both state and federal child tax credits.
- States have introduced legislation for new or expanded child tax credits since 2019.
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Description
This quiz provides an overview of the Child Tax Credit, detailing its history and significance in reducing child poverty. Learn about the changes made over the years, including the amounts, eligibility criteria, and legislative acts that have shaped the program. Understanding this credit can help families navigate their financial options.
